NY Priv Hous Fin L § 577 (2021)
2021 New York Laws PVH - Private Housing Finance Article 11 - Housing Development Fund Companies 577 - Tax Exemptions.

§  577.  Tax  exemptions.  1.  (a)  The  local legislative body of any municipality in which a project of a housing development fund company is or is to be located may exempt the real property in  such  project  from local and municipal taxes including school taxes, other than assessments for local improvements, to the extent of all or part of the value of the property  included  in  the  completed  project. The tax exemption shall operate and continue for such period as may be provided  by  such  local legislative body, but in no event for a period of more than forty years, commencing  in each instance from the date on which the benefits of such exemption first became available and effective.  (b) Where a municipality acts on behalf of another taxing jurisdiction in assessing real property for the purpose of taxation,  or  in  levying taxes  therefor,  the  action  of  the  local  legislative  body of such municipality in granting such tax exemption shall  have  the  effect  of exempting  the  real  property  in such project from local and municipal taxes  including  school  taxes,  other  than  assessments   for   local improvements, levied by or in behalf of both such taxing jurisdictions.  (c)  The  local  legislative  body  of  any  municipality may grant an exemption under paragraph (a) of this subdivision to the  real  property of  a  project  of  any  entity to which it is authorized to make a loan pursuant to section five hundred seventy-six-c of this article.  (d) In a city having a population of one million or more,  within  one hundred  twenty  days following receipt of a written submission from the supervising agency requesting a tax exemption pursuant to paragraph  (a) of  this  subdivision  for the real property containing the project of a housing development fund  company,  the  local  legislative  body  shall approve  or disapprove by resolution the requested tax exemption. If the local legislative body fails to take  such  action  within  one  hundred twenty  days  following  receipt  of  such  written submission from such supervising agency, then the tax exemption requested by the  supervising agency  shall  be  deemed  approved  pursuant  to  paragraph (a) of this subdivision.   2. Any inconsistent provision of law to the contrary  notwithstanding, mortgages of a housing development fund company shall be exempt from the mortgage recording taxes imposed by article eleven of the tax law.   2-a.   Notwithstanding  any  inconsistent  provision  of  law  to  the contrary, a project of a housing development fund  company  incorporated pursuant to the not-for-profit corporation law and this article shall be exempt  from  the  sales  and compensating use taxes imposed pursuant to article twenty-eight or twenty-nine of the tax law, provided  that  such housing development fund company has entered into a regulatory agreement with   respect   to   the  provision  of  affordable  housing  with  the commissioner, a state agency or authority as defined  in  this  chapter, the New York city department of housing preservation and development, or the  New  York  city  housing  development  corporation,  and  such  tax exemption shall continue only so long as such agreement is in force  and effect.   3.  (a)  Notwithstanding the provisions of subdivision one hereof, the real property of a state urban development corporation project acquired, owned, constructed,  managed  or  operated  by  a  company  incorporated pursuant to the not-for-profit corporation law and this article shall be entitled to all the benefits provided by section four hundred twenty-two of  the  real  property  tax  law.  The  real  property of a state urban development corporation project, other than a  state  urban  development corporation project acquired, owned, constructed, managed or operated by a  company  incorporated  pursuant to the not-for-profit corporation law and this article, shall be exempt from all local  and  municipal  taxes, other  than  assessments  for  local  improvements, to the extent of the  value of the property included in such project as represents an increase over the  assessed  valuation  of  the  real  property,  both  land  and improvements, acquired for the project on the date of its acquisition by the  housing  development  fund company. The tax exemption shall operate and continue so long as the mortgage loans of such  housing  development fund  company are outstanding, but in no event for a period of more than forty years, commencing in each instance from the date when such housing development fund company first acquired such property. If a state  urban development corporation project qualifying for tax exemption pursuant to this  subdivision  is  sold,  with  the approval of the commissioner, to another housing development fund company, such successor  company  shall be entitled to all the benefits of this subdivision.  (b)  In the event a state urban development corporation project is not subject to a state-aided, federally-aided or municipally-aided mortgage, as defined herein, it shall receive  the  tax  exemption  granted  under paragraph  (a)  of  this  subdivision  only  if  it  has  entered into a regulatory agreement with the  commissioner  pursuant  to  section  five hundred  seventy-six  of  this  article,  and  such  tax exemption shall continue only so long as such agreement is in force and effect.