NY Priv Hous Fin L § 125 (2021)
2021 New York Laws PVH - Private Housing Finance Article 5 - Redevelopment Companies 125 - Tax Exemptions.

§  125.  Tax  exemptions.  1.  (a)  The  local legislative body of any municipality in which a project of such company is or is to  be  located may  by  contract  agree  with  any redevelopment company to exempt from local  and  municipal  taxes,   other   than   assessments   for   local improvements,  all or part of the value of the property included in such project which represents an increase over the assessed valuation of  the real  property,  both land and improvements, acquired for the project at the  time  of  its  acquisition  by  the  redevelopment  company   which originally  undertook  the project and for such definite period of years as such contract may provide, except that where the real property  in  a project   was   acquired  for  purposes  of  rehabilitation,  the  local legislative body either may utilize the foregoing formula or  may  agree to  exempt  from  such  taxes  all  or part of the value of the property included in such project on condition that the amount of such  taxes  to be paid shall not be less than ten per centum of the annual shelter rent or  carrying  charges  of such rehabilitation project. The tax exemption shall  not  operate  for  a  period  of  more  than  twenty-five  years, commencing  in each instance from the date on which the benefits of such exemption first become available and effective; provided, however,  that with  respect  to  a  project  either acquired by a mutual redevelopment company  pursuant  to  section  one  hundred  twenty-six  or  owned  and continuing  to  be  owned  by a mutual redevelopment company which would require substantial increases in carrying charges after  the  period  of tax  exemption is ended unless relief is provided, the local legislative body may contract with such mutual redevelopment company to extend  such tax  exemption  for not more than twenty-five additional years at a rate of tax exemption not to exceed an average of  fifty  per  centum  during such additional period, provided that the tax exemption during the first two  years  of  such additional period shall continue at the rate of the tax exemption of such project immediately preceding the  termination  of the   initial  twenty-five  year  period  and  that  the  tax  exemption thereafter shall be decreased in equal biennial decrements, the first of which shall occur  immediately  following  such  two  year  period,  and provided  that  such  contract  shall  contain  provisions  as to income limitations relating to admission and continued occupancy of the project and provisions as to  rental  surcharges  to  the  same  effect  as  are contained   in  subdivisions  two,  three,  four  and  five  of  section thirty-one, except that in the case of projects owned and continuing  to be  owned  by  mutual redevelopment companies, persons or families whose probable aggregate annual income does not exceed the median  income  for families  of  the  same size in the same metropolitan area shall also be eligible for admission to the project  on  the  understanding  that  any person  or  family  becoming  eligible  by  reason hereof whose probable aggregate annual income at the time of admission or during the period of occupancy exceeds, the greater of (i) the median income for such persons or families for the metropolitan statistical area in which  the  project is   located,  or  if  a  project  is  located  outside  a  metropolitan statistical area, the median income for such persons or families for the county in which the project is located, as most recently  determined  by the  United States department of housing and urban development, in which case any person or family becoming eligible for  admission  pursuant  to this  subparagraph  shall  pay,  from  the  time  of admission, a rental surcharge as provided for in subdivision three of section thirty-one  of this chapter, computed on the basis of the income limitations applicable to such persons or families in the absence of this subparagraph, or (ii) six  times  the  rental shall be liable for payment of rental surcharges hereunder computed on the basis of such ratio, except that in  the  case of  families  with three or more dependents such ratio shall be seven to  one; and provided further that with respect to a project which is or  is to  be  permanently  financed  by  a  federally-aided  mortgage, the tax exemption shall operate for so long as such mortgage is outstanding, 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 become  available  and effective; and provided further that with respect to a project which is or is to be permanently financed by  a  loan  from the  New  York  city  housing development corporation, the tax exemption shall operate for so long as such loan is outstanding.  (a-1) Where the redevelopment contract between a mutual  redevelopment company  and  the  local  legislative  body  under which the initial tax exemption was  granted  contains  provisions  different  from  those  in subdivisions  two,  three,  four  and five of section thirty-one of this chapter, then a contract to extend the tax exemption for  an  additional period  under  paragraph  (a) of this subdivision may provide that those provisions of the redevelopment contract shall continue to  apply  (with such   modifications   as   the   supervising   agency  of  such  mutual redevelopment company shall approve) during the additional period as  if such additional period were the initial period of tax exemption for such mutual   redevelopment   company,   notwithstanding  the  provisions  of paragraph (a) of this subdivision to the contrary.  (a-2) Any inconsistent provision of law  notwithstanding,  in  a  city having  a  population  of one million or more, where a local legislative body has acted to extend the tax exemption  of  a  mutual  redevelopment company  for  an  additional  twenty-five  years  after  the initial tax exemption period has expired, the local legislative body  may  authorize tax   exemption  during  the  final  eleven  years  of  such  additional twenty-five year exemption period under this subdivision, provided  that the  amount  of  taxes  to  be  paid by the mutual redevelopment company during the final  eleven  years  of  such  additional  twenty-five  year exemption  period  shall not be less than an amount equal to the greater of (i) ten per centum of the annual rent  or  carrying  charges  of  the project  minus  utilities for the residential portion of the project, or (ii) the taxes payable by such company for the  residential  portion  of the  project  in the fourteenth year of such additional twenty-five year exemption period, and may further extend the period of  such  additional twenty-five year exemption for up to a total period of thirty-five years from  the date of expiration of the initial tax exemption, provided that the amount of taxes to be  paid  by  the  mutual  redevelopment  company during  any  such  extension  beyond  such  additional  twenty-five year exemption period shall not be less than an amount equal to  the  greater of  (i)  ten  per  centum  of the annual rent or carrying charges of the project minus utilities for the residential portion of the  project,  or (ii)  the  taxes  payable by such company for the residential portion of the project in the fourteenth year of such additional  twenty-five  year exemption period.  (a-3)  Any  inconsistent  provision  of law notwithstanding, the local legislative body  of  any  municipality  may  grant  an  additional  tax exemption  period  for  any  project,  other  than a project by a mutual redevelopment company, that received a tax exemption under paragraph (a) of this subdivision, upon the expiration of the  tax  exemption  period. The additional tax exemption period may be for a term of forty years, or until  such  time  as  the  project  is  no  longer  operated  under the restrictions and for the purposes set forth in this  article,  whichever is  sooner. Unless otherwise approved by the local legislative body, the amount of taxes paid by the redevelopment company during such additional tax exemption period shall not be less than (i)  the  taxes  payable  by such  company  in  accordance with the resolution for such redevelopment  company that was approved by the local legislative body and that was  in effect  immediately prior to the expiration of the initial tax exemption period, or (ii) if there is no such resolution,  the  taxes  payable  by such  company  in  accordance  with the exemption authorized pursuant to this article immediately prior to the  expiration  of  the  initial  tax exemption period.  (a-4)  Any  inconsistent  provision  of law notwithstanding, in a city having a population of one million or more, where  a  local  legislative body  has  acted  to  extend the tax exemption of a mutual redevelopment company for the maximum period provided for in paragraph (a-2)  of  this subdivision,  the  local  legislative  body  may grant an additional tax exemption for a period of up to fifty years, provided that the amount of taxes to be paid during any such period of tax exemption  shall  be  not less  than  an  amount equal to the greater of (i) ten per centum of the annual rent or carrying charges of the project minus utilities  for  the residential  portion  of  the project, or (ii) the taxes payable by such company for the residential portion of the project during the  tax  year commencing  July  first,  two thousand and ending on June thirtieth, two thousand one. Such grant of an additional  tax  exemption  period  shall take  effect  upon  the expiration of the maximum period provided for in paragraph (a-2) of this subdivision.  (b) A redevelopment company which has been granted  and  has  received tax  exemption  pursuant to this section may at any time elect to pay to the municipality or other appropriate taxing jurisdiction the  total  of all accrued taxes for which exemption was granted and received, together with  interest  at  the  rate  of  five  per centum per annum. Upon such payment the tax exemption of  the  project  shall  thereupon  cease  and terminate.  (c) 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 said agreement by the local legislative body of such municipality shall have the effect of exempting the real property  in  a project from local and municipal taxes, other than assessments for local improvements, levied by or in behalf of both such taxing jurisdictions.  (d)  As  used in this subdivision the term "taxing jurisdiction" means any municipal corporation or district corporation, including any  school district  or  any  special district, having the power to levy or collect taxes and benefit assessments upon real property,  or  in  whose  behalf such taxes or benefit assessments may be levied or collected.   2. Any inconsistent provision of law notwithstanding, mortgages of any such  company  issued  to  the federal government or any instrumentality thereof, or to any municipal housing authority or other  public  housing agency or instrumentality thereof whose obligations are determined to be exempt  from  federal taxation by the federal government, or issued to a financial institution and insured or guaranteed by the  federal  housing administrator  or  any  other  instrumentality of the federal government shall be exempt from the mortgage recording  taxes  imposed  by  article eleven of the tax law.