NY Real Prop Tax L § 420-C (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 420-C - Exemption From Local Real Property Taxation of Certain Low Income Housing Accommodations in a City Having a Population of One Million or More.

§  420-c.  Exemption  from local real property taxation of certain low income housing accommodations in a  city  having  a  population  of  one million  or  more.  1.  In  a city having a population of one million or more, real property owned  by  a  corporation,  partnership  or  limited liability   company   formed   for  the  purpose  of  providing  housing accommodations for persons and families of  low  income  as  defined  in section  two  of  the  private  housing  finance  law  and used for such purpose, shall be exempt from local  real  property  taxation,  provided that  such corporation, partnership or limited liability company: (a) is organized as a non-profit housing development fund company  pursuant  to article  eleven  of  the private housing finance law, or is a non-profit housing corporation as defined in article eleven of the private  housing finance  law  which  is  not  incorporated as a housing development fund company as defined in article eleven of the private housing finance law, or is a wholly-owned subsidiary of such a company or is a partnership or limited liability company the controlling interest of which is  held  by such  a company or corporation or by a wholly owned subsidiary of such a company or by a corporation sponsored or formed by  such  a  company  or corporation;  and (b) has received a loan from a municipality, the state or the housing trust fund corporation established  pursuant  to  section forty-five-a  of  the  private  housing  finance  law  or  any successor corporation; and  (c)  enters  into  a  regulatory  agreement  with  the municipality,   the   state   or  the  housing  trust  fund  corporation established pursuant to section  forty-five-a  of  the  private  housing finance  law  or any successor corporation guaranteeing the provision of housing accommodations for persons and families of low income;  and  (d) is  a  participant  in the federal low income housing tax credit program established pursuant to section forty-two of the internal  revenue  code of  nineteen  hundred  eighty-six, as amended. Any exemption pursuant to this section shall expire upon the  expiration  or  termination  of  the regulatory agreement.   2.  An  exemption  may  be  granted pursuant to this section only upon application by the owner on a form prescribed by the commissioner or any comparable form, which application shall be accepted by the assessor  of such  city  as  provided  in  this  subdivision  and  in  the  rules and regulations promulgated pursuant to this section by  the  department  of housing  preservation  and development in such city. No such application shall be accepted by the assessor unless accompanied by a certificate of the department of housing preservation  and  development  in  such  city certifying   the  applicant's  eligibility  pursuant  to  this  section. Notwithstanding section three hundred two of this chapter, an  exemption granted pursuant to this section shall commence as of the effective date of  the  regulatory  agreement  with  the municipality, the state or the housing  trust  fund  corporation  established   pursuant   to   section forty-five-a  of  the  private  housing  finance  law  or  any successor corporation regardless of when the application  for  such  exemption  is approved.  The  department  of  housing preservation and development may promulgate rules and regulations to carry out  the  provisions  of  this section,  and  may require a reasonable filing fee in an amount provided by such rules and regulations.   3. An exemption from local real property  taxation  pursuant  to  this section  shall  be  governed  solely by subdivisions one and two of this section if the application for such exemption  is  approved  before  the effective  date  of  this  subdivision  and  shall be governed solely by subdivision four of this section if the application for  such  exemption is  approved on or after the effective date of this subdivision. Any tax exemption pursuant to subdivisions one and two of this section  that  is in  effect  on  the effective date of this subdivision shall continue in  accordance with the provisions of  subdivisions  one  and  two  of  this section; provided, however, that any amendment to a regulatory agreement on  or  after the effective date of this subdivision shall require a new application  for  tax  exemption  pursuant  to  subdivision four of this section. Eligible real property that receives exemption from local  real property  taxation  pursuant  to  this  section  at  any  time shall not simultaneously  receive  exemption  from  or  abatement  of  local  real property taxation pursuant to any other law.   4. (a) For the purposes of this subdivision, the following terms shall have the following meanings:  (1)  The  term  "persons  and  families  of low income" shall have the meaning set forth in section two of the private housing finance law.  (2) The term "tax credit program" shall mean  the  federal  low-income housing  tax credit program established pursuant to section forty-two of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute.  (3) The term "eligible real property" shall mean  real  property  that (i)  provides  housing  accommodations  for  persons and families of low income, and (ii) participates in or has participated in the  tax  credit program.  (4) The term "charitable organization" shall mean (i) an entity formed for  purposes  that include providing housing accommodations for persons and families of low income and that has received written recognition  of exemption  pursuant  to  section  501(c)(3)  or section 501(c)(4) of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute, from the United States Internal Revenue  Service,  or any  successor  agency,  or  (ii)  a corporation, partnership or limited liability company wholly owned and wholly controlled by an entity formed for purposes that include providing housing accommodations  for  persons and  families of low income and that has received written recognition of exemption pursuant to section 501(c)(3)  or  section  501(c)(4)  of  the internal revenue code of nineteen hundred eighty-six, as amended, or any successor  statute,  from the United States Internal Revenue Service, or any successor agency.  (5) The term "eligible entity" shall mean a  corporation,  partnership or  limited  liability company at least fifty percent of the controlling interest of which is held by a charitable organization.  (6) The term "eligible owner" shall mean one or more eligible entities that holds (i) legal and beneficial title to eligible real property,  or (ii)  a  legal and beneficial leasehold interest with a term of not less than thirty years in eligible real property.  (7) The term "regulatory agreement" shall mean a regulatory  agreement with  or  approved  by  the  municipality that requires the provision of housing accommodations for persons and families of low income,  requires that  units  currently or formerly assisted under the tax credit program be rented in accordance with the income requirements of the  tax  credit program,  is  recorded against the eligible real property, and binds all parties in interest to the eligible real property and  their  respective successors  and  assigns.  A regulatory agreement may include such other terms and conditions as the municipality shall determine, including, but not limited to, provisions requiring payments in lieu of taxes.  (b) Notwithstanding any other provision in  this  subdivision  to  the contrary, in a city having a population of one million or more, eligible real  property  of  an  eligible  owner  that is subject to a regulatory agreement shall be exempt from local real property  taxation  except  as may be otherwise provided in such regulatory agreement.  (c)  Notwithstanding  any  provision  of  any other general or special state or local law  or  charter,  (1)  with  respect  to  eligible  real  property  that  is  eligible  for  exemption  from  local  real property taxation pursuant to this subdivision on  the  effective  date  of  this subdivision  and  that is receiving exemption from or abatement of local real  property  taxation pursuant to any other law on the effective date of this subdivision, an eligible owner may prospectively terminate  such other  exemption  or  abatement  upon  entering  into  a  new regulatory agreement  and  the  eligible  real   property   shall   thereafter   be prospectively  entitled  to  exemption from local real property taxation pursuant to this subdivision, and (2)  with  respect  to  eligible  real property  that  is  eligible  for  exemption  from  local  real property taxation pursuant to this subdivision on  the  effective  date  of  this subdivision and that is not receiving any exemption from or abatement of local  real  property  taxation  pursuant to subdivisions one and two of this section or any other law on the effective date of this subdivision, if an eligible  owner  enters  into  a  new  regulatory  agreement,  the eligible  real  property  shall  thereafter by prospectively entitled to exemption  from  local  real  property   taxation   pursuant   to   this subdivision,  and  (3)  with  respect  to eligible real property that is eligible for an exemption from local real property taxation pursuant  to this  subdivision  on the effective date of this subdivision and that is receiving exemption  from  local  real  property  taxation  pursuant  to subdivisions  one  and two of this section on the effective date of this subdivision,  an  eligible  owner  may  prospectively   terminate   such exemption upon entering into a new regulatory agreement and the eligible real  property  shall  thereafter be prospectively entitled to exemption from local real property taxation pursuant to this subdivision.  (d)(1) An exemption may be granted pursuant to this  subdivision  only upon  application  by  the  eligible  owner  on a form prescribed by the commissioner or any comparable form, which application shall be accepted by the assessor of such city as provided in this subdivision and in such rules as  may  be  promulgated  pursuant  to  this  subdivision  by  the department of housing preservation and development in such city. No such application  shall  be  accepted by the assessor unless accompanied by a certificate of the department of housing preservation and development in such city  certifying  the  applicant's  eligibility  pursuant  to  this subdivision.  (2)  Notwithstanding  section  three  hundred  two of this chapter, an exemption granted pursuant to this subdivision shall commence as of  the effective  date  of  the  regulatory  agreement,  regardless of when the application for such exemption is approved, and shall terminate upon the expiration or termination of such regulatory agreement.  Notwithstanding any provision of this subdivision to the contrary, if there is a default pursuant  to  the regulatory agreement, and such default remains uncured beyond any period for such cure specified in the  regulatory  agreement, the  municipality may terminate such exemption or suspend such exemption until such default is cured.  (3) The department of housing preservation  and  development  in  such city   may  promulgate  rules  to  carry  out  the  provisions  of  this subdivision, and may require  a  reasonable  filing  fee  in  an  amount provided by such rules.