2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 422 - Not-for-Profit Housing Companies.

§ 422. Not-for-profit housing companies. 1. (a) Real property owned by
a  not-for-profit  corporation  organized pursuant to the not-for-profit
corporation law and the provisions of article two of the private housing
finance  law,  used  exclusively  to  provide  housing   and   auxiliary
facilities  for  faculty  members, students, employees, nurses, interns,
resident physicians, researchers and other personnel and their immediate
families  in  attendance  or   employed   at   colleges,   universities,
educational institutions, child care institutions, hospitals and medical
research  institutes,  or for handicapped or aged persons of low income,
or owned by non-profit nursing home companies organized pursuant to  the
not-for-profit   corporation   law   and   the   provisions  of  article
twenty-eight-A of the public health law,  used  exclusively  to  provide
facilities  for  nursing  care  to  sick,  invalid,  infirm, disabled or
convalescent persons of low income, or to provide health-related service
as defined in article twenty-eight of the public health law  to  persons
of  low  income,  or  any  combination of the foregoing, and in addition
thereto, to provide nursing care and health-related service,  or  either
of  them, to persons of low income who are not occupants of the project,
or owned by housing development fund companies organized pursuant to the
not-for-profit corporation law and article eleven of the private housing
finance law, used exclusively to provide housing for handicapped or aged
persons of low income, and financed by  a  federally-aided  mortgage  as
defined in said article eleven, or owned by companies organized pursuant
to  the  not-for-profit  corporation  law  and the provisions of article
seventy-five of title E of the mental hygiene law, used  exclusively  to
provide   care,   treatment,   training,   education   and   residential
accommodations for operation as hostels for people with  mental  illness
or  developmental disabilities, or owned by companies organized pursuant
to the membership corporations law and the provisions of article seven-A
of  the  private  housing  finance  law,  used  exclusively  to  provide
programs,  services  and other facilities for the aging, shall be exempt
from taxation and exempt from special  ad  valorem  levies  and  special
assessments  to  the  extent  provided in section four hundred ninety of
this chapter, provided, however, that in a city having a  population  of
one million or more real property owned by any such corporation which is
to provide housing accommodations, substantially all of which are or are
to  be  assisted  by  rent subsidies made or to be made available by the
Federal government pursuant to a contract under  section  eight  of  the
United  States Housing Act of nineteen hundred thirty-seven, as amended,
or pursuant to a project rental assistance contract  under  section  two
hundred  two  of  the  United  States  Housing  Act  of nineteen hundred
fifty-nine, as amended, or  pursuant  to  a  project  rental  assistance
contract  under  section eight hundred eleven of the National Affordable
Housing Act of nineteen hundred ninety, as amended, shall from and after
the commencement of  construction  be  subject  to  taxation  or  exempt
therefrom  to  the  extent approved by a municipality acting through its
local legislative body, as such local legislative  body  is  defined  in
subdivision twelve of section two of the private housing finance law. No
such  corporation or company shall pay a dividend on any of its stock or
pay interest on any of its debentures. Provided further, however,  in  a
county  having  a  population of one million or more and having not more
than three towns within such county,  real  property  owned  by  housing
development  fund  companies  organized  pursuant  to the not-for-profit
corporation law and article eleven of the private housing  finance  law,
used  exclusively  to provide housing for handicapped or aged persons of
low income, and financed by a federally-aided  mortgage  as  defined  in
said   article   eleven   shall  from  and  after  the  commencement  of
construction be subject to taxation or exempt therefrom  to  the  extent

approved by a municipality acting through its local legislative body, as
such  local legislative body is defined in subdivision twelve of section
two of the private housing finance law. Any tax payments and/or payments
in  lieu  of  taxes  made  to  a  municipality pursuant to the preceding
sentence shall not be passed through nor become the liability of any  of
the occupants of such property.
(b)  If  any  portion of such real property of such corporation is not
used exclusively for housing of those persons set forth in  paragraph  a
of this section but is leased or otherwise used for purposes pursuant to
article  two  of the private housing finance law, such portion, provided
it does not exceed ten per centum of the total, shall be subject to such
limited exemption as is  authorized  pursuant  to  article  two  of  the
private  housing  finance  law,  and the remaining portion only shall be
fully exempt. If any portion of the real property of such corporation in
excess of ten per centum of the total is leased or  otherwise  used  for
housing  pursuant to article two of the private housing finance law, the
total property  shall  be  subject  to  such  limited  exemption  as  is
authorized  pursuant  to article two of the private housing finance law.
Real property exempt from taxation pursuant to this paragraph shall also
be exempt from special ad valorem levies and special assessments to  the
extent provided in section four hundred ninety of this chapter.
(c)  In  real property used in part for handicapped or aged persons of
low income priority and preference in the rental of such  real  property
for  purposes not specified in paragraph a shall be given to a family of
a person legally responsible for the care of a handicapped  or  an  aged
person  residing  in  such  real  property. This preference and priority
shall apply to only one such family for each handicapped or aged tenant.
2. (a) The exemption provided in paragraphs (a) and (b) of subdivision
one of this section shall be upon condition that the property  owned  by
such   corporation   shall   upon  dissolution  vest  in  such  college,
university,  educational   institution,   hospital,   medical   research
institute,  child care institution, or other not-for-profit corporation,
if such college, university, educational institution, hospital,  medical
research  institution,  child  care institution, or other not-for-profit
corporation is exempt  from  taxation  pursuant  to  the  provisions  of
section  four  hundred twenty-a or four hundred twenty-b of this article
and if no  part  of  the  net  earnings  of  such  college,  university,
educational  institution,  hospital,  medical  research institute, child
care institution, or other not-for-profit corporation shall inure to the
benefit of any private individual.
(b)  In  the  event  that  such   college,   university,   educational
institution,   hospital,   medical   research   institute,   child  care
institution, or other not-for-profit corporation is not otherwise exempt
from taxation, title to the property shall  nevertheless  vest  therein,
but only upon payment to the municipality of a sum equal to the total of
all  accrued  taxes, levies and assessments from which such property has
been exempt under the provisions of this section.