2023 New York Laws › PVH - Private Housing Finance › Article 2 - Limited-Profit Housing Companies › 33 - Tax Exemptions.

§ 33. Tax exemptions. 1. (a) Upon the consent of the local legislative
body  of any municipality in which a project is or is to be located, the
real property in a project shall be  exempt  from  local  and  municipal
taxes,  other  than assessments for local improvements, to the extent of
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 limited-profit housing  company,  provided,  however,
that   the   real  property  in  a  project  acquired  for  purposes  of
rehabilitation shall be exempt to the extent of all or part of the value
of the property included in such project, and further provided 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 project except that
for projects located or to be located in a city of a population  of  one
million  or  more, upon the consent of the local legislative body of the
municipality, the amount of such taxes to be paid may be set at not less
than (i) the taxes payable with respect to the  real  property  in  such
project  with  respect  to  the year nineteen hundred seventy-three, or,
(ii) if such project was not occupied in such year, not  less  than  ten
per  centum  of  the  annual  shelter  rent  or  carrying  charges first
established pursuant to subdivision one of section  thirty-one  of  this
article.  Shelter  rent  shall  mean  the  total rents received from the
occupants of a project less the  cost  of  providing  to  the  occupants
electricity,  gas,  heat  and other utilities. Total rents shall include
rent supplements and subsidies received from the federal government, the
state or a municipality on behalf  of  such  occupants,  but  shall  not
include  interest  reduction  payments  pursuant  to  subdivision (a) of
section two hundred one of the Federal Housing and Urban Development Act
of nineteen hundred sixty-eight. The tax  exemption  shall  operate  and
continue  so  long  as  the mortgage loans of the company, including any
additional mortgage loan the proceeds of which are  used  primarily  for
the  residential  portion  of  the  project,  which  additional  loan is
approved by the commissioner or the supervising agency, are outstanding.
(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  consent  of  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.
As  used  in  this paragraph, 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.
(c)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
subdivision, 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  limited-profit  housing company, provided 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 project, as  defined
in paragraph (a) hereof. The tax exemption shall operate and continue so
long  as  the  mortgage  loans  of  such limited profit housing company,
including any additional mortgage loan the proceeds of  which  are  used
primarily  for  the residential portion of the project, which additional
loan is approved by the commissioner  or  the  supervising  agency,  are
outstanding   and   the  project  is  continued  to  be  operated  as  a
limited-profit housing project. If a state urban development corporation
project qualifying for tax exemption pursuant to this paragraph is sold,
with the approval of the commissioner, to another limited-profit housing
company, such successor company shall be entitled to all the benefits of
this paragraph. In the event that such sale is to a company incorporated
pursuant to the not-for-profit corporation law and  this  article,  such
successor  company  shall  be  entitled  to all the benefits provided by
section four hundred twenty-two of the real property tax law.
(d) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
subdivision, when a project is financed with a mortgage loan pursuant to
this  article  or  article  three  of  this  chapter  and (i) there is a
participation, new loan or investment pursuant to section twenty-three-b
of this article or (ii) such mortgage  loan  is  assigned,  modified  or
satisfied   pursuant   to  section  twenty-three-a  or  forty-four-b  or
subdivision twenty-two-a of  section  six  hundred  fifty-four  of  this
chapter, the real property of the project shall be exempt from all local
and  municipal  taxes, other than assessments for local improvements, to
the extent of the value of the real 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  on  the
date  of  its  original  acquisition  for  the  project  by the original
mortgagor under a mortgage loan pursuant  to  this  article  or  article
three  of  this chapter, provided that the amount of taxes to be paid on
the project shall not be less than ten per centum of the annual  shelter
rent or carrying charges of such project, as defined in paragraph (a) of
this  subdivision.  Such  tax  exemption shall commence in each instance
from the date when the project becomes subject to a mortgage insured  by
the  federal  government  and  shall  operate  and continue so long as a
mortgage on such project is insured or held by the federal government or
so long as the project is thereafter owned by the federal government  or
so  long  as  any  residual  indebtedness  is  outstanding, whichever is
longer. When there is a participation, new loan or  investment  pursuant
to  section twenty-three-b of this article, such participation, new loan
or investment shall be deemed  to  be  the  equivalent  of  a  federally
insured  mortgage  for  purposes of this paragraph. Nothing contained in
this paragraph shall be construed  to  limit  or  otherwise  impair  the
benefits  available  to any company eligible for exemption from taxation
pursuant to section thirty-one or section thirty-six-a of this  article,
section four hundred twenty-two or section four hundred sixty-seven-c of
the  real property tax law, or section fifty-eight of the public housing
law. The foregoing shall not be  deemed  to  authorize  any  company  to
receive  the benefits of any exemption from taxation in contravention of
the provisions of section two of article eighteen of the constitution.
(e)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision,  a municipality, with the approval of the local legislative
body, may contract to exclude all or part of any rent subsidies received
from the federal government pursuant to  section  eight  of  the  United
States  Housing  Act  of nineteen hundred thirty-seven as amended in the
computation of total rents received.
(f)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision,  if  the  number of units occupied by persons receiving the
benefit of  rental  assistance  payments  from  the  federal  government
pursuant  to  section eight of the United States Housing Act of nineteen
hundred  thirty-seven, as amended, with respect to any project increases
by more than one hundred percent within any  twelve  consecutive  months
prior to nineteen hundred eighty-five over the number of units for which
such  subsidies  were  available during the preceding twelve consecutive
months or as July first, nineteen hundred eighty,  whichever  is  later,
taxes  payable for such additional subsidized units and subsequent units
subsidized in the same manner shall be based solely upon that portion of
total rents received on account of such additional subsidized units that
is not funded by such rental  assistance  payments,  provided,  however,
that no project shall receive such additional tax exemption (i) unless a
minimum  of  seventeen  percent  of the units in the project receive the
benefit of such subsidies, or (ii) if any mortgage on  such  project  is
insured  or held by the federal government or if the project is owned by
the federal government. The amount of exemption to which  a  project  is
entitled  pursuant  to this paragraph shall be certified annually by the
commissioner or the supervising agency, as the case may be.
2. Notwithstanding the provisions of subdivision one hereof,  whenever
a  dwelling in a project is leased to the New York state housing finance
agency pursuant to  the  provisions  of  section  forty-four-a  of  this
chapter,  so  much of the assessed value of such project attributable to
such dwelling (including a pro rata portion of the value of the land and
common spaces) as represents an increase over the proportionate assessed
value of the real property, both land  and  improvements,  acquired  for
such  project  at  the  time  of original acquisition therefor, shall be
exempt during the period of such lease from taxation for  county,  city,
town,  village  and  school  district  purposes  and  special ad valorem
levies; provided that if in any year the aggregate amount of such  taxes
and  levies  that  would have been attributable to such dwelling but for
the exemption provided by this subdivision exceeds  the  amount  payable
out  of  the  low  rent  lease  account pursuant to subdivision three of
section forty-four-a of this chapter with respect to the  agency's  rent
obligation  for  such  dwelling,  the  agency  shall  make  proportional
payments in lieu of such taxes and levies  to  the  appropriate  county,
city,  town,  village,  school  district  or  special  district,  or any
combination thereof as the case may be, in an aggregate amount equal  to
one half of the sum of (a) the amount of such excess and (b) the amount,
if any, by which the rent paid to the agency under the sublease for such
dwelling exceeds the agency's rent obligation for such dwelling. Nothing
contained in this subdivision shall preclude the increase of the taxable
assessed  value  attributable  to  such  dwellings  as a result of a net
increase in the assessed  valuation  of  the  taxable  property  in  the
assessing  unit as a result of assessing such property at a higher ratio
of full value.
3. Notwithstanding the provisions of subdivision one hereof,  whenever
a  dwelling  in  a  project  is  leased to an authority, pursuant to the
provisions of sections seventeen and thirty-one of this chapter, so much
of the assessed value of such  project  attributable  to  such  dwelling
(including  a  pro  rata  portion  of  the  value of the land and common
spaces) as represents an increase over the proportionate assessed  value
of  the  real  property,  both  land and improvements, acquired for such
project at the time of original acquisition therefor,  shall  be  exempt
during  the  period  of such lease from taxation for county, city, town,
village and school district purposes  and  special  ad  valorem  levies.
Nothing contained in this subdivision shall preclude the increase of the

taxable  assessed  value  attributable to such dwelling as a result of a
net increase in the assessed valuation of the taxable  property  in  the
assessing  unit as a result of assessing such property at a higher ratio
of full value.
4.  Notwithstanding  the  provisions of subdivision one hereof, when a
mutual company  is  organized  under  this  article  to  facilitate  the
acquisition  of a building by residents thereof, the amount of local and
municipal taxes, other than assessments for local  improvements,  to  be
paid  on  the  real  property  included  in  such project, both land and
improvements, shall not exceed twenty per centum of the  annual  shelter
rent or carrying charges of such project, as defined in paragraph (a) of
subdivision  one  hereof; provided, however, that where such acquisition
of  a  building  by  residents  thereof  involves   the   financing   of
rehabilitation  or  other  improvement  as well as acquisition, upon the
consent of the local legislative body of the municipality in  which  the
project  is  located  the  amount  of  such taxes may be further reduced
provided that such amount shall not be less than ten per centum  of  the
annual  shelter  rent  or carrying charges of the project, as defined in
paragraph (a) of subdivision one hereof; or the company may in  lieu  of
requesting such consent apply for the benefits of the local law, if any,
enacted  pursuant  to  section  four  hundred  eighty-nine  of  the real
property tax law. Such tax exemption, if any, granted pursuant  to  this
article  shall  operate  and  continue so long as a loan made under this
article or any subsequent loan  approved  by  the  commissioner  or  the
supervising agency to enhance the residential portion of the project and
the  project  is  continued to be operated for the purposes set forth in
this article is outstanding.
5. Bonds, mortgages, notes, income debentures  and  obligations  of  a
company  are declared to be issued for a public purpose and to be public
instrumentalities and together with interest  thereon  shall  be  exempt
from  tax  including  but  not  limited  to the mortgage recording taxes
imposed by article eleven of the tax law.
6. Any project that received a tax exemption under paragraphs (a), (c)
and (d) of subdivision one, and subdivision four of  this  section  may,
upon  the  expiration  of  the  tax  exemption  period,  be  granted  an
additional tax exemption period of up to fifty 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.