2023 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.