2023 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.