2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-R - Residential Redevelopment Inhibited Property Exemption; Certain Cities.

§  485-r.  Residential  redevelopment  inhibited  property  exemption;
certain cities. 1. As used in this section, the  following  terms  shall
have the following meanings:
(a)  "Redevelopment  inhibited  property"  shall  mean  a  residential
property that has been neglected  or  abandoned  because  of  the  local
economic  conditions and/or conditions on the property that inhibit such
property from being redeveloped by  the  private  sector.  Redevelopment
inhibited property shall not include land that is undeveloped.
(b)  "Gap financing costs" shall mean the total cost of the property's
redevelopment as approved by the city minus the  increase  in  the  full
valuation of the property upon completion of the redevelopment.
(c) "Base assessment" shall mean the assessed value of the property on
the day the city designates the property as redevelopment inhibited.
(d)  "Increased  assessment"  shall  mean  the  assessed  value of the
property  as  determined  by  the  assessor  upon  completion   of   the
redevelopment.
(e)  "Incremental  increase  in  annual property taxes" shall mean the
taxes based on the increased assessment minus the  taxes  based  on  the
base assessment.
(f)  "City"  shall  mean  a  city  with  a population of not less than
fifteen thousand two hundred fifty and not more  than  fifteen  thousand
five hundred as determined by the latest federal decennial census.
2.  A  city  may,  by  local  law,  provide  for the exemption of real
property from taxation as provided in this section.  Subsequent  to  the
adoption of such local law, the county in which such city is located may
after a public hearing and by local law, and any school district, all or
part  of  which is located in such city, may, by resolution, exempt such
property from its taxation in the same manner and to the same extent  as
the city has done.
3. A city shall designate any property within the city boundaries as a
redevelopment  inhibited  property  if  one or more of the following are
met:
(a) the city has acquired title to the property  pursuant  to  article
nineteen-A of the real property actions and proceedings law; or
(b) the property has been continuously vacant for a period of at least
three years; or
(c)  the  city  has acquired title to the property via foreclosure for
unpaid taxes pursuant to article eleven of this chapter; or
(d) the property has outstanding  zoning,  housing,  or  uniform  code
violations  and  the  cost  of  remedying  the  violations  exceeds  the
property's value.
4. (a) Upon the adoption of such local  law,  redevelopment  inhibited
property  shall be exempt from taxation and special ad valorem levies to
the  extent  of  any  increase  in  value  attributable  to  demolition,
alteration,  rehabilitation,  or  remediation  pursuant to the following
requirements:
(i) the demolition, alterations,  rehabilitation,  and/or  remediation
shall be permitted by the city's bureau of inspection such that building
or   plumbing   permits   issued   and   said  demolition,  alterations,
rehabilitation,  and/or  remediation  shall  have  met   all   necessary
approvals  per the applicable New York state uniform fire prevention and
building code, the city's  municipal  code  and  the  city's  bureau  of
inspection upon completion; and
(ii)  the  property  for  which  the  exemption  is sought shall be an
owner-occupied one-family residence; and
(iii) the owner of such property shall file annually an  affidavit  of
residency  with  the  assessor  of the city on or before the appropriate

taxable status date of such city, confirming  continued  owner-occupancy
of the property; and
(iv)  the redevelopment inhibited property is exempt from taxation and
special ad valorem levies attributable to the increased assessment minus
the taxes and special ad valorem levies imposed on the base  assessment.
Such exemption shall not apply to special assessments.
(b)  In  the  event the property granted an exemption pursuant to this
section ceases to be owner-occupied and/or the affidavit of residency is
not filed annually for the  approved  exemption  period,  the  exemption
granted pursuant to this section shall cease.
(c)  In  the  event the property granted an exemption pursuant to this
section ceases to  be  a  one-family  dwelling,  the  exemption  granted
pursuant to this section shall cease.
(d) In the event the owner of the property is convicted of a violation
or  misdemeanor  pursuant  to New York state uniform fire prevention and
building code or  the  city's  municipal  code,  the  exemption  granted
pursuant to this section shall cease.
5.  (a)  Such  redevelopment  inhibited property shall be exempt for a
period equal to the gap  financing  costs  divided  by  the  incremental
increase in annual property taxes resulting from such redevelopment. The
exemption  period  shall  be  rounded up to the nearest whole number and
shall not exceed twenty-five years.
(b) The extent of such exemption shall decrease the last  eight  years
of  the  exemption period by twelve and one-half percent of the increase
in assessment due to the redevelopment equaling a zero percent exemption
on the final year of the exemption period.
6. (a) Such exemption shall be granted only upon  application  by  the
owner  of  such  building  for  the  residential redevelopment inhibited
property exemption, on a form prescribed by the city.  Such  application
must be filed with the assessor of the city on or before the appropriate
taxable status date of such city. The application must be filed with the
assessor  of the city within three years from the date of completing the
demolition, alterations, rehabilitation, and/or remediation.
(b) The owner filing for such exemption shall not be  required  to  be
the  owner  responsible  for  completing  the  demolition,  alterations,
rehabilitation, and/or remediation.
(c) If the assessor is satisfied that the applicant is entitled to  an
exemption  pursuant  to  this  section,  he  or  she  shall  approve the
application and such real  property  shall  thereafter  be  exempt  from
taxation  and  special ad valorem levies by the city commencing with the
assessment roll prepared after the taxable status date  referred  to  in
this  subdivision.  The assessed value of any exemption granted pursuant
to this section shall be entered by the assessor  of  the  city  on  the
assessment  roll  with  the  taxable  property,  with  the amount of the
exemption shown in a separate column.
(d) Once granted, the  residential  redevelopment  inhibited  property
exemption  runs  with the land for the exemption period pursuant to this
section.