2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 423 - Phase Out of Exemption for Redevelopment Company Projects Upon the Cessation of the Tax Exemption Granted Pursuant to Contract.

§  423. Phase out of exemption for redevelopment company projects upon
the cessation of the tax exemption granted  pursuant  to  contract.  (1)
After  the  expiration  of  any  tax  exemption  granted a redevelopment
project pursuant to section  one  hundred  twenty-five  of  the  private
housing  finance  law,  which exemption is not extended pursuant to such
law, that part of the value  of  the  property  which  was  exempt  from
certain  taxation  for  local  purposes  by  reason of such grant, shall
thereafter be exempt  from  taxation  for  local  purposes,  other  than
assessments for local improvement, commencing upon the expiration of the
tax  exemption  granted  pursuant to such section as follows: during the
first year after such expiration, the taxes which shall be payable shall
be the taxes which were payable during the last year  of  the  grant  of
exemption  plus one tenth of the difference between the taxes which were
payable during such prior year and the taxes which  would  otherwise  be
payable  during  such  first year absent this section; during the second
year after such expiration, the taxes which shall be  payable  shall  be
the taxes which were payable during the first year after such expiration
plus  one-ninth  of  the difference between the taxes which were payable
during such first year and the taxes which would  otherwise  be  payable
during such second year absent this section; during the third year after
such  expiration,  the  taxes  which shall be payable shall be the taxes
which were payable during the second year  after  such  expiration  plus
one-eighth of the difference between the taxes which were payable during
such  second  year and the taxes which would otherwise be payable during
such third year absent this section; during the fourth year  after  such
expiration,  the  taxes  which shall be payable shall be the taxes which
were  payable  during  the  third  year  after  such   expiration   plus
one-seventh  of  the  difference  between  the  taxes which were payable
during such third year and the taxes which would  otherwise  be  payable
during such fourth year absent this section; during the fifth year after
such  expiration,  the  taxes  which shall be payable shall be the taxes
which were payable during the fourth year  after  such  expiration  plus
one-sixth  of the difference between the taxes which were payable during
such fourth year and the taxes which would otherwise be  payable  during
such  fifth  year  absent this section; during the sixth year after such
expiration, the taxes which shall be payable shall be  the  taxes  which
were  payable during the fifth year after such expiration plus one-fifth
of the difference between the taxes which were payable during such fifth
year and the taxes which would otherwise be payable  during  such  sixth
year absent this section; during the seventh year after such expiration,
the  taxes  which shall be payable shall be the taxes which were payable
during the sixth year after  such  expiration  plus  one-fourth  of  the
difference  between  the taxes which were payable during such sixth year
and the taxes which would otherwise be payable during such seventh  year
absent  this  section; during the eighth year after such expiration, the
taxes which shall be payable shall  be  the  taxes  which  were  payable
during  the  seventh  year  after  such expiration plus one-third of the
difference between the taxes which were payable during such seventh year
and the taxes which would otherwise be payable during such  eighth  year
absent  this  section;  during the ninth year after such expiration, the
taxes which shall be payable shall  be  the  taxes  which  were  payable
during  the  eighth  year  after  such  expiration  plus one-half of the
difference between the taxes which were payable during such eighth  year
and  the  taxes  which would otherwise be payable during such ninth year
absent this section; during the tenth year after  such  expiration,  the
taxes  which shall be payable shall be the taxes otherwise payable.  (2)
Any provision of law to the contrary notwithstanding, any local laws  or
ordinances in respect of the regulation and control of residential rents

and  evictions  adopted  pursuant  to  the  local emergency housing rent
control act shall be applicable to  all  dwelling  accommodations  in  a
property   described  in  subdivision  one  throughout  such  additional
exemption  period  whether  or  not  such dwelling accommodations become
vacant during such period, in the same manner that such  local  laws  or
ordinances would be applicable to dwelling accommodations which (i) were
completed after February one, nineteen hundred forty-seven and for which
a  certificate  of  occupancy  was obtained prior to March ten, nineteen
hundred sixty-nine, and (ii) did not become vacant after  the  thirtieth
day of June, nineteen hundred seventy-one, provided that the last rental
set  forth  under  a  rental  agreement  in force relating to a dwelling
accommodation in such project immediately prior to the expiration of the
tax exemption granted pursuant to the private housing finance law, shall
continue, and the owner of the property in which such accommodations are
situate may increase such rentals.
(a) in each year by an amount not more than the  increases  in  taxes,
payable  on such project by such owner over those paid in the year prior
to the expiration of the tax exemption granted pursuant to  the  private
housing  finance  law, allocated to such dwelling accommodation on a per
room basis based on the room count set forth  in  the  contract  with  a
municipality  originally  granting  the  tax exemption under the private
housing finance law, and
(b) by an amount not more than  the  difference  between  the  average
rental  per room per month last authorized by the local legislative body
pursuant to the private housing finance law, and the average rental  per
room  per month actually collected during the last year such project was
exempt under such law, multiplied by the room count  for  such  dwelling
accommodation  as  set  forth in such contract with the municipality, as
well as percentage increases thereon which percentages are the  same  as
authorized under such local laws and ordinances and generally applicable
to  subsequent  rental  agreements  in  dwelling accommodations in other
multiple dwellings as well as any other increases authorized by law.
(3) Notwithstanding any provision of this  section  to  the  contrary,
with  respect  to  the  real  property of a mutual redevelopment project
located in a city having a population of one million or  more,  the  tax
exemption provided in subdivision one of this section shall not apply in
any  year  where  the  total period of tax exemption granted pursuant to
section one hundred twenty-five of the private housing finance  law  and
subdivision one of this section would exceed sixty years.