N.Y. Private Housing Finance Law § 577: Tax exemptions

§ 577. Tax exemptions. 1. (a) The local legislative body of any

municipality in which a project of a housing development fund company is

or is to be located may exempt the real property in such project from

local and municipal taxes including school taxes, other than assessments

for local improvements, to the extent of all or part of the value of the

property included in the completed project. The tax exemption shall

operate and continue for such period as may be provided by such local

legislative body, 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 became available and effective.

(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 action of the local legislative body of such

municipality in granting such tax exemption shall have the effect of

exempting the real property in such project from local and municipal

taxes including school taxes, other than assessments for local

improvements, levied by or in behalf of both such taxing jurisdictions.

(c) The local legislative body of any municipality may grant an

exemption under paragraph (a) of this subdivision to the real property

of a project of any entity to which it is authorized to make a loan

pursuant to section five hundred seventy-six-c of this article.

(d) In a city having a population of one million or more, within one

hundred twenty days following receipt of a written submission from the

supervising agency requesting a tax exemption pursuant to paragraph (a)

of this subdivision for the real property containing the project of a

housing development fund company, the local legislative body shall

approve or disapprove by resolution the requested tax exemption. If the

local legislative body fails to take such action within one hundred

twenty days following receipt of such written submission from such

supervising agency, then the tax exemption requested by the supervising

agency shall be deemed approved pursuant to paragraph (a) of this

subdivision.

2. Any inconsistent provision of law to the contrary notwithstanding,

mortgages of a housing development fund company shall be exempt from the

mortgage recording taxes imposed by article eleven of the tax law.

2-a. Notwithstanding any inconsistent provision of law to the

contrary, a project of a housing development fund company incorporated

pursuant to the not-for-profit corporation law and this article shall be

exempt from the sales and compensating use taxes imposed pursuant to

article twenty-eight or twenty-nine of the tax law, provided that such

housing development fund company has entered into a regulatory agreement

with respect to the provision of affordable housing with the

commissioner, a state agency or authority as defined in this chapter,

the New York city department of housing preservation and development, or

the New York city housing development corporation, and such tax

exemption shall continue only so long as such agreement is in force and

effect.

3. (a) Notwithstanding the provisions of subdivision one hereof, 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 housing development fund company. The tax exemption shall operate

and continue so long as the mortgage loans of such housing development

fund company are outstanding, but in no event for a period of more than

forty years, commencing in each instance from the date when such housing

development fund company first acquired such property. If a state urban

development corporation project qualifying for tax exemption pursuant to

this subdivision is sold, with the approval of the commissioner, to

another housing development fund company, such successor company shall

be entitled to all the benefits of this subdivision.

(b) In the event a state urban development corporation project is not

subject to a state-aided, federally-aided or municipally-aided mortgage,

as defined herein, it shall receive the tax exemption granted under

paragraph (a) of this subdivision only if it has entered into a

regulatory agreement with the commissioner pursuant to section five

hundred seventy-six of this article, and such tax exemption shall

continue only so long as such agreement is in force and effect.