N.Y. Private Housing Finance Law § 93: Tax exemptions

§ 93. Tax exemptions. 1. Any housing company shall be exempt from the

payment of any and all franchise, organization, income, mortgage

recording and other taxes to the state and all fees to the state or its

officers.

2. Bonds and mortgages and the income debenture certificates of all

housing companies are declared to be instrumentalities of the state,

issued for public purposes and shall, together with interest thereon, be

exempt from taxation. Distributions on capital of said companies shall

be exempt from taxation by the state.

3. Any municipality in which projects of housing companies are located

is authorized to exempt the buildings and improvements created in

connection with such projects from local taxation, and should said

municipality exempt such buildings and improvements from such taxation

the buildings and improvements of said company shall to the extent of

such exemption be exempt from any and all state taxation. This provision

shall apply only to projects completed prior to January first, nineteen

hundred thirty-nine.

4. Any municipality in which projects of housing companies are located

is authorized, through its local legislative body, to exempt from local

and municipal taxes, other than assessments for local improvements, all

or part of the value of the property included in any such projects as

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 housing company which originally undertook the

project; and should a municipality grant such tax exemption, all

projects of housing companies shall to the extent of such municipal

exemption and during the period thereof, be exempt from any and all

state taxes. Such exemption of projects from taxation by a municipality

and the state shall not extend to projects erected prior to January

first, nineteen hundred thirty-nine nor to projects erected after

January first, nineteen hundred seventy-three and prior to January

first, nineteen hundred seventy-nine.

5. The tax exemption specified in subdivisions three and four of this

section shall not operate for a period of more than fifty years,

commencing in each instance from the date on which the benefits of such

exemption first become available and effective.

6. Notwithstanding the provisions of subdivisions four and five of

this section, the real property owned, acquired, leased, managed or

operated by a state urban development corporation project shall be

exempt from all local and municipal taxes, other than assessment 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 company. The tax exemption

shall operate and continue so long as the mortgage loans of such

limited-dividend housing company are outstanding, but in no event for a

period of more than forty years, commencing in each instance from the

date when such limited-dividend housing 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 limited-dividend housing

company, such successor company shall be entitled to all the benefits of

this subdivision.

7. Any project that received a tax exemption under this section may,

upon the expiration of the tax exemption period, be granted an

additional tax exemption period of up to fifty 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.

8. Notwithstanding any other provision of this section, the maximum

combined local and municipal taxes, other than assessments for local

improvements, that a project operated by a housing company established

pursuant to this article, and which is eligible for a tax exemption

pursuant to any other subdivision of this section, shall be required to

pay in a city with a population of one million or more shall be no more

than the equivalent of five per centum of the annual shelter rent or

carrying charges of such project. Upon the consent of the local

legislative body of the municipality, other than a city with a

population of one million or more, in which the project is located, the

amount of such taxes may be further reduced to five per centum or less

of the annual shelter rent or carrying charges of the project. Any such

granted consent to reduce the amount of such taxes shall expire every

ten years. If such authorization is not renewed, the rate of taxation

shall revert to the level established before the consent was granted.

For the purposes of this subdivision, "shelter rent" shall have the same

meaning as such term is defined to have in paragraph a of subdivision

one of section thirty-three of this chapter.