N.Y. Public Housing Law § 52: Tax exemptions of an authority

§ 52. Tax exemptions of an authority. 1. An authority shall be exempt

from the payment of (a) any taxes or fees to the state or any

subdivision thereof and (b) any fees to any officer or employee of the

state or of any subdivision thereof, except where it is provided by or

pursuant to law that such officer or employee is personally entitled to

such fees as compensation for services rendered or performed by him in

his official capacity.

2. Bonds, mortgages, notes and other obligations of an authority are

declared to be issued for a public purpose and to be public

instrumentalities and together with interest thereon, shall be exempt

from tax.

2-a. The state of New York hereby consents to the inclusion, under the

United States internal revenue code of nineteen hundred fifty-four or

any subsequent internal revenue law of the United States of the interest

payable on bonds, mortgages, notes or other obligations of an authority

which are hereafter issued and secured (1) by a mortgage which is

insured under section two hundred twenty-one (d) (3) of the national

housing act (or any successor section under said act or any subsequent

housing act) by an authority as mortgagor in connection with the

financing of a project assisted under section eight of the United States

housing act of nineteen hundred thirty-seven, or (2) by a pledge of

housing assistance payments made or to be made under a contract or

contracts between an authority and the United States or any agency or

instrumentality thereof, in the gross income of the person who receives

or is entitled to receive such interest to the same extent and in the

same manner that the interest on bills, notes, bonds or other

obligations of the United States issued subsequent to the effective date

of section four of the public debt act of nineteen hundred forty-one is

includible in the gross income of the holder or holders thereof under

said internal revenue code or any subsequent internal revenue law of the

United States and, notwithstanding any provisions to the contrary

contained in this chapter or in any general, special or local law, an

authority is authorized and empowered to issue such bonds, mortgages,

notes or other obligations and shall include therein such reference to

or summary of this subdivision as it shall deem proper. The consent

hereby given by the state of New York shall not be construed to consent

to the application of any other provision of any other law, federal or

state, to an authority or to the elimination or modification in any way

of any other exemption, privilege, or immunity thereof.

3. Except as to state projects, the property of an authority shall be

exempt from all local and municipal taxes. A federal or municipal

project consisting of land and one or more multiple dwellings leased by

an authority for a term of not less than ten years shall be exempt from

such taxes during the period of such lease. A municipality may (a) fix a

sum which shall be paid to it annually by the authority in respect of

each project; or (b) agree that the authority shall not pay or be liable

to pay any sum whatsoever in respect of a project or projects for any

year or years; or (c) agree with an authority or government upon the sum

to be paid by the authority for any year or years in respect of a

project or projects, or accept or agree to accept a fixed sum or other

consideration in lieu of such payment; provided, however, that the sum

fixed, or agreed to be paid by the authority, for any year shall in no

case exceed the sum last levied as an annual tax upon the property

included in such project prior to the time of its acquisition by the

authority; and provided, further, that the sum fixed, or agreed to be

paid by the authority, for any year with respect to a federal project

shall in no case exceed the sum last levied as an annual tax upon the

property included in such project prior to the time of its acquisition

by the authority or such greater amount as the federal government may

permit.

3-a. With respect to a federal project located within a school

district, an authority may make payments to such district, and the

authority and the district may enter into agreements with respect to

such payments. Such payments shall not exceed the amounts permitted for

such purposes by the federal government. The power granted by this

subdivision shall be in addition to any other power granted in this

section or any other provision of law.

4. (a) So much of the value of the property included in a state

project as represents an increase over the assessed valuation of the

real property, both land and improvements, on the date of the contract

for a state loan, or, in the absence of a contract for a state loan,

then on the date of the contract for a state subsidy, shall be exempt

from any and all state, county, city, village, town, school and special

district taxes, except that the assessed valuation may be increased or

decreased to reflect a change in the level of assessment as certified

pursuant to title two of article twelve of the real property tax law. In

no event may any assessing unit assess the property included in a

project at an amount in excess of the actual cost of the project.

(b) In any assessing unit in which there has been a change in level of

assessment as provided in title two of article twelve of the real

property tax law, the commissioner of taxation and finance shall certify

the change in level of assessment factor in the manner provided in title

two of article twelve of the real property tax law. The term "assessing

unit" as used in this subdivision means a city, town, village or county

having a county department of assessment with the power to assess real

property.

5. The tax exemptions 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, except that in the case

of a federal project the tax exemption may operate for a period not to

exceed sixty years, and except that in the case of a project, or part

thereof, leased from a housing company or in the case of a federal or

municipal project consisting of land and one or more multiple dwellings

leased by an authority for not less than ten years the tax exemption may

operate for a period not exceeding the term of such lease.

6. Upon the completion of the sixty-year period provided in

subdivision five of this section applicable to federal projects, each

authority that was eligible for the tax exemption specified in

subdivisions three and four of this section shall be exempt from all

local and municipal taxes imposed by state and local governments for

sixty years after the expiration of the initial exemption period. Upon

the completion of the fifty-year period provided in subdivision five of

this section applicable to state and municipal projects, each authority

that received the tax exemption specified in subdivision three or four

of this section may, on the expiration of the tax exemption period, be

granted an additional tax exemption period of up to fifty years. A

municipality may (a) fix a sum which shall be paid to it annually by the

authority in respect of each project; or (b) agree that the authority

shall not pay or be liable to pay any sum whatsoever in respect of a

project or projects for any year or years; or (c) agree with an

authority or government upon the sum to be paid by the authority for any

year or years in respect of a project or projects, or accept or agree to

accept a fixed sum or other consideration in lieu of such payment;

provided, however, that the sum fixed, or agreed to be paid by the

authority, for any year shall in no case exceed the sum last levied as

an annual tax upon the property included in such project prior to the

time of its acquisition by the authority or, in the case of a federal

project, such greater amount as the federal government may permit.

With respect to a federal project located within a school district, an

authority may make payments to such district, and the authority and the

district may enter into agreements with respect to such payments. Such

payments shall not exceed the amounts permitted for such purposes by the

federal government. The power granted by this subdivision shall be in

addition to any other power granted in this section or any other

provision of law.