N.Y. Real Property Tax Law § 420-c: Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ...

§ 420-c. Exemption from local real property taxation of certain low

income housing accommodations in a city having a population of one

million or more. 1. In a city having a population of one million or

more, real property owned by a corporation, partnership or limited

liability company formed for the purpose of providing housing

accommodations for persons and families of low income as defined in

section two of the private housing finance law and used for such

purpose, shall be exempt from local real property taxation, provided

that such corporation, partnership or limited liability company: (a) is

organized as a non-profit housing development fund company pursuant to

article eleven of the private housing finance law, or is a non-profit

housing corporation as defined in article eleven of the private housing

finance law which is not incorporated as a housing development fund

company as defined in article eleven of the private housing finance law,

or is a wholly-owned subsidiary of such a company or is a partnership or

limited liability company the controlling interest of which is held by

such a company or corporation or by a wholly owned subsidiary of such a

company or by a corporation sponsored or formed by such a company or

corporation; and (b) has received a loan from a municipality, the state

or the housing trust fund corporation established pursuant to section

forty-five-a of the private housing finance law or any successor

corporation; and (c) enters into a regulatory agreement with the

municipality, the state or the housing trust fund corporation

established pursuant to section forty-five-a of the private housing

finance law or any successor corporation guaranteeing the provision of

housing accommodations for persons and families of low income; and (d)

is a participant in the federal low income housing tax credit program

established pursuant to section forty-two of the internal revenue code

of nineteen hundred eighty-six, as amended. Any exemption pursuant to

this section shall expire upon the expiration or termination of the

regulatory agreement.

2. An exemption may be granted pursuant to this section only upon

application by the owner on a form prescribed by the commissioner or any

comparable form, which application shall be accepted by the assessor of

such city as provided in this subdivision and in the rules and

regulations promulgated pursuant to this section by the department of

housing preservation and development in such city. No such application

shall be accepted by the assessor unless accompanied by a certificate of

the department of housing preservation and development in such city

certifying the applicant's eligibility pursuant to this section.

Notwithstanding section three hundred two of this chapter, an exemption

granted pursuant to this section shall commence as of the effective date

of the regulatory agreement with the municipality, the state or the

housing trust fund corporation established pursuant to section

forty-five-a of the private housing finance law or any successor

corporation regardless of when the application for such exemption is

approved. The department of housing preservation and development may

promulgate rules and regulations to carry out the provisions of this

section, and may require a reasonable filing fee in an amount provided

by such rules and regulations.

3. An exemption from local real property taxation pursuant to this

section shall be governed solely by subdivisions one and two of this

section if the application for such exemption is approved before the

effective date of this subdivision and shall be governed solely by

subdivision four of this section if the application for such exemption

is approved on or after the effective date of this subdivision. Any tax

exemption pursuant to subdivisions one and two of this section that is

in effect on the effective date of this subdivision shall continue in

accordance with the provisions of subdivisions one and two of this

section; provided, however, that any amendment to a regulatory agreement

on or after the effective date of this subdivision shall require a new

application for tax exemption pursuant to subdivision four of this

section. Eligible real property that receives exemption from local real

property taxation pursuant to this section at any time shall not

simultaneously receive exemption from or abatement of local real

property taxation pursuant to any other law.

4. (a) For the purposes of this subdivision, the following terms shall

have the following meanings:

(1) The term "persons and families of low income" shall have the

meaning set forth in section two of the private housing finance law.

(2) The term "tax credit program" shall mean the federal low-income

housing tax credit program established pursuant to section forty-two of

the internal revenue code of nineteen hundred eighty-six, as amended, or

any successor statute.

(3) The term "eligible real property" shall mean real property that

(i) provides housing accommodations for persons and families of low

income, and (ii) participates in or has participated in the tax credit

program.

(4) The term "charitable organization" shall mean (i) an entity formed

for purposes that include providing housing accommodations for persons

and families of low income and that has received written recognition of

exemption pursuant to section 501(c)(3) or section 501(c)(4) of the

internal revenue code of nineteen hundred eighty-six, as amended, or any

successor statute, from the United States Internal Revenue Service, or

any successor agency, or (ii) a corporation, partnership or limited

liability company wholly owned and wholly controlled by an entity formed

for purposes that include providing housing accommodations for persons

and families of low income and that has received written recognition of

exemption pursuant to section 501(c)(3) or section 501(c)(4) of the

internal revenue code of nineteen hundred eighty-six, as amended, or any

successor statute, from the United States Internal Revenue Service, or

any successor agency.

(5) The term "eligible entity" shall mean a corporation, partnership

or limited liability company at least fifty percent of the controlling

interest of which is held by a charitable organization.

(6) The term "eligible owner" shall mean one or more eligible entities

that holds (i) legal and beneficial title to eligible real property, or

(ii) a legal and beneficial leasehold interest with a term of not less

than thirty years in eligible real property.

(7) The term "regulatory agreement" shall mean a regulatory agreement

with or approved by the municipality that requires the provision of

housing accommodations for persons and families of low income, requires

that units currently or formerly assisted under the tax credit program

be rented in accordance with the income requirements of the tax credit

program, is recorded against the eligible real property, and binds all

parties in interest to the eligible real property and their respective

successors and assigns. A regulatory agreement may include such other

terms and conditions as the municipality shall determine, including, but

not limited to, provisions requiring payments in lieu of taxes.

(b) Notwithstanding any other provision in this subdivision to the

contrary, in a city having a population of one million or more, eligible

real property of an eligible owner that is subject to a regulatory

agreement shall be exempt from local real property taxation except as

may be otherwise provided in such regulatory agreement.

(c) Notwithstanding any provision of any other general or special

state or local law or charter, (1) with respect to eligible real

property that is eligible for exemption from local real property

taxation pursuant to this subdivision on the effective date of this

subdivision and that is receiving exemption from or abatement of local

real property taxation pursuant to any other law on the effective date

of this subdivision, an eligible owner may prospectively terminate such

other exemption or abatement upon entering into a new regulatory

agreement and the eligible real property shall thereafter be

prospectively entitled to exemption from local real property taxation

pursuant to this subdivision, and (2) with respect to eligible real

property that is eligible for exemption from local real property

taxation pursuant to this subdivision on the effective date of this

subdivision and that is not receiving any exemption from or abatement of

local real property taxation pursuant to subdivisions one and two of

this section or any other law on the effective date of this subdivision,

if an eligible owner enters into a new regulatory agreement, the

eligible real property shall thereafter by prospectively entitled to

exemption from local real property taxation pursuant to this

subdivision, and (3) with respect to eligible real property that is

eligible for an exemption from local real property taxation pursuant to

this subdivision on the effective date of this subdivision and that is

receiving exemption from local real property taxation pursuant to

subdivisions one and two of this section on the effective date of this

subdivision, an eligible owner may prospectively terminate such

exemption upon entering into a new regulatory agreement and the eligible

real property shall thereafter be prospectively entitled to exemption

from local real property taxation pursuant to this subdivision.

(d)(1) An exemption may be granted pursuant to this subdivision only

upon application by the eligible owner on a form prescribed by the

commissioner or any comparable form, which application shall be accepted

by the assessor of such city as provided in this subdivision and in such

rules as may be promulgated pursuant to this subdivision by the

department of housing preservation and development in such city. No such

application shall be accepted by the assessor unless accompanied by a

certificate of the department of housing preservation and development in

such city certifying the applicant's eligibility pursuant to this

subdivision.

(2) Notwithstanding section three hundred two of this chapter, an

exemption granted pursuant to this subdivision shall commence as of the

effective date of the regulatory agreement, regardless of when the

application for such exemption is approved, and shall terminate upon the

expiration or termination of such regulatory agreement. Notwithstanding

any provision of this subdivision to the contrary, if there is a default

pursuant to the regulatory agreement, and such default remains uncured

beyond any period for such cure specified in the regulatory agreement,

the municipality may terminate such exemption or suspend such exemption

until such default is cured.

(3) The department of housing preservation and development in such

city may promulgate rules to carry out the provisions of this

subdivision, and may require a reasonable filing fee in an amount

provided by such rules.