N.Y. Real Property Tax Law § 421-d: Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation

* § 421-d. Exemption of multiple dwellings financed by the New York

state housing finance agency from local taxation. 1. The local

legislative body of any city, town or village having a population of

less than one million is hereby authorized and empowered to adopt and

amend a local law to provide that any new or rehabilitated housing

development, as defined in section forty-two of the private housing

finance law, subject to a mortgage, the loan for which was made or

financed by notes, bonds or other obligations of the New York state

housing finance agency, the interest on which is exempt from taxation

pursuant to the Internal Revenue Code of 1954, as amended, after the

adoption of such local law shall be exempt from taxation as provided by

such local law.

2. (a) Such local law may provide that such eligible property shall be

exempt from all taxes imposed by a municipal corporation, including

those imposed by or on behalf of a school district, other than special

assessments and special ad valorem levies, during construction or

rehabilitation, but for no longer than three years.

(b) Such local law may also provide that the eligible property shall

be exempt upon the conclusion of the exemption period authorized by

paragraph (a) of this subdivision, for as long as construction or

rehabilitation continues and, thereafter, for so long as such mortgage

is outstanding and the housing development, as defined in section

forty-two of the private housing finance law, is used for residential

unit purposes; provided, that the exemption authorized by this

subdivision shall be for a period not to exceed fifteen years in the

aggregate after the conclusion of the exemption authorized by paragraph

(a) of this subdivision, and shall not exceed the following limitations:

three years of full exemption, followed by three years of exemption from

eighty percent of the assessed value of such property, followed by three

years of exemption from sixty percent of the assessed value of such

property, followed by three years of exemption from forty percent of the

assessed value of such property, followed by three years of exemption

from twenty percent of the assessed value of such property; and provided

that taxes shall be paid during any such period after the taxable status

date immediately following the completion of construction or

rehabilitation at least in the amount of the taxes paid on such land and

improvements thereon during the fiscal year preceding the commencement

of such construction or rehabilitation and that the exemption from taxes

shall not be availed of concurrently under any other law.

* NB Repealed July 23, 2027