N.Y. Real Property Tax Law § 422: Not-for-profit housing companies

§ 422. Not-for-profit housing companies. 1. (a) Real property owned by

a not-for-profit corporation organized pursuant to the not-for-profit

corporation law and the provisions of article two of the private housing

finance law, used exclusively to provide housing and auxiliary

facilities for faculty members, students, employees, nurses, interns,

resident physicians, researchers and other personnel and their immediate

families in attendance or employed at colleges, universities,

educational institutions, child care institutions, hospitals and medical

research institutes, or for handicapped or aged persons of low income,

or owned by non-profit nursing home companies organized pursuant to the

not-for-profit corporation law and the provisions of article

twenty-eight-A of the public health law, used exclusively to provide

facilities for nursing care to sick, invalid, infirm, disabled or

convalescent persons of low income, or to provide health-related service

as defined in article twenty-eight of the public health law to persons

of low income, or any combination of the foregoing, and in addition

thereto, to provide nursing care and health-related service, or either

of them, to persons of low income who are not occupants of the project,

or owned by housing development fund companies organized pursuant to the

not-for-profit corporation law and article eleven of the private housing

finance law, used exclusively to provide housing for handicapped or aged

persons of low income, and financed by a federally-aided mortgage as

defined in said article eleven, or owned by companies organized pursuant

to the not-for-profit corporation law and the provisions of article

seventy-five of title E of the mental hygiene law, used exclusively to

provide care, treatment, training, education and residential

accommodations for operation as hostels for people with mental illness

or developmental disabilities, or owned by companies organized pursuant

to the membership corporations law and the provisions of article seven-A

of the private housing finance law, used exclusively to provide

programs, services and other facilities for the aging, shall be exempt

from taxation and exempt from special ad valorem levies and special

assessments to the extent provided in section four hundred ninety of

this chapter, provided, however, that in a city having a population of

one million or more real property owned by any such corporation which is

to provide housing accommodations, substantially all of which are or are

to be assisted by rent subsidies made or to be made available by the

Federal government pursuant to a contract under section eight of the

United States Housing Act of nineteen hundred thirty-seven, as amended,

or pursuant to a project rental assistance contract under section two

hundred two of the United States Housing Act of nineteen hundred

fifty-nine, as amended, or pursuant to a project rental assistance

contract under section eight hundred eleven of the National Affordable

Housing Act of nineteen hundred ninety, as amended, shall from and after

the commencement of construction be subject to taxation or exempt

therefrom to the extent approved by a municipality acting through its

local legislative body, as such local legislative body is defined in

subdivision twelve of section two of the private housing finance law. No

such corporation or company shall pay a dividend on any of its stock or

pay interest on any of its debentures. Provided further, however, in a

county having a population of one million or more and having not more

than three towns within such county, real property owned by housing

development fund companies organized pursuant to the not-for-profit

corporation law and article eleven of the private housing finance law,

used exclusively to provide housing for handicapped or aged persons of

low income, and financed by a federally-aided mortgage as defined in

said article eleven shall from and after the commencement of

construction be subject to taxation or exempt therefrom to the extent

approved by a municipality acting through its local legislative body, as

such local legislative body is defined in subdivision twelve of section

two of the private housing finance law. Any tax payments and/or payments

in lieu of taxes made to a municipality pursuant to the preceding

sentence shall not be passed through nor become the liability of any of

the occupants of such property.

(b) If any portion of such real property of such corporation is not

used exclusively for housing of those persons set forth in paragraph a

of this section but is leased or otherwise used for purposes pursuant to

article two of the private housing finance law, such portion, provided

it does not exceed ten per centum of the total, shall be subject to such

limited exemption as is authorized pursuant to article two of the

private housing finance law, and the remaining portion only shall be

fully exempt. If any portion of the real property of such corporation in

excess of ten per centum of the total is leased or otherwise used for

housing pursuant to article two of the private housing finance law, the

total property shall be subject to such limited exemption as is

authorized pursuant to article two of the private housing finance law.

Real property exempt from taxation pursuant to this paragraph shall also

be exempt from special ad valorem levies and special assessments to the

extent provided in section four hundred ninety of this chapter.

(c) In real property used in part for handicapped or aged persons of

low income priority and preference in the rental of such real property

for purposes not specified in paragraph a shall be given to a family of

a person legally responsible for the care of a handicapped or an aged

person residing in such real property. This preference and priority

shall apply to only one such family for each handicapped or aged tenant.

2. (a) The exemption provided in paragraphs (a) and (b) of subdivision

one of this section shall be upon condition that the property owned by

such corporation shall upon dissolution vest in such college,

university, educational institution, hospital, medical research

institute, child care institution, or other not-for-profit corporation,

if such college, university, educational institution, hospital, medical

research institution, child care institution, or other not-for-profit

corporation is exempt from taxation pursuant to the provisions of

section four hundred twenty-a or four hundred twenty-b of this article

and if no part of the net earnings of such college, university,

educational institution, hospital, medical research institute, child

care institution, or other not-for-profit corporation shall inure to the

benefit of any private individual.

(b) In the event that such college, university, educational

institution, hospital, medical research institute, child care

institution, or other not-for-profit corporation is not otherwise exempt

from taxation, title to the property shall nevertheless vest therein,

but only upon payment to the municipality of a sum equal to the total of

all accrued taxes, levies and assessments from which such property has

been exempt under the provisions of this section.