N.Y. Real Property Tax Law § 423: Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract

§ 423. Phase out of exemption for redevelopment company projects upon

the cessation of the tax exemption granted pursuant to contract. (1)

After the expiration of any tax exemption granted a redevelopment

project pursuant to section one hundred twenty-five of the private

housing finance law, which exemption is not extended pursuant to such

law, that part of the value of the property which was exempt from

certain taxation for local purposes by reason of such grant, shall

thereafter be exempt from taxation for local purposes, other than

assessments for local improvement, commencing upon the expiration of the

tax exemption granted pursuant to such section as follows: during the

first year after such expiration, the taxes which shall be payable shall

be the taxes which were payable during the last year of the grant of

exemption plus one tenth of the difference between the taxes which were

payable during such prior year and the taxes which would otherwise be

payable during such first year absent this section; during the second

year after such expiration, the taxes which shall be payable shall be

the taxes which were payable during the first year after such expiration

plus one-ninth of the difference between the taxes which were payable

during such first year and the taxes which would otherwise be payable

during such second year absent this section; during the third year after

such expiration, the taxes which shall be payable shall be the taxes

which were payable during the second year after such expiration plus

one-eighth of the difference between the taxes which were payable during

such second year and the taxes which would otherwise be payable during

such third year absent this section; during the fourth year after such

expiration, the taxes which shall be payable shall be the taxes which

were payable during the third year after such expiration plus

one-seventh of the difference between the taxes which were payable

during such third year and the taxes which would otherwise be payable

during such fourth year absent this section; during the fifth year after

such expiration, the taxes which shall be payable shall be the taxes

which were payable during the fourth year after such expiration plus

one-sixth of the difference between the taxes which were payable during

such fourth year and the taxes which would otherwise be payable during

such fifth year absent this section; during the sixth year after such

expiration, the taxes which shall be payable shall be the taxes which

were payable during the fifth year after such expiration plus one-fifth

of the difference between the taxes which were payable during such fifth

year and the taxes which would otherwise be payable during such sixth

year absent this section; during the seventh year after such expiration,

the taxes which shall be payable shall be the taxes which were payable

during the sixth year after such expiration plus one-fourth of the

difference between the taxes which were payable during such sixth year

and the taxes which would otherwise be payable during such seventh year

absent this section; during the eighth year after such expiration, the

taxes which shall be payable shall be the taxes which were payable

during the seventh year after such expiration plus one-third of the

difference between the taxes which were payable during such seventh year

and the taxes which would otherwise be payable during such eighth year

absent this section; during the ninth year after such expiration, the

taxes which shall be payable shall be the taxes which were payable

during the eighth year after such expiration plus one-half of the

difference between the taxes which were payable during such eighth year

and the taxes which would otherwise be payable during such ninth year

absent this section; during the tenth year after such expiration, the

taxes which shall be payable shall be the taxes otherwise payable. (2)

Any provision of law to the contrary notwithstanding, any local laws or

ordinances in respect of the regulation and control of residential rents

and evictions adopted pursuant to the local emergency housing rent

control act shall be applicable to all dwelling accommodations in a

property described in subdivision one throughout such additional

exemption period whether or not such dwelling accommodations become

vacant during such period, in the same manner that such local laws or

ordinances would be applicable to dwelling accommodations which (i) were

completed after February one, nineteen hundred forty-seven and for which

a certificate of occupancy was obtained prior to March ten, nineteen

hundred sixty-nine, and (ii) did not become vacant after the thirtieth

day of June, nineteen hundred seventy-one, provided that the last rental

set forth under a rental agreement in force relating to a dwelling

accommodation in such project immediately prior to the expiration of the

tax exemption granted pursuant to the private housing finance law, shall

continue, and the owner of the property in which such accommodations are

situate may increase such rentals.

(a) in each year by an amount not more than the increases in taxes,

payable on such project by such owner over those paid in the year prior

to the expiration of the tax exemption granted pursuant to the private

housing finance law, allocated to such dwelling accommodation on a per

room basis based on the room count set forth in the contract with a

municipality originally granting the tax exemption under the private

housing finance law, and

(b) by an amount not more than the difference between the average

rental per room per month last authorized by the local legislative body

pursuant to the private housing finance law, and the average rental per

room per month actually collected during the last year such project was

exempt under such law, multiplied by the room count for such dwelling

accommodation as set forth in such contract with the municipality, as

well as percentage increases thereon which percentages are the same as

authorized under such local laws and ordinances and generally applicable

to subsequent rental agreements in dwelling accommodations in other

multiple dwellings as well as any other increases authorized by law.

(3) Notwithstanding any provision of this section to the contrary,

with respect to the real property of a mutual redevelopment project

located in a city having a population of one million or more, the tax

exemption provided in subdivision one of this section shall not apply in

any year where the total period of tax exemption granted pursuant to

section one hundred twenty-five of the private housing finance law and

subdivision one of this section would exceed sixty years.