N.Y. Real Property Tax Law § 457-a: Exemption for eligible residential property transferred to a low-income household

§ 457-a. Exemption for eligible residential property transferred to a

low-income household. 1. As used in this section:

(a) "Nonprofit housing organization" means a nonprofit organization

exempt from certain taxes pursuant to section 501(c)(3) or section

501(c)(4) of the United States internal revenue code and/or that is

incorporated under the not-for-profit corporation law whose primary

purpose is the construction or renovation of residential affordable

housing for conveyance to households that meet certain income

requirements.

(b) "Community land trust" means a nonprofit organization exempt from

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

United States internal revenue code and/or that is incorporated under

the not-for-profit corporation law whose primary purpose is to provide

affordable housing by owning land and leasing or selling residential

housing situated on that land to households that meet certain income

requirements.

(c) "Land bank" means an entity created in accordance with article

sixteen of the not-for-profit corporation law.

(d) "Qualified low-income household" means a household with an income

upon initial occupancy of the residential property of not more than

eighty percent of the area median income, as annually defined by the

United States department of housing and urban development, and which has

agreed to occupy such residential property as a primary residence. A

nonprofit housing organization, community land trust, land bank, or

appropriate governmental entity shall certify that a household meets the

income and residency criteria to be considered a qualified low-income

household and shall determine the income and assets that shall be used

to determine a household's income for eligibility purposes.

2. (a) Residential real property subject to a restrictive covenant or

declaration, legal requirement, regulatory agreement or other

contractual obligation with a governmental entity, nonprofit housing

organization, or land bank, and transferred to a qualified low-income

household, or where the land is transferred to a community land trust

and the residential building situated on the land is or will be leased

or sold to a qualified low-income household, shall be exempt as provided

in paragraph (b) of this subdivision from taxation levied by or on

behalf of any county, city, town, village or school district in which

such residential real property is located, provided the legislative body

or governing board of such county, city, town or village, after public

hearing, adopts a local law, or a school district, other than a school

district to which article fifty-two of the education law applies, adopts

a resolution opting in to this subdivision.

(b) The real property tax exemption authorized pursuant to paragraph

(a) of this subdivision shall be an amount that is not less than

twenty-five percent nor more than seventy-five percent of the assessed

value of the residential real property.

(c) A copy of any local law or resolution adopted pursuant to

paragraph (a) of this subdivision shall be filed with the assessor of

the county, city, town, or village that prepares the assessment roll on

which the taxes of such county, city, town, village, or school district

are levied.

3. (a) The exemption granted pursuant to this section shall be

discontinued if the property granted such exemption:

(i) ceases to be used primarily for residential purposes; or

(ii) ceases to be used as a primary residence; or

(iii) is transferred to another person or entity, other than to any

heirs or distributees of the owner that meet the requirements of being a

qualified low-income household at the time of such transfer.

(b) Upon determining that an exemption granted pursuant to this

section should be discontinued, the assessor shall mail a notice so

stating to the owner or owners thereof at the time and in the manner

provided by section five hundred ten of this chapter. Such owner or

owners shall be entitled to seek administrative and judicial review of

such action in the manner provided by law, provided that the burden

shall be on such owner or owners to establish eligibility for the

exemption.

4. Such exemption shall be granted only upon application by the owner

or owners of such real property on a form prescribed by the

commissioner. The application shall be filed with the assessor of the

county, city, town, or village having the power to assess property for

taxation on or before the appropriate taxable status date of such

county, city, town, or village.

5. If satisfied that the applicant is entitled to an exemption

pursuant to this section, the assessor shall approve the application,

and such residential property shall thereafter be exempt from taxation

and special ad valorem levies as provided in this section commencing

with the assessment roll prepared on the basis of the taxable status

date referred to in subdivision four of this section. The assessed value

of any exemption granted pursuant to this section shall be entered by

the assessor on the assessment roll with the taxable property, with the

amount of the exemption shown in a separate column.