N.Y. Real Property Tax Law § 581-a: Assessment of residential real property

§ 581-a. Assessment of residential real property. Notwithstanding any

other provision of law, the assessed valuation of real property used for

residential rental purposes where at least twenty percent of the

residential units are subject to an agreement with a municipality, the

state, the federal government, or an instrumentality thereof, which

agreement restricts occupancy of those units to tenants who qualify in

accordance with an income test, shall be determined using the income

approach as applied to the actual net operating income, after deducting

for reserves required by any federal, state or municipal programs. For

the purposes of this section "net operating income" shall mean the

actual or anticipated net income that remains after all operating

expenses are deducted from effective gross income, but before mortgage

debt service and book depreciation are deducted. The assessed valuation

of real property used for such residential rental purposes shall be

determined using the actual net operating income, and shall not include

federal, state or municipal income tax credits, subsidized mortgage

financing, or project grants, where such subsidies are used to offset

the project development cost in order to provide for lower initial rents

as determined by regulations promulgated by the division of housing and

community renewal.