§ 577 — Tax exemptions

§ 577. Tax exemptions. 1. (a) The local legislative body of any\nmunicipality in which a project of a housing development fund company is\nor is to be located may exempt the real property in such project from\nlocal and municipal taxes including school taxes, other than assessments\nfor local improvements, to the extent of all or part of the value of the\nproperty included in the completed project. The tax exemption shall\noperate and continue for such period as may be provided by such local\nlegislative body, but in no event for a period of more than forty years,\ncommencing in each instance from the date on which the benefits of such\nexemption first became available and effective.\n (b) Where a municipality acts on behalf of another taxing jurisdiction\nin assessing real property for the purpose of taxation, or in levying\ntaxes therefor, the action of the local legislative body of such\nmunicipality in granting such tax exemption shall have the effect of\nexempting the real property in such project from local and municipal\ntaxes including school taxes, other than assessments for local\nimprovements, levied by or in behalf of both such taxing jurisdictions.\n (c) The local legislative body of any municipality may grant an\nexemption under paragraph (a) of this subdivision to the real property\nof a project of any entity to which it is authorized to make a loan\npursuant to section five hundred seventy-six-c of this article.\n (d) In a city having a population of one million or more, within one\nhundred twenty days following receipt of a written submission from the\nsupervising agency requesting a tax exemption pursuant to paragraph (a)\nof this subdivision for the real property containing the project of a\nhousing development fund company, the local legislative body shall\napprove or disapprove by resolution the requested tax exemption. If the\nlocal legislative body fails to take such action within one hundred\ntwenty days following receipt of such written submission from such\nsupervising agency, then the tax exemption requested by the supervising\nagency shall be deemed approved pursuant to paragraph (a) of this\nsubdivision.\n 2. Any inconsistent provision of law to the contrary notwithstanding,\nmortgages of a housing development fund company shall be exempt from the\nmortgage recording taxes imposed by article eleven of the tax law.\n 2-a. Notwithstanding any inconsistent provision of law to the\ncontrary, a project of a housing development fund company incorporated\npursuant to the not-for-profit corporation law and this article shall be\nexempt from the sales and compensating use taxes imposed pursuant to\narticle twenty-eight or twenty-nine of the tax law, provided that such\nhousing development fund company has entered into a regulatory agreement\nwith respect to the provision of affordable housing with the\ncommissioner, a state agency or authority as defined in this chapter,\nthe New York city department of housing preservation and development, or\nthe New York city housing development corporation, and such tax\nexemption shall continue only so long as such agreement is in force and\neffect.\n 3. (a) Notwithstanding the provisions of subdivision one hereof, the\nreal property of a state urban development corporation project acquired,\nowned, constructed, managed or operated by a company incorporated\npursuant to the not-for-profit corporation law and this article shall be\nentitled to all the benefits provided by section four hundred twenty-two\nof the real property tax law. The real property of a state urban\ndevelopment corporation project, other than a state urban development\ncorporation project acquired, owned, constructed, managed or operated by\na company incorporated pursuant to the not-for-profit corporation law\nand this article, shall be exempt from all local and municipal taxes,\nother than assessments for local improvements, to the extent of the\nvalue of the property included in such project as represents an increase\nover the assessed valuation of the real property, both land and\nimprovements, acquired for the project on the date of its acquisition by\nthe housing development fund company. The tax exemption shall operate\nand continue so long as the mortgage loans of such housing development\nfund company are outstanding, but in no event for a period of more than\nforty years, commencing in each instance from the date when such housing\ndevelopment fund company first acquired such property. If a state urban\ndevelopment corporation project qualifying for tax exemption pursuant to\nthis subdivision is sold, with the approval of the commissioner, to\nanother housing development fund company, such successor company shall\nbe entitled to all the benefits of this subdivision.\n (b) In the event a state urban development corporation project is not\nsubject to a state-aided, federally-aided or municipally-aided mortgage,\nas defined herein, it shall receive the tax exemption granted under\nparagraph (a) of this subdivision only if it has entered into a\nregulatory agreement with the commissioner pursuant to section five\nhundred seventy-six of this article, and such tax exemption shall\ncontinue only so long as such agreement is in force and effect.\n