§ 93 — Tax exemptions

New York § 93

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 4: Limited Dividend Housing Companies

Text

§ 93. Tax exemptions. 1. Any housing company shall be exempt from the\npayment of any and all franchise, organization, income, mortgage\nrecording and other taxes to the state and all fees to the state or its\nofficers.\n 2. Bonds and mortgages and the income debenture certificates of all\nhousing companies are declared to be instrumentalities of the state,\nissued for public purposes and shall, together with interest thereon, be\nexempt from taxation. Distributions on capital of said companies shall\nbe exempt from taxation by the state.\n 3. Any municipality in which projects of housing companies are located\nis authorized to exempt the buildings and improvements created in\nconnection with such projects from local taxation, and should said\nmunicipality exempt such buildings and improvements from such taxation\nthe buildings and improvements of said company shall to the extent of\nsuch exemption be exempt from any and all state taxation. This provision\nshall apply only to projects completed prior to January first, nineteen\nhundred thirty-nine.\n 4. Any municipality in which projects of housing companies are located\nis authorized, through its local legislative body, to exempt from local\nand municipal taxes, other than assessments for local improvements, all\nor part of the value of the property included in any such projects as\nrepresents an increase over the assessed valuation of the real property,\nboth land and improvements, acquired for the project at the time of its\nacquisition by the housing company which originally undertook the\nproject; and should a municipality grant such tax exemption, all\nprojects of housing companies shall to the extent of such municipal\nexemption and during the period thereof, be exempt from any and all\nstate taxes. Such exemption of projects from taxation by a municipality\nand the state shall not extend to projects erected prior to January\nfirst, nineteen hundred thirty-nine nor to projects erected after\nJanuary first, nineteen hundred seventy-three and prior to January\nfirst, nineteen hundred seventy-nine.\n 5. The tax exemption specified in subdivisions three and four of this\nsection shall not operate for a period of more than fifty years,\ncommencing in each instance from the date on which the benefits of such\nexemption first become available and effective.\n 6. Notwithstanding the provisions of subdivisions four and five of\nthis section, the real property owned, acquired, leased, managed or\noperated by a state urban development corporation project shall be\nexempt from all local and municipal taxes, other than assessment for\nlocal improvements, to the extent of the value of the property included\nin such project as represents an increase over the assessed valuation of\nthe real property, both land and improvements acquired for the project\non the date of its acquisition by the housing company. The tax exemption\nshall operate and continue so long as the mortgage loans of such\nlimited-dividend housing company are outstanding, but in no event for a\nperiod of more than forty years, commencing in each instance from the\ndate when such limited-dividend housing company first acquired such\nproperty. If a state urban development corporation project qualifying\nfor tax exemption pursuant to this subdivision is sold, with the\napproval of the commissioner, to another limited-dividend housing\ncompany, such successor company shall be entitled to all the benefits of\nthis subdivision.\n 7. Any project that received a tax exemption under this section may,\nupon the expiration of the tax exemption period, be granted an\nadditional tax exemption period of up to fifty years, or until such time\nas the project is no longer operated under the restrictions and for the\npurposes set forth in this article, whichever is sooner.\n 8. Notwithstanding any other provision of this section, the maximum\ncombined local and municipal taxes, other than assessments for local\nimprovements, that a project operated by a housing company established\npursuant to this article, and which is eligible for a tax exemption\npursuant to any other subdivision of this section, shall be required to\npay in a city with a population of one million or more shall be no more\nthan the equivalent of five per centum of the annual shelter rent or\ncarrying charges of such project. Upon the consent of the local\nlegislative body of the municipality, other than a city with a\npopulation of one million or more, in which the project is located, the\namount of such taxes may be further reduced to five per centum or less\nof the annual shelter rent or carrying charges of the project. Any such\ngranted consent to reduce the amount of such taxes shall expire every\nten years. If such authorization is not renewed, the rate of taxation\nshall revert to the level established before the consent was granted.\nFor the purposes of this subdivision, "shelter rent" shall have the same\nmeaning as such term is defined to have in paragraph a of subdivision\none of section thirty-three of this chapter.\n