§ 420-C — Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ...

§ 420-c. Exemption from local real property taxation of certain low\nincome housing accommodations in a city having a population of one\nmillion or more. 1. In a city having a population of one million or\nmore, real property owned by a corporation, partnership or limited\nliability company formed for the purpose of providing housing\naccommodations for persons and families of low income as defined in\nsection two of the private housing finance law and used for such\npurpose, shall be exempt from local real property taxation, provided\nthat such corporation, partnership or limited liability company: (a) is\norganized as a non-profit housing development fund company pursuant to\narticle eleven of the private housing finance law, or is a non-profit\nhousing corporation as defined in article eleven of the private housing\nfinance law which is not incorporated as a housing development fund\ncompany as defined in article eleven of the private housing finance law,\nor is a wholly-owned subsidiary of such a company or is a partnership or\nlimited liability company the controlling interest of which is held by\nsuch a company or corporation or by a wholly owned subsidiary of such a\ncompany or by a corporation sponsored or formed by such a company or\ncorporation; and (b) has received a loan from a municipality, the state\nor the housing trust fund corporation established pursuant to section\nforty-five-a of the private housing finance law or any successor\ncorporation; and (c) enters into a regulatory agreement with the\nmunicipality, the state or the housing trust fund corporation\nestablished pursuant to section forty-five-a of the private housing\nfinance law or any successor corporation guaranteeing the provision of\nhousing accommodations for persons and families of low income; and (d)\nis a participant in the federal low income housing tax credit program\nestablished pursuant to section forty-two of the internal revenue code\nof nineteen hundred eighty-six, as amended. Any exemption pursuant to\nthis section shall expire upon the expiration or termination of the\nregulatory agreement.\n 2. An exemption may be granted pursuant to this section only upon\napplication by the owner on a form prescribed by the commissioner or any\ncomparable form, which application shall be accepted by the assessor of\nsuch city as provided in this subdivision and in the rules and\nregulations promulgated pursuant to this section by the department of\nhousing preservation and development in such city. No such application\nshall be accepted by the assessor unless accompanied by a certificate of\nthe department of housing preservation and development in such city\ncertifying the applicant's eligibility pursuant to this section.\nNotwithstanding section three hundred two of this chapter, an exemption\ngranted pursuant to this section shall commence as of the effective date\nof the regulatory agreement with the municipality, the state or the\nhousing trust fund corporation established pursuant to section\nforty-five-a of the private housing finance law or any successor\ncorporation regardless of when the application for such exemption is\napproved. The department of housing preservation and development may\npromulgate rules and regulations to carry out the provisions of this\nsection, and may require a reasonable filing fee in an amount provided\nby such rules and regulations.\n 3. An exemption from local real property taxation pursuant to this\nsection shall be governed solely by subdivisions one and two of this\nsection if the application for such exemption is approved before the\neffective date of this subdivision and shall be governed solely by\nsubdivision four of this section if the application for such exemption\nis approved on or after the effective date of this subdivision. Any tax\nexemption pursuant to subdivisions one and two of this section that is\nin effect on the effective date of this subdivision shall continue in\naccordance with the provisions of subdivisions one and two of this\nsection; provided, however, that any amendment to a regulatory agreement\non or after the effective date of this subdivision shall require a new\napplication for tax exemption pursuant to subdivision four of this\nsection. Eligible real property that receives exemption from local real\nproperty taxation pursuant to this section at any time shall not\nsimultaneously receive exemption from or abatement of local real\nproperty taxation pursuant to any other law.\n 4. (a) For the purposes of this subdivision, the following terms shall\nhave the following meanings:\n (1) The term "persons and families of low income" shall have the\nmeaning set forth in section two of the private housing finance law.\n (2) The term "tax credit program" shall mean the federal low-income\nhousing tax credit program established pursuant to section forty-two of\nthe internal revenue code of nineteen hundred eighty-six, as amended, or\nany successor statute.\n (3) The term "eligible real property" shall mean real property that\n(i) provides housing accommodations for persons and families of low\nincome, and (ii) participates in or has participated in the tax credit\nprogram.\n (4) The term "charitable organization" shall mean (i) an entity formed\nfor purposes that include providing housing accommodations for persons\nand families of low income and that has received written recognition of\nexemption pursuant to section 501(c)(3) or section 501(c)(4) of the\ninternal revenue code of nineteen hundred eighty-six, as amended, or any\nsuccessor statute, from the United States Internal Revenue Service, or\nany successor agency, or (ii) a corporation, partnership or limited\nliability company wholly owned and wholly controlled by an entity formed\nfor purposes that include providing housing accommodations for persons\nand families of low income and that has received written recognition of\nexemption pursuant to section 501(c)(3) or section 501(c)(4) of the\ninternal revenue code of nineteen hundred eighty-six, as amended, or any\nsuccessor statute, from the United States Internal Revenue Service, or\nany successor agency.\n (5) The term "eligible entity" shall mean a corporation, partnership\nor limited liability company at least fifty percent of the controlling\ninterest of which is held by a charitable organization.\n (6) The term "eligible owner" shall mean one or more eligible entities\nthat holds (i) legal and beneficial title to eligible real property, or\n(ii) a legal and beneficial leasehold interest with a term of not less\nthan thirty years in eligible real property.\n (7) The term "regulatory agreement" shall mean a regulatory agreement\nwith or approved by the municipality that requires the provision of\nhousing accommodations for persons and families of low income, requires\nthat units currently or formerly assisted under the tax credit program\nbe rented in accordance with the income requirements of the tax credit\nprogram, is recorded against the eligible real property, and binds all\nparties in interest to the eligible real property and their respective\nsuccessors and assigns. A regulatory agreement may include such other\nterms and conditions as the municipality shall determine, including, but\nnot limited to, provisions requiring payments in lieu of taxes.\n (b) Notwithstanding any other provision in this subdivision to the\ncontrary, in a city having a population of one million or more, eligible\nreal property of an eligible owner that is subject to a regulatory\nagreement shall be exempt from local real property taxation except as\nmay be otherwise provided in such regulatory agreement.\n (c) Notwithstanding any provision of any other general or special\nstate or local law or charter, (1) with respect to eligible real\nproperty that is eligible for exemption from local real property\ntaxation pursuant to this subdivision on the effective date of this\nsubdivision and that is receiving exemption from or abatement of local\nreal property taxation pursuant to any other law on the effective date\nof this subdivision, an eligible owner may prospectively terminate such\nother exemption or abatement upon entering into a new regulatory\nagreement and the eligible real property shall thereafter be\nprospectively entitled to exemption from local real property taxation\npursuant to this subdivision, and (2) with respect to eligible real\nproperty that is eligible for exemption from local real property\ntaxation pursuant to this subdivision on the effective date of this\nsubdivision and that is not receiving any exemption from or abatement of\nlocal real property taxation pursuant to subdivisions one and two of\nthis section or any other law on the effective date of this subdivision,\nif an eligible owner enters into a new regulatory agreement, the\neligible real property shall thereafter by prospectively entitled to\nexemption from local real property taxation pursuant to this\nsubdivision, and (3) with respect to eligible real property that is\neligible for an exemption from local real property taxation pursuant to\nthis subdivision on the effective date of this subdivision and that is\nreceiving exemption from local real property taxation pursuant to\nsubdivisions one and two of this section on the effective date of this\nsubdivision, an eligible owner may prospectively terminate such\nexemption upon entering into a new regulatory agreement and the eligible\nreal property shall thereafter be prospectively entitled to exemption\nfrom local real property taxation pursuant to this subdivision.\n (d)(1) An exemption may be granted pursuant to this subdivision only\nupon application by the eligible owner on a form prescribed by the\ncommissioner or any comparable form, which application shall be accepted\nby the assessor of such city as provided in this subdivision and in such\nrules as may be promulgated pursuant to this subdivision by the\ndepartment of housing preservation and development in such city. No such\napplication shall be accepted by the assessor unless accompanied by a\ncertificate of the department of housing preservation and development in\nsuch city certifying the applicant's eligibility pursuant to this\nsubdivision.\n (2) Notwithstanding section three hundred two of this chapter, an\nexemption granted pursuant to this subdivision shall commence as of the\neffective date of the regulatory agreement, regardless of when the\napplication for such exemption is approved, and shall terminate upon the\nexpiration or termination of such regulatory agreement. Notwithstanding\nany provision of this subdivision to the contrary, if there is a default\npursuant to the regulatory agreement, and such default remains uncured\nbeyond any period for such cure specified in the regulatory agreement,\nthe municipality may terminate such exemption or suspend such exemption\nuntil such default is cured.\n (3) The department of housing preservation and development in such\ncity may promulgate rules to carry out the provisions of this\nsubdivision, and may require a reasonable filing fee in an amount\nprovided by such rules.\n