§ 421-M — Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation

New York § 421-M

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 421-m. Exemption of certain new or substantially rehabilitated\nmultiple dwellings from local taxation. 1. (a) A city, town or village\nmay, by local law, provide for the exemption of multiple dwellings\nconstructed or substantially rehabilitated in a benefit area designated\nin such local law from taxation and special ad valorem levies, but not\nspecial assessments, as provided in this section. Subsequent to the\nadoption of such a local law, any other municipal corporation in which\nthe designated benefit area is located may likewise exempt such property\nfrom its taxation and special ad valorem levies by local law, or in the\ncase of a school district, by resolution.\n (b) As used in this section, the term "benefit area" means the area\nwithin a city, town or village, designated by local law, to which an\nexemption, established pursuant to this section, applies.\n (c) The term "substantial rehabilitation" means all work necessary to\nbring a property into compliance with all applicable laws and\nregulations including but not limited to the installation, replacement\nor repair of heating, plumbing, electrical and related systems and the\nelimination of all hazardous and immediately hazardous violations in the\nstructure in accordance with state and local laws and regulations of\nstate and local agencies. Substantial rehabilitation may also include\nreconstruction or work to improve the habitability or prolong the useful\nlife of the property; provided substantial rehabilitation shall not\ninclude ordinary maintenance or repair.\n (d) The term "multiple dwelling" means a dwelling, other than a hotel,\nwhich is to be occupied or is occupied as the residence or home of three\nor more families living independently of one another, whether such\ndwelling is rented or owned as a cooperative or condominium.\n 2. (a) Eligible new or substantially rehabilitated multiple dwellings\nin a designated benefit area shall be exempt according to the following\nschedule:\n CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN\n MULTIPLE DWELLINGS\nDuring construction or Exemption\nsubstantial rehabilitation (maximum\nthree years) 100%\nFollowing completion of work year:\n1 through 12 100%\n13-14 80%\n15-16 60%\n17-18 40%\n19-20 20%\n (b) Provided that taxes shall be paid during any such period at least\nin the amount of the taxes paid on such land and any improvements\nthereon during the tax year preceding the commencement of such\nexemption. Provided further that no other exemption may be granted\nconcurrently to the same improvements under any other section of law.\n 3. To be eligible for exemption under this section:\n (a) Such construction or substantial rehabilitation shall take place\non vacant, predominantly vacant or under-utilized land, or on land\nimproved with a non-conforming use or on land containing one or more\nsubstandard or structurally unsound dwellings, or a dwelling that has\nbeen certified as unsanitary by the local health agency.\n (b) Such construction or substantial rehabilitation was commenced on\nor after the effective date of the local law, ordinance or resolution\ndescribed in subdivision one of this section, but no later than June\nfifteenth, two thousand nineteen.\n (c) At least twenty percent of the units shall be affordable to\nindividuals or families of low and moderate income whose incomes at the\ntime of initial occupancy do not exceed ninety percent of the area\nmedian income adjusted for family size and the individual or family\nshall pay in rent or monthly carrying charges no more than thirty\npercent of their adjusted gross income as reported in their federal\nincome tax return, or would be reported if such return were required,\nless such personal exemptions and deductions and medical expenses as are\nactually taken by the taxpayer, as verified according to procedures\nestablished by the state division of housing and community renewal. Such\nprocedures shall be published through notice in the state register\nwithout further action required for the promulgation of regulations\npursuant to the state administrative procedure act.\n (d) Such construction or substantial rehabilitation is carried out\nwith the assistance of grants, loans or subsidies for the construction\nor substantial rehabilitation of affordable housing from any federal,\nstate or local agency or instrumentality thereof.\n 4. Application for exemption under this section shall be made on a\nform prescribed by the commissioner and filed with the assessor on or\nbefore the applicable taxable status date.\n 5. In the case of property which is used partially as a multiple\ndwelling and partially for commercial or other purposes, the property\nshall be eligible for the exemption authorized by this section if:\n (a) The square footage of the portion used as a multiple dwelling\nrepresents at least fifty percent of the square footage of the entire\nproperty;\n (b) At least twenty percent of the units are affordable to individuals\nor families of low and moderate income, as determined according to the\ncriteria set forth in paragraph (c) of subdivision three of this\nsection; and\n (c) The requirements of this section are otherwise satisfied with\nrespect to the portion of the property used as a multiple dwelling.\n 6. The exemption authorized by this section shall not be available in\na jurisdiction to which the provisions of section four hundred\ntwenty-one-a or four hundred twenty-one-c of this article are\napplicable.\n 7. A city, town or village providing an exemption pursuant to the\nauthority of this section shall develop an income monitoring and\ncompliance plan to meet the criteria of paragraph (c) of subdivision\nthree of this section and such plan shall be reviewed, evaluated and\napproved by the state division of housing and community renewal as a\ncondition of providing such exemption. Such plan shall include an annual\ncertification that the multiple dwelling receiving an exemption meets\nthe requirements of this section. Such certification shall be provided\nto the assessor and the state division of housing and community renewal.\nIf such requirements are not met, then the multiple dwelling shall not\nqualify for the exemption in that year.\n