§ 423 — Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract

§ 423. Phase out of exemption for redevelopment company projects upon\nthe cessation of the tax exemption granted pursuant to contract. (1)\nAfter the expiration of any tax exemption granted a redevelopment\nproject pursuant to section one hundred twenty-five of the private\nhousing finance law, which exemption is not extended pursuant to such\nlaw, that part of the value of the property which was exempt from\ncertain taxation for local purposes by reason of such grant, shall\nthereafter be exempt from taxation for local purposes, other than\nassessments for local improvement, commencing upon the expiration of the\ntax exemption granted pursuant to such section as follows: during the\nfirst year after such expiration, the taxes which shall be payable shall\nbe the taxes which were payable during the last year of the grant of\nexemption plus one tenth of the difference between the taxes which were\npayable during such prior year and the taxes which would otherwise be\npayable during such first year absent this section; during the second\nyear after such expiration, the taxes which shall be payable shall be\nthe taxes which were payable during the first year after such expiration\nplus one-ninth of the difference between the taxes which were payable\nduring such first year and the taxes which would otherwise be payable\nduring such second year absent this section; during the third year after\nsuch expiration, the taxes which shall be payable shall be the taxes\nwhich were payable during the second year after such expiration plus\none-eighth of the difference between the taxes which were payable during\nsuch second year and the taxes which would otherwise be payable during\nsuch third year absent this section; during the fourth year after such\nexpiration, the taxes which shall be payable shall be the taxes which\nwere payable during the third year after such expiration plus\none-seventh of the difference between the taxes which were payable\nduring such third year and the taxes which would otherwise be payable\nduring such fourth year absent this section; during the fifth year after\nsuch expiration, the taxes which shall be payable shall be the taxes\nwhich were payable during the fourth year after such expiration plus\none-sixth of the difference between the taxes which were payable during\nsuch fourth year and the taxes which would otherwise be payable during\nsuch fifth year absent this section; during the sixth year after such\nexpiration, the taxes which shall be payable shall be the taxes which\nwere payable during the fifth year after such expiration plus one-fifth\nof the difference between the taxes which were payable during such fifth\nyear and the taxes which would otherwise be payable during such sixth\nyear absent this section; during the seventh year after such expiration,\nthe taxes which shall be payable shall be the taxes which were payable\nduring the sixth year after such expiration plus one-fourth of the\ndifference between the taxes which were payable during such sixth year\nand the taxes which would otherwise be payable during such seventh year\nabsent this section; during the eighth year after such expiration, the\ntaxes which shall be payable shall be the taxes which were payable\nduring the seventh year after such expiration plus one-third of the\ndifference between the taxes which were payable during such seventh year\nand the taxes which would otherwise be payable during such eighth year\nabsent this section; during the ninth year after such expiration, the\ntaxes which shall be payable shall be the taxes which were payable\nduring the eighth year after such expiration plus one-half of the\ndifference between the taxes which were payable during such eighth year\nand the taxes which would otherwise be payable during such ninth year\nabsent this section; during the tenth year after such expiration, the\ntaxes which shall be payable shall be the taxes otherwise payable. (2)\nAny provision of law to the contrary notwithstanding, any local laws or\nordinances in respect of the regulation and control of residential rents\nand evictions adopted pursuant to the local emergency housing rent\ncontrol act shall be applicable to all dwelling accommodations in a\nproperty described in subdivision one throughout such additional\nexemption period whether or not such dwelling accommodations become\nvacant during such period, in the same manner that such local laws or\nordinances would be applicable to dwelling accommodations which (i) were\ncompleted after February one, nineteen hundred forty-seven and for which\na certificate of occupancy was obtained prior to March ten, nineteen\nhundred sixty-nine, and (ii) did not become vacant after the thirtieth\nday of June, nineteen hundred seventy-one, provided that the last rental\nset forth under a rental agreement in force relating to a dwelling\naccommodation in such project immediately prior to the expiration of the\ntax exemption granted pursuant to the private housing finance law, shall\ncontinue, and the owner of the property in which such accommodations are\nsituate may increase such rentals.\n (a) in each year by an amount not more than the increases in taxes,\npayable on such project by such owner over those paid in the year prior\nto the expiration of the tax exemption granted pursuant to the private\nhousing finance law, allocated to such dwelling accommodation on a per\nroom basis based on the room count set forth in the contract with a\nmunicipality originally granting the tax exemption under the private\nhousing finance law, and\n (b) by an amount not more than the difference between the average\nrental per room per month last authorized by the local legislative body\npursuant to the private housing finance law, and the average rental per\nroom per month actually collected during the last year such project was\nexempt under such law, multiplied by the room count for such dwelling\naccommodation as set forth in such contract with the municipality, as\nwell as percentage increases thereon which percentages are the same as\nauthorized under such local laws and ordinances and generally applicable\nto subsequent rental agreements in dwelling accommodations in other\nmultiple dwellings as well as any other increases authorized by law.\n (3) Notwithstanding any provision of this section to the contrary,\nwith respect to the real property of a mutual redevelopment project\nlocated in a city having a population of one million or more, the tax\nexemption provided in subdivision one of this section shall not apply in\nany year where the total period of tax exemption granted pursuant to\nsection one hundred twenty-five of the private housing finance law and\nsubdivision one of this section would exceed sixty years.\n