§ 485-R — Residential redevelopment inhibited property exemption

New York § 485-R

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

Text

§ 485-r. Residential redevelopment inhibited property exemption. 1. As\nused in this section, the following terms shall have the following\nmeanings:\n (a) "Redevelopment inhibited property" shall mean a residential\nproperty that has been neglected or abandoned because of the local\neconomic conditions and/or conditions on the property that inhibit such\nproperty from being redeveloped by the private sector as described in\nsubdivision three of this section. Redevelopment inhibited property\nshall not include land that is undeveloped.\n (b) "Gap financing costs" shall mean the total cost of the property's\nredevelopment as approved by the city, town, or village minus the\nincrease in the full valuation of the property upon completion of the\nredevelopment.\n (c) "Base assessment" shall mean the assessed value of the property on\nthe day the city, town, or village designates the property as\nredevelopment inhibited.\n (d) "Increased assessment" shall mean the assessed value of the\nproperty as determined by the assessor upon completion of the\nredevelopment.\n (e) "Incremental increase in annual property taxes" shall mean the\ntaxes based on the increased assessment minus the taxes based on the\nbase assessment.\n 2. A city, town, or village may, by local law, provide for the\nexemption of real property from taxation as provided in this section.\nSubsequent to the adoption of such local law, the county in which such\ncity, town, or village is located may after a public hearing and by\nlocal law, and any school district, all or part of which is located in\nsuch city, town, or village, may, by resolution, exempt such property\nfrom its taxation in the same manner and to the same extent as the city,\ntown, or village has done.\n 3. A local law adopted by a city, town, or village pursuant to\nsubdivision two of this section shall designate any property within such\ncity, town, or village's boundaries as a redevelopment inhibited\nproperty if one or more of the following are met:\n (a) the city, town, or village has acquired title to the property\npursuant to article nineteen-A of the real property actions and\nproceedings law; or\n (b) the property has been continuously vacant for a period of at least\nthree years; or\n (c) the county, city, town or village in which the property is located\nhas acquired title to the property via foreclosure for unpaid taxes\npursuant to article eleven of this chapter; or\n (d) the property has outstanding zoning, housing, or uniform code\nviolations and the cost of remedying the violations exceeds the\nproperty's value.\n 4. (a) Upon the adoption of such local law, redevelopment inhibited\nproperty shall be exempt from taxation and special ad valorem levies to\nthe extent of any increase in value attributable to demolition,\nalteration, rehabilitation, or remediation pursuant to the following\nrequirements:\n (i) the demolition, alterations, rehabilitation, and/or remediation\nshall be permitted by the applicable bureau of inspection such that\nbuilding or plumbing permits issued and said demolition, alterations,\nrehabilitation, and/or remediation shall have met all necessary\napprovals per the applicable New York state uniform fire prevention and\nbuilding code, the applicable municipal code and the applicable bureau\nof inspection upon completion; and\n (ii) the property for which the exemption is sought shall be a one to\nfour-unit residence and occupied as the primary residence of the owner\nor a tenant; and\n (iii) the owner of such property shall file annually an affidavit of\nresidency with the assessor of the city, town, or village on or before\nthe appropriate taxable status date, confirming continued occupancy of\nthe property by the owner or a tenant as their primary residence; and\n (iv) the redevelopment inhibited property is exempt from taxation and\nspecial ad valorem levies attributable to the increased assessment minus\nthe taxes and special ad valorem levies imposed on the base assessment.\nSuch exemption shall not apply to special assessments.\n (b) In the event the property granted an exemption pursuant to this\nsection ceases to be occupied as the primary residence of the owner or\ntenant and/or the affidavit of residency is not filed annually for the\napproved exemption period, the exemption granted pursuant to this\nsection shall cease.\n (c) In the event the property granted an exemption pursuant to this\nsection ceases to be a one to four-unit dwelling, the exemption granted\npursuant to this section shall cease.\n (d) In the event the owner of the property is convicted of a violation\nor misdemeanor pursuant to New York state uniform fire prevention and\nbuilding code or the applicable municipal code, the exemption granted\npursuant to this section shall cease.\n 5. (a) Such redevelopment inhibited property shall be exempt for a\nperiod equal to the gap financing costs divided by the incremental\nincrease in annual property taxes resulting from such redevelopment. The\nexemption period shall be rounded up to the nearest whole number and\nshall not exceed twenty-five years.\n (b) The extent of such exemption shall decrease the last eight years\nof the exemption period by twelve and one-half percent of the increase\nin assessment due to the redevelopment equaling a zero percent exemption\non the final year of the exemption period.\n 6. (a) Such exemption shall be granted only upon application by the\nowner of such building for the residential redevelopment inhibited\nproperty exemption, on a form prescribed by the city, town, or village.\nSuch application must be filed with the assessor of the city, town, or\nvillage on or before the appropriate taxable status date. The\napplication must be filed with the assessor of the city, town, or\nvillage within three years from the date of completing the demolition,\nalterations, rehabilitation, and/or remediation.\n (b) The owner filing for such exemption shall not be required to be\nthe owner responsible for completing the demolition, alterations,\nrehabilitation, and/or remediation.\n (c) If the assessor is satisfied that the applicant is entitled to an\nexemption pursuant to this section, such assessor shall approve the\napplication and such real property shall thereafter be exempt from\ntaxation and special ad valorem levies by the city, town, or village\ncommencing with the assessment roll prepared after the taxable status\ndate referred to in this subdivision. The assessed value of any\nexemption granted pursuant to this section shall be entered by the\nassessor of the city, town, or village on the assessment roll with the\ntaxable property, with the amount of the exemption shown in a separate\ncolumn.\n (d) Once granted, the residential redevelopment inhibited property\nexemption runs with the land for the exemption period pursuant to this\nsection.\n