2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 2 - (10 - 37) LIMITED-PROFIT HOUSING COMPANIES
33 - Tax exemptions.

 
    § 33. Tax exemptions. 1. (a) Upon the consent of the local legislative
  body  of any municipality in which a project is or is to be located, the
  real property in a project shall be  exempt  from  local  and  municipal
  taxes,  other  than assessments for local improvements, to the extent of
  all or part of the value of the property included in such project  which
  represents an increase over the assessed valuation of the real property,
  both  land and improvements, acquired for the project at the time of its
  acquisition by the limited-profit housing  company,  provided,  however,
  that   the   real  property  in  a  project  acquired  for  purposes  of
  rehabilitation shall be exempt to the extent of all or part of the value
  of the property included in such project, and further provided that  the
  amount of such taxes to be paid shall not be less than ten per centum of
  the  annual shelter rent or carrying charges of such project except that
  for projects located or to be located in a city of a population  of  one
  million  or  more, upon the consent of the local legislative body of the
  municipality, the amount of such taxes to be paid may be set at not less
  than (i) the taxes payable with respect to the  real  property  in  such
  project  with  respect  to  the year nineteen hundred seventy-three, or,
  (ii) if such project was not occupied in such year, not  less  than  ten
  per  centum  of  the  annual  shelter  rent  or  carrying  charges first
  established pursuant to subdivision one of section  thirty-one  of  this
  article.  Shelter  rent  shall  mean  the  total rents received from the
  occupants of a project less the  cost  of  providing  to  the  occupants
  electricity,  gas,  heat  and other utilities. Total rents shall include
  rent supplements and subsidies received from the federal government, the
  state or a municipality on behalf  of  such  occupants,  but  shall  not
  include  interest  reduction  payments  pursuant  to  subdivision (a) of
  section two hundred one of the Federal Housing and Urban Development Act
  of nineteen hundred sixty-eight. The tax  exemption  shall  operate  and
  continue  so  long  as  the mortgage loans of the company, including any
  additional mortgage loan the proceeds of which are  used  primarily  for
  the  residential  portion  of  the  project,  which  additional  loan is
  approved by the commissioner or the supervising agency, are outstanding.
    (b) Where a municipality acts on behalf of another taxing jurisdiction
  in assessing real property for the purpose of taxation,  or  in  levying
  taxes  therefor,  the  consent  of  the  local  legislative body of such
  municipality shall have the effect of exempting the real property  in  a
  project from local and municipal taxes, other than assessments for local
  improvements, levied by or in behalf of both such taxing jurisdictions.
    As  used  in  this paragraph, the term "taxing jurisdiction" means any
  municipal corporation or  district  corporation,  including  any  school
  district  or  any  special district, having the power to levy or collect
  taxes and benefit assessments upon real property,  or  in  whose  behalf
  such taxes or benefit assessments may be levied or collected.
    (c)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
  subdivision, the real property of a state urban development  corporation
  project  acquired,  owned, constructed, managed or operated by a company
  incorporated pursuant to the not-for-profit  corporation  law  and  this
  article  shall  be entitled to all the benefits provided by section four
  hundred twenty-two of the real property tax law. The real property of  a
  state  urban  development  corporation project, other than a state urban
  development corporation project acquired, owned, constructed, managed or
  operated by  a  company  incorporated  pursuant  to  the  not-for-profit
  corporation  law  and  this  article, shall be exempt from all local and
  municipal taxes, other than assessments for local improvements,  to  the
  extent  of  the  value  of  the  property  included  in  such project as
  represents an increase over the assessed valuation of the real property,
  both land and improvements, acquired for the project on the date of  its

  acquisition  by  the  limited-profit  housing company, provided that the
  amount of such taxes to be paid shall not be less than ten per centum of
  the annual shelter rent or carrying charges of such project, as  defined
  in paragraph (a) hereof. The tax exemption shall operate and continue so
  long  as  the  mortgage  loans  of  such limited profit housing company,
  including any additional mortgage loan the proceeds of  which  are  used
  primarily  for  the residential portion of the project, which additional
  loan is approved by the commissioner  or  the  supervising  agency,  are
  outstanding   and   the  project  is  continued  to  be  operated  as  a
  limited-profit housing project. If a state urban development corporation
  project qualifying for tax exemption pursuant to this paragraph is sold,
  with the approval of the commissioner, to another limited-profit housing
  company, such successor company shall be entitled to all the benefits of
  this paragraph. In the event that such sale is to a company incorporated
  pursuant to the not-for-profit corporation law and  this  article,  such
  successor  company  shall  be  entitled  to all the benefits provided by
  section four hundred twenty-two of the real property tax law.
    (d) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
  subdivision, when a project is financed with a mortgage loan pursuant to
  this  article  or  article  three  of  this  chapter  and (i) there is a
  participation, new loan or investment pursuant to section twenty-three-b
  of this article or (ii) such mortgage  loan  is  assigned,  modified  or
  satisfied   pursuant   to  section  twenty-three-a  or  forty-four-b  or
  subdivision twenty-two-a of  section  six  hundred  fifty-four  of  this
  chapter, the real property of the project shall be exempt from all local
  and  municipal  taxes, other than assessments for local improvements, to
  the extent of the value of the real property included  in  such  project
  which  represents  an  increase  over the assessed valuation of the real
  property, both land and improvements, acquired for the  project  on  the
  date  of  its  original  acquisition  for  the  project  by the original
  mortgagor under a mortgage loan pursuant  to  this  article  or  article
  three  of  this chapter, provided that the amount of taxes to be paid on
  the project shall not be less than ten per centum of the annual  shelter
  rent or carrying charges of such project, as defined in paragraph (a) of
  this  subdivision.  Such  tax  exemption shall commence in each instance
  from the date when the project becomes subject to a mortgage insured  by
  the  federal  government  and  shall  operate  and continue so long as a
  mortgage on such project is insured or held by the federal government or
  so long as the project is thereafter owned by the federal government  or
  so  long  as  any  residual  indebtedness  is  outstanding, whichever is
  longer. When there is a participation, new loan or  investment  pursuant
  to  section twenty-three-b of this article, such participation, new loan
  or investment shall be deemed  to  be  the  equivalent  of  a  federally
  insured  mortgage  for  purposes of this paragraph. Nothing contained in
  this paragraph shall be construed  to  limit  or  otherwise  impair  the
  benefits  available  to any company eligible for exemption from taxation
  pursuant to section thirty-one or section thirty-six-a of this  article,
  section four hundred twenty-two or section four hundred sixty-seven-c of
  the  real property tax law, or section fifty-eight of the public housing
  law. The foregoing shall not be  deemed  to  authorize  any  company  to
  receive  the benefits of any exemption from taxation in contravention of
  the provisions of section two of article eighteen of the constitution.
    (e)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
  subdivision,  a municipality, with the approval of the local legislative
  body, may contract to exclude all or part of any rent subsidies received
  from the federal government pursuant to  section  eight  of  the  United
  States  Housing  Act  of nineteen hundred thirty-seven as amended in the
  computation of total rents received.

    (f)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
  subdivision,  if  the  number of units occupied by persons receiving the
  benefit of  rental  assistance  payments  from  the  federal  government
  pursuant  to  section eight of the United States Housing Act of nineteen
  hundred  thirty-seven, as amended, with respect to any project increases
  by more than one hundred percent within any  twelve  consecutive  months
  prior to nineteen hundred eighty-five over the number of units for which
  such  subsidies  were  available during the preceding twelve consecutive
  months or as July first, nineteen hundred eighty,  whichever  is  later,
  taxes  payable for such additional subsidized units and subsequent units
  subsidized in the same manner shall be based solely upon that portion of
  total rents received on account of such additional subsidized units that
  is not funded by such rental  assistance  payments,  provided,  however,
  that no project shall receive such additional tax exemption (i) unless a
  minimum  of  seventeen  percent  of the units in the project receive the
  benefit of such subsidies, or (ii) if any mortgage on  such  project  is
  insured  or held by the federal government or if the project is owned by
  the federal government. The amount of exemption to which  a  project  is
  entitled  pursuant  to this paragraph shall be certified annually by the
  commissioner or the supervising agency, as the case may be.
    2. Notwithstanding the provisions of subdivision one hereof,  whenever
  a  dwelling in a project is leased to the New York state housing finance
  agency pursuant to  the  provisions  of  section  forty-four-a  of  this
  chapter,  so  much of the assessed value of such project attributable to
  such dwelling (including a pro rata portion of the value of the land and
  common spaces) as represents an increase over the proportionate assessed
  value of the real property, both land  and  improvements,  acquired  for
  such  project  at  the  time  of original acquisition therefor, shall be
  exempt during the period of such lease from taxation for  county,  city,
  town,  village  and  school  district  purposes  and  special ad valorem
  levies; provided that if in any year the aggregate amount of such  taxes
  and  levies  that  would have been attributable to such dwelling but for
  the exemption provided by this subdivision exceeds  the  amount  payable
  out  of  the  low  rent  lease  account pursuant to subdivision three of
  section forty-four-a of this chapter with respect to the  agency's  rent
  obligation  for  such  dwelling,  the  agency  shall  make  proportional
  payments in lieu of such taxes and levies  to  the  appropriate  county,
  city,  town,  village,  school  district  or  special  district,  or any
  combination thereof as the case may be, in an aggregate amount equal  to
  one half of the sum of (a) the amount of such excess and (b) the amount,
  if any, by which the rent paid to the agency under the sublease for such
  dwelling exceeds the agency's rent obligation for such dwelling. Nothing
  contained in this subdivision shall preclude the increase of the taxable
  assessed  value  attributable  to  such  dwellings  as a result of a net
  increase in the assessed  valuation  of  the  taxable  property  in  the
  assessing  unit as a result of assessing such property at a higher ratio
  of full value.
    3. Notwithstanding the provisions of subdivision one hereof,  whenever
  a  dwelling  in  a  project  is  leased to an authority, pursuant to the
  provisions of sections seventeen and thirty-one of this chapter, so much
  of the assessed value of such  project  attributable  to  such  dwelling
  (including  a  pro  rata  portion  of  the  value of the land and common
  spaces) as represents an increase over the proportionate assessed  value
  of  the  real  property,  both  land and improvements, acquired for such
  project at the time of original acquisition therefor,  shall  be  exempt
  during  the  period  of such lease from taxation for county, city, town,
  village and school district purposes  and  special  ad  valorem  levies.
  Nothing contained in this subdivision shall preclude the increase of the

  taxable  assessed  value  attributable to such dwelling as a result of a
  net increase in the assessed valuation of the taxable  property  in  the
  assessing  unit as a result of assessing such property at a higher ratio
  of full value.
    4.  Notwithstanding  the  provisions of subdivision one hereof, when a
  mutual company  is  organized  under  this  article  to  facilitate  the
  acquisition  of a building by residents thereof, the amount of local and
  municipal taxes, other than assessments for local  improvements,  to  be
  paid  on  the  real  property  included  in  such project, both land and
  improvements, shall not exceed twenty per centum of the  annual  shelter
  rent or carrying charges of such project, as defined in paragraph (a) of
  subdivision  one  hereof; provided, however, that where such acquisition
  of  a  building  by  residents  thereof  involves   the   financing   of
  rehabilitation  or  other  improvement  as well as acquisition, upon the
  consent of the local legislative body of the municipality in  which  the
  project  is  located  the  amount  of  such taxes may be further reduced
  provided that such amount shall not be less than ten per centum  of  the
  annual  shelter  rent  or carrying charges of the project, as defined in
  paragraph (a) of subdivision one hereof; or the company may in  lieu  of
  requesting such consent apply for the benefits of the local law, if any,
  enacted  pursuant  to  section  four  hundred  eighty-nine  of  the real
  property tax law. Such tax exemption, if any, granted pursuant  to  this
  article  shall  operate  and  continue so long as a loan made under this
  article or any subsequent loan  approved  by  the  commissioner  or  the
  supervising agency to enhance the residential portion of the project and
  the  project  is  continued to be operated for the purposes set forth in
  this article is outstanding.
    5. Bonds, mortgages, notes, income debentures  and  obligations  of  a
  company  are declared to be issued for a public purpose and to be public
  instrumentalities and together with interest  thereon  shall  be  exempt
  from  tax  including  but  not  limited  to the mortgage recording taxes
  imposed by article eleven of the tax law.
    6. Any project that received a tax exemption under paragraphs (a), (c)
  and (d) of subdivision one, and subdivision four of  this  section  may,
  upon  the  expiration  of  the  tax  exemption  period,  be  granted  an
  additional tax exemption period of up to fifty years, or until such time
  as the project is no longer operated under the restrictions and for  the
  purposes set forth in this article, whichever is sooner.