2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 5 - (100 - 128) REDEVELOPMENT COMPANIES
125 - Tax exemptions.

 
    §  125.  Tax  exemptions.  1.  (a)  The  local legislative body of any
  municipality in which a project of such company is or is to  be  located
  may  by  contract  agree  with  any redevelopment company to exempt from
  local  and  municipal  taxes,   other   than   assessments   for   local
  improvements,  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  redevelopment  company   which
  originally  undertook  the project and for such definite period of years
  as such contract may provide, except that where the real property  in  a
  project   was   acquired  for  purposes  of  rehabilitation,  the  local
  legislative body either may utilize the foregoing formula or  may  agree
  to  exempt  from  such  taxes  all  or part of the value of the property
  included in such project on condition 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 rehabilitation project. The tax exemption
  shall  not  operate  for  a  period  of  more  than  twenty-five  years,
  commencing  in each instance from the date on which the benefits of such
  exemption first become available and effective; provided, however,  that
  with  respect  to  a  project  either acquired by a mutual redevelopment
  company  pursuant  to  section  one  hundred  twenty-six  or  owned  and
  continuing  to  be  owned  by a mutual redevelopment company which would
  require substantial increases in carrying charges after  the  period  of
  tax  exemption is ended unless relief is provided, the local legislative
  body may contract with such mutual redevelopment company to extend  such
  tax  exemption  for not more than twenty-five additional years at a rate
  of tax exemption not to exceed an average of  fifty  per  centum  during
  such additional period, provided that the tax exemption during the first
  two  years  of  such additional period shall continue at the rate of the
  tax exemption of such project immediately preceding the  termination  of
  the   initial  twenty-five  year  period  and  that  the  tax  exemption
  thereafter shall be decreased in equal biennial decrements, the first of
  which shall occur  immediately  following  such  two  year  period,  and
  provided  that  such  contract  shall  contain  provisions  as to income
  limitations relating to admission and continued occupancy of the project
  and provisions as to  rental  surcharges  to  the  same  effect  as  are
  contained   in  subdivisions  two,  three,  four  and  five  of  section
  thirty-one, except that in the case of projects owned and continuing  to
  be  owned  by  mutual redevelopment companies, persons or families whose
  probable aggregate annual income does not exceed the median  income  for
  families  of  the  same size in the same metropolitan area shall also be
  eligible for admission to the project  on  the  understanding  that  any
  person  or  family  becoming  eligible  by  reason hereof whose probable
  aggregate annual income at the time of admission or during the period of
  occupancy exceeds, the greater of (i) the median income for such persons
  or families for the metropolitan statistical area in which  the  project
  is   located,  or  if  a  project  is  located  outside  a  metropolitan
  statistical area, the median income for such persons or families for the
  county in which the project is located, as most recently  determined  by
  the  United States department of housing and urban development, in which
  case any person or family becoming eligible for  admission  pursuant  to
  this  subparagraph  shall  pay,  from  the  time  of admission, a rental
  surcharge as provided for in subdivision three of section thirty-one  of
  this chapter, computed on the basis of the income limitations applicable
  to such persons or families in the absence of this subparagraph, or (ii)
  six  times  the  rental shall be liable for payment of rental surcharges
  hereunder computed on the basis of such ratio, except that in  the  case
  of  families  with three or more dependents such ratio shall be seven to

  one; and provided further that with respect to a project which is or  is
  to  be  permanently  financed  by  a  federally-aided  mortgage, the tax
  exemption shall operate for so long as such mortgage is outstanding, but
  in  no  event  for a period of more than forty years, commencing in each
  instance from the date on which the benefits  of  such  exemption  first
  become  available  and effective; and provided further that with respect
  to a project which is or is to be permanently financed by  a  loan  from
  the  New  York  city  housing development corporation, the tax exemption
  shall operate for so long as such loan is outstanding.
    (a-1) Where the redevelopment contract between a mutual  redevelopment
  company  and  the  local  legislative  body  under which the initial tax
  exemption was  granted  contains  provisions  different  from  those  in
  subdivisions  two,  three,  four  and five of section thirty-one of this
  chapter, then a contract to extend the tax exemption for  an  additional
  period  under  paragraph  (a) of this subdivision may provide that those
  provisions of the redevelopment contract shall continue to  apply  (with
  such   modifications   as   the   supervising   agency  of  such  mutual
  redevelopment company shall approve) during the additional period as  if
  such additional period were the initial period of tax exemption for such
  mutual   redevelopment   company,   notwithstanding  the  provisions  of
  paragraph (a) of this subdivision to the contrary.
    (a-2) Any inconsistent provision of law  notwithstanding,  in  a  city
  having  a  population  of one million or more, where a local legislative
  body has acted to extend the tax exemption  of  a  mutual  redevelopment
  company  for  an  additional  twenty-five  years  after  the initial tax
  exemption period has expired, the local legislative body  may  authorize
  tax   exemption  during  the  final  eleven  years  of  such  additional
  twenty-five year exemption period under this subdivision, provided  that
  the  amount  of  taxes  to  be  paid by the mutual redevelopment company
  during the final  eleven  years  of  such  additional  twenty-five  year
  exemption  period  shall not be less than an amount equal to the greater
  of (i) ten per centum of the annual rent  or  carrying  charges  of  the
  project  minus  utilities for the residential portion of the project, or
  (ii) the taxes payable by such company for the  residential  portion  of
  the  project  in the fourteenth year of such additional twenty-five year
  exemption period, and may further extend the period of  such  additional
  twenty-five year exemption for up to a total period of thirty-five years
  from  the date of expiration of the initial tax exemption, provided that
  the amount of taxes to be  paid  by  the  mutual  redevelopment  company
  during  any  such  extension  beyond  such  additional  twenty-five year
  exemption period shall not be less than an amount equal to  the  greater
  of  (i)  ten  per  centum  of the annual rent or carrying charges of the
  project minus utilities for the residential portion of the  project,  or
  (ii)  the  taxes  payable by such company for the residential portion of
  the project in the fourteenth year of such additional  twenty-five  year
  exemption period.
    (a-3)  Any  inconsistent  provision  of law notwithstanding, the local
  legislative body  of  any  municipality  may  grant  an  additional  tax
  exemption  period  for  any  project,  other  than a project by a mutual
  redevelopment company, that received a tax exemption under paragraph (a)
  of this subdivision, upon the expiration of the  tax  exemption  period.
  The additional tax exemption period may be for a term of forty 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. Unless otherwise approved by the local legislative body, the
  amount of taxes paid by the redevelopment company during such additional
  tax exemption period shall not be less than (i)  the  taxes  payable  by
  such  company  in  accordance with the resolution for such redevelopment

  company that was approved by the local legislative body and that was  in
  effect  immediately prior to the expiration of the initial tax exemption
  period, or (ii) if there is no such resolution,  the  taxes  payable  by
  such  company  in  accordance  with the exemption authorized pursuant to
  this article immediately prior to the  expiration  of  the  initial  tax
  exemption period.
    (b)  A  redevelopment  company which has been granted and has received
  tax exemption pursuant to this section may at any time elect to  pay  to
  the  municipality  or other appropriate taxing jurisdiction the total of
  all accrued taxes for which exemption was granted and received, together
  with interest at the rate of  five  per  centum  per  annum.  Upon  such
  payment  the  tax  exemption  of  the  project shall thereupon cease and
  terminate.
    (c) 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 said agreement by 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.
    (d) As used in this subdivision 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.
    2. Any inconsistent provision of law notwithstanding, mortgages of any
  such company issued to the federal  government  or  any  instrumentality
  thereof,  or  to any municipal housing authority or other public housing
  agency or instrumentality thereof whose obligations are determined to be
  exempt from federal taxation by the federal government, or issued  to  a
  financial  institution  and insured or guaranteed by the federal housing
  administrator or any other instrumentality  of  the  federal  government
  shall  be  exempt  from  the mortgage recording taxes imposed by article
  eleven of the tax law.