S T A T E   O F   N E W   Y O R K
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                                  4499

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 4, 2009
                               ___________

Introduced  by M. of A. BRODSKY -- read once and referred to the Commit-
  tee on Housing

AN ACT to  amend  the  private  housing  finance  law,  in  relation  to
  contracts  for exemption from local and municipal taxes for redevelop-
  ment companies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  (a)  of  subdivision  1  of section 125 of the
private housing finance law, as amended by chapter 566 of  the  laws  of
1993, is amended to read as follows:
  (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  redevel-
opment company which originally undertook the project and for such defi-
nite 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 OF THIS ARTICLE or
owned and continuing to be owned by a mutual redevelopment company which

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08200-01-9
              

A. 4499                             2

would require substantial increases in carrying charges after the period
of tax exemption is ended unless relief is provided, the local  legisla-
tive  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  termi-
nation 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  limi-
tations 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 OF  THIS
CHAPTER,  except that in the case of projects owned and continuing to be
owned by mutual redevelopment companies, persons or families whose prob-
able aggregate annual income does not exceed the median income for fami-
lies of the same size in the same metropolitan area shall also be eligi-
ble for admission to the project on the understanding that any person or
family becoming eligible by reason hereof whose probable aggregate annu-
al income at the time of admission or during  the  period  of  occupancy
exceeds,  the greater of (i) the median income for such persons or fami-
lies 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 chap-
ter,  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 here-
under 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 oper-
ate  for  so  long  as  such loan is outstanding; AND PROVIDED THAT WITH
RESPECT TO A PROJECT WHICH IS OR IS TO BE PERMANENTLY FINANCED BY A LOAN
FROM THE NEW YORK STATE HOUSING FINANCE AGENCY, THE TAX  EXEMPTION  MAY,
WITH  THE APPROVAL OF THE LOCAL LEGISLATIVE BODY, OPERATE FOR SO LONG AS
SUCH LOAN IS OUTSTANDING.
  S 2. This act shall take effect immediately.