Senate Bill S2320

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

                                  2320

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 18, 2011
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend  the  private housing finance law, in relation to tax
  exemption for limited-profit housing 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 33 of the
private housing finance law, as amended by chapter 229 of  the  laws  of
1989, is amended to read as follows:
   (a)  Upon  the  consent  of the local legislative body of any munici-
pality 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  estab-
lished  pursuant  to subdivision one of section thirty-one of this arti-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07453-01-1
              

S. 2320                             2

cle. Shelter rent shall mean the total rents received from the occupants
of a project BEFORE THE INCREASE THEREOF DUE TO SHELTER RENT TAXES  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 mort-
gage 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.
  S 2.  This act shall take effect immediately.