S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9581
 
                           I N  A S S E M B L Y
 
                             January 23, 2018
                                ___________
 
 Introduced by M. of A. DAVILA -- read once and referred to the Committee
   on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to tax exemptions
   for  community land trusts and income-restricted homeownership proper-
   ties
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  420-a of the real property tax law is amended by
 adding a new subdivision 15 to read as follows:
   15. REAL PROPERTY OWNED BY A HOUSING DEVELOPMENT FUND  COMPANY  FORMED
 PURSUANT  TO  ARTICLE  ELEVEN  OF  THE  PRIVATE  HOUSING FINANCE LAW AND
 SECTION FOUR HUNDRED TWO OF THE  NOT-FOR-PROFIT  CORPORATION  LAW  WHICH
 OPERATES  AS  A  COMMUNITY  LAND TRUST AS DEFINED IN SECTION TWO HUNDRED
 THIRTEEN OF THE  HOUSING  AND  COMMUNITY  DEVELOPMENT  ACT  OF  NINETEEN
 HUNDRED  NINETY-TWO,  EXCLUSIVELY FOR THE BENEFIT OF PERSONS OR FAMILIES
 OF LOW INCOME AS DEFINED IN SUBDIVISION TEN OF  SECTION  TWELVE  OF  THE
 PRIVATE  HOUSING FINANCE LAW, AND SEPARATELY ASSESSED IMPROVEMENTS OWNED
 BY THE RESIDENTS THEREOF, SHALL BE EXEMPT FROM TAXATION AND EXEMPT  FROM
 SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED
 IN  SECTION  FOUR HUNDRED NINETY OF THIS CHAPTER. THE SUPERVISING AGENCY
 OF THE COMMUNITY LAND TRUST SHALL REQUIRE AN ANNUAL  CERTIFICATION  FROM
 THE COMMUNITY LAND TRUST THAT THE REAL PROPERTY LAND IS USED EXCLUSIVELY
 FOR  THE  BENEFIT  OF PERSONS OR FAMILIES OF LOW INCOME. THE SUPERVISING
 AGENCY MAY REQUIRE THE COMMUNITY LAND TRUST TO ENTER INTO  A  REGULATORY
 AGREEMENT,  WHICH  SHALL BE CO-TERMINUS WITH ANY GROUND LEASE GRANTED BY
 THE COMMUNITY LAND TRUST TO ANY QUALIFYING OWNER OF IMPROVEMENTS  THERE-
 ON.  NOTWITHSTANDING  THE  FOREGOING,  ANY  COMMUNITY  LAND TRUST FORMED
 PURSUANT TO SECTION FOUR HUNDRED TWO OF THE  NOT-FOR-PROFIT  CORPORATION
 LAW  AND  WHICH  IS LOCATED IN A CITY WITH A POPULATION OF LESS THAN ONE
 MILLION SHALL ALSO BE ELIGIBLE FOR BENEFITS UNDER THIS SUBDIVISION.
   § 2. Section 422 of the real property tax law is amended by  adding  a
 new subdivision 3 to read as follows:
   3.  EXEMPTION OF INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY, INCOME-RES-
 TRICTED HOMEOWNERSHIP PROPERTY, INCLUDING BUT NOT LIMITED TO A SINGLE OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14069-01-7

 A. 9581                             2
 
 TWO-FAMILY HOME OR MULTIPLE DWELLING, WHICH IS  OWNED  BY  AND  OPERATED
 EXCLUSIVELY  FOR  THE  BENEFIT  OF  PERSONS OR FAMILIES OF LOW INCOME AS
 DEFINED IN SUBDIVISION TEN OF SECTION  TWELVE  OF  THE  PRIVATE  HOUSING
 FINANCE LAW AND IS SUBJECT TO THE TERMS OF A REGULATORY AGREEMENT WITH A
 SUPERVISING  AGENCY,  WHICH  SHALL BE THE CITY OF NEW YORK ACTING BY AND
 THROUGH THE DEPARTMENT OF HOUSING PRESERVATION  AND  DEVELOPMENT  FOR  A
 COMMUNITY  LAND  TRUST  LOCATED IN THE CITY OF NEW YORK, OR THE NEW YORK
 STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL FOR ANY  COMMUNITY  LAND
 TRUST  LOCATED  OUTSIDE  OF THE CITY OF NEW YORK, FOR A TERM OF AT LEAST
 THIRTY YEARS, OR IS LOCATED ON ANY COMMUNITY LAND TRUST FORMED  PURSUANT
 TO  SECTION  FOUR  HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW AND
 WHICH IS LOCATED IN A CITY OR MUNICIPALITY WITH  A  POPULATION  OF  LESS
 THAN ONE MILLION WITHOUT A REGULATORY AGREEMENT WITH A SUPERVISING AGEN-
 CY,  WHICH  IS NOT OTHERWISE FULLY EXEMPT FROM TAXATION, SHALL BE EXEMPT
 FROM TAXATION AND EXEMPT FROM SPECIAL  AD  VALOREM  LEVIES  AND  SPECIAL
 ASSESSMENTS  TO  THE  EXTENT  PROVIDED IN SECTION FOUR HUNDRED NINETY OF
 THIS ARTICLE, PROVIDED THAT A PORTION OF  THE  ASSESSED  VALUE  OF  SUCH
 PROPERTY  SHALL  BE TAXABLE IN AN AMOUNT THAT WILL YIELD A TOTAL TAX FOR
 ALL PURPOSES AT THE TAX RATES IN EFFECT ON THE TAXABLE  STATUS  DATE  OF
 THE  ASSESSMENT  ROLL  OR  ROLLS ON WHICH SUCH PROPERTY IS ASSESSED THAT
 SHALL NOT EXCEED EITHER: (A) TWENTY PER CENTUM OF THE  CARRYING  CHARGES
 OF  SUCH  INCOME-RESTRICTED  HOMEOWNERSHIP  PROPERTY; OR (B) THE MAXIMUM
 RESALE PRICE OF THE SINGLE OR TWO-FAMILY HOME OR MULTIPLE  DWELLING,  AS
 REQUIRED BY EITHER A REGULATORY AGREEMENT WITH THE SUPERVISING AGENCY OR
 PURSUANT  TO  THE  RESTRICTIONS  SET FORTH IN THE GROUND LEASE BETWEEN A
 COMMUNITY LAND TRUST AND THE OWNER OF SUCH SINGLE OR TWO-FAMILY HOME  OR
 MULTIPLE DWELLING. THE TAXABLE ASSESSED VALUE OF ANY SINGLE OR TWO-FAMI-
 LY  HOME OR MULTIPLE DWELLING WHICH IS SUBJECT TO TO TAX RATE BASED UPON
 TWENTY PER CENTUM OF THE  CARRYING  CHARGES  IF  SUCH  INCOME-RESTRICTED
 HOMEOWNERSHIP PROPERTY SHALL BE REASSESSED UPON TRANSFER OR SALE OF SUCH
 INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY.  IN THE EVENT SUCH INCOME-RES-
 TRICTED  HOMEOWNERSHIP  PROPERTY IS NOT TRANSFERRED OR SOLD FOR A PERIOD
 OF TEN YEARS OR MORE, THE ASSESSOR IS HEREBY AUTHORIZED  TO  REVALUE  OR
 UPDATE  THE ASSESSMENT OF SUCH INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY.
 IF THE TOTAL  ASSESSED  VALUE  OF  THE  REAL  PROPERTY  FOR  WHICH  SUCH
 EXEMPTION  HAS  BEEN  GRANTED INCREASES OR DECREASES BY MORE THAN TWENTY
 PERCENT AS THE RESULT OF A REVALUATION  OR  UPDATE  OF  ASSESSMENTS  THE
 ASSESSOR  SHALL  INCREASE OR DECREASE THE AMOUNT OF THE TAXABLE ASSESSED
 VALUE ON THE ROLL FIRST REFLECTING SUCH CHANGE IN LEVEL  OR  REVALUATION
 BY  MULTIPLYING  THE AMOUNT OF SUCH TAXABLE ASSESSED VALUE BY THE CHANGE
 IN LEVEL OF ASSESSMENT FACTOR. IF THE  CHANGE  IN  LEVEL  OF  ASSESSMENT
 FACTOR IS DETERMINED AFTER THE VERIFICATION AND FILING OF THE ASSESSMENT
 ROLL,  THE  ASSESSOR SHALL CERTIFY THE AMOUNT OF EXEMPTION AS RECOMPUTED
 PURSUANT TO THIS PARAGRAPH TO THE  LOCAL  OFFICERS  HAVING  CUSTODY  AND
 CONTROL  OF  THE  ROLL,  AND SUCH LOCAL OFFICERS ARE HEREBY DIRECTED AND
 AUTHORIZED TO ENTER THE RECOMPUTED EXEMPTION CERTIFIED BY  THE  ASSESSOR
 ON  THE  ROLL. ON THE ASSESSMENT ROLL NEXT FOLLOWING SUCH REVALUATION OR
 UPDATE THE TAXABLE ASSESSED VALUATION SHALL BE COMPUTED BASED ON THE TAX
 RATES IN EFFECT ON THE TAXABLE STATUS DATE AS HEREINABOVE PROVIDED.  THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL BE AUTHORIZED TO PROMUL-
 GATE  SUITABLE RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS
 SUBSECTION.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 assessment  rolls  published after the date this act shall have become a
 law.