S T A T E O F N E W Y O R K
________________________________________________________________________
5081--A
2019-2020 Regular Sessions
I N A S S E M B L Y
February 7, 2019
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Introduced by M. of A. DAVILA, RAMOS, WEPRIN, RIVERA, RICHARDSON,
WILLIAMS, WALKER, BARRON, PRETLOW, ARROYO, PICHARDO, SIMON, COLTON,
CRESPO, D'URSO, DICKENS, DE LA ROSA, GLICK, COOK, MOSLEY, GOTTFRIED,
LENTOL, CRUZ -- Multi-Sponsored by -- M. of A. THIELE -- read once and
referred to the Committee on Real Property Taxation -- recommitted to
the Committee on Real Property Taxation in accordance with Assembly
Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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 17 to read as follows:
17. (A) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMUNITY LAND TRUST"
SHALL MEAN A NONPROFIT CORPORATION ORGANIZED PURSUANT TO SECTION
501(C)(3) OF THE U.S. INTERNAL REVENUE CODE THAT SATISFIES THE FOLLOWING
CRITERIA:
(I) SUCH NONPROFIT CORPORATION'S PRIMARY PURPOSE IS THE CREATION AND
MAINTENANCE OF PERMANENTLY AFFORDABLE SINGLE-FAMILY OR MULTI-FAMILY
RESIDENCES;
(II) ALL DWELLINGS AND UNITS LOCATED ON LAND OWNED BY SUCH NONPROFIT
CORPORATION IS SOLD TO A QUALIFIED OWNER TO BE OCCUPIED AS THE QUALIFIED
OWNER'S PRIMARY RESIDENCE OR RENTED TO PERSONS OR FAMILIES OF LOW INCOME
AS DEFINED IN SUBDIVISION TEN OF SECTION TWELVE OF THE PRIVATE HOUSING
FINANCE LAW; AND
(III) THE LAND OWNED BY THE NONPROFIT CORPORATION, ON WHICH A DWELLING
OR UNIT SOLD TO A QUALIFIED OWNER IS SITUATED, IS LEASED BY SUCH CORPO-
RATION TO THE QUALIFIED OWNER FOR THE CONVENIENT OCCUPATION AND USE OF
SUCH DWELLING OR UNIT FOR A RENEWABLE TERM OF NINETY-NINE YEARS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06368-07-0
A. 5081--A 2
(B) ANY LAND OWNED BY A COMMUNITY LAND TRUST AS DEFINED IN PARAGRAPH
(A) OF THIS SUBDIVISION 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 ARTICLE. THE SUPERVISING AGENCY
MAY REQUIRE THE COMMUNITY LAND TRUST TO ENTER INTO A REGULATORY AGREE-
MENT, WHICH SHALL BE CO-TERMINUS WITH ANY GROUND LEASE GRANTED BY THE
COMMUNITY LAND TRUST TO ANY QUALIFYING OWNER OF IMPROVEMENTS THEREON.
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 OR MUNICIPALITY WITH A POPULATION OF LESS
THAN ONE MILLION SHALL ALSO BE ELIGIBLE FOR BENEFITS UNDER THIS SUBDIVI-
SION.
§ 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
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 THAT 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 AS DEFINED IN
PARAGRAPH (A) OF SUBDIVISION SEVENTEEN OF SECTION FOUR HUNDRED TWENTY-A
OF THIS TITLE FORMED PURSUANT TO SECTION FOUR HUNDRED TWO OF THE NOT-
FOR-PROFIT CORPORATION LAW AND WHICH IS LOCATED IN A CITY OR MUNICI-
PALITY WITH A POPULATION OF LESS THAN ONE MILLION WITHOUT A REGULATORY
AGREEMENT WITH A SUPERVISING AGENCY, WHICH IS NOT OTHERWISE FULLY EXEMPT
FROM TAXATION, SHALL BE ASSESSED BASED UPON THE RESALE AND RENT
RESTRICTIONS SET FORTH IN THE GROUND LEASE WHEN DETERMINING THE TAXABLE
VALUE OF SUCH INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY. THE DEPARTMENT
SHALL BE AUTHORIZED TO PROMULGATE SUITABLE RULES AND REGULATIONS TO
CARRY OUT THE PROVISIONS OF THIS SUBDIVISION. NOTWITHSTANDING THE
PROVISIONS OF THIS SUBDIVISION, ANY LOCAL ASSESSOR THAT CURRENTLY
EMPLOYS A METHOD OF PROPERTY ASSESSMENT AND TAXATION FOR ANY INCOME-RES-
TRICTED HOMEOWNERSHIP PROPERTY AS OF THE EFFECTIVE DATE OF THE CHAPTER
OF THE LAWS OF TWO THOUSAND TWENTY THAT ADDED THIS SUBDIVISION THAT
WOULD RESULT IN A LESSER TAX BURDEN FOR SUCH INCOME-RESTRICTED HOMEOWNER
SHALL BE AUTHORIZED TO CONTINUE TO EMPLOY SUCH METHOD AS IF FULLY
AUTHORIZED BY THIS SUBDIVISION. ONLY A PERSON OR ENTITY THAT OWNS THE
IMPROVEMENTS BOTH LEGALLY AND BENEFICIALLY SHALL QUALIFY FOR AN
EXEMPTION UNDER THIS SUBDIVISION.
§ 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.