NY State Senate Bill 2019-S3469B

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 11, 2020	print number 3469b
Mar 11, 2020	amend and recommit to local government
Mar 02, 2020	print number 3469a
Mar 02, 2020	amend and recommit to local government
Jan 08, 2020	referred to local government
Feb 07, 2019	referred to local government

Bill Amendments

Original

B (Active)

co-Sponsors

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2019-S3469 - Details

See Assembly Version of this Bill:: A5081
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§420-a & 422, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8526, A9581
2021-2022: S6326

2019-S3469 - Summary

Relates to tax exemptions for community land trusts and income-restricted homeownership property.

2019-S3469 - Sponsor Memo

                                
 
BILL NUMBER: S3469

SPONSOR: MONTGOMERY
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to tax exemptions for community land trusts and income-restricted
homeownership properties

 
PURPOSE:

This bill amends the real property tax law to require that certain real
property owned by a Community Land Trust, which operates in accordance
with Section 213 of the Housing and Community Development Act of 1992
and is organized as a housing development fund company pursuant to Arti-
cle XI of the Private Housing Finance Law and Section 402 of the
Notfor-Profit Corporation Law, which must be operated in furtherance of
persons and families of low income as defined by Section 2(19) of the
Private Housing Finance Law, receive both a full and partial tax
exemption on the land and the improvements thereon.

This bill also amends real property tax law to require a partial real
property tax exemption for certain income-restricted homeownership prop-
erty that is subject to the terms of a regulatory agreement with a

supervising agency, which shall be the New York City Department of Hous-
ing Preservation and Development for New York City and the Division of
Housing and Community Renewal for all other community land trusts
outside of New York City, or is located on any community land trust
formed pursuant to Section 402 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 property taxes shall be, other than assessments for local
improvements, paid on the income-restricted homeownership property, both
land and improvements, to the extent such land is not otherwise subject
to an exemption, in an amount not to exceed either twenty percent of the
carrying charges of such income-restricted homeownership property, or
the maximum resale price of the single or two-family home or multiple
dwelling, as required by either a regulatory agreement with the super-
vising agency or in the absence thereof, pursuant to the restrictions
set forth in the ground lease between the community land trust and the
owner of such single or two-family home or multiple dwelling. The legis-
lation also authorizes the supervising agency to promulgate suitable
rules and regulations to carry out the subsection.

 
SUMMARY OF PROVISIONS:

This bill adds a new subsection 420-8(16) to the Real Property Tax Law
to permit land that is owned by a Community Land Trust to qualify for a
real property tax exemption. It further adds a new subsection 422(3) to
the Real Property Tax Law to require a partial real property tax
exemption for certain income-restricted homeownership property, includ-
ing improvements that are erected on a Community Land Trust, for
purposes of determining property taxes. The purpose of both new sections
of law are to ensure that income-restricted homeownership property,
including improvements that are erected on land which is owned by a
Community Land Trust, are not property tax burdened in a way that could
impact the affordability of such permanently affordable homeownership
housing. This bill shall provide property tax relief to a Community Land
Trust and owners of improvements thereon, as well as certain qualifying
owners of income-restricted homeownership property that is subject to
permanent affordability restrictions due to supervising agency program
requirements, such as inclusionary housing programs, or is located on
any community land trust formed pursuant to Section 402 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 agree-
ment with a supervising agency.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all assessment
rolls published after the date this act shall have become a law.

2019-S3469 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3469
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2019
                                ___________
 
 Introduced  by Sens. MONTGOMERY, LITTLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Local Govern-
   ment
 
 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.  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 ARTICLE. 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 OR MUNICIPALITY WITH A POPULATION  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06368-02-9

 S. 3469                             2
 
 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
 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 THE 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  SUBDIVISION 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-

 S. 3469                             3
 
 GATE 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-RESTRICTED HOMEOWNERSHIP PROPERTY AS OF THE
 EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN  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.
   § 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.

co-Sponsors

View additional co-sponsors

2019-S3469A - Details

See Assembly Version of this Bill:: A5081
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§420-a & 422, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8526, A9581
2021-2022: S6326

2019-S3469A - Summary

Relates to tax exemptions for community land trusts and income-restricted homeownership property.

2019-S3469A - Sponsor Memo

                                
 
BILL NUMBER: S3469A

SPONSOR: MONTGOMERY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to tax exemptions
for community land trusts and income-restricted homeownership properties

 
PURPOSE:

This bill adds a new subsection 420-A (17) to the Real Property Tax Law
to permit land that is owned by a Community Land Trust to qualify for
real property tax exemption as well as a new subsection 422(3) to the
Real Property Tax Law to require a partial real property tax exemption
for certain income-restricted homeownership property, including improve-
ments that are erected on a Community Land Trust, for purposes of deter-
mining property taxes. The purpose of both new sections of law are to
ensure that income-restricted homeownership property, including improve-
ments that are erected on land which is owned by a Community Land Trust,
are not property tax burdened in a way that could impact the affordabil-
ity of such permanently affordable homeownership housing. This bill
shall provide property tax relief to a Community Land Trust and owners

of improvements.

 
SUMMARY OF PROVISIONS:

This bill amends real property tax law to require that certain real
property that is owned by a Community Land Trust. which operates in
accordance with Section 213 of the Housing and Community Development Act
of 1992 and is organized as a housing development fund company pursuant
to Article XI of the Private Housing Finance Law and Section 402 of the
Not-for-Profit Corporation Law, which must be operated in furtherance of
persons and families of low income as defined by Section 2(19) of the
Private Housing Finance Law, receive both a full and partial tax
exemption on the land and the improvements thereon.

This bill also amends real property tax law to require a partial real
property tax exemption for certain income-restricted homeownership prop-
erty that is subject to the terms of a regulatory agreement with a
supervising agency, which shall be the New York City Department of Hous-
ing Preservation and Development for New York City and the Division of
Housing and Community Renewal for all other community land trusts
outside of New York City, or is located on any community land trust
formed pursuant to Section 402 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 property taxes shall be, other than assessments for local
improvements. The legislation also authorizes a local assessor to
continue to employ a current assessment method if it would result any
income-restricted homeownership property that would result in a lesser
tax burden. Only an eligible person or entity that owns the improvements
both legally and beneficially shall qualify for an exemption.

 
EXISTING LAW:

None.

 
JUSTIFICATION:

Both real property that is owned by a Community Land Trust, and qualify-
ing owners of income-restricted homeownership property, including quali-
fying owners of improvements that are erected on land that is owned by
the Community Land Trust, are subject to permanent affordability
restrictions, which may be impossible to adhere to if the Community Land
Trust, and qualifying owners of income-restricted homeownership proper-
ty, including qualifying owners of improvements thereon, are subject to
Market-rate property taxes. This bill ensures that

1) land which is owned by a Community Land Trust is entitled to the same
real property tax exemption which is currently enjoyed by various other
owners of property which is owned for charitable or other permissible
purposes under Section 420-a of the Real Property Tax Law; and

2) that qualifying owners of income-restricted homeownership property,
including but not limited to qualifying owners of improvements that are
erected on land that is owned by a Community Land Trust, are subject to
a partial real property tax exemption to ensure that the owners of such
income-restricted homeownership property are not property tax burdened.

 
LEGISLATIVE HISTORY:

2018 A.9581 Davila

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately, and it shall apply to all assessment roles published after
this date this act shall have become a law.

2019-S3469A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3469--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2019
                                ___________
 
 Introduced  by  Sens.  MONTGOMERY,  ADDABBO,  BENJAMIN, COMRIE, JACKSON,
   LITTLE, SALAZAR -- read twice and ordered printed, and when printed to
   be committed to the Committee on Local Government  --  recommitted  to
   the  Committee  on  Local Government in accordance with Senate Rule 6,
   sec. 8 -- 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.
   (B) ANY LAND OWNED BY A COMMUNITY LAND TRUST AS DEFINED  IN  PARAGRAPH
 (A)  OF  THIS  SUBDIVISION AND SEPARATELY ASSESSED IMPROVEMENTS OWNED BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06368-06-0

 S. 3469--A                          2
 
 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
 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 OR MUNICIPALITY 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
 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.    UNDER  NO  CIRCUMSTANCES  SHALL  ANY
 IMPROVEMENTS  WHEREIN  OWNERSHIP IS HELD IN THE FORM OF A NOMINEE STRUC-
 TURE 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.

co-Sponsors

View additional co-sponsors

2019-S3469B (ACTIVE) - Details

See Assembly Version of this Bill:: A5081
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§420-a & 422, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8526, A9581
2021-2022: S6326

2019-S3469B (ACTIVE) - Summary

Relates to tax exemptions for community land trusts and income-restricted homeownership property.

2019-S3469B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3469B

SPONSOR: MONTGOMERY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to tax exemptions
for community land trusts and income-restricted homeownership properties

 
PURPOSE:

This bill adds a new subsection 420-A (17) to the Real Property Tax Law
to permit land that is owned by a Community Land Trust to qualify for
real property tax exemption as well as a new subsection 422(3) to the
Real Property Tax Law to require a partial real property tax exemption
for certain income-restricted homeownership property, including improve-
ments that are erected on a Community Land Trust, for purposes of deter-
mining property taxes. The purpose of both new sections of law are to
ensure that income-restricted homeownership property, including improve-
ments that are erected on land which is owned by a Community Land Trust,
are not property tax burdened in a way that could impact the affordabil-
ity of such permanently affordable homeownership housing. This bill
shall provide property tax relief to a Community Land Trust and owners

of improvements.

 
SUMMARY OF PROVISIONS:

This bill amends real property tax law to require that certain real
property that is owned by a Community Land Trust. which operates in
accordance with Section 213 of the Housing and Community Development Act
of 1992 and is organized as a housing development fund company pursuant
to Article XI of the Private Housing Finance Law and Section 402 of the
Not-for-Profit Corporation Law, which must be operated in furtherance of
persons and families of low income as defined by Section 2(19) of the
Private Housing Finance Law, receive both a full and partial tax
exemption on the land and the improvements thereon.

This bill also amends real property tax law to require a partial real
property tax exemption for certain income-restricted homeownership prop-
erty that is subject to the terms of a regulatory agreement with a
supervising agency, which shall be the New York City Department of Hous-
ing Preservation and Development for New York City and the Division of
Housing and Community Renewal for all other community land trusts
outside of New York City, or is located on any community land trust
formed pursuant to Section 402 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 property taxes shall be, other than assessments for local
improvements. The legislation also authorizes a local assessor to
continue to employ a current assessment method if it would result any
income-restricted homeownership property that would result in a lesser
tax burden. Only an eligible person or entity that owns the improvements
both legally and beneficially shall qualify for an exemption.

 
EXISTING LAW:  None.

 
JUSTIFICATION:

Both real property that is owned by a Community Land Trust, and qualify-
ing owners of income-restricted homeownership property, including quali-
fying owners of improvements that are erected on land that is owned by
the Community Land Trust, are subject to permanent affordability
restrictions, which may be impossible to adhere to if the Community Land
Trust, and qualifying owners of income-restricted homeownership proper-
ty, including qualifying owners of improvements thereon, are subject to
Market-rate property taxes. This bill ensures that

1) land which is owned by a Community Land Trust is entitled to the same
real property tax exemption which is currently enjoyed by various other
owners of property which is owned for charitable or other permissible
purposes under Section 420-a of the Real Property Tax Law; and

2) that qualifying owners of income-restricted homeownership property,
including but not limited to qualifying owners of improvements that are
erected on land that is owned by a Community Land Trust, are subject to
a partial real property tax exemption to ensure that the owners of such
income-restricted homeownership property are not property tax burdened.

 
LEGISLATIVE HISTORY:

2018 A.9581 Davila

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately, and it shall apply to all assessment roles published after
this date this act shall have become a law.

2019-S3469B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3469--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2019
                                ___________
 
 Introduced  by  Sens.  MONTGOMERY,  ADDABBO,  BENJAMIN, COMRIE, JACKSON,
   LITTLE, SALAZAR -- read twice and ordered printed, and when printed to
   be committed to the Committee on Local Government  --  recommitted  to
   the  Committee  on  Local Government in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended  and  recommitted  to  said committee -- 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.

                                                            LBD06368-08-0

 S. 3469--B                          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.

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