S T A T E O F N E W Y O R K
________________________________________________________________________
7930
2021-2022 Regular Sessions
I N A S S E M B L Y
June 1, 2021
___________
Introduced by M. of A. DAVILA, RAMOS, WEPRIN, J. RIVERA, RICHARDSON,
WILLIAMS, WALKER, BARRON, PRETLOW, PICHARDO, SIMON, COLTON, DICKENS,
DE LA ROSA, GLICK, COOK, GOTTFRIED, CRUZ -- Multi-Sponsored by -- M.
of A. THIELE -- read once and referred to the Committee on Real Prop-
erty 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 17 to read as follows:
17. OTHER THAN IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE,
ANY LAND OWNED BY A COMMUNITY LAND TRUST AND SEPARATELY ASSESSED
IMPROVEMENTS OWNED BY THE RESIDENTS THEREOF, SHALL BE EXEMPT FROM LOCAL
REAL PROPERTY TAXATION AND EXEMPT FROM SPECIAL AD VALOREM LEVIES AND
SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR HUNDRED NINE-
TY OF THIS ARTICLE.
(A) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMUNITY LAND TRUST" SHALL
MEAN A CORPORATION ORGANIZED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION
LAW AND EXEMPT FROM TAXATION PURSUANT TO SECTION 501(C)(3) OF THE INTER-
NAL REVENUE CODE THAT SATISFIES THE FOLLOWING CRITERIA:
(I) SUCH NONPROFIT CORPORATION'S PURPOSE IS THE CREATION AND MAINTE-
NANCE OF PERMANENTLY AFFORDABLE SINGLE-FAMILY OR MULTI-FAMILY RESI-
DENCES;
(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; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08406-02-1
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(III) ANY LEASE WITH THE OWNER OF A SINGLE-FAMILY HOME OR MULTI-FAMILY
RESIDENCE SHALL BE FOR AN INITIAL TERM OF NINETY-NINE YEARS WITH RENEWAL
RIGHTS UNDER THE SAME INITIAL TERMS AND CONDITIONS.
(B) FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION THAT
REQUIRE THE DEVELOPMENT AND PRESERVATION OF PERMANENTLY AFFORDABLE
SINGLE-FAMILY OR MULTI-FAMILY RESIDENCES FOR PERSONS OR FAMILIES OF LOW
INCOME AT ANY TIME DURING THE DURATION OF THE EXEMPTION SHALL RESULT IN
REVOCATION OF ANY EXEMPTION UNDER THIS SUBDIVISION FOR THE PERIOD OF
SUCH NON-COMPLIANCE. IF AN ONGOING PATTERN OF NON-COMPLIANCE IS FOUND TO
EXIST, SUCH EXEMPTION MAY BE REVOKED FROM ITS INCEPTION.
(C) ENFORCEMENT OF THIS SUBDIVISION SHALL BE IN ADDITION TO ANY OTHER
PROVISIONS CONTAINED IN THIS CHAPTER OR ANY OTHER LAW.
(D) THE REVOCATION OF AN EXEMPTION AUTHORIZED BY THIS SUBDIVISION
SHALL NOT EXEMPT A COMMUNITY LAND TRUST FROM CONTINUED COMPLIANCE WITH
THE REQUIREMENTS OF THIS SUBDIVISION.
§ 2. Section 422 of the real property tax law is amended by adding two
new subdivisions 3 and 4 to read as follows:
3. EXEMPTION OF INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY IN A MUNICI-
PALITY WITH A POPULATION OF LESS THAN ONE MILLION. INCOME-RESTRICTED
HOMEOWNERSHIP PROPERTY, INCLUDING BUT NOT LIMITED TO A SINGLE OR TWO-FA-
MILY HOME OR MULTI-FAMILY RESIDENCE, WHICH IS OWNED BY AND OPERATED
EXCLUSIVELY FOR THE BENEFIT OF PERSONS OR FAMILIES OF LOW INCOME AS
DEFINED IN SUBDIVISION NINETEEN OF SECTION TWO OF THE PRIVATE HOUSING
FINANCE LAW THAT IS SUBJECT TO A GROUND LEASE WITH A NINETY-NINE YEAR
RENEWABLE TERM WITH A COMMUNITY LAND TRUST AS DEFINED IN PARAGRAPH (A)
OF SUBDIVISION SEVENTEEN OF SECTION FOUR HUNDRED TWENTY-A OF THIS TITLE,
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. NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVI-
SION, 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
TWENTY-ONE THAT ADDED THIS SUBDIVISION THAT WOULD RESULT IN A LESSER TAX
BURDEN FOR SUCH INCOME-RESTRICTED HOMEOWNER MAY CONTINUE TO EMPLOY SUCH
METHOD AS IF FULLY AUTHORIZED BY THIS SUBDIVISION.
4. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION IN A CITY HAVING A
POPULATION OF ONE MILLION OR MORE FOR CERTAIN LOW-INCOME HOUSING ACCOM-
MODATIONS. (A) ELIGIBLE REAL PROPERTY IN A CITY HAVING A POPULATION OF
ONE MILLION OR MORE SHALL BE EXEMPT FROM LOCAL REAL PROPERTY TAXATION
EXCEPT AS MAY BE OTHERWISE PROVIDED IN THE REGULATORY AGREEMENT OF SUCH
ELIGIBLE REAL PROPERTY. SUCH EXEMPTION FROM LOCAL REAL PROPERTY TAXA-
TION SHALL COMMENCE AS OF THE EFFECTIVE DATE OF THE REGULATORY AGREE-
MENT. UPON A DEFAULT UNDER THE REGULATORY AGREEMENT OR NON-COMPLIANCE
WITH THIS SUBDIVISION, THE AGENCY MAY SUSPEND, REDUCE, TERMINATE OR
REVOKE SUCH EXEMPTION, WITH RESPECT TO ALL OR A PORTION OF SUCH ELIGIBLE
REAL PROPERTY AS OF THE DATE OF SUCH DEFAULT OR NON-COMPLIANCE, UNLESS
SUCH DEFAULT OR NON-COMPLIANCE IS CURED WITHIN THE TIME PERIOD SPECIFIED
FOR ANY SUCH CURE UNDER SUCH REGULATORY AGREEMENT.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) THE TERM "AGENCY" SHALL MEAN THE DEPARTMENT OF HOUSING PRESERVA-
TION AND DEVELOPMENT.
(2) THE TERM "COMMUNITY LAND TRUST" SHALL MEAN A CORPORATION ORGANIZED
PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW FOR THE PURPOSE OF DEVEL-
OPING AND/OR PRESERVING HOUSING ACCOMMODATIONS THAT SERVE PERSONS AND
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FAMILIES OF LOW INCOME THROUGH ITS OWNERSHIP AND STEWARDSHIP OF THE LAND
BENEATH SUCH HOUSING ACCOMMODATIONS.
(3) THE TERM "ELIGIBLE ENTITY" SHALL MEAN A CORPORATION (I) THAT IS 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 AND (II) THE CERTIFICATE OF INCORPORATION
OF WHICH REQUIRES SUCH HOUSING DEVELOPMENT FUND COMPANY TO OPERATE SOLE-
LY AS A COMMUNITY LAND TRUST.
(4) THE TERM "ELIGIBLE REAL PROPERTY" SHALL MEAN REAL PROPERTY THAT
PROVIDES HOUSING ACCOMMODATIONS FOR PERSONS AND FAMILIES OF LOW INCOME
PURSUANT TO A REGULATORY AGREEMENT, PROVIDED THAT THE LAND PORTION OF
SUCH REAL PROPERTY IS OWNED BY AN ELIGIBLE ENTITY.
(5) THE TERM "PERSONS AND FAMILIES OF LOW INCOME" SHALL HAVE THE MEAN-
ING SET FORTH IN SUBDIVISION NINETEEN OF SECTION TWO OF THE PRIVATE
HOUSING FINANCE LAW.
(6) THE TERM "REGULATORY AGREEMENT" SHALL MEAN A REGULATORY AGREEMENT
WITH OR APPROVED BY THE AGENCY THAT (I) IS EXECUTED OR APPROVED AFTER
THE EFFECTIVE DATE OF THIS SUBDIVISION, (II) REQUIRES THE PROVISION OF
HOUSING ACCOMMODATIONS FOR PERSONS AND FAMILIES OF LOW INCOME, (III) IS
RECORDED AGAINST THE ELIGIBLE REAL PROPERTY, (IV) BINDS ALL PARTIES IN
INTEREST TO SUCH ELIGIBLE REAL PROPERTY AND THEIR RESPECTIVE SUCCESSORS
AND ASSIGNS AND (V) INCLUDES SUCH OTHER TERMS AND CONDITIONS AS THE
AGENCY SHALL DETERMINE, INCLUDING, BUT NOT LIMITED TO, PROVISIONS
REQUIRING PAYMENTS IN LIEU OF TAXES, FOR THE PURPOSE OF DEVELOPING
AND/OR PRESERVING HOUSING ACCOMMODATIONS THAT SERVE PERSONS AND FAMILIES
OF LOW INCOME.
§ 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.