S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1894
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced by M. of A. DAVILA, RAMOS, WEPRIN, WILLIAMS, WALKER, PRETLOW,
   SIMON,  COLTON, DICKENS, GLICK, COOK, 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
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02428-01-3
              

 A. 1894                             2
 
   (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 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
 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
 A. 1894                             3
 
 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.