Senate Bill S6255A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6255--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government -- recom-
   mitted 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 the assessment
   of residential real property transferred from a  charitable  nonprofit
   housing organization to low-income persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 581-c to read as follows:
   §  581-C.  ASSESSMENT  OF RESIDENTIAL REAL PROPERTY TRANSFERRED FROM A
 CHARITABLE NONPROFIT HOUSING ORGANIZATION TO A LOW-INCOME PERSON. 1.  AS
 USED IN THIS SECTION:
   (A) "CHARITABLE NONPROFIT HOUSING  ORGANIZATION"  MEANS  A  CHARITABLE
 NONPROFIT  ORGANIZATION  WHOSE  PRIMARY  PURPOSE  IS THE CONSTRUCTION OR
 RENOVATION OF RESIDENTIAL HOUSING FOR CONVEYANCE TO A LOW-INCOME PERSON.
   (B) "ELIGIBLE NONPROFIT HOUSING PROPERTY" OR "PROPERTY" MEANS PROPERTY
 TRANSFERRED BY A CHARITABLE NONPROFIT HOUSING ORGANIZATION TO A  LOW-IN-
 COME  PERSON  AND  OCCUPIED  BY  SUCH LOW-INCOME PERSON AS THEIR PRIMARY
 RESIDENCE.
   (C) "LOW-INCOME PERSON" MEANS AN INDIVIDUAL OR FAMILY WHOSE  HOUSEHOLD
 INCOME  DOES  NOT EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME (AMI),
 ADJUSTED FOR FAMILY SIZE AND AS ANNUALLY DEFINED BY  THE  UNITED  STATES
 DEPARTMENT  OF HOUSING AND URBAN DEVELOPMENT, WHO IS ELIGIBLE TO PARTIC-
 IPATE IN THE CHARITABLE NONPROFIT HOUSING ORGANIZATION'S  PROGRAM  BASED
 ON CRITERIA ESTABLISHED BY THE CHARITABLE NONPROFIT HOUSING ORGANIZATION
 AND WHO OCCUPIES SUCH PROPERTY AS THEIR PRIMARY RESIDENCE.
   (D)  "INITIAL  TAXABLE  VALUE"  AND "INITIAL ASSESSED VALUE" MEANS THE
 SUBSIDIZED PURCHASE PRICE OF ANY ELIGIBLE NONPROFIT HOUSING PROPERTY AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08607-04-4
              

 S. 6255--A                          2
 
 THE FULL FAIR MARKET VALUE FOR SUCH NONPROFIT HOUSING  PROPERTY  ON  THE
 ASSESSMENT ROLLS WHICH SHALL NOT EXCEED THE SUBSIDIZED PURCHASE PRICE.
   (E)  "SUBSIDIZED  PURCHASE  PRICE" MEANS AN AMOUNT EQUAL TO THE SUM OF
 (I) THE FIRST MORTGAGE AMOUNT FILED WITH THE COUNTY CLERK, PLUS (II) THE
 ACTUAL CASH DOWN PAYMENT PAID BY THE PURCHASER. THE CLOSING STATEMENT OR
 SWORN AFFIDAVIT FILED WITH THE COUNTY CLERK OR LOCAL  ASSESSOR'S  OFFICE
 BY  THE  SELLER'S  ATTORNEY SHALL BE CONCLUSIVE EVIDENCE OF THE VALUE OF
 SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
   (F) "SUBSEQUENT TAXABLE VALUE" AND "SUBSEQUENT ASSESSED VALUE"  MEANS,
 IN  YEARS  SUBSEQUENT  TO THE CALENDAR YEAR OF THE TRANSFER, THE INITIAL
 ASSESSED VALUE OF ANY ELIGIBLE  NONPROFIT  HOUSING  PROPERTY;  PROVIDED,
 HOWEVER, THAT FOR AS LONG AS ANY LOW-INCOME PERSON OWNS AND OCCUPIES THE
 PROPERTY, THE ONLY BASIS FOR INCREASING THE INITIAL ASSESSED VALUE SHALL
 BE CAPITAL IMPROVEMENTS MADE TO THE PROPERTY, IF ANY.
   (G)  "TRANSFER"  MEANS  A  CONVEYANCE  OF AN INTEREST IN REAL PROPERTY
 WHETHER BY DEED OR A LEASEHOLD GRANT FOR NOT LESS THAN FORTY-NINE YEARS.
   2. FOR ANY ELIGIBLE NONPROFIT HOUSING PROPERTY ACQUIRED BY  A  LOW-IN-
 COME  PERSON  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE
 FULL MARKET VALUE OF SUCH PROPERTY SHALL NOT BE GREATER THAN THE INITIAL
 TAXABLE VALUE, AS DEFINED IN SUBDIVISION ONE OF THIS SECTION.    IN  THE
 YEAR  IMMEDIATELY  SUCCEEDING  THE  YEAR IN WHICH THE ACQUISITION OF ANY
 ELIGIBLE NONPROFIT HOUSING PROPERTY BY A LOW-INCOME  PERSON  OCCURS  AND
 EACH YEAR THEREAFTER, THE FULL MARKET VALUE OF THE PROPERTY SHALL NOT BE
 GREATER THAN THE SUBSEQUENT TAXABLE VALUE AND SUBSEQUENT ASSESSED VALUE,
 AS  DEFINED IN SUBDIVISION ONE OF THIS SECTION.  ANY REASSESSMENT OF ANY
 ELIGIBLE NONPROFIT HOUSING PROPERTY SHALL IN NO EVENT EXCEED THE GREATER
 OF (I) THE INITIAL TAXABLE VALUE AND INITIAL ASSESSED VALUE OR (II)  THE
 SUBSEQUENT  TAXABLE  VALUE  AND SUBSEQUENT ASSESSED VALUE, AS DEFINED IN
 SUBDIVISION ONE OF THIS SECTION.
   § 2. This act shall take effect immediately.