S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1718
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2025
                                ___________
 
 Introduced  by Sens. HINCHEY, ROLISON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Local Government
 
 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
 THE FULL FAIR MARKET VALUE FOR SUCH NONPROFIT HOUSING  PROPERTY  ON  THE
 ASSESSMENT ROLLS WHICH SHALL NOT EXCEED THE SUBSIDIZED PURCHASE PRICE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00193-01-5
 S. 1718                             2
              

 
   (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-SIX, 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1718--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2025
                                ___________
 
 Introduced  by Sens. HINCHEY, ROLISON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Local  Government
   --  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  partially
   exempting  from taxation certain residential real property transferred
   to low-income households
 
   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 457-a to read as follows:
   § 457-A. EXEMPTION FOR ELIGIBLE RESIDENTIAL PROPERTY TRANSFERRED TO  A
 LOW-INCOME HOUSEHOLD. 1. AS USED IN THIS SECTION:
   (A)  "NONPROFIT  HOUSING  ORGANIZATION" MEANS A NONPROFIT ORGANIZATION
 EXEMPT FROM CERTAIN TAXES  PURSUANT  TO  SECTION  501(C)(3)  OR  SECTION
 501(C)(4)  OF  THE  UNITED  STATES  INTERNAL REVENUE CODE AND/OR THAT IS
 INCORPORATED UNDER THE  NOT-FOR-PROFIT  CORPORATION  LAW  WHOSE  PRIMARY
 PURPOSE  IS  THE  CONSTRUCTION  OR  RENOVATION OF RESIDENTIAL AFFORDABLE
 HOUSING FOR CONVEYANCE TO HOUSEHOLDS THAT MEET CERTAIN  INCOME  REQUIRE-
 MENTS.
   (B)  "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION EXEMPT FROM
 CERTAIN TAXES PURSUANT TO SECTION 501(C)(3) OR SECTION 501(C)(4) OF  THE
 UNITED  STATES  INTERNAL  REVENUE CODE AND/OR THAT IS INCORPORATED UNDER
 THE NOT-FOR-PROFIT CORPORATION LAW WHOSE PRIMARY PURPOSE IS  TO  PROVIDE
 AFFORDABLE  HOUSING  BY  OWNING  LAND AND LEASING OR SELLING RESIDENTIAL
 HOUSING SITUATED ON THAT LAND TO HOUSEHOLDS  THAT  MEET  CERTAIN  INCOME
 REQUIREMENTS.
   (C)  "LAND  BANK"  MEANS  AN ENTITY CREATED IN ACCORDANCE WITH ARTICLE
 SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
   (D) "QUALIFIED LOW-INCOME HOUSEHOLD" MEANS A HOUSEHOLD WITH AN  INCOME
 UPON  INITIAL  OCCUPANCY  OF  THE  RESIDENTIAL PROPERTY OF NOT MORE THAN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00193-05-5
              

 S. 1718--A                          2
 
 EIGHTY PERCENT OF THE AREA MEDIAN INCOME, AS  ANNUALLY  DEFINED  BY  THE
 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AND WHICH HAS
 AGREED  TO  OCCUPY  SUCH  RESIDENTIAL PROPERTY AS A PRIMARY RESIDENCE. A
 NONPROFIT  HOUSING  ORGANIZATION,  COMMUNITY  LAND  TRUST, LAND BANK, OR
 APPROPRIATE GOVERNMENTAL ENTITY SHALL CERTIFY THAT A HOUSEHOLD MEETS THE
 INCOME AND RESIDENCY CRITERIA TO BE CONSIDERED  A  QUALIFIED  LOW-INCOME
 HOUSEHOLD  AND  SHALL DETERMINE THE INCOME AND ASSETS THAT SHALL BE USED
 TO DETERMINE A HOUSEHOLD'S INCOME FOR ELIGIBILITY PURPOSES.
   2. (A) RESIDENTIAL REAL PROPERTY SUBJECT TO A RESTRICTIVE COVENANT  OR
 DECLARATION, LEGAL REQUIREMENT, REGULATORY AGREEMENT OR OTHER CONTRACTU-
 AL  OBLIGATION  WITH  A GOVERNMENTAL ENTITY, NONPROFIT HOUSING ORGANIZA-
 TION, OR LAND BANK, AND TRANSFERRED TO A QUALIFIED LOW-INCOME HOUSEHOLD,
 OR WHERE THE LAND IS TRANSFERRED TO A COMMUNITY LAND TRUST AND THE RESI-
 DENTIAL BUILDING SITUATED ON THE LAND IS OR WILL BE LEASED OR SOLD TO  A
 QUALIFIED LOW-INCOME HOUSEHOLD, SHALL BE EXEMPT AS PROVIDED IN PARAGRAPH
 (B)  OF  THIS  SUBDIVISION  FROM  TAXATION LEVIED BY OR ON BEHALF OF ANY
 COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT IN WHICH SUCH RESIDENTIAL
 REAL PROPERTY IS LOCATED, UNLESS A LEGISLATIVE BODY OR  GOVERNING  BOARD
 OF  SUCH  COUNTY,  CITY, TOWN OR VILLAGE, AFTER PUBLIC HEARING, ADOPTS A
 LOCAL LAW, OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT  TO  WHICH
 ARTICLE  FIFTY-TWO  OF  THE  EDUCATION  LAW APPLIES, ADOPTS A RESOLUTION
 OPTING OUT OF THIS SUBDIVISION.
   (B) THE REAL PROPERTY TAX EXEMPTION AUTHORIZED PURSUANT  TO  PARAGRAPH
 (A)  OF  THIS SUBDIVISION SHALL BE AN AMOUNT THAT IS NOT LESS THAN TWEN-
 TY-FIVE PERCENT NOR MORE THAN SEVENTY-FIVE PERCENT OF THE ASSESSED VALUE
 OF THE RESIDENTIAL REAL PROPERTY.
   (C) A COPY OF ANY LOCAL LAW OR RESOLUTION ADOPTED  PURSUANT  TO  PARA-
 GRAPH  (A)  OF  THIS SUBDIVISION SHALL BE FILED WITH THE ASSESSOR OF THE
 COUNTY, CITY, TOWN, OR VILLAGE THAT  PREPARES  THE  ASSESSMENT  ROLL  ON
 WHICH  THE TAXES OF SUCH COUNTY, CITY, TOWN, VILLAGE, OR SCHOOL DISTRICT
 ARE LEVIED.
   3. (A) THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE DISCON-
 TINUED IF THE PROPERTY GRANTED SUCH EXEMPTION:
   (I) CEASES TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES; OR
   (II) CEASES TO BE USED AS A PRIMARY RESIDENCE; OR
   (III) IS TRANSFERRED TO ANOTHER PERSON OR ENTITY, OTHER  THAN  TO  ANY
 HEIRS OR DISTRIBUTEES OF THE OWNER THAT MEET THE REQUIREMENTS OF BEING A
 QUALIFIED LOW-INCOME HOUSEHOLD AT THE TIME OF SUCH TRANSFER.
   (B)  UPON  DETERMINING  THAT  AN  EXEMPTION  GRANTED  PURSUANT TO THIS
 SECTION SHOULD BE DISCONTINUED, THE ASSESSOR  SHALL  MAIL  A  NOTICE  SO
 STATING  TO  THE  OWNER  OR OWNERS THEREOF AT THE TIME AND IN THE MANNER
 PROVIDED BY SECTION FIVE HUNDRED TEN OF  THIS  CHAPTER.  SUCH  OWNER  OR
 OWNERS  SHALL  BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF
 SUCH ACTION IN THE MANNER PROVIDED BY  LAW,  PROVIDED  THAT  THE  BURDEN
 SHALL  BE  ON  SUCH  OWNER  OR  OWNERS  TO ESTABLISH ELIGIBILITY FOR THE
 EXEMPTION.
   4. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
 OR  OWNERS OF SUCH REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSION-
 ER.  THE APPLICATION SHALL BE FILED WITH THE  ASSESSOR  OF  THE  COUNTY,
 CITY,  TOWN, OR VILLAGE HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION
 ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE OF SUCH  COUNTY,  CITY,
 TOWN, OR VILLAGE.
   5.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
 ANT TO THIS SECTION, THE ASSESSOR SHALL  APPROVE  THE  APPLICATION,  AND
 SUCH  RESIDENTIAL  PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AND
 SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS  SECTION  COMMENCING  WITH
 S. 1718--A                          3
 
 THE  ASSESSMENT  ROLL  PREPARED  ON THE BASIS OF THE TAXABLE STATUS DATE
 REFERRED TO IN SUBDIVISION FOUR OF THIS SECTION. THE ASSESSED  VALUE  OF
 ANY  EXEMPTION  GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE
 ASSESSOR  ON  THE  ASSESSMENT  ROLL  WITH THE TAXABLE PROPERTY, WITH THE
 AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
   § 2. This act shall take effect immediately.