NY State Senate Bill 2025-S5662

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2026	print number 5662a
Jan 08, 2026	amend and recommit to housing, construction and community development
Jan 07, 2026	referred to housing, construction and community development
Apr 08, 2025	reported and committed to finance
Mar 10, 2025	reported and committed to cities 1
Feb 26, 2025	referred to housing, construction and community development

Votes

- Mar 10, 2025 - Housing, Construction And Community Development Committee Vote
  S5662
  
  Aye
  
  8
  
  Nay
  
  1
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Housing, Construction And Community Development Committee Vote: Mar 10, 2025
      
      aye (8)
      
      Brisport
      
      Cleare
      
      Jackson
      
      Kavanagh
      
      May
      
      Rivera
      
      Ryan
      
      Salazar
      
      nay (1)
      
      Walczyk
      
      aye wr (2)
      
      Helming
      
      Martins
  Apr 8, 2025 - Cities 1 Committee Vote
  S5662
  
  Aye
  
  6
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Cities 1 Committee Vote: Apr 8, 2025
      
      aye (6)
      
      Addabbo Jr.
      
      Chan
      
      Cleare
      
      Persaud
      
      Salazar
      
      Sepúlveda
      
      aye wr (1)
      
      Lanza

Bill Amendments

Original

A (Active)

co-Sponsors

2025-S5662 - Details

See Assembly Version of this Bill:: A6654
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §33, Priv Hous Fin L

2025-S5662 - Summary

Relates to authorizing a reduction of taxes pursuant to shelter rent; provides that such taxes shall not be assessed on projects located in New York City.

2025-S5662 - Sponsor Memo

                                 
BILL NUMBER: S5662

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to author-
izing a reduction of taxes pursuant to shelter rent

 
PURPOSE::

This bill would eliminate the shelter rent tax for Mitchell-Lama devel-
opments in New York City and authorize localities other than New York
City to eliminate or reduce the shelter rent tax for developments to
below ten percent through local legislative action.

 
SUMMARY OF SPECIFIC PROVISIONS::

Section 1 of the bill amends section paragraph (a) of subdivision 1 of
section 33 of the Private Housing Finance Law to eliminate the shelter
rent tax that currently applies to Mitchell-Lama developments in New
York City and to provide that localities other than New York City may
eliminate or reduce the tax for Mitchell-Lama developments through local

legislative action.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Mitchell-Lama housing provides affordable, stable homes for low- and
moderate-income New Yorkers, but many Mitchell-Lama developments are
struggling to maintain affordability while keeping up with capital and
operating costs.

This bill would eliminate an onerous tax on this class of affordable
housing in New York City, creating parity with other types of affordable
housing projects, which are often exempt from taxes, to support their
affordability and ongoing operating costs. This bill would also author-
ize localities other than New York City to eliminate or reduce this tax
burden.

 
LEGISLATIVE HISTORY::

This is a new bill.

 
FISCAL IMPLICATIONS::

None.

 
EFFECTIVE DATE::

This act shall take effect immediately.

2025-S5662 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5662
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 26, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT to amend the private housing finance law, in relation to author-
   izing a reduction of taxes pursuant to shelter rent

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1 of section 33 of the private
 housing  finance  law, as amended by chapter 229 of the laws of 1989, is
 amended to read as follows:
   (a) Upon the consent of the local legislative body of any municipality
 in which a project is or is to  be  located,  the  real  property  in  a
 project  shall  be  exempt  from  local  and municipal taxes, other than
 assessments for local improvements, to the extent of all or part of  the
 value  of  the  property  included  in  such project which represents an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project at the time of its acquisition by
 the limited-profit housing company, provided,  however,  that  the  real
 property  in  a project acquired for purposes of rehabilitation shall be
 exempt to the extent of all  or  part  of  the  value  of  the  property
 included  in  such project, and further provided that the amount of such
 taxes to be paid FOR PROJECTS LOCATED OR TO BE LOCATED IN A MUNICIPALITY
 WITH A POPULATION OF LESS THAN ONE MILLION shall not be  less  than  ten
 per  centum  of  the  annual  shelter  rent  or carrying charges of such
 project [except], OR SUCH OTHER AMOUNT LESS THAN TEN PER CENTUM APPROVED
 BY THE LOCAL LEGISLATIVE BODY OF SUCH MUNICIPALITY, AND FURTHER PROVIDED
 that [for] projects located or to be located in a city of  a  population
 of  one million or more[, upon the consent of the local legislative body
 of the municipality, the amount of such taxes to be paid may be  set  at
 not less than (i) the taxes payable with respect to the real property in
 such  project  with  respect to the year nineteen hundred seventy-three,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10198-02-5

 S. 5662                             2

 or, (ii) if such project was not occupied in such year,  not  less  than
 ten  per  centum  of  the  annual shelter rent or carrying charges first
 established pursuant to subdivision one of section  thirty-one  of  this
 article] SHALL NOT BE ASSESSED.  Shelter rent shall mean the total rents
 received  from  the occupants of a project less the cost of providing to
 the occupants electricity, gas, heat and other  utilities.  Total  rents
 shall  include  rent supplements and subsidies received from the federal
 government, the state or a municipality on behalf of  such  occupants[,]
 but  shall  not include interest reduction payments pursuant to subdivi-
 sion (a) of section two hundred one of the  Federal  Housing  and  Urban
 Development Act of nineteen hundred sixty-eight. The tax exemption shall
 operate  and  continue  so  long  as  the mortgage loans of the company,
 including any additional mortgage loan the proceeds of  which  are  used
 primarily  for  the residential portion of the project, which additional
 loan is approved by the commissioner  or  the  supervising  agency,  are
 outstanding.
   § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous-
 ing  finance  law,  as  amended  by  chapter 229 of the laws of 1989, is
 amended to read as follows:
   (c) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
 subdivision,  the real property of a state urban development corporation
 project acquired, owned, constructed, managed or operated by  a  company
 incorporated  pursuant  to  the  not-for-profit corporation law and this
 article shall be entitled to all the benefits provided by  section  four
 hundred  twenty-two of the real property tax law. The real property of a
 state urban development corporation project, other than  a  state  urban
 development corporation project acquired, owned, constructed, managed or
 operated by a company incorporated pursuant to the not-for-profit corpo-
 ration  law and this article, shall be exempt from all local and munici-
 pal taxes, other than assessments for local improvements, to the  extent
 of  the  value of the property included in such project as represents an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project on the date of its acquisition by
 the limited-profit housing company, provided that  the  amount  of  such
 taxes to be paid FOR PROJECTS LOCATED OR TO BE LOCATED IN A MUNICIPALITY
 WITH  A  POPULATION  OF LESS THAN ONE MILLION shall not be less than ten
 per centum of the annual  shelter  rent  or  carrying  charges  of  such
 project,  as  defined in paragraph (a) hereof, OR SUCH OTHER AMOUNT LESS
 THAN TEN PER CENTUM APPROVED BY THE LOCAL LEGISLATIVE BODY OF SUCH MUNI-
 CIPALITY, AND FURTHER PROVIDED THAT PROJECTS LOCATED OR TO BE LOCATED IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE SHALL NOT  BE  ASSESSED.
 The  tax  exemption  shall  operate and continue so long as the mortgage
 loans of such limited profit housing company, including  any  additional
 mortgage  loan the proceeds of which are used primarily for the residen-
 tial portion of the project, which additional loan is  approved  by  the
 commissioner  or the supervising agency, are outstanding and the project
 is continued to be operated as a limited-profit housing  project.  If  a
 state urban development corporation project qualifying for tax exemption
 pursuant to this paragraph is sold, with the approval of the commission-
 er,  to  another  limited-profit housing company, such successor company
 shall be entitled to all the benefits of this paragraph.  In  the  event
 that such sale is to a company incorporated pursuant to the not-for-pro-
 fit  corporation  law  and this article, such successor company shall be
 entitled to all the benefits provided by section four hundred twenty-two
 of the real property tax law.
 S. 5662                             3
 
   § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous-
 ing finance law, as amended by chapter 744  of  the  laws  of  1977,  is
 amended to read as follows:
   (d)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
 subdivision, when a project is financed with a mortgage loan pursuant to
 this article or article three of this chapter and (i) there is a partic-
 ipation, new loan or investment pursuant to  section  twenty-three-b  of
 this  article or (ii) such mortgage loan is assigned, modified or satis-
 fied pursuant to section twenty-three-a or forty-four-b  or  subdivision
 twenty-two-a of section six hundred fifty-four of this chapter, the real
 property  of  the  project  shall be exempt from all local and municipal
 taxes, other than assessments for local improvements, to the  extent  of
 the value of the real property included in such project which represents
 an  increase over the assessed valuation of the real property, both land
 and improvements, acquired for the project on the date of  its  original
 acquisition  for  the project by the original mortgagor under a mortgage
 loan pursuant to this article or article three of this chapter, provided
 that the amount of taxes to be paid on the project FOR PROJECTS  LOCATED
 OR  TO  BE  LOCATED IN A MUNICIPALITY WITH A POPULATION OF LESS THAN ONE
 MILLION shall not be less than ten per centum of the annual shelter rent
 or carrying charges of such project, as defined in paragraph (a) of this
 subdivision, OR SUCH OTHER AMOUNT LESS THAN TEN PER CENTUM  APPROVED  BY
 THE  LOCAL  LEGISLATIVE  BODY OF SUCH MUNICIPALITY, AND FURTHER PROVIDED
 THAT PROJECTS LOCATED OR TO BE LOCATED IN A CITY WITH  A  POPULATION  OF
 ONE  MILLION  OR  MORE  SHALL  NOT BE ASSESSED. Such tax exemption shall
 commence in each instance from the date when the project becomes subject
 to a mortgage insured by the federal government and  shall  operate  and
 continue so long as a mortgage on such project is insured or held by the
 federal  government or so long as the project is thereafter owned by the
 federal government or so long as any residual indebtedness is  outstand-
 ing,  whichever  is  longer.  When there is a participation, new loan or
 investment pursuant to section  twenty-three-b  of  this  article,  such
 participation,  new  loan or investment shall be deemed to be the equiv-
 alent of a federally insured mortgage for purposes  of  this  paragraph.
 Nothing  contained  in  this  paragraph  shall  be construed to limit or
 otherwise impair the benefits available  to  any  company  eligible  for
 exemption  from taxation pursuant to section thirty-one or section thir-
 ty-six-a of this article, section four  hundred  twenty-two  or  section
 four  hundred  sixty-seven-c  of  the  real property tax law, or section
 fifty-eight of the public housing law. The foregoing shall not be deemed
 to authorize any company to receive the benefits of any  exemption  from
 taxation  in  contravention  of the provisions of section two of article
 eighteen of the constitution.
   § 4. Subdivision 4 of section 33 of the private housing  finance  law,
 as  amended  by  chapter  229 of the laws of 1989, is amended to read as
 follows:
   4. Notwithstanding the provisions of subdivision one  hereof,  when  a
 mutual  company is organized under this article to facilitate the acqui-
 sition of a building by residents  thereof,  the  amount  of  local  and
 municipal  taxes,  other  than assessments for local improvements, to be
 paid on the real property  included  in  such  project,  both  land  and
 improvements,  shall  not exceed twenty per centum of the annual shelter
 rent or carrying charges of such project, as defined in paragraph (a) of
 subdivision one [hereof] OF THIS SECTION; provided, however, that  where
 such acquisition of a building by residents thereof involves the financ-
 ing  of rehabilitation or other improvement as well as acquisition, upon
 S. 5662                             4
 
 the consent of the local legislative body of the municipality  in  which
 the project is located, the amount of such taxes FOR PROJECTS LOCATED OR
 TO  BE  LOCATED  IN  A  MUNICIPALITY  WITH A POPULATION OF LESS THAN ONE
 MILLION  may  be  further reduced provided that such amount shall not be
 less than ten per centum of the annual shelter rent or carrying  charges
 of  the project, as defined in paragraph (a) of subdivision one [hereof]
 OF THIS SECTION, OR SUCH OTHER AMOUNT LESS THAN TEN PER CENTUM  APPROVED
 BY  THE  LOCAL LEGISLATIVE BODY OF SUCH MUNICIPALITY; or the company may
 in lieu of requesting such consent apply for the benefits of  the  local
 law, if any, enacted pursuant to section four hundred eighty-nine of the
 real  property  tax  law.  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS
 SUBDIVISION, PROJECTS LOCATED OR TO BE LOCATED IN A CITY  WITH  A  POPU-
 LATION OF ONE MILLION OR MORE SHALL NOT BE ASSESSED. Such tax exemption,
 if  any,  granted pursuant to this article shall operate and continue so
 long as a loan made under this article or any subsequent  loan  approved
 by the commissioner or the supervising agency to enhance the residential
 portion  of  the project and the project is continued to be operated for
 the purposes set forth in this article is outstanding.
   § 5. This act shall take effect immediately.

co-Sponsors

2025-S5662A (ACTIVE) - Details

See Assembly Version of this Bill:: A6654
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §33, Priv Hous Fin L

2025-S5662A (ACTIVE) - Summary

Relates to authorizing a reduction of taxes pursuant to shelter rent; provides that such taxes shall not be assessed on projects located in New York City.

2025-S5662A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5662A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to author-
izing a reduction of taxes pursuant to shelter rent

 
PURPOSE:

This bill would eliminate the shelter rent tax for Mitchell-Lama devel-
opments and for mutual redevelopment companies established under Article
V of the Private Housing Finance Law in New York City and authorize
localities other than New York City to eliminate or reduce the shelter
rent tax for applicable developments to below ten percent through local
legislative action.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends paragraph (a) of subdivision 1 of section
33 of the Private Housing Finance Law to eliminate the shelter rent tax
that currently applies to Mitchell-Lama developments in New York City

and to provide that localities other than New York City may eliminate or
reduce the tax for Mitchell-Lama developments through local legislative
action.

Section 2 of the bill amends paragraph (c) of subdivision 1 of section
33 of the Private Housing Finance Law to eliminate the shelter rent tax
that currently applies to Mitchell-Lama developments in New York City
and to provide that localities other than New York City may eliminate or
reduce the tax for Mitchell-Lama developments through local legislative
action.

Section 3 of the bill amends paragraph (d) of subdivision 1 of section
33 of the Private Housing Finance Law to eliminate the shelter rent tax
that currently applies to Mitchell-Lama developments in New York City
and to provide that localities other than New York City may eliminate or
reduce the tax for Mitchell-Lama developments through local legislative
action.

Section 4 of the bill amends subdivision 4 of section 33 of the Private
Housing Finance Law to eliminate the shelter rent tax that currently
applies to Mitchell-Lama developments in New York City and to provide
that localities other than New York City may eliminate or reduce the tax
for Mitchell-Lama developments through local legislative action.

Section 5 of the bill amends paragraph (a-4) of subdivision 1 of section
125 of the Private Housing Finance Law to eliminate the shelter rent tax
that currently applies to mutual redevelopment companies established
pursuant to Article V of the Private Housing Finance Law in New York
City.

Section 6 of the bill sets forth the effective date.

 
JUSTIFICATION:

Mitchell-Lama housing provides affordable, stable homes for low- and
moderate-income New Yorkers, but many Mitchell-Lama developments are
struggling to maintain affordability while keeping up with capital and
operating costs. Similarly, limited-equity housing established as mutual
redevelopment companies and which are operated similar to Mitchell-Lama
housing experience similar affordability and operation struggles.

This bill would eliminate an onerous tax on Mitchell-Lamas and mutual
redevelopment companies in New York City, creating parity with other
types of affordable housing projects, which are often exempt from taxes,
to support their affordability and ongoing operating costs.  This bill
would also authorize localities other than New York City to eliminate or
reduce this tax burden for Mitchell-Lama developments located in other
parts of the state.

 
LEGISLATIVE HISTORY:  This is a new bill.

S5662A is amended to incorporate language from S7780B of 2025 (Hoylman-
Sigal; signed Ch. 430 of 2025) that reduced shelter rent tax for mutual
redevelopment companies to 5%, to include mutual redevelopment companies
in New York City in the proposal to eliminate shelter rent tax.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S5662A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5662--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 26, 2025
                                ___________
 
 Introduced by Sens. KAVANAGH, FERNANDEZ -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Housing,
   Construction and Community Development -- recommitted to the Committee
   on Housing, Construction and Community Development 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 private housing finance law, in relation to  author-
   izing a reduction of taxes pursuant to shelter rent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1 of section 33 of the private
 housing finance law, as amended by section 1 of part L of chapter 56  of
 the laws of 2025, is amended to read as follows:
   (a) Upon the consent of the local legislative body of any municipality
 in  which  a  project  is  or  is  to be located, the real property in a
 project shall be exempt from  local  and  municipal  taxes,  other  than
 assessments  for local improvements, to the extent of all or part of the
 value of the property included  in  such  project  which  represents  an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project at the time of its acquisition by
 the  limited-profit  housing  company,  provided, however, that the real
 property in a project acquired for purposes of rehabilitation  shall  be
 exempt  to  the  extent  of  all  or  part  of the value of the property
 included in such project, and further provided that the amount  of  such
 taxes to be paid FOR PROJECTS LOCATED OR TO BE LOCATED IN A MUNICIPALITY
 WITH  A  POPULATION  OF LESS THAN ONE MILLION shall not be less than ten
 per centum of the annual  shelter  rent  or  carrying  charges  of  such
 project except that for projects located or to be located in a city of a
 population of one million or more, the amount of such taxes shall NOT be
 [no  more  than  five  per centum of the annual shelter rent or carrying
 charges of the project] ASSESSED.  Upon the consent of the local  legis-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10198-03-5

 S. 5662--A                          2
 
 lative  body  of  a municipality, other than a city with a population of
 one million or more, in which the project is located, the amount of such
 taxes may be further reduced to five per centum or less  of  the  annual
 shelter  rent  or  carrying  charges  of  the  project. Any such granted
 consent to reduce the amount of such taxes shall expire every ten years.
 If such authorization is not renewed, the rate of taxation shall  revert
 to  the  level  established before the consent was granted. Shelter rent
 shall mean the total rents received from the occupants of a project less
 the cost of providing to the occupants electricity, gas, heat and  other
 utilities.  Total  rents  shall  include  rent supplements and subsidies
 received from the federal government, the state  or  a  municipality  on
 behalf  of  such  occupants  but  shall  not  include interest reduction
 payments pursuant to subdivision (a) of section two hundred one  of  the
 Federal  Housing  and  Urban  Development Act of nineteen hundred sixty-
 eight. The tax exemption shall operate and continue so long as the mort-
 gage loans of the company, including any additional  mortgage  loan  the
 proceeds  of which are used primarily for the residential portion of the
 project, which additional loan is approved by the  commissioner  or  the
 supervising agency, are outstanding.
   § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous-
 ing  finance law, as amended by section 2 of part L of chapter 56 of the
 laws of 2025, is amended to read as follows:
   (c) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
 subdivision,  the real property of a state urban development corporation
 project acquired, owned, constructed, managed or operated by  a  company
 incorporated  pursuant  to  the  not-for-profit corporation law and this
 article shall be entitled to all the benefits provided by  section  four
 hundred  twenty-two of the real property tax law. The real property of a
 state urban development corporation project, other than  a  state  urban
 development corporation project acquired, owned, constructed, managed or
 operated by a company incorporated pursuant to the not-for-profit corpo-
 ration  law and this article, shall be exempt from all local and munici-
 pal taxes, other than assessments for local improvements, to the  extent
 of  the  value of the property included in such project as represents an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project on the date of its acquisition by
 the limited-profit housing company, provided that  the  amount  of  such
 taxes to be paid FOR PROJECTS LOCATED OR TO BE LOCATED IN A MUNICIPALITY
 WITH  A  POPULATION  OF LESS THAN ONE MILLION shall not be less than ten
 per centum of the annual  shelter  rent  or  carrying  charges  of  such
 project,  as defined in paragraph (a) hereof, except that in a city with
 a population of one million or more, the amount of such taxes shall  NOT
 be  [no more than five per centum of the annual shelter rent or carrying
 charges of the project] ASSESSED.  Upon the consent of the local  legis-
 lative  body of the municipality, other than a city with a population of
 one million or more, in which the project is located, the amount of such
 taxes may be further reduced to five per centum or less  of  the  annual
 shelter  rent  or  carrying  charges  of  the  project. Any such granted
 consent to reduce the amount of such taxes shall expire every ten years.
 If such authorization is not renewed, the rate of taxation shall  revert
 to  the  level  established  before  the  consent  was  granted. The tax
 exemption shall operate and continue so long as the  mortgage  loans  of
 such  limited  profit housing company, including any additional mortgage
 loan the proceeds of  which  are  used  primarily  for  the  residential
 portion of the project, which additional loan is approved by the commis-
 sioner  or  the  supervising  agency, are outstanding and the project is
 S. 5662--A                          3
 
 continued to be operated as a limited-profit housing project. If a state
 urban development  corporation  project  qualifying  for  tax  exemption
 pursuant to this paragraph is sold, with the approval of the commission-
 er,  to  another  limited-profit housing company, such successor company
 shall be entitled to all the benefits of this paragraph.  In  the  event
 that such sale is to a company incorporated pursuant to the not-for-pro-
 fit  corporation  law  and this article, such successor company shall be
 entitled to all the benefits provided by section four hundred twenty-two
 of the real property tax law.
   § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous-
 ing finance law, as amended by section 3 of part L of chapter 56 of  the
 laws of 2025, is amended to read as follows:
   (d)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
 subdivision, when a project is financed with a mortgage loan pursuant to
 this article or article three of this chapter and (i) there is a partic-
 ipation, new loan or investment pursuant to  section  twenty-three-b  of
 this  article or (ii) such mortgage loan is assigned, modified or satis-
 fied pursuant to section twenty-three-a or forty-four-b  or  subdivision
 twenty-two-a of section six hundred fifty-four of this chapter, the real
 property  of  the  project  shall be exempt from all local and municipal
 taxes, other than assessments for local improvements, to the  extent  of
 the value of the real property included in such project which represents
 an  increase over the assessed valuation of the real property, both land
 and improvements, acquired for the project on the date of  its  original
 acquisition  for  the project by the original mortgagor under a mortgage
 loan pursuant to this article or article three of this chapter, provided
 that the amount of taxes to be paid on the project FOR PROJECTS  LOCATED
 OR  TO  BE  LOCATED IN A MUNICIPALITY WITH A POPULATION OF LESS THAN ONE
 MILLION shall not be less than ten per centum of the annual shelter rent
 or carrying charges of such project, as defined in paragraph (a) of this
 subdivision, except that in a city with a population of one  million  or
 more,  the  amount  of  such  taxes  shall NOT be [no more than five per
 centum of the annual shelter rent or carrying charges  of  the  project]
 ASSESSED.  Upon the consent of the local legislative body of the munici-
 pality, other than a city with a population of one million or  more,  in
 which  the  project  is located, the amount of such taxes may be further
 reduced to five per centum or less of the annual shelter rent or  carry-
 ing  charges  of  the  project.  Any  such granted consent to reduce the
 amount of such taxes shall expire every ten years. If such authorization
 is not renewed, the rate of taxation shall revert to  the  level  estab-
 lished before the consent was granted. Such tax exemption shall commence
 in  each  instance  from  the date when the project becomes subject to a
 mortgage insured by the federal government and shall operate and contin-
 ue so long as a mortgage on such project  is  insured  or  held  by  the
 federal  government or so long as the project is thereafter owned by the
 federal government or so long as any residual indebtedness is  outstand-
 ing,  whichever  is  longer.  When there is a participation, new loan or
 investment pursuant to section  twenty-three-b  of  this  article,  such
 participation,  new  loan or investment shall be deemed to be the equiv-
 alent of a federally insured mortgage for purposes  of  this  paragraph.
 Nothing  contained  in  this  paragraph  shall  be construed to limit or
 otherwise impair the benefits available  to  any  company  eligible  for
 exemption  from taxation pursuant to section thirty-one or section thir-
 ty-six-a of this article, section four  hundred  twenty-two  or  section
 four  hundred  sixty-seven-c  of  the  real property tax law, or section
 fifty-eight of the public housing law. The foregoing shall not be deemed
 S. 5662--A                          4
 
 to authorize any company to receive the benefits of any  exemption  from
 taxation  in  contravention  of the provisions of section two of article
 eighteen of the constitution.
   § 4. Subdivision 4 of section 33 of the private housing  finance  law,
 as   amended  by section 4 of part L of chapter  56 of the laws of 2025,
 is amended to read as follows:
   4. Notwithstanding the provisions of subdivision one [hereof] OF  THIS
 SECTION, when a mutual company is organized under this article to facil-
 itate  the acquisition of a building by residents thereof, the amount of
 local and municipal taxes, other than  assessments  for  local  improve-
 ments,  to  be  paid on the real property included in such project, both
 land and improvements, shall not exceed twenty per centum of the  annual
 shelter  rent  or  carrying charges of such project, as defined in para-
 graph (a) of subdivision one [hereof] OF THIS SECTION; provided,  howev-
 er,  that  where  such  acquisition  of  a building by residents thereof
 involves the financing of rehabilitation or other improvement as well as
 acquisition, upon the consent of the local legislative body of the muni-
 cipality in which the project is located the amount of  such  taxes  FOR
 PROJECTS LOCATED OR TO BE LOCATED IN A MUNICIPALITY WITH A POPULATION OF
 LESS  THAN  ONE MILLION may be further reduced provided that such amount
 shall not be less than ten per centum of  the  annual  shelter  rent  or
 carrying charges of the project, as defined in paragraph (a) of subdivi-
 sion  one  [hereof]  OF THIS SECTION, OR SUCH OTHER AMOUNT LESS THAN TEN
 PER CENTUM APPROVED BY THE LOCAL LEGISLATIVE BODY OF SUCH  MUNICIPALITY;
 or  the  company  may  in  lieu of requesting such consent apply for the
 benefits of the local law, if any,  enacted  pursuant  to  section  four
 hundred  eighty-nine  of  the real property tax law. Notwithstanding any
 other provision of this subdivision, in a city with a population of  one
 million  or  more,  the  amount of such taxes shall NOT be [no more than
 five per centum of the annual shelter rent or carrying  charges  of  the
 project] ASSESSED. Upon the consent of the local legislative body of the
 municipality,  other  than  a  city  with a population of one million or
 more, in which the project is located, the amount of such taxes  may  be
 further reduced to five per centum or less of the annual shelter rent or
 carrying  charges of the project. Any such granted consent to reduce the
 amount of such taxes shall expire every ten years. If such authorization
 is not renewed, the rate of taxation shall revert to  the  level  estab-
 lished  before  the  consent  was  granted.  Such tax exemption, if any,
 granted pursuant to this article shall operate and continue so long as a
 loan made under this article or any  subsequent  loan  approved  by  the
 commissioner  or  the  supervising  agency  to  enhance  the residential
 portion of the project and the project is continued to be  operated  for
 the purposes set forth in this article is outstanding.
   §  5.  Paragraph  (a-4) of subdivision 1 of section 125 of the private
 housing finance law, as amended by chapter 430 of the laws of  2025,  is
 amended to read as follows:
   (a-4)  Any  inconsistent  provision  of law notwithstanding, in a city
 having a population of one million or more, where  a  local  legislative
 body  has  acted  to  extend the tax exemption of a mutual redevelopment
 company for the maximum period provided for in paragraph (a-2)  of  this
 subdivision, the local legislative body may grant an additional FULL tax
 exemption  [for  a period of up to fifty years, provided that the amount
 of taxes to be paid during any such period of tax exemption shall be not
 less than an amount equal to the lesser of (i) five per  centum  of  the
 annual  rent  or carrying charges of the project minus utilities for the
 residential portion of the project, or (ii) the taxes  payable  by  such
 S. 5662--A                          5

 company  for  the residential portion of the project during the tax year
 commencing July first, two thousand and ending on  June  thirtieth,  two
 thousand  one]  TO  SUCH A COMPANY. Such grant of an additional FULL tax
 exemption  [period] shall take effect upon the expiration of the maximum
 period provided for in paragraph (a-2) of this subdivision.
   § 6. This act shall take effect immediately.

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Senate Bill S5662

Sponsored By

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Mar 10, 2025 - Housing, Construction And Community Development Committee Vote

Housing, Construction And Community Development Committee Vote: Mar 10, 2025

Apr 8, 2025 - Cities 1 Committee Vote

Cities 1 Committee Vote: Apr 8, 2025

Bill Amendments

co-Sponsors

2025-S5662 - Details

2025-S5662 - Summary

2025-S5662 - Sponsor Memo

2025-S5662 - Bill Text download pdf

co-Sponsors

2025-S5662A (ACTIVE) - Details

2025-S5662A (ACTIVE) - Summary

2025-S5662A (ACTIVE) - Sponsor Memo

2025-S5662A (ACTIVE) - Bill Text download pdf

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Sponsored By

Brian Kavanagh

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

Votes

Bill Amendments

co-Sponsors

Nathalia Fernandez

2025-S5662 - Details

2025-S5662 - Summary

2025-S5662 - Sponsor Memo

2025-S5662 - Bill Text download pdf

co-Sponsors

Nathalia Fernandez

2025-S5662A (ACTIVE) - Details

2025-S5662A (ACTIVE) - Summary

2025-S5662A (ACTIVE) - Sponsor Memo

2025-S5662A (ACTIVE) - Bill Text download pdf

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