Legislation

§ 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
requirements.

(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
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
contractual obligation with a governmental entity, nonprofit housing
organization, or land bank, and transferred to a qualified low-income
household, or where the land is transferred to a community land trust
and the residential 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, provided the 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 in to 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
twenty-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
paragraph (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
discontinued 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
commissioner. 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
pursuant 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 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.