Legislation

§ 485-r. Residential redevelopment inhibited property exemption. 1. As
used in this section, the following terms shall have the following
meanings:

(a) "Redevelopment inhibited property" shall mean a residential
property that has been neglected or abandoned because of the local
economic conditions and/or conditions on the property that inhibit such
property from being redeveloped by the private sector as described in
subdivision three of this section. Redevelopment inhibited property
shall not include land that is undeveloped.

(b) "Gap financing costs" shall mean the total cost of the property's
redevelopment as approved by the city, town, or village minus the
increase in the full valuation of the property upon completion of the
redevelopment.

(c) "Base assessment" shall mean the assessed value of the property on
the day the city, town, or village designates the property as
redevelopment inhibited.

(d) "Increased assessment" shall mean the assessed value of the
property as determined by the assessor upon completion of the
redevelopment.

(e) "Incremental increase in annual property taxes" shall mean the
taxes based on the increased assessment minus the taxes based on the
base assessment.

2. A city, town, or village may, by local law, provide for the
exemption of real property from taxation as provided in this section.
Subsequent to the adoption of such local law, the county in which such
city, town, or village is located may after a public hearing and by
local law, and any school district, all or part of which is located in
such city, town, or village, may, by resolution, exempt such property
from its taxation in the same manner and to the same extent as the city,
town, or village has done.

3. A local law adopted by a city, town, or village pursuant to
subdivision two of this section shall designate any property within such
city, town, or village's boundaries as a redevelopment inhibited
property if one or more of the following are met:

(a) the city, town, or village has acquired title to the property
pursuant to article nineteen-A of the real property actions and
proceedings law; or

(b) the property has been continuously vacant for a period of at least
three years; or

(c) the county, city, town or village in which the property is located
has acquired title to the property via foreclosure for unpaid taxes
pursuant to article eleven of this chapter; or

(d) the property has outstanding zoning, housing, or uniform code
violations and the cost of remedying the violations exceeds the
property's value.

4. (a) Upon the adoption of such local law, redevelopment inhibited
property shall be exempt from taxation and special ad valorem levies to
the extent of any increase in value attributable to demolition,
alteration, rehabilitation, or remediation pursuant to the following
requirements:

(i) the demolition, alterations, rehabilitation, and/or remediation
shall be permitted by the applicable bureau of inspection such that
building or plumbing permits issued and said demolition, alterations,
rehabilitation, and/or remediation shall have met all necessary
approvals per the applicable New York state uniform fire prevention and
building code, the applicable municipal code and the applicable bureau
of inspection upon completion; and

(ii) the property for which the exemption is sought shall be a one to
four-unit residence and occupied as the primary residence of the owner
or a tenant; and

(iii) the owner of such property shall file annually an affidavit of
residency with the assessor of the city, town, or village on or before
the appropriate taxable status date, confirming continued occupancy of
the property by the owner or a tenant as their primary residence; and

(iv) the redevelopment inhibited property is exempt from taxation and
special ad valorem levies attributable to the increased assessment minus
the taxes and special ad valorem levies imposed on the base assessment.
Such exemption shall not apply to special assessments.

(b) In the event the property granted an exemption pursuant to this
section ceases to be occupied as the primary residence of the owner or
tenant and/or the affidavit of residency is not filed annually for the
approved exemption period, the exemption granted pursuant to this
section shall cease.

(c) In the event the property granted an exemption pursuant to this
section ceases to be a one to four-unit dwelling, the exemption granted
pursuant to this section shall cease.

(d) In the event the owner of the property is convicted of a violation
or misdemeanor pursuant to New York state uniform fire prevention and
building code or the applicable municipal code, the exemption granted
pursuant to this section shall cease.

5. (a) Such redevelopment inhibited property shall be exempt for a
period equal to the gap financing costs divided by the incremental
increase in annual property taxes resulting from such redevelopment. The
exemption period shall be rounded up to the nearest whole number and
shall not exceed twenty-five years.

(b) The extent of such exemption shall decrease the last eight years
of the exemption period by twelve and one-half percent of the increase
in assessment due to the redevelopment equaling a zero percent exemption
on the final year of the exemption period.

6. (a) Such exemption shall be granted only upon application by the
owner of such building for the residential redevelopment inhibited
property exemption, on a form prescribed by the city, town, or village.
Such application must be filed with the assessor of the city, town, or
village on or before the appropriate taxable status date. The
application must be filed with the assessor of the city, town, or
village within three years from the date of completing the demolition,
alterations, rehabilitation, and/or remediation.

(b) The owner filing for such exemption shall not be required to be
the owner responsible for completing the demolition, alterations,
rehabilitation, and/or remediation.

(c) If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, such assessor shall approve the
application and such real property shall thereafter be exempt from
taxation and special ad valorem levies by the city, town, or village
commencing with the assessment roll prepared after the taxable status
date referred to in this subdivision. The assessed value of any
exemption granted pursuant to this section shall be entered by the
assessor of the city, town, or village on the assessment roll with the
taxable property, with the amount of the exemption shown in a separate
column.

(d) Once granted, the residential redevelopment inhibited property
exemption runs with the land for the exemption period pursuant to this
section.