Bill Text: NY A01894 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to tax exemptions for community land trusts and income-restricted homeownership property.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Introduced) 2024-01-03 - referred to real property taxation [A01894 Detail]
Download: New_York-2023-A01894-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1894 2023-2024 Regular Sessions IN ASSEMBLY January 23, 2023 ___________ Introduced by M. of A. DAVILA, RAMOS, WEPRIN, WILLIAMS, WALKER, PRETLOW, SIMON, COLTON, DICKENS, GLICK, COOK, CRUZ -- Multi-Sponsored by -- M. of A. THIELE -- read once and referred to the Committee on Real Prop- erty Taxation AN ACT to amend the real property tax law, in relation to tax exemptions for community land trusts and income-restricted homeownership proper- ties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 420-a of the real property tax law is amended by 2 adding a new subdivision 17 to read as follows: 3 17. Other than in a city having a population of one million or more, 4 any land owned by a community land trust and separately assessed 5 improvements owned by the residents thereof, shall be exempt from local 6 real property taxation and exempt from special ad valorem levies and 7 special assessments to the extent provided in section four hundred nine- 8 ty of this article. 9 (a) For the purposes of this subdivision, "community land trust" shall 10 mean a corporation organized pursuant to the not-for-profit corporation 11 law and exempt from taxation pursuant to section 501(c)(3) of the inter- 12 nal revenue code that satisfies the following criteria: 13 (i) such nonprofit corporation's purpose is the creation and mainte- 14 nance of permanently affordable single-family or multi-family resi- 15 dences; 16 (ii) all dwellings and units located on land owned by such nonprofit 17 corporation is sold to a qualified owner to be occupied as the qualified 18 owner's primary residence or rented to persons or families of low 19 income; and 20 (iii) any lease with the owner of a single-family home or multi-family 21 residence shall be for an initial term of ninety-nine years with renewal 22 rights under the same initial terms and conditions. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02428-01-3A. 1894 2 1 (b) Failure to comply with the provisions of this subdivision that 2 require the development and preservation of permanently affordable 3 single-family or multi-family residences for persons or families of low 4 income at any time during the duration of the exemption shall result in 5 revocation of any exemption under this subdivision for the period of 6 such non-compliance. If an ongoing pattern of non-compliance is found to 7 exist, such exemption may be revoked from its inception. 8 (c) Enforcement of this subdivision shall be in addition to any other 9 provisions contained in this chapter or any other law. 10 (d) The revocation of an exemption authorized by this subdivision 11 shall not exempt a community land trust from continued compliance with 12 the requirements of this subdivision. 13 § 2. Section 422 of the real property tax law is amended by adding two 14 new subdivisions 3 and 4 to read as follows: 15 3. Exemption of income-restricted homeownership property in a munici- 16 pality with a population of less than one million. Income-restricted 17 homeownership property, including but not limited to a single or two-fa- 18 mily home or multi-family residence, which is owned by and operated 19 exclusively for the benefit of persons or families of low income as 20 defined in subdivision nineteen of section two of the private housing 21 finance law that is subject to a ground lease with a ninety-nine year 22 renewable term with a community land trust as defined in paragraph (a) 23 of subdivision seventeen of section four hundred twenty-a of this title, 24 which is not otherwise fully exempt from taxation, shall be assessed 25 based upon the resale and rent restrictions set forth in the ground 26 lease when determining the taxable value of such income-restricted 27 homeownership property. Notwithstanding the provisions of this subdivi- 28 sion, any local assessor that currently employs a method of property 29 assessment and taxation for any income-restricted homeownership property 30 as of the effective date of this subdivision that would result in a 31 lesser tax burden for such income-restricted homeowner may continue to 32 employ such method as if fully authorized by this subdivision. 33 4. Exemption from local real property taxation in a city having a 34 population of one million or more for certain low-income housing accom- 35 modations. (a) Eligible real property in a city having a population of 36 one million or more shall be exempt from local real property taxation 37 except as may be otherwise provided in the regulatory agreement of such 38 eligible real property. Such exemption from local real property taxa- 39 tion shall commence as of the effective date of the regulatory agree- 40 ment. Upon a default under the regulatory agreement or non-compliance 41 with this subdivision, the agency may suspend, reduce, terminate or 42 revoke such exemption, with respect to all or a portion of such eligible 43 real property as of the date of such default or non-compliance, unless 44 such default or non-compliance is cured within the time period specified 45 for any such cure under such regulatory agreement. 46 (b) For the purposes of this subdivision, the following terms shall 47 have the following meanings: 48 (1) The term "agency" shall mean the department of housing preserva- 49 tion and development. 50 (2) The term "community land trust" shall mean a corporation organized 51 pursuant to the not-for-profit corporation law for the purpose of devel- 52 oping and/or preserving housing accommodations that serve persons and 53 families of low income through its ownership and stewardship of the land 54 beneath such housing accommodations. 55 (3) The term "eligible entity" shall mean a corporation (i) that is a 56 housing development fund company formed pursuant to article eleven ofA. 1894 3 1 the private housing finance law and section four hundred two of the 2 not-for-profit corporation law and (ii) the certificate of incorporation 3 of which requires such housing development fund company to operate sole- 4 ly as a community land trust. 5 (4) The term "eligible real property" shall mean real property that 6 provides housing accommodations for persons and families of low income 7 pursuant to a regulatory agreement, provided that the land portion of 8 such real property is owned by an eligible entity. 9 (5) The term "persons and families of low income" shall have the mean- 10 ing set forth in subdivision nineteen of section two of the private 11 housing finance law. 12 (6) The term "regulatory agreement" shall mean a regulatory agreement 13 with or approved by the agency that (i) is executed or approved after 14 the effective date of this subdivision, (ii) requires the provision of 15 housing accommodations for persons and families of low income, (iii) is 16 recorded against the eligible real property, (iv) binds all parties in 17 interest to such eligible real property and their respective successors 18 and assigns and (v) includes such other terms and conditions as the 19 agency shall determine, including, but not limited to, provisions 20 requiring payments in lieu of taxes, for the purpose of developing 21 and/or preserving housing accommodations that serve persons and families 22 of low income. 23 § 3. This act shall take effect immediately and shall apply to all 24 assessment rolls published after the date this act shall have become a 25 law.
