Bill Text: NY A04499 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the private housing finance law, in relation to contracts for exemption from local and municipal taxes for redevelopment companies
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - referred to housing [A04499 Detail]
Download: New_York-2009-A04499-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 4499 2009-2010 Regular Sessions I N A S S E M B L Y February 4, 2009 ___________ Introduced by M. of A. BRODSKY -- read once and referred to the Commit- tee on Housing AN ACT to amend the private housing finance law, in relation to contracts for exemption from local and municipal taxes for redevelop- ment companies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph (a) of subdivision 1 of section 125 of the 2 private housing finance law, as amended by chapter 566 of the laws of 3 1993, is amended to read as follows: 4 (a) The local legislative body of any municipality in which a project 5 of such company is or is to be located may by contract agree with any 6 redevelopment company to exempt from local and municipal taxes, other 7 than assessments for local improvements, all or part of the value of the 8 property included in such project which represents an increase over the 9 assessed valuation of the real property, both land and improvements, 10 acquired for the project at the time of its acquisition by the redevel- 11 opment company which originally undertook the project and for such defi- 12 nite period of years as such contract may provide, except that where the 13 real property in a project was acquired for purposes of rehabilitation, 14 the local legislative body either may utilize the foregoing formula or 15 may agree to exempt from such taxes all or part of the value of the 16 property included in such project on condition that the amount of such 17 taxes to be paid shall not be less than ten per centum of the annual 18 shelter rent or carrying charges of such rehabilitation project. The tax 19 exemption shall not operate for a period of more than twenty-five years, 20 commencing in each instance from the date on which the benefits of such 21 exemption first become available and effective; provided, however, that 22 with respect to a project either acquired by a mutual redevelopment 23 company pursuant to section one hundred twenty-six OF THIS ARTICLE or 24 owned and continuing to be owned by a mutual redevelopment company which EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08200-01-9 A. 4499 2 1 would require substantial increases in carrying charges after the period 2 of tax exemption is ended unless relief is provided, the local legisla- 3 tive body may contract with such mutual redevelopment company to extend 4 such tax exemption for not more than twenty-five additional years at a 5 rate of tax exemption not to exceed an average of fifty per centum 6 during such additional period, provided that the tax exemption during 7 the first two years of such additional period shall continue at the rate 8 of the tax exemption of such project immediately preceding the termi- 9 nation of the initial twenty-five year period and that the tax exemption 10 thereafter shall be decreased in equal biennial decrements, the first of 11 which shall occur immediately following such two year period, and 12 provided that such contract shall contain provisions as to income limi- 13 tations relating to admission and continued occupancy of the project and 14 provisions as to rental surcharges to the same effect as are contained 15 in subdivisions two, three, four and five of section thirty-one OF THIS 16 CHAPTER, except that in the case of projects owned and continuing to be 17 owned by mutual redevelopment companies, persons or families whose prob- 18 able aggregate annual income does not exceed the median income for fami- 19 lies of the same size in the same metropolitan area shall also be eligi- 20 ble for admission to the project on the understanding that any person or 21 family becoming eligible by reason hereof whose probable aggregate annu- 22 al income at the time of admission or during the period of occupancy 23 exceeds, the greater of (i) the median income for such persons or fami- 24 lies for the metropolitan statistical area in which the project is 25 located, or if a project is located outside a metropolitan statistical 26 area, the median income for such persons or families for the county in 27 which the project is located, as most recently determined by the United 28 States department of housing and urban development, in which case any 29 person or family becoming eligible for admission pursuant to this 30 subparagraph shall pay, from the time of admission, a rental surcharge 31 as provided for in subdivision three of section thirty-one of this chap- 32 ter, computed on the basis of the income limitations applicable to such 33 persons or families in the absence of this subparagraph, or (ii) six 34 times the rental shall be liable for payment of rental surcharges here- 35 under computed on the basis of such ratio, except that in the case of 36 families with three or more dependents such ratio shall be seven to one; 37 and provided further that with respect to a project which is or is to be 38 permanently financed by a federally-aided mortgage, the tax exemption 39 shall operate for so long as such mortgage is outstanding, but in no 40 event for a period of more than forty years, commencing in each instance 41 from the date on which the benefits of such exemption first become 42 available and effective; and provided further that with respect to a 43 project which is or is to be permanently financed by a loan from the New 44 York city housing development corporation, the tax exemption shall oper- 45 ate for so long as such loan is outstanding; AND PROVIDED THAT WITH 46 RESPECT TO A PROJECT WHICH IS OR IS TO BE PERMANENTLY FINANCED BY A LOAN 47 FROM THE NEW YORK STATE HOUSING FINANCE AGENCY, THE TAX EXEMPTION MAY, 48 WITH THE APPROVAL OF THE LOCAL LEGISLATIVE BODY, OPERATE FOR SO LONG AS 49 SUCH LOAN IS OUTSTANDING. 50 S 2. This act shall take effect immediately.