Bill Text: NY S08526 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to tax exemptions for community land trusts and income-restricted homeownership property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S08526 Detail]
Download: New_York-2017-S08526-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8526--A IN SENATE May 9, 2018 ___________ Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged and said bill committed to the Committee on Hous- ing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 15 to read as follows: 3 15. Real property owned by a housing development fund company formed 4 pursuant to article eleven of the private housing finance law and 5 section four hundred two of the not-for-profit corporation law which 6 operates as a community land trust as defined in section two hundred 7 thirteen of the housing and community development act of nineteen 8 hundred ninety-two, exclusively for the benefit of persons or families 9 of low income as defined in subdivision ten of section twelve of the 10 private housing finance law, and separately assessed improvements owned 11 by the residents thereof, shall be exempt from taxation and exempt from 12 special ad valorem levies and special assessments to the extent provided 13 in section four hundred ninety of this article. The supervising agency 14 of the community land trust shall require an annual certification from 15 the community land trust that the real property land is used exclusively 16 for the benefit of persons or families of low income. The supervising 17 agency may require the community land trust to enter into a regulatory 18 agreement, which shall be co-terminus with any ground lease granted by 19 the community land trust to any qualifying owner of improvements there- 20 on. Notwithstanding the foregoing, any community land trust formed 21 pursuant to section four hundred two of the not-for-profit corporation 22 law and which is located in a city or municipality with a population of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14069-02-8S. 8526--A 2 1 less than one million shall also be eligible for benefits under this 2 subdivision. 3 § 2. Section 422 of the real property tax law is amended by adding a 4 new subdivision 3 to read as follows: 5 3. Exemption of income-restricted homeownership property. Income-res- 6 tricted homeownership property, including but not limited to a single or 7 two-family home or multiple dwelling, which is owned by and operated 8 exclusively for the benefit of persons or families of low income as 9 defined in subdivision ten of section twelve of the private housing 10 finance law and is subject to the terms of a regulatory agreement with a 11 supervising agency, which shall be the city of New York acting by and 12 through the department of housing preservation and development for a 13 community land trust located in the city of New York, or the New York 14 state division of housing and community renewal for any community land 15 trust located outside of the city of New York, for a term of at least 16 thirty years, or is located on any community land trust formed pursuant 17 to section four hundred two of the not-for-profit corporation law and 18 which is located in a city or municipality with a population of less 19 than one million without a regulatory agreement with a supervising agen- 20 cy, which is not otherwise fully exempt from taxation, shall be exempt 21 from taxation and exempt from special ad valorem levies and special 22 assessments to the extent provided in section four hundred ninety of 23 this article, provided that a portion of the assessed value of such 24 property shall be taxable in an amount that will yield a total tax for 25 all purposes at the tax rates in effect on the taxable status date of 26 the assessment roll or rolls on which such property is assessed that 27 shall not exceed either: (a) twenty per centum of the carrying charges 28 of such income-restricted homeownership property; or (b) the maximum 29 resale price of the single or two-family home or multiple dwelling, as 30 required by either a regulatory agreement with the supervising agency or 31 pursuant to the restrictions set forth in the ground lease between a 32 community land trust and the owner of such single or two-family home or 33 multiple dwelling. The taxable assessed value of any single or two-fami- 34 ly home or multiple dwelling which is subject to the tax rate based upon 35 twenty per centum of the carrying charges if such income-restricted 36 homeownership property shall be reassessed upon transfer or sale of such 37 income-restricted homeownership property. In the event such income-res- 38 tricted homeownership property is not transferred or sold for a period 39 of ten years or more, the assessor is hereby authorized to revalue or 40 update the assessment of such income-restricted homeownership property. 41 If the total assessed value of the real property for which such 42 exemption has been granted increases or decreases by more than twenty 43 percent as the result of a revaluation or update of assessments the 44 assessor shall increase or decrease the amount of the taxable assessed 45 value on the roll first reflecting such change in level or revaluation 46 by multiplying the amount of such taxable assessed value by the change 47 in level of assessment factor. If the change in level of assessment 48 factor is determined after the verification and filing of the assessment 49 roll, the assessor shall certify the amount of exemption as recomputed 50 pursuant to this subdivision to the local officers having custody and 51 control of the roll, and such local officers are hereby directed and 52 authorized to enter the recomputed exemption certified by the assessor 53 on the roll. On the assessment roll next following such revaluation or 54 update the taxable assessed valuation shall be computed based on the tax 55 rates in effect on the taxable status date as hereinabove provided. The 56 division of housing and community renewal shall be authorized to promul-S. 8526--A 3 1 gate suitable rules and regulations to carry out the provisions of this 2 subdivision. Notwithstanding the provisions of this subdivision, any 3 local assessor that currently employs a method of property assessment 4 and taxation for any income-restricted homeownership property as of the 5 effective date of the chapter of the laws of two thousand eighteen that 6 added this subdivision that would result in a lesser tax burden for such 7 income-restricted homeowner shall be authorized to continue to employ 8 such method as if fully authorized by this subdivision. 9 § 3. This act shall take effect immediately and shall apply to all 10 assessment rolls published after the date this act shall have become a 11 law.
