Bill Text: NY S08526 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8526
                    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
        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 chapter. 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 with a population of  less  than  one
    23  million shall also be eligible for benefits under this subdivision.
    24    §  2.  Section 422 of the real property tax law is amended by adding a
    25  new subdivision 3 to read as follows:
    26    3. Exemption of income-restricted homeownership property,  Income-res-
    27  tricted homeownership property, including but not limited to a single or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14069-01-7
        S. 8526                             2
     1  two-family  home  or  multiple  dwelling, which is owned by and operated
     2  exclusively for the benefit of persons or  families  of  low  income  as
     3  defined  in  subdivision  ten  of  section twelve of the private housing
     4  finance law and is subject to the terms of a regulatory agreement with a
     5  supervising  agency,  which  shall be the city of New York acting by and
     6  through the department of housing preservation  and  development  for  a
     7  community  land  trust  located in the city of New York, or the New York
     8  state division of housing and community renewal for any  community  land
     9  trust  located  outside  of the city of New York, for a term of at least
    10  thirty years, or is located on any community land trust formed  pursuant
    11  to  section  four  hundred two of the not-for-profit corporation law and
    12  which is located in a city or municipality with  a  population  of  less
    13  than one million without a regulatory agreement with a supervising agen-
    14  cy,  which  is not otherwise fully exempt from taxation, shall be exempt
    15  from taxation and exempt from special  ad  valorem  levies  and  special
    16  assessments  to  the  extent  provided in section four hundred ninety of
    17  this article, provided that a portion of  the  assessed  value  of  such
    18  property  shall  be taxable in an amount that will yield a total tax for
    19  all purposes at the tax rates in effect on the taxable  status  date  of
    20  the  assessment  roll  or  rolls on which such property is assessed that
    21  shall not exceed either: (a) twenty per centum of the  carrying  charges
    22  of  such  income-restricted  homeownership  property; or (b) the maximum
    23  resale price of the single or two-family home or multiple  dwelling,  as
    24  required by either a regulatory agreement with the supervising agency or
    25  pursuant  to  the  restrictions  set forth in the ground lease between a
    26  community land trust and the owner of such single or two-family home  or
    27  multiple dwelling. The taxable assessed value of any single or two-fami-
    28  ly  home or multiple dwelling which is subject to to tax rate based upon
    29  twenty per centum of the  carrying  charges  if  such  income-restricted
    30  homeownership property shall be reassessed upon transfer or sale of such
    31  income-restricted homeownership property.  In the event such income-res-
    32  tricted  homeownership  property is not transferred or sold for a period
    33  of ten years or more, the assessor is hereby authorized  to  revalue  or
    34  update  the assessment of such income-restricted homeownership property.
    35  If the total  assessed  value  of  the  real  property  for  which  such
    36  exemption  has  been  granted increases or decreases by more than twenty
    37  percent as the result of a revaluation  or  update  of  assessments  the
    38  assessor  shall  increase or decrease the amount of the taxable assessed
    39  value on the roll first reflecting such change in level  or  revaluation
    40  by  multiplying  the amount of such taxable assessed value by the change
    41  in level of assessment factor. If the  change  in  level  of  assessment
    42  factor is determined after the verification and filing of the assessment
    43  roll,  the  assessor shall certify the amount of exemption as recomputed
    44  pursuant to this paragraph to the  local  officers  having  custody  and
    45  control  of  the  roll,  and such local officers are hereby directed and
    46  authorized to enter the recomputed exemption certified by  the  assessor
    47  on  the  roll. On the assessment roll next following such revaluation or
    48  update the taxable assessed valuation shall be computed based on the tax
    49  rates in effect on the taxable status date as hereinabove provided.  The
    50  division of housing and community renewal shall be authorized to promul-
    51  gate  suitable rules and regulations to carry out the provisions of this
    52  subsection.
    53    § 3. This act shall take effect immediately and  shall  apply  to  all
    54  assessment  rolls  published after the date this act shall have become a
    55  law.