Provides for a partial exemption from taxation of certain residential real property transferred by a governmental entity, nonprofit housing organization, land bank or community land trust to low-income household, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  355--C
                                                            R. R. 108
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. BARRETT, GLICK, HYNDMAN, WOERNER, JONES, EACHUS,
   LUCAS, COLTON, SIMON, DAVILA, LUPARDO, BEEPHAN, SIMPSON,  JACOBSON  --
   read  once  and referred to the Committee on Real Property Taxation --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said  committee -- again reported from said committee
   with amendments, ordered reprinted as amended and recommitted to  said
   committee  -- reported and referred to the Committee on Ways and Means
   -- reported and referred to the Committee on Rules  --  ordered  to  a
   third  reading,  passed  by  Assembly  and  delivered  to  the Senate,
   recalled from the Senate, vote  reconsidered,  bill  amended,  ordered
   reprinted, retaining its place on the special order of third reading
 
 AN  ACT  to  amend  the  real property tax law, in relation to partially
   exempting from taxation certain residential real property  transferred
   to low-income households
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 457-a to read as follows:
   §  457-A. EXEMPTION FOR ELIGIBLE RESIDENTIAL PROPERTY TRANSFERRED TO A
 LOW-INCOME HOUSEHOLD. 1. AS USED IN THIS SECTION:
   (A) "NONPROFIT HOUSING ORGANIZATION" MEANS  A  NONPROFIT  ORGANIZATION
 EXEMPT  FROM  CERTAIN  TAXES  PURSUANT  TO  SECTION 501(C)(3) OR SECTION
 501(C)(4) OF THE UNITED STATES INTERNAL  REVENUE  CODE  AND/OR  THAT  IS
 INCORPORATED  UNDER  THE  NOT-FOR-PROFIT  CORPORATION  LAW WHOSE PRIMARY
 PURPOSE IS THE CONSTRUCTION  OR  RENOVATION  OF  RESIDENTIAL  AFFORDABLE
 HOUSING  FOR  CONVEYANCE TO HOUSEHOLDS THAT MEET CERTAIN INCOME REQUIRE-
 MENTS.
   (B) "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION EXEMPT  FROM
 CERTAIN  TAXES PURSUANT TO SECTION 501(C)(3) OR SECTION 501(C)(4) OF THE
 UNITED STATES INTERNAL REVENUE CODE AND/OR THAT  IS  INCORPORATED  UNDER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00193-13-5
 A. 355--C                           2
 
 THE  NOT-FOR-PROFIT  CORPORATION LAW WHOSE PRIMARY PURPOSE IS TO PROVIDE
 AFFORDABLE HOUSING BY OWNING LAND AND  LEASING  OR  SELLING  RESIDENTIAL
 HOUSING  SITUATED  ON  THAT  LAND TO HOUSEHOLDS THAT MEET CERTAIN INCOME
 REQUIREMENTS.
   (C)  "LAND  BANK"  MEANS  AN ENTITY CREATED IN ACCORDANCE WITH ARTICLE
 SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
   (D) "QUALIFIED LOW-INCOME HOUSEHOLD" MEANS A HOUSEHOLD WITH AN  INCOME
 UPON  INITIAL  OCCUPANCY  OF  THE  RESIDENTIAL PROPERTY OF NOT MORE THAN
 EIGHTY PERCENT OF THE AREA MEDIAN INCOME, AS  ANNUALLY  DEFINED  BY  THE
 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AND WHICH HAS
 AGREED  TO  OCCUPY  SUCH  RESIDENTIAL PROPERTY AS A PRIMARY RESIDENCE. A
 NONPROFIT HOUSING ORGANIZATION, COMMUNITY  LAND  TRUST,  LAND  BANK,  OR
 APPROPRIATE GOVERNMENTAL ENTITY SHALL CERTIFY THAT A HOUSEHOLD MEETS THE
 INCOME  AND  RESIDENCY  CRITERIA TO BE CONSIDERED A QUALIFIED LOW-INCOME
 HOUSEHOLD AND SHALL DETERMINE THE INCOME AND ASSETS THAT SHALL  BE  USED
 TO DETERMINE A HOUSEHOLD'S INCOME FOR ELIGIBILITY PURPOSES.
   2.  (A) RESIDENTIAL REAL PROPERTY SUBJECT TO A RESTRICTIVE COVENANT OR
 DECLARATION, LEGAL REQUIREMENT, REGULATORY AGREEMENT OR OTHER CONTRACTU-
 AL OBLIGATION WITH A GOVERNMENTAL ENTITY,  NONPROFIT  HOUSING  ORGANIZA-
 TION, OR LAND BANK, AND TRANSFERRED TO A QUALIFIED LOW-INCOME HOUSEHOLD,
 OR WHERE THE LAND IS TRANSFERRED TO A COMMUNITY LAND TRUST AND THE RESI-
 DENTIAL  BUILDING SITUATED ON THE LAND IS OR WILL BE LEASED OR SOLD TO A
 QUALIFIED LOW-INCOME HOUSEHOLD, SHALL BE EXEMPT AS PROVIDED IN PARAGRAPH
 (B) OF THIS SUBDIVISION FROM TAXATION LEVIED BY  OR  ON  BEHALF  OF  ANY
 COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT IN WHICH SUCH RESIDENTIAL
 REAL  PROPERTY  IS  LOCATED,  PROVIDED THE LEGISLATIVE BODY OR GOVERNING
 BOARD OF SUCH COUNTY, CITY,  TOWN  OR  VILLAGE,  AFTER  PUBLIC  HEARING,
 ADOPTS  A  LOCAL LAW, OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT
 TO WHICH ARTICLE FIFTY-TWO OF THE EDUCATION LAW APPLIES, ADOPTS A RESOL-
 UTION OPTING IN TO THIS SUBDIVISION.
   (B) THE REAL PROPERTY TAX EXEMPTION AUTHORIZED PURSUANT  TO  PARAGRAPH
 (A)  OF  THIS SUBDIVISION SHALL BE AN AMOUNT THAT IS NOT LESS THAN TWEN-
 TY-FIVE PERCENT NOR MORE THAN SEVENTY-FIVE PERCENT OF THE ASSESSED VALUE
 OF THE RESIDENTIAL REAL PROPERTY.
   (C) A COPY OF ANY LOCAL LAW OR RESOLUTION ADOPTED  PURSUANT  TO  PARA-
 GRAPH  (A)  OF  THIS SUBDIVISION SHALL BE FILED WITH THE ASSESSOR OF THE
 COUNTY, CITY, TOWN, OR VILLAGE THAT  PREPARES  THE  ASSESSMENT  ROLL  ON
 WHICH  THE TAXES OF SUCH COUNTY, CITY, TOWN, VILLAGE, OR SCHOOL DISTRICT
 ARE LEVIED.
   3. (A) THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE DISCON-
 TINUED IF THE PROPERTY GRANTED SUCH EXEMPTION:
   (I) CEASES TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES; OR
   (II) CEASES TO BE USED AS A PRIMARY RESIDENCE; OR
   (III) IS TRANSFERRED TO ANOTHER PERSON OR ENTITY, OTHER  THAN  TO  ANY
 HEIRS OR DISTRIBUTEES OF THE OWNER THAT MEET THE REQUIREMENTS OF BEING A
 QUALIFIED LOW-INCOME HOUSEHOLD AT THE TIME OF SUCH TRANSFER.
   (B)  UPON  DETERMINING  THAT  AN  EXEMPTION  GRANTED  PURSUANT TO THIS
 SECTION SHOULD BE DISCONTINUED, THE ASSESSOR  SHALL  MAIL  A  NOTICE  SO
 STATING  TO  THE  OWNER  OR OWNERS THEREOF AT THE TIME AND IN THE MANNER
 PROVIDED BY SECTION FIVE HUNDRED TEN OF  THIS  CHAPTER.  SUCH  OWNER  OR
 OWNERS  SHALL  BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF
 SUCH ACTION IN THE MANNER PROVIDED BY  LAW,  PROVIDED  THAT  THE  BURDEN
 SHALL  BE  ON  SUCH  OWNER  OR  OWNERS  TO ESTABLISH ELIGIBILITY FOR THE
 EXEMPTION.
   4. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
 OR  OWNERS OF SUCH REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSION-
 A. 355--C                           3
 
 ER.  THE APPLICATION SHALL BE FILED WITH THE  ASSESSOR  OF  THE  COUNTY,
 CITY,  TOWN, OR VILLAGE HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION
 ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE OF SUCH  COUNTY,  CITY,
 TOWN, OR VILLAGE.
   5.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
 ANT TO THIS SECTION, THE ASSESSOR SHALL  APPROVE  THE  APPLICATION,  AND
 SUCH  RESIDENTIAL  PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AND
 SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS  SECTION  COMMENCING  WITH
 THE  ASSESSMENT  ROLL  PREPARED  ON THE BASIS OF THE TAXABLE STATUS DATE
 REFERRED TO IN SUBDIVISION FOUR OF THIS SECTION. THE ASSESSED  VALUE  OF
 ANY  EXEMPTION  GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE
 ASSESSOR ON THE ASSESSMENT ROLL WITH  THE  TAXABLE  PROPERTY,  WITH  THE
 AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
   § 2. This act shall take effect immediately.