S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1420
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the real property tax law,  in  relation  to  exemptions
   from local real property taxation of certain low income housing accom-
   modations in a city with a population of one million or more

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 420-c of  the  real  property  tax
 law,  as  amended by chapter 104 of the laws of 1999, is amended to read
 as follows:
   1. In a city having a population of one million or more, real property
 owned by a corporation, partnership or limited liability company  formed
 for  the  purpose  of  providing  housing accommodations for persons and
 families of low income as defined in section two of the private  housing
 finance  law  and used for such purpose, shall be exempt from local real
 property taxation, provided that such corporation, partnership or limit-
 ed liability company: (a) is organized as a non-profit housing  develop-
 ment  fund  company  pursuant  to  article eleven of the private housing
 finance law AND IS NOT ESTABLISHED OR CONTROLLED BY A FOR-PROFIT ENTITY,
 or is a non-profit housing corporation as defined in article  eleven  of
 the  private  housing finance law which is not incorporated as a housing
 development fund company as defined in article  eleven  of  the  private
 housing finance law AND IS NOT ESTABLISHED OR CONTROLLED BY A FOR-PROFIT
 ENTITY,  or is a wholly-owned subsidiary of such a company or is a part-
 nership or limited liability company the controlling interest  of  which
 is held by such a company or corporation or by a wholly owned subsidiary
 of  such  a  company  or  by a corporation sponsored or formed by such a
 company or corporation; and (b) has received a loan from a municipality,
 the state or the housing trust fund corporation established pursuant  to
 section forty-five-a of the private housing finance law or any successor
 corporation; and (c) enters into a regulatory agreement with the munici-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01265-01-7

 S. 1420                             2
 
 pality,  the  state  or  the  housing trust fund corporation established
 pursuant to section forty-five-a of the private housing finance  law  or
 any successor corporation guaranteeing the provision of housing accommo-
 dations for persons and families of low income; and (d) is a participant
 in  the federal low income housing tax credit program established pursu-
 ant to section forty-two  of  the  internal  revenue  code  of  nineteen
 hundred  eighty-six,  as amended. Any exemption pursuant to this section
 shall expire upon the expiration or termination of the regulatory agree-
 ment.
   § 2. Subparagraphs 4 and 5  of  paragraph  (a)  of  subdivision  4  of
 section  420-c  of the real property tax law, subparagraph 4 as added by
 chapter 522 of the laws of 2004 and subparagraph 5 as amended by chapter
 526 of the laws of 2004, are amended to read as follows:
   (4) The term "charitable organization" shall mean (i) an  entity,  NOT
 ESTABLISHED  OR  CONTROLLED  BY A FOR-PROFIT ENTITY, formed for purposes
 that include providing housing accommodations for persons  and  families
 of  low  income  and  that has received written recognition of exemption
 pursuant to section 501(c)(3)  or  section  501(c)(4)  of  the  internal
 revenue  code of nineteen hundred eighty-six, as amended, or any succes-
 sor statute, from the United States Internal  Revenue  Service,  or  any
 successor  agency, or (ii) a corporation, partnership or limited liabil-
 ity company wholly owned and wholly controlled by an entity, NOT  ESTAB-
 LISHED  OR  CONTROLLED  BY A FOR-PROFIT ENTITY, formed for purposes that
 include providing housing accommodations for persons and families of low
 income and that has received written recognition of  exemption  pursuant
 to  section  501(c)(3) or section 501(c)(4) of the internal revenue code
 of nineteen hundred eighty-six, as amended, or  any  successor  statute,
 from  the United States Internal Revenue Service, or any successor agen-
 cy.
   (5) The term "eligible entity" shall mean a  corporation,  partnership
 or  limited  liability company at least [fifty] FIFTY-ONE percent of the
 controlling interest of which is held by a charitable organization.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 projects  approved  on  or  after  the date on which this act shall have
 become a law.