S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7930
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 1, 2021
                                ___________
 
 Introduced  by  M.  of  A. DAVILA, RAMOS, WEPRIN, J. RIVERA, RICHARDSON,
   WILLIAMS, WALKER, BARRON, PRETLOW, PICHARDO, SIMON,  COLTON,  DICKENS,
   DE LA ROSA,  GLICK,  COOK, GOTTFRIED, CRUZ -- Multi-Sponsored by -- M.
   of A. THIELE -- read once and referred to the Committee on Real  Prop-
   erty Taxation

 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:
 
   Section  1.  Section  420-a of the real property tax law is amended by
 adding a new subdivision 17 to read as follows:
   17.  OTHER THAN IN A CITY HAVING A POPULATION OF ONE MILLION OR  MORE,
 ANY  LAND  OWNED  BY  A  COMMUNITY  LAND  TRUST  AND SEPARATELY ASSESSED
 IMPROVEMENTS OWNED BY THE RESIDENTS THEREOF, SHALL BE EXEMPT FROM  LOCAL
 REAL  PROPERTY  TAXATION  AND  EXEMPT FROM SPECIAL AD VALOREM LEVIES AND
 SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR HUNDRED NINE-
 TY OF THIS ARTICLE.
   (A) FOR THE PURPOSES OF THIS SUBDIVISION, "COMMUNITY LAND TRUST" SHALL
 MEAN A CORPORATION ORGANIZED PURSUANT TO THE NOT-FOR-PROFIT  CORPORATION
 LAW AND EXEMPT FROM TAXATION PURSUANT TO SECTION 501(C)(3) OF THE INTER-
 NAL REVENUE CODE THAT SATISFIES THE FOLLOWING CRITERIA:
   (I)  SUCH  NONPROFIT CORPORATION'S PURPOSE IS THE CREATION AND MAINTE-
 NANCE OF PERMANENTLY  AFFORDABLE  SINGLE-FAMILY  OR  MULTI-FAMILY  RESI-
 DENCES;
   (II)  ALL  DWELLINGS AND UNITS LOCATED ON LAND OWNED BY SUCH NONPROFIT
 CORPORATION IS SOLD TO A QUALIFIED OWNER TO BE OCCUPIED AS THE QUALIFIED
 OWNER'S PRIMARY RESIDENCE OR  RENTED  TO  PERSONS  OR  FAMILIES  OF  LOW
 INCOME; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08406-02-1

              

 A. 7930                             2
 
   (III) ANY LEASE WITH THE OWNER OF A SINGLE-FAMILY HOME OR MULTI-FAMILY
 RESIDENCE SHALL BE FOR AN INITIAL TERM OF NINETY-NINE YEARS WITH RENEWAL
 RIGHTS UNDER THE SAME INITIAL TERMS AND CONDITIONS.
   (B)  FAILURE  TO  COMPLY  WITH THE PROVISIONS OF THIS SUBDIVISION THAT
 REQUIRE THE  DEVELOPMENT  AND  PRESERVATION  OF  PERMANENTLY  AFFORDABLE
 SINGLE-FAMILY  OR MULTI-FAMILY RESIDENCES FOR PERSONS OR FAMILIES OF LOW
 INCOME AT ANY TIME DURING THE DURATION OF THE EXEMPTION SHALL RESULT  IN
 REVOCATION  OF  ANY  EXEMPTION  UNDER THIS SUBDIVISION FOR THE PERIOD OF
 SUCH NON-COMPLIANCE. IF AN ONGOING PATTERN OF NON-COMPLIANCE IS FOUND TO
 EXIST, SUCH EXEMPTION MAY BE REVOKED FROM ITS INCEPTION.
   (C) ENFORCEMENT OF THIS SUBDIVISION SHALL BE IN ADDITION TO ANY  OTHER
 PROVISIONS CONTAINED IN THIS CHAPTER OR ANY OTHER LAW.
   (D)  THE  REVOCATION  OF  AN  EXEMPTION AUTHORIZED BY THIS SUBDIVISION
 SHALL NOT EXEMPT A COMMUNITY LAND TRUST FROM CONTINUED  COMPLIANCE  WITH
 THE REQUIREMENTS OF THIS SUBDIVISION.
   § 2. Section 422 of the real property tax law is amended by adding two
 new subdivisions 3 and 4 to read as follows:
   3.  EXEMPTION OF INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY IN A MUNICI-
 PALITY WITH A POPULATION OF LESS THAN ONE  MILLION.    INCOME-RESTRICTED
 HOMEOWNERSHIP PROPERTY, INCLUDING BUT NOT LIMITED TO A SINGLE OR TWO-FA-
 MILY  HOME  OR  MULTI-FAMILY  RESIDENCE,  WHICH IS OWNED BY AND OPERATED
 EXCLUSIVELY FOR THE BENEFIT OF PERSONS OR  FAMILIES  OF  LOW  INCOME  AS
 DEFINED  IN  SUBDIVISION  NINETEEN OF SECTION TWO OF THE PRIVATE HOUSING
 FINANCE LAW THAT IS SUBJECT TO A GROUND LEASE WITH  A  NINETY-NINE  YEAR
 RENEWABLE  TERM  WITH A COMMUNITY LAND TRUST AS DEFINED IN PARAGRAPH (A)
 OF SUBDIVISION SEVENTEEN OF SECTION FOUR HUNDRED TWENTY-A OF THIS TITLE,
 WHICH IS NOT OTHERWISE FULLY EXEMPT FROM  TAXATION,  SHALL  BE  ASSESSED
 BASED  UPON  THE  RESALE  AND  RENT RESTRICTIONS SET FORTH IN THE GROUND
 LEASE WHEN DETERMINING  THE  TAXABLE  VALUE  OF  SUCH  INCOME-RESTRICTED
 HOMEOWNERSHIP PROPERTY.  NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVI-
 SION,  ANY  LOCAL  ASSESSOR  THAT CURRENTLY EMPLOYS A METHOD OF PROPERTY
 ASSESSMENT AND TAXATION FOR ANY INCOME-RESTRICTED HOMEOWNERSHIP PROPERTY
 AS OF THE EFFECTIVE DATE OF THE CHAPTER OF  THE  LAWS  OF  TWO  THOUSAND
 TWENTY-ONE THAT ADDED THIS SUBDIVISION THAT WOULD RESULT IN A LESSER TAX
 BURDEN  FOR SUCH INCOME-RESTRICTED HOMEOWNER MAY CONTINUE TO EMPLOY SUCH
 METHOD AS IF FULLY AUTHORIZED BY THIS SUBDIVISION.
   4. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION  IN  A  CITY  HAVING  A
 POPULATION  OF ONE MILLION OR MORE FOR CERTAIN LOW-INCOME HOUSING ACCOM-
 MODATIONS. (A)  ELIGIBLE REAL PROPERTY IN A CITY HAVING A POPULATION  OF
 ONE  MILLION  OR  MORE SHALL BE EXEMPT FROM LOCAL REAL PROPERTY TAXATION
 EXCEPT AS MAY BE OTHERWISE PROVIDED IN THE REGULATORY AGREEMENT OF  SUCH
 ELIGIBLE  REAL PROPERTY.   SUCH EXEMPTION FROM LOCAL REAL PROPERTY TAXA-
 TION SHALL COMMENCE AS OF THE EFFECTIVE DATE OF  THE  REGULATORY  AGREE-
 MENT.  UPON  A  DEFAULT UNDER THE REGULATORY AGREEMENT OR NON-COMPLIANCE
 WITH THIS SUBDIVISION, THE AGENCY  MAY  SUSPEND,  REDUCE,  TERMINATE  OR
 REVOKE SUCH EXEMPTION, WITH RESPECT TO ALL OR A PORTION OF SUCH ELIGIBLE
 REAL  PROPERTY  AS OF THE DATE OF SUCH DEFAULT OR NON-COMPLIANCE, UNLESS
 SUCH DEFAULT OR NON-COMPLIANCE IS CURED WITHIN THE TIME PERIOD SPECIFIED
 FOR ANY SUCH CURE UNDER SUCH REGULATORY AGREEMENT.
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1)  THE  TERM "AGENCY" SHALL MEAN THE DEPARTMENT OF HOUSING PRESERVA-
 TION AND DEVELOPMENT.
   (2) THE TERM "COMMUNITY LAND TRUST" SHALL MEAN A CORPORATION ORGANIZED
 PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW FOR THE PURPOSE OF DEVEL-
 OPING AND/OR PRESERVING HOUSING ACCOMMODATIONS THAT  SERVE  PERSONS  AND

 A. 7930                             3
 
 FAMILIES OF LOW INCOME THROUGH ITS OWNERSHIP AND STEWARDSHIP OF THE LAND
 BENEATH SUCH HOUSING ACCOMMODATIONS.
   (3)  THE TERM "ELIGIBLE ENTITY" SHALL MEAN A CORPORATION (I) THAT IS A
 HOUSING DEVELOPMENT FUND COMPANY FORMED PURSUANT TO  ARTICLE  ELEVEN  OF
 THE  PRIVATE  HOUSING  FINANCE  LAW  AND SECTION FOUR HUNDRED TWO OF THE
 NOT-FOR-PROFIT CORPORATION LAW AND (II) THE CERTIFICATE OF INCORPORATION
 OF WHICH REQUIRES SUCH HOUSING DEVELOPMENT FUND COMPANY TO OPERATE SOLE-
 LY AS A COMMUNITY LAND TRUST.
   (4) THE TERM "ELIGIBLE REAL PROPERTY" SHALL MEAN  REAL  PROPERTY  THAT
 PROVIDES  HOUSING  ACCOMMODATIONS FOR PERSONS AND FAMILIES OF LOW INCOME
 PURSUANT TO A REGULATORY AGREEMENT, PROVIDED THAT THE  LAND  PORTION  OF
 SUCH REAL PROPERTY IS OWNED BY AN ELIGIBLE ENTITY.
   (5) THE TERM "PERSONS AND FAMILIES OF LOW INCOME" SHALL HAVE THE MEAN-
 ING  SET  FORTH  IN  SUBDIVISION  NINETEEN OF SECTION TWO OF THE PRIVATE
 HOUSING FINANCE LAW.
   (6) THE TERM "REGULATORY AGREEMENT" SHALL MEAN A REGULATORY  AGREEMENT
 WITH  OR  APPROVED  BY THE AGENCY THAT (I) IS EXECUTED OR APPROVED AFTER
 THE EFFECTIVE DATE OF THIS SUBDIVISION, (II) REQUIRES THE  PROVISION  OF
 HOUSING  ACCOMMODATIONS FOR PERSONS AND FAMILIES OF LOW INCOME, (III) IS
 RECORDED AGAINST THE ELIGIBLE REAL PROPERTY, (IV) BINDS ALL  PARTIES  IN
 INTEREST  TO SUCH ELIGIBLE REAL PROPERTY AND THEIR RESPECTIVE SUCCESSORS
 AND ASSIGNS AND (V) INCLUDES SUCH OTHER  TERMS  AND  CONDITIONS  AS  THE
 AGENCY  SHALL  DETERMINE,  INCLUDING,  BUT  NOT  LIMITED  TO, PROVISIONS
 REQUIRING PAYMENTS IN LIEU OF  TAXES,  FOR  THE  PURPOSE  OF  DEVELOPING
 AND/OR PRESERVING HOUSING ACCOMMODATIONS THAT SERVE PERSONS AND FAMILIES
 OF LOW INCOME.
   §  3.  This  act  shall take effect immediately and shall apply to all
 assessment rolls published after the date this act shall have  become  a
 law.