S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4098
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2023
                                ___________
 
 Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in  relation  to  authorizing
   cities  and  towns,  except a city with a population of one million or
   more, to establish community preservation funds and community  housing
   funds; and to amend the tax law, in relation to authorizing cities and
   towns,  except  a  city  with  a population of one million or more, to
   impose a real estate transfer tax with revenues therefrom to be depos-
   ited in such funds
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 6-w to read as follows:
   § 6-W. COMMUNITY PRESERVATION FUNDS. 1. AS USED IN THIS  SECTION,  THE
 FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "COMMUNITY  PRESERVATION"  SHALL  MEAN  AND  INCLUDE  ANY  OF THE
 PURPOSES OUTLINED IN SUBDIVISION FOUR OF THIS SECTION.
   (B) "BOARD" MEANS THE ADVISORY BOARD REQUIRED PURSUANT TO  SUBDIVISION
 FIVE OF THIS SECTION.
   (C)  "CITY  OR  TOWN" MEANS A CITY, EXCEPT A CITY WITH A POPULATION OF
 ONE MILLION OR MORE, OR A TOWN.
   (D) "GOVERNING BODY" MEANS A CITY COUNCIL OR TOWN BOARD.
   (E) "FUND" MEANS THE COMMUNITY PRESERVATION FUND CREATED  PURSUANT  TO
 SUBDIVISION TWO OF THIS SECTION.
   (F)  "WATER QUALITY IMPROVEMENT PROJECT" MEANS: (1) ANY PROJECT ELIGI-
 BLE FOR STATE FUNDING UNDER THE CLEAN WATER INFRASTRUCTURE FUND  OF  TWO
 THOUSAND  SEVENTEEN,  PURSUANT  TO  PART T OF CHAPTER FIFTY-SEVEN OF THE
 LAWS OF TWO THOUSAND SEVENTEEN OR (2) ANY  PROJECT  ELIGIBLE  FOR  STATE
 FUNDING AS A SAFE DRINKING WATER PROJECT OR CLEAN WATER PROJECT PURSUANT
 TO  TITLE  TWO  OR TITLE THREE OF ARTICLE FIFTY-SIX OF THE ENVIRONMENTAL
 CONSERVATION LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05666-01-3
              

 S. 4098                             2
 
   2. THE GOVERNING BODY OF ANY CITY OR TOWN IS AUTHORIZED  TO  ESTABLISH
 BY LOCAL LAW A COMMUNITY PRESERVATION FUND PURSUANT TO THE PROVISIONS OF
 THIS  SECTION.  DEPOSITS INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL
 GOVERNMENT FROM WHATEVER SOURCE AND SHALL INCLUDE,  AT  A  MINIMUM,  ALL
 REVENUES FROM A TAX IMPOSED UPON THE TRANSFER OF REAL PROPERTY INTERESTS
 IN SUCH CITY OR TOWN PURSUANT TO SUBDIVISION ONE OF SECTION ONE THOUSAND
 FIVE  HUNDRED SEVENTY-SIX OF THE TAX LAW. THE FUND SHALL ALSO BE AUTHOR-
 IZED TO ACCEPT GIFTS OF ANY SUCH INTERESTS IN LAND OR OF FUNDS. INTEREST
 ACCRUED BY MONIES DEPOSITED INTO THE FUND SHALL BE CREDITED TO THE FUND.
 IN NO EVENT SHALL MONIES DEPOSITED IN THE FUND  BE  TRANSFERRED  TO  ANY
 OTHER  ACCOUNT.  NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO
 PREVENT THE FINANCING IN WHOLE OR IN PART, PURSUANT TO THE LOCAL FINANCE
 LAW, OF ANY ACQUISITION AUTHORIZED PURSUANT TO THIS SECTION. MONIES FROM
 THE FUND MAY BE  UTILIZED  TO  REPAY  ANY  INDEBTEDNESS  OR  OBLIGATIONS
 INCURRED  PURSUANT TO THE LOCAL FINANCE LAW CONSISTENT WITH EFFECTUATING
 THE PURPOSES OF THIS SECTION.
   3. THE PURPOSES OF THE FUND SHALL BE EXCLUSIVELY, (A) TO  IMPLEMENT  A
 PLAN  FOR  THE  PRESERVATION  OF COMMUNITY CHARACTER AS REQUIRED BY THIS
 SECTION, (B) TO ACQUIRE INTERESTS OR RIGHTS IN  REAL  PROPERTY  FOR  THE
 PRESERVATION  OF  COMMUNITY CHARACTER WITHIN THE DESIGNATED CITY OR TOWN
 INCLUDING VILLAGES THEREIN IN ACCORDANCE WITH SUCH PLAN AND  IN  COOPER-
 ATION WITH WILLING SELLERS, (C) TO ESTABLISH A BANK PURSUANT TO A TRANS-
 FER  OF DEVELOPMENT RIGHTS PROGRAM AS PERMITTED BY LAW, (D) TO PROVIDE A
 MANAGEMENT  AND  STEWARDSHIP  PROGRAM  FOR  SUCH  INTERESTS  AND  RIGHTS
 CONSISTENT  WITH SUBDIVISION NINE OF THIS SECTION AND IN ACCORDANCE WITH
 SUCH PLAN DESIGNED TO PRESERVE COMMUNITY CHARACTER;  PROVIDED  THAT  NOT
 MORE THAN TEN (10) PERCENT OF THE FUND SHALL BE UTILIZED FOR THE MANAGE-
 MENT  AND  STEWARDSHIP  PROGRAM,  AND  (E)  TO  IMPLEMENT  WATER QUALITY
 IMPROVEMENT PROJECTS IN ACCORDANCE WITH A  PLAN  TO  PRESERVE  COMMUNITY
 CHARACTER.  IF  THE IMPLEMENTATION OF THE COMMUNITY PRESERVATION PROJECT
 PLAN, ADOPTED BY A GOVERNING BODY, AS PROVIDED  IN  SUBDIVISION  SIX  OF
 THIS SECTION, HAS BEEN COMPLETED, AND FUNDS ARE NO LONGER NEEDED FOR THE
 PURPOSES  OUTLINED IN THIS SUBDIVISION, THEN ANY REMAINING MONIES IN THE
 FUND SHALL BE APPLIED TO REDUCE ANY BONDED INDEBTEDNESS  OR  OBLIGATIONS
 INCURRED  TO  EFFECTUATE  THE  PURPOSES OF THIS SECTION. PRELIMINARY AND
 INCIDENTAL COSTS IN CONNECTION WITH  THE  ACQUISITION  OF  INTERESTS  OR
 RIGHTS  IN  REAL PROPERTY, PURSUANT TO THIS SUBDIVISION, SHALL BE DEEMED
 PART OF THE COST OF THE ACQUISITION FOR WHICH THEY WERE  INCURRED.  SUCH
 EXPENDITURES  MAY  INCLUDE  ANY  ADMINISTRATIVE  OR  OTHER  EXPENDITURES
 DIRECTLY ARISING THEREFROM. NO EXPENDITURE SHALL BE CHARGED TO THE FUND,
 UNLESS AUTHORIZED BY LAW. A FULL  ACCOUNTING  OF  SUCH  COSTS  FOR  EACH
 ACQUISITION OF LAND SHALL BE PROVIDED BY THE GOVERNING BODY.
   4.  PRESERVATION  OF  COMMUNITY CHARACTER SHALL INVOLVE ONE OR MORE OF
 THE FOLLOWING: (A) ESTABLISHMENT OF PARKS, NATURE PRESERVES,  OR  RECRE-
 ATION  AREAS;  (B)  PRESERVATION  OF  OPEN SPACE, INCLUDING AGRICULTURAL
 LANDS PROVIDED, HOWEVER, THAT FARM BUILDINGS AND STRUCTURES USED FOR THE
 MARKETING OF FARM PRODUCTS PRODUCED ON SUCH AGRICULTURAL LANDS SHALL  BE
 PERMITTED;  (C)  PRESERVATION  OF LANDS OF EXCEPTIONAL SCENIC VALUE; (D)
 PRESERVATION OF FRESH AND SALTWATER MARSHES OR OTHER WETLANDS; (E) PRES-
 ERVATION OF AQUIFER RECHARGE  AREAS;  (F)  PRESERVATION  OF  UNDEVELOPED
 BEACH  LANDS OR SHORELINE INCLUDING THOSE AT SIGNIFICANT RISK OF COASTAL
 FLOODING DUE TO PROJECTED SEA LEVEL RISE AND FUTURE STORMS;  (G)  ESTAB-
 LISHMENT  OF  WILDLIFE  REFUGES  FOR  THE  PURPOSE OF MAINTAINING NATIVE
 ANIMAL SPECIES DIVERSITY, INCLUDING THE PROTECTION OF HABITAT  ESSENTIAL
 TO THE RECOVERY OF RARE, THREATENED OR ENDANGERED SPECIES; (H) PRESERVA-
 TION  OF  PINE BARRENS CONSISTING OF SUCH BIOTA AS PITCH PINE, AND SCRUB
 S. 4098                             3
 
 OAK; (I) PRESERVATION OF UNIQUE  OR  THREATENED  ECOLOGICAL  AREAS;  (J)
 PRESERVATION OF RIVERS AND RIVER AREAS IN A NATURAL, FREE-FLOWING CONDI-
 TION;  (K)  PRESERVATION  OF  FORESTED  LAND; (L) PRESERVATION OF PUBLIC
 ACCESS  TO  LANDS  FOR PUBLIC USE INCLUDING STREAM RIGHTS AND WATERWAYS;
 (M) PRESERVATION OF HISTORIC PLACES AND PROPERTIES  LISTED  ON  THE  NEW
 YORK  STATE REGISTER OF HISTORIC PLACES AND/OR PROTECTED UNDER A MUNICI-
 PAL HISTORIC PRESERVATION ORDINANCE OR LAW; (N)  PRESERVATION  OF  LANDS
 NECESSARY  TO  PROTECT  FISHERIES  AND WATER DEPENDENT USES ESSENTIAL TO
 MAINTAIN AND ENHANCE MARITIME HERITAGE; AND (O) UNDERTAKING ANY  OF  THE
 AFOREMENTIONED  IN  FURTHERANCE  OF  THE  ESTABLISHMENT  OF A GREENBELT.
 PRESERVATION OF COMMUNITY CHARACTER SHALL ALSO  INCLUDE  THE  PROTECTION
 AND IMPROVEMENT OF THE QUALITY OF ALL WATER RESOURCES.
   5.  THE  GOVERNING  BODY  OF  ANY CITY OR TOWN WHICH HAS ESTABLISHED A
 COMMUNITY PRESERVATION FUND SHALL CREATE AN ADVISORY BOARD TO REVIEW AND
 MAKE RECOMMENDATIONS ON PROPOSED ACQUISITIONS OF INTERESTS IN REAL PROP-
 ERTY OR WATER QUALITY IMPROVEMENT PROJECTS USING MONIES FROM  THE  FUND.
 SUCH BOARD SHALL CONSIST OF FIVE OR SEVEN LEGAL RESIDENTS OF THE MUNICI-
 PALITY  WHO  SHALL  SERVE  WITHOUT  COMPENSATION. NO MEMBER OF THE LOCAL
 LEGISLATIVE BODY SHALL SERVE ON THE BOARD. A MAJORITY OF THE MEMBERS  OF
 THE  BOARD SHALL HAVE DEMONSTRATED EXPERIENCE WITH CONSERVATION AND LAND
 PRESERVATION ACTIVITIES OR WATER  QUALITY  IMPROVEMENT  ACTIVITIES.  THE
 BOARD SHALL ACT IN AN ADVISORY CAPACITY TO THE GOVERNING BODY.
   6.  THE  GOVERNING  BODY  OF  ANY CITY OR TOWN WHICH HAS ESTABLISHED A
 COMMUNITY PRESERVATION FUND SHALL, BY LOCAL LAW, ADOPT A COMMUNITY PRES-
 ERVATION PROJECT PLAN. THIS PLAN SHALL LIST EVERY PROJECT WHICH THE CITY
 OR TOWN PLANS TO UNDERTAKE PURSUANT TO THE COMMUNITY PRESERVATION  FUND.
 IT  SHALL  INCLUDE EVERY PARCEL WHICH IS NECESSARY TO BE ACQUIRED IN THE
 CITY OR TOWN IN ORDER TO PROTECT COMMUNITY CHARACTER.   SUCH PLAN  SHALL
 PROVIDE FOR A DETAILED EVALUATION OF ALL AVAILABLE LAND USE ALTERNATIVES
 TO  PROTECT  COMMUNITY  CHARACTER, INCLUDING BUT NOT LIMITED TO: (A) FEE
 SIMPLE  ACQUISITION,   (B)   ZONING   REGULATIONS,   INCLUDING   DENSITY
 REDUCTIONS,  CLUSTER DEVELOPMENT, AND SITE PLAN AND DESIGN REQUIREMENTS,
 (C) TRANSFER OF DEVELOPMENT RIGHTS,  (D)  THE  PURCHASE  OF  DEVELOPMENT
 RIGHTS, AND (E) SCENIC AND CONSERVATION EASEMENTS. SAID EVALUATION SHALL
 BE  AS  SPECIFIC AS PRACTICABLE AS TO EACH PARCEL SELECTED FOR INCLUSION
 IN THE PLAN. THE PLAN SHALL ESTABLISH THE PRIORITIES  FOR  PRESERVATION.
 SAID  PLAN SHALL ALSO LIST EVERY WATER QUALITY IMPROVEMENT PROJECT WHICH
 THE CITY OR TOWN PLANS TO UNDERTAKE PURSUANT TO THE COMMUNITY  PRESERVA-
 TION  FUND AND SHALL STATE HOW SUCH PROJECT WOULD IMPROVE EXISTING WATER
 QUALITY. PROJECTS WHICH HAVE AS THEIR PURPOSE THE ACCOMMODATION  OF  NEW
 GROWTH  AS OPPOSED TO THE REMEDIATION OF WATER QUALITY SHALL NOT QUALIFY
 FOR FUNDING UNDER THIS SECTION. FUNDS FROM  THE  COMMUNITY  PRESERVATION
 FUND  MAY ONLY BE EXPENDED FOR PROJECTS WHICH HAVE BEEN INCLUDED IN SAID
 PLAN. THE PLAN SHALL BE UPDATED NOT LESS THAN ONCE EVERY FIVE YEARS  AND
 SHALL BE COMPLETED AT LEAST SIXTY (60) DAYS BEFORE THE SUBMISSION OF THE
 MANDATORY  REFERENDUM REQUIRED BY SECTION FIFTEEN HUNDRED SEVENTY-SIX OF
 THE TAX LAW. AS PART OF, OR IN ADDITION, TO SAID COMMUNITY  PRESERVATION
 FUND  PROJECT  PLAN, EACH GOVERNING BODY MAY ALSO ADOPT A MANAGEMENT AND
 STEWARDSHIP PLAN FOR INTERESTS  OR  RIGHTS  IN  REAL  PROPERTY  ACQUIRED
 PURSUANT TO THIS SECTION.  NO MONIES FROM THE FUND SHALL BE EXPENDED FOR
 MANAGEMENT  AND  STEWARDSHIP, EXCEPT AS APPROVED IN SAID PLAN. SAID PLAN
 MAY PROVIDE MANAGEMENT AND STEWARDSHIP PROJECTS FOR UP TO A  THREE  YEAR
 PERIOD  AND  SHALL  PROVIDE  A  DESCRIPTION  AND ESTIMATED COST FOR EACH
 PROJECT. SAID PLAN SHALL BE APPROVED AND ADOPTED BY LOCAL LAW AND MAY BE
 UPDATED FROM TIME TO TIME AT THE DISCRETION OF THE LOCAL GOVERNING BODY.
 S. 4098                             4
 
 ONLY MANAGEMENT AND STEWARDSHIP PROJECTS PERMITTED PURSUANT TO  SUBDIVI-
 SION NINE OF THIS SECTION SHALL BE ELIGIBLE TO BE INCLUDED IN THE PLAN.
   7.  THE  GOVERNING  BODY  OF  ANY CITY OR TOWN WHICH HAS ESTABLISHED A
 COMMUNITY PRESERVATION FUND PURSUANT  TO  THIS  SECTION  SHALL  CONSIDER
 ESTABLISHING  A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM TO PROTECT COMMU-
 NITY CHARACTER CONSISTENT WITH STATE LAW. IF AT ANY TIME DURING THE LIFE
 OF THE COMMUNITY PRESERVATION FUND  A  TRANSFER  OF  DEVELOPMENT  RIGHTS
 PROGRAM  IS  ESTABLISHED,  THE  CITY OR TOWN MAY UTILIZE MONIES FROM THE
 COMMUNITY PRESERVATION FUND IN ORDER TO CREATE AND FUND A  CENTRAL  BANK
 OF THE TRANSFER OF DEVELOPMENT RIGHTS PROGRAM. IF AT ANY TIME DURING THE
 LIFE  OF  THE  COMMUNITY  PRESERVATION  FUND,  A TRANSFER OF DEVELOPMENT
 RIGHTS PROGRAM IS REPEALED BY THE CITY OR  TOWN,  ALL  MONIES  FROM  THE
 CENTRAL BANK SHALL BE RETURNED TO THE COMMUNITY PRESERVATION FUND.
   8.  NO INTERESTS OR RIGHTS IN REAL PROPERTY SHALL BE ACQUIRED PURSUANT
 TO THIS SECTION UNTIL A PUBLIC HEARING IS HELD AS  REQUIRED  BY  SECTION
 TWO HUNDRED FORTY-SEVEN OF THIS CHAPTER; PROVIDED, HOWEVER, THAT NOTHING
 IN  THIS  SECTION  SHALL PREVENT THE GOVERNING BODY FROM ENTERING INTO A
 CONDITIONAL PURCHASE AGREEMENT BEFORE A  PUBLIC  HEARING  IS  HELD.  ANY
 RESOLUTION OF A GOVERNING BODY APPROVING AN ACQUISITION OF LAND PURSUANT
 TO  THIS  SECTION,  SHALL FIND THAT ACQUISITION WAS THE BEST ALTERNATIVE
 FOR THE PROTECTION OF COMMUNITY CHARACTER OF ALL THE REASONABLE ALTERNA-
 TIVES AVAILABLE TO THE CITY OR TOWN.
   9. LANDS ACQUIRED PURSUANT TO THIS SECTION SHALL BE  ADMINISTERED  AND
 MANAGED  IN  A  MANNER  WHICH  (A)  ALLOWS PUBLIC USE AND ENJOYMENT IN A
 MANNER COMPATIBLE WITH THE NATURAL,  SCENIC,  HISTORIC  AND  OPEN  SPACE
 CHARACTER  OF  SUCH LANDS; (B) PRESERVES THE NATIVE BIOLOGICAL DIVERSITY
 OF SUCH LANDS; (C) WITH REGARD TO OPEN SPACES,  LIMITS  IMPROVEMENTS  TO
 ENHANCING  ACCESS  FOR  PASSIVE USE OF SUCH LANDS SUCH AS NATURE TRAILS,
 BOARDWALKS, BICYCLE PATHS, AND PERIPHERAL PARKING  AREAS  PROVIDED  THAT
 SUCH  IMPROVEMENTS  DO  NOT  DEGRADE THE ECOLOGICAL VALUE OF THE LAND OR
 THREATEN ESSENTIAL WILDLIFE HABITAT; AND (D) PRESERVES CULTURAL PROPERTY
 CONSISTENT WITH  ACCEPTED  STANDARDS  FOR  HISTORIC  PRESERVATION.    IN
 FURTHERING THE PURPOSES OF THIS SECTION, THE CITY OR TOWN MAY ENTER INTO
 AGREEMENTS WITH CONSERVATION ORGANIZATIONS FORMED UNDER THE NOT-FOR-PRO-
 FIT  CORPORATION  LAW  AND  ENGAGED  IN  LAND TRUST ACTIVITIES TO MANAGE
 LANDS, INCLUDING LESS  THAN  FEE  INTERESTS  ACQUIRED  PURSUANT  TO  THE
 PROVISIONS  OF  THIS  SECTION,  PROVIDED  THAT  ANY SUCH AGREEMENT SHALL
 CONTAIN A PROVISION THAT SUCH CORPORATION SHALL KEEP THE LANDS  ACCESSI-
 BLE  TO  THE PUBLIC UNLESS THE GOVERNING BODY FINDS THAT PUBLIC ACCESSI-
 BILITY WOULD BE DETRIMENTAL TO THE LANDS OR ANY NATURAL RESOURCES  ASSO-
 CIATED  THEREWITH.  EXCEPT  FOR  INTERESTS  OR  RIGHTS  IN REAL PROPERTY
 ACQUIRED FOR HISTORIC PRESERVATION PURPOSES, MANAGEMENT AND  STEWARDSHIP
 PROJECTS  SHALL  BE  ONLY  EXPENDED  FOR  (1) PROJECTS WHICH PROMOTE THE
 PROTECTION OR ENHANCEMENT OF THE NATURAL, SCENIC, AND OPEN SPACE CHARAC-
 TER FOR WHICH THE INTERESTS OR RIGHTS IN REAL PROPERTY WERE ACQUIRED, OR
 (2) ACCESSORY USES RELATED TO THE PURPOSE FOR  WHICH  THE  INTERESTS  OR
 RIGHTS  IN REAL PROPERTY WERE ACQUIRED CONSISTENT WITH THIS SUBDIVISION,
 OR (3) RESTORATION OF  ACQUIRED  REAL  PROPERTY  TO  ITS  NATURAL  STATE
 INCLUDING  THE  DEMOLITION  OF EXISTING BUILDINGS AND STRUCTURES. IN THE
 CASE OF INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED FOR HISTORIC PRES-
 ERVATION PURPOSES, FUNDS MAY BE EXPENDED ONLY FOR  THE  RESTORATION  AND
 REHABILITATION  OF  BUILDINGS  AND  STRUCTURES  CONSISTENT WITH ACCEPTED
 STATE AND FEDERAL STANDARDS FOR HISTORIC PRESERVATION. EXPENSES  RELATED
 TO  THE  CUSTOMARY  OPERATION  AND  MAINTENANCE OF ACQUIRED INTERESTS OR
 RIGHTS IN REAL PROPERTY SHALL  NOT  BE  PERMITTED  FROM  THE  FUND.  ANY
 S. 4098                             5
 
 EXPENDITURE FROM THE FUND FOR A PURPOSE OTHER THAN THAT PERMITTED, HERE-
 IN, SHALL BE DEEMED TO BE PROHIBITED.
   10.  RIGHTS  OR  INTERESTS  IN REAL PROPERTY ACQUIRED WITH MONIES FROM
 SUCH FUND SHALL NOT BE SOLD, LEASED, EXCHANGED,  DONATED,  OR  OTHERWISE
 DISPOSED  OF  OR  USED  FOR  OTHER  THAN  THE PURPOSES PERMITTED BY THIS
 SECTION WITHOUT THE EXPRESS AUTHORITY OF  AN  ACT  OF  THE  LEGISLATURE,
 WHICH  SHALL  PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVI-
 RONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT  USEFUL-
 NESS  AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND
 SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE LEGISLATURE. NOTHING
 IN THIS SECTION SHALL PRECLUDE A CITY OR TOWN, BY LOCAL LAW, FROM ESTAB-
 LISHING ADDITIONAL RESTRICTIONS TO  THE  ALIENATION  OF  LANDS  ACQUIRED
 PURSUANT  TO  THIS SECTION. THIS SUBDIVISION SHALL NOT APPLY TO THE SALE
 OF DEVELOPMENT RIGHTS BY A  CITY  OR  TOWN  ACQUIRED  PURSUANT  TO  THIS
 SECTION,  WHERE SAID SALE IS MADE BY A CENTRAL BANK CREATED BY A CITY OR
 TOWN, PURSUANT TO A TRANSFER OF DEVELOPMENT RIGHTS  PROGRAM  ESTABLISHED
 BY  A CITY OR TOWN, PROVIDED, HOWEVER (A) THAT THE LANDS FROM WHICH SAID
 DEVELOPMENT RIGHTS WERE ACQUIRED SHALL REMAIN PRESERVED IN PERPETUITY BY
 A PERMANENT CONSERVATION EASEMENT OR  OTHER  INSTRUMENT  THAT  SIMILARLY
 PRESERVES THE COMMUNITY CHARACTER REFERENCED IN SUBDIVISION FOUR OF THIS
 SECTION,  AND  (B) THE PROCEEDS FROM SUCH SALE SHALL BE DEPOSITED IN THE
 COMMUNITY PRESERVATION FUND.
   11. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  CITIES  OR
 TOWNS  MAY  ENTER  INTO  INTER-MUNICIPAL  AGREEMENTS PURSUANT TO ARTICLE
 FIVE-G OF THIS CHAPTER  FOR  THE  FOLLOWING  PURPOSES:  (A)  TO  JOINTLY
 ACQUIRE  INTERESTS  OR  RIGHTS  IN  REAL  PROPERTY,  CONSISTENT WITH THE
 PURPOSES OF THIS SECTION, WHERE THE ACQUISITION  OF  SUCH  INTERESTS  OR
 RIGHTS  PROMOTES  A  REGIONAL  PUBLIC  BENEFIT FOR TWO OR MORE CITIES OR
 TOWNS PURSUANT TO A REGIONAL PLAN, (B) TO ESTABLISH AN OFFICE OR DEPART-
 MENT TO RENDER LEGAL OPINIONS  AND  INTERPRETATIONS  TO  FACILITATE  THE
 EFFICIENT  AND CONSISTENT ADMINISTRATION OF EACH FUND CREATED UNDER THIS
 SECTION, (C) TO PROVIDE FOR  AN  INDEPENDENT  FINANCIAL  AUDIT  OF  EACH
 CITY'S  OR TOWN'S FUND, AND (D) TO HIRE EMPLOYEES NECESSARY TO IMPLEMENT
 THE PROVISIONS OF THIS SECTION.
   12. EACH CITY OR TOWN WHICH HAS ESTABLISHED A  COMMUNITY  PRESERVATION
 FUND  SHALL  ANNUALLY  COMMISSION  AN INDEPENDENT AUDIT OF THE FUND. THE
 AUDIT SHALL BE CONDUCTED BY AN INDEPENDENT CERTIFIED  PUBLIC  ACCOUNTANT
 OR  AN INDEPENDENT PUBLIC ACCOUNTANT. SAID AUDIT SHALL BE PERFORMED BY A
 CERTIFIED PUBLIC ACCOUNTANT OR AN INDEPENDENT  PUBLIC  ACCOUNTANT  OTHER
 THAN  THE  ONE  THAT PERFORMS THE GENERAL AUDIT OF EACH CITY'S OR TOWN'S
 FINANCES. SUCH AUDIT SHALL BE AN  EXAMINATION  OF  THE  FUND  AND  SHALL
 DETERMINE  WHETHER  THE  FUND  HAS BEEN ADMINISTERED CONSISTENT WITH THE
 PROVISIONS OF THIS SECTION AND ALL OTHER APPLICABLE PROVISIONS OF  STATE
 LAW. SAID AUDIT SHALL BE INITIATED WITHIN SIXTY DAYS OF THE CLOSE OF THE
 FISCAL  YEAR  OF  EACH  CITY  OR  TOWN AND SHALL BE COMPLETED WITHIN ONE
 HUNDRED TWENTY DAYS OF THE CLOSE OF THE FISCAL YEAR. A COPY OF THE AUDIT
 SHALL BE SUBMITTED ANNUALLY TO THE STATE COMPTROLLER  AND  THE  CITY  OR
 TOWN  CLERK.  A  COPY OF THE AUDIT SHALL BE MADE AVAILABLE TO THE PUBLIC
 WITHIN THIRTY DAYS OF ITS COMPLETION. A NOTICE OF THE COMPLETION OF  THE
 AUDIT  SHALL  BE PUBLISHED IN THE OFFICIAL NEWSPAPER OF THE CITY OR TOWN
 AND POSTED ON THE OFFICIAL SIGN BOARD OF THE CITY  OR  TOWN  WITHIN  TEN
 DAYS  OF  ITS  FILING  WITH THE TOWN CLERK.  SAID AUDIT AND NOTICE SHALL
 ALSO BE POSTED ON THE INTERNET SITE FOR THE CITY OR TOWN.  THE  COST  OF
 THE AUDIT MAY BE A CHARGE TO THE FUND.
   13. THE COST OF EMPLOYEES AND INDEPENDENT CONTRACTORS TO IMPLEMENT THE
 PROVISIONS  OF  THIS  SECTION MAY ONLY BE PAID FOR BY THE FUND WHERE THE
 S. 4098                             6
 
 DUTIES AND RESPONSIBILITIES OF SAID EMPLOYEES AND  INDEPENDENT  CONTRAC-
 TORS  ARE  DIRECTLY  DEDICATED  TO  IMPLEMENTING  THE PROVISIONS OF THIS
 SECTION. WHERE SUCH EMPLOYEES AND INDEPENDENT CONTRACTORS ARE NOT EXCLU-
 SIVELY DEDICATED TO IMPLEMENTING THE PROVISIONS OF THIS SECTION, NO MORE
 THAN  THE  COST OF THE ACTUAL TIME EXPENDED DIRECTLY DEDICATED TO IMPLE-
 MENTING THE PROVISIONS OF THIS SECTION MAY BE CHARGED. SUCH COSTS  SHALL
 BE  EXPRESSLY IDENTIFIED IN THE CITY OR TOWN BUDGET AND ANY PLAN ADOPTED
 PURSUANT TO THIS SECTION BEFORE FUNDS FOR SUCH COSTS MAY BE EXPENDED. IN
 ADDITION, SUCH COSTS MUST BE DOCUMENTED BY  A  TIME  ACCOUNTING  SYSTEM,
 SUBJECT  TO AUDIT. COSTS RELATING TO THE ACTIVITIES OF ELECTED OFFICIALS
 IMPLEMENTING THE PURPOSES OF THIS SECTION MAY NOT BE  A  CHARGE  TO  THE
 FUND.
   §  2. The general municipal law is amended by adding a new section 6-x
 to read as follows:
   § 6-X. COMMUNITY  HOUSING  FUND.  1.  DEFINITIONS.  AS  USED  IN  THIS
 SECTION,  THE  FOLLOWING  WORDS AND TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) "CITY OR TOWN" MEANS A CITY, EXCEPT A CITY WITH  A  POPULATION  OF
 ONE MILLION OR MORE, OR A TOWN.
   (B)  "COMMUNITY  HOUSING"  MEANS A PRIMARY RESIDENTIAL PROPERTY FOR AN
 ELIGIBLE INDIVIDUAL. THE GOVERNING BODY SHALL ESTABLISH, BY  LOCAL  LAW,
 PURCHASE  PRICE  LIMIT  FOR COMMUNITY HOUSING, PROVIDED THAT LIMIT SHALL
 NOT EXCEED ONE HUNDRED FIFTY PERCENT OF THE PURCHASE PRICE LIMITS ESTAB-
 LISHED BY THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST  RATE  LOAN
 PROGRAM  IN  NON-TARGET  CATEGORIES  FOR  THE  COUNTY  IN  EFFECT ON THE
 CONTRACT DATE FOR THE SALE OF SUCH  PROPERTY.  COMMUNITY  HOUSING  SHALL
 INCLUDE  APARTMENTS THAT ARE ACCESSORY TO A LEGALLY ESTABLISHED RESIDEN-
 TIAL OR COMMERCIAL USE.
   (C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT  TO  SUBDIVISION
 SIX OF THIS SECTION.
   (D)  "FUND"  MEANS  THE  COMMUNITY HOUSING FUND AUTHORIZED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION.
   (E) "FIRST-TIME HOMEBUYER" MEANS AN ELIGIBLE INDIVIDUAL  WHO  HAS  NOT
 OWNED  A PRIMARY RESIDENTIAL PROPERTY AND IS NOT MARRIED TO A PERSON WHO
 HAS OWNED A RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD  PRIOR  TO
 HIS  OR  HER  PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY, AND WHO DOES
 NOT OWN A VACATION OR INVESTMENT HOME.
   (F) "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY  HOUSE,
 TOWNHOUSE, OR CONDOMINIUM, INCLUDING ACCESSORY APARTMENTS.
   (G)  "ELIGIBLE  INDIVIDUAL" SHALL BE DEFINED BY THE GOVERNING BODY, BY
 LOCAL LAW, PROVIDED THAT THE DEFINITION  OF  HOUSEHOLD  INCOME  IN  SUCH
 LOCAL  LAW  SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE INCOME LIMITS AS
 ESTABLISHED BY THE STATE OF NEW YORK MORTGAGE AGENCY LOW  INTEREST  RATE
 LOAN  PROGRAM  IN  NON-TARGET CATEGORIES FOR THE COUNTY IN EFFECT ON THE
 CONTRACT DATE FOR THE SALE OF SUCH PROPERTY.
   (H) "GOVERNING BODY" MEANS A CITY COUNCIL OR TOWN BOARD.
   2. FUND AUTHORIZED. CITIES AND TOWNS ARE AUTHORIZED TO  ESTABLISH,  BY
 LOCAL  LAW, A COMMUNITY HOUSING FUND, PURSUANT TO THE PROVISIONS OF THIS
 SECTION.   DEPOSITS INTO THE FUND MAY  INCLUDE  REVENUES  OF  THE  LOCAL
 GOVERNMENT  FROM  WHATEVER SOURCE, INCLUDING BUT NOT LIMITED TO: (A) ALL
 REVENUES FROM THE SUPPLEMENTAL REAL ESTATE TRANSFER  TAX  AUTHORIZED  BY
 SUBDIVISION  TWO OF SECTION ONE THOUSAND FIVE HUNDRED SEVENTY-SIX OF THE
 TAX LAW; (B) ALL PROCEEDS FROM ANY INDEBTEDNESS  OR  OBLIGATIONS  ISSUED
 PURSUANT  TO  THE  LOCAL  FINANCE  LAW FOR COMMUNITY HOUSING OPPORTUNITY
 PURPOSES AS AUTHORIZED IN SUBDIVISION THREE OF THIS SECTION; (C) GENERAL
 FUND BALANCES OR SURPLUSES; (D)  ANY  PROCEEDS  RECEIVED  BY  THE  LOCAL
 S. 4098                             7
 
 GOVERNMENT  FROM  THE  SALE OR RENTAL OF COMMUNITY HOUSING PRODUCED FROM
 REVENUES OF THE FUND;  (E)  THE  REPAYMENT  OF  ANY  LOANS  ISSUED  FROM
 PROCEEDS  OF  THE FUND; (F) ANY GIFTS OF INTERESTS IN LAND OR FUNDS; AND
 (G) ANY STATE OR FEDERAL GRANTS RECEIVED BY THE CITY OR TOWN FOR PROVID-
 ING AFFORDABLE HOMES.
   3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
 TO  SUBDIVISION  TWO OF THIS SECTION SHALL BE UTILIZED FOR THE FOLLOWING
 PURPOSES:
   (A) THE PROVISION OF FINANCIAL ASSISTANCE TO FIRST-TIME HOMEBUYERS WHO
 ARE RESIDENTS OF THE CITY OR TOWN FOR THE PURCHASE OF A FIRST HOME. SUCH
 FINANCIAL ASSISTANCE MAY BE IN THE FORM OF A GRANT OR A  LOAN  AND  SUCH
 PROGRAM SHALL MEET THE FOLLOWING CRITERIA:
   (1)  A  CITY OR TOWN MAY PROVIDE FINANCIAL ASSISTANCE FOR THE PURCHASE
 OF A FIRST HOME TO A FIRST-TIME HOMEBUYER WHO IS A RESIDENT OF THE  CITY
 OR  TOWN  OR WHO IS EMPLOYED IN THE CITY OR TOWN. A RESIDENT OF THE CITY
 OR TOWN SHALL INCLUDE A PERSON WHO IS CURRENTLY A RESIDENT OF  THE  TOWN
 OR A NON-RESIDENT WHO HAS BEEN A RESIDENT WITHIN THE PAST FIVE YEARS.
   (2)  SUCH  FINANCIAL  ASSISTANCE SHALL NOT EXCEED FIFTY PERCENT OF THE
 PURCHASE PRICE OF THE HOME.
   (3) IF SUCH FINANCIAL ASSISTANCE IS IN THE FORM OF A LOAN,  SUCH  LOAN
 SHALL  BE  REPAYABLE TO THE CITY OR TOWN PURSUANT TO THE TERMS AGREED TO
 BETWEEN THE RECIPIENT AND THE CITY OR TOWN, PROVIDED THAT ANY LOAN SHALL
 BE FULLY REPAID BY THE RECIPIENT UPON THE RESALE OF THE HOME.
   (4) FOR THE PURPOSES OF CALCULATING CITY OR  TOWN  REAL  PROPERTY  TAX
 LIABILITY  FOR  SUCH  PROPERTY, ONLY, THE DOLLAR AMOUNT OF ANY FINANCIAL
 ASSISTANCE FOR THE PURCHASE OF A FIRST HOME MADE BY  THE  CITY  OR  TOWN
 PURSUANT  TO  THIS  SECTION  SHALL BE SUBTRACTED FROM THE FULL EQUALIZED
 ASSESSED VALUE OF SUCH PROPERTY.
   (5) ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE REPAYMENT OF  A
 LOAN SHALL BE DEPOSITED IN THE FUND.
   (6)  A  CITY  OR  TOWN  MAY PROVIDE FINANCIAL ASSISTANCE FOR COMMUNITY
 HOUSING IN CONJUNCTION WITH A PUBLIC/PRIVATE  PARTNERSHIP  FOR  EMPLOYER
 ASSISTED HOUSING.
   (B)  THE  ACTUAL  PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
 INDIVIDUALS BY THE CITY OR TOWN;
   (C) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR  SALE  TO  ELIGIBLE
 INDIVIDUALS  IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE
 PRIVATE PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF  THE  NEW
 YORK  STATE  AFFORDABLE  HOUSING  CORPORATION AND THE PROVISIONS OF THIS
 SECTION;
   (D) THE  ACTUAL  PRODUCTION  AND  MAINTENANCE  OF  COMMUNITY  HOUSING,
 INCLUDING ACCESSORY APARTMENTS FOR RENTAL TO ELIGIBLE INDIVIDUALS EITHER
 BY  THE  CITY OR TOWN OR ITS HOUSING AUTHORITY; OR IN CONJUNCTION WITH A
 PUBLIC/PRIVATE PARTNERSHIP, WHERE THE PRIVATE PARTNER AGREES  TO  COMPLY
 WITH  THE  PROFIT  GUIDELINES  OF  THE NEW YORK STATE AFFORDABLE HOUSING
 CORPORATION AND THE PROVISIONS OF THIS SECTION;
   (E) THE REHABILITATION OF EXISTING BUILDINGS  AND  STRUCTURES  IN  THE
 CITY OR TOWN FOR THE PURPOSE OF CONVERSION TO COMMUNITY HOUSING FOR SALE
 OR RENTAL TO ELIGIBLE INDIVIDUALS;
   (F)  THE ACQUISITION OF INTERESTS IN REAL PROPERTY IN EXISTING HOUSING
 STOCK, WHICH WILL RESULT IN THE PRODUCTION OF COMMUNITY HOUSING FOR SALE
 OR RENTAL TO ELIGIBLE INDIVIDUALS; AND
   (G) THE PROVISION OF HOUSING  COUNSELING  SERVICES  BY  NOT-FOR-PROFIT
 CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
 ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES.
 S. 4098                             8
 
   4. FUND MANAGEMENT. INTEREST ACCRUED BY MONIES DEPOSITED INTO THE FUND
 SHALL  BE  CREDITED TO THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO
 THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT. NOTHING CONTAINED IN  THIS
 SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN WHOLE OR IN PART,
 PURSUANT TO THE LOCAL FINANCE LAW, OF ANY PURPOSE AUTHORIZED PURSUANT TO
 THIS SECTION. MONIES FROM THE FUND MAY BE UTILIZED TO REPAY INDEBTEDNESS
 OR  OBLIGATIONS  INCURRED  PURSUANT  TO THE LOCAL FINANCE LAW CONSISTENT
 WITH EFFECTUATING THE PURPOSES OF THIS SECTION.
   5. ELIGIBLE EXPENSES. FOR  THE  PURPOSES  OF  THIS  SECTION,  ELIGIBLE
 EXPENSES  RELATING  TO THE PRODUCTION OF COMMUNITY HOUSING AND THE REHA-
 BILITATION OF EXISTING BUILDINGS AND STRUCTURES  UNDER  THE  FUND  SHALL
 INCLUDE  BUT  NOT BE LIMITED TO LAND ACQUISITION, PLANNING, ENGINEERING,
 CONSTRUCTION COSTS, AND OTHER HARD AND SOFT COSTS  DIRECTLY  RELATED  TO
 THE CONSTRUCTION, REHABILITATION, PURCHASE OR RENTAL OF HOUSING PURSUANT
 TO THIS SECTION. ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE SALE
 OR  RENTAL  OF  COMMUNITY  HOUSING,  OR  THE REPAYMENT OF LOANS SHALL BE
 DEPOSITED IN THE FUND.
   6. ADVISORY BOARD ESTABLISHED. THE GOVERNING BODY OF ANY CITY OR  TOWN
 WHICH  HAS ESTABLISHED A COMMUNITY HOUSING FUND PURSUANT TO THIS SECTION
 SHALL CREATE AN  ADVISORY  BOARD  TO  REVIEW  AND  MAKE  RECOMMENDATIONS
 REGARDING  THE  TOWN'S  COMMUNITY  HOUSING  PLAN REQUIRED BY SUBDIVISION
 SEVEN OF THIS SECTION. SUCH BOARD SHALL CONSIST OF NOT LESS  THAN  SEVEN
 NOR  MORE  THAN  FIFTEEN  LEGAL  RESIDENTS OF THE MUNICIPALITY WHO SHALL
 SERVE WITHOUT COMPENSATION. NO MEMBER  OF  THE  LOCAL  LEGISLATIVE  BODY
 SHALL  SERVE  ON THE BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE OF:
 (A) THE CONSTRUCTION INDUSTRY; (B) THE REAL  ESTATE  INDUSTRY;  (C)  THE
 BANKING INDUSTRY; AND THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR
 HUMAN SERVICES ORGANIZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED WITH-
 IN  A TOWN, ELECT TO PARTICIPATE IN THE FUND, AS PROVIDED IN SUBDIVISION
 EIGHT OF THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT  OF
 A  PARTICIPATING VILLAGE OR VILLAGES.  WHERE AN INDIAN NATION IS LOCATED
 WITHIN THE BOUNDARIES OF A CITY OR TOWN,  THE  BOARD  SHALL  INCLUDE  AT
 LEAST  ONE  MEMBER  FROM SUCH NATION. THE BOARD SHALL ACT IN AN ADVISORY
 CAPACITY TO THE GOVERNING BODY.
   7. ADOPTION OF HOUSING PLAN. (A) BEFORE A CITY OR TOWN MAY EXPEND  ANY
 FUNDS  PURSUANT  TO THIS SECTION, THE GOVERNING BODY SHALL FIRST ADOPT A
 HOUSING PLAN WHICH ESTABLISHES AN IMPLEMENTATION PLAN FOR THE  PROVISION
 OF  COMMUNITY  HOUSING  OPPORTUNITIES  BY THE FUND.   SAID PLAN SHALL BE
 ADOPTED BY LOCAL LAW. SUCH PLAN SHALL ADHERE TO  THE  FOLLOWING  PRINCI-
 PLES:
   (1)  PUBLIC  INVESTMENT. TO ACCOUNT FOR AND MINIMIZE SOCIAL, ECONOMIC,
 AND ENVIRONMENTAL COSTS OF  NEW  DEVELOPMENT,  INCLUDING  INFRASTRUCTURE
 COSTS  SUCH  AS TRANSPORTATION, SEWERS, AND WASTEWATER TREATMENT, WATER,
 SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
   (2) DEVELOPMENT. TO ENCOURAGE DEVELOPMENT IN AREAS  WHERE  TRANSPORTA-
 TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
   (3)  CONSERVATION.  TO  PROTECT,  PRESERVE,  AND  ENHANCE  THE STATE'S
 RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
 WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
 AND ARCHEOLOGICAL SITES;
   (4) COORDINATION. TO PROMOTE COORDINATION OF STATE AND  LOCAL  GOVERN-
 MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
 EFFICIENT,  PLANNED  AND  COST-EFFECTIVE DELIVERY OF GOVERNMENT SERVICES
 BY, AMONG OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS  AMONG  ADJA-
 CENT  COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY OF
 ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
 S. 4098                             9
 
   (5) COMMUNITY DESIGN. TO STRENGTHEN  COMMUNITIES  THROUGH  DEVELOPMENT
 AND  REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME AND
 AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
 BORHOOD DEVELOPMENT, PLANNED UNIT  DEVELOPMENT,  OPEN  SPACE  DISTRICTS,
 DOWNTOWN  REVITALIZATION,  BROWNFIELD  REDEVELOPMENT, ENHANCED BEAUTY IN
 PUBLIC SPACES, AND DIVERSE AND COMMUNITY HOUSING IN CLOSE  PROXIMITY  TO
 PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
   (6)  TRANSPORTATION.  TO  PROVIDE  TRANSPORTATION  CHOICES,  INCLUDING
 INCREASING PUBLIC TRANSIT AND ALTERNATIVE MODES  OF  TRANSPORTATION,  IN
 ORDER  TO  REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION, AND AUTOMO-
 BILE POLLUTION;
   (7) CONSISTENCY. TO ENSURE PREDICTABILITY IN  BUILDING  AND  LAND  USE
 CODES; AND
   (8)  COMMUNITY  COLLABORATION.  TO  PROVIDE  FOR  AND  ENCOURAGE LOCAL
 GOVERNMENTS TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED  EFFORT,
 PLANS  THAT  INCLUDE  LONG  TERM  LAND USE AND PERMIT PREDICTABILITY AND
 COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLEMENTATION.
   (B) SUCH PLAN MAY INCLUDE THE ESTABLISHMENT OF  A  MAP  OR  MAPS  THAT
 DELINEATE  THE  HOUSING  IMPLEMENTATION  RECOMMENDATIONS PROPOSED BY THE
 TOWN.
   (C) SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS.
   (D) THE HOUSING PLAN SHALL BE AN ELEMENT OF THE CITY OR  TOWN  COMPRE-
 HENSIVE PLAN.
   (E)  SUCH PLAN SHALL ENSURE THAT ALL COMMUNITY HOUSING, CREATED PURSU-
 ANT TO THIS SECTION, REMAINS AFFORDABLE. SUBSEQUENT PURCHASERS  OF  SUCH
 COMMUNITY  HOUSING,  AT THE TIME OF PURCHASE, SHALL BE ELIGIBLE INDIVID-
 UALS AS DEFINED HEREIN.
   (F) SUCH PLAN SHALL PROVIDE FOR THE EQUITABLE DISTRIBUTION OF COMMUNI-
 TY HOUSING OPPORTUNITIES AMONG ALL THE COMMUNITIES OF THE TOWN. THE PLAN
 SHALL ENSURE THAT NO COMMUNITY HAS AN UNDUE CONCENTRATION  OF  COMMUNITY
 HOUSING  OPPORTUNITIES  THAT  WOULD SUBSTANTIALLY ALTER THE CHARACTER OF
 THE COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMUNITY  HOUS-
 ING  OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN A COMMU-
 NITY SHALL BE CONSIDERED.
   8. VILLAGE PARTICIPATION. (A) THE PARTICIPATION OF ANY VILLAGE,  WHERE
 THERE  IS  A TOWN COMMUNITY HOUSING FUND, IN THE PRODUCTION OF COMMUNITY
 HOUSING AUTHORIZED BY THIS SECTION,  SHALL  BE  AT  THE  OPTION  OF  THE
 VILLAGE.  IN  ORDER  TO  PARTICIPATE,  A VILLAGE SHALL PASS A RESOLUTION
 OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID  RESOLUTION  TO  THE  TOWN
 BOARD.
   (B)  WHERE A VILLAGE OPTS TO PARTICIPATE PURSUANT TO THIS SUBDIVISION,
 AN INTERGOVERNMENTAL AGREEMENT SHALL BE  EXECUTED  PURSUANT  TO  ARTICLE
 FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER APPLICABLE LEGAL AUTHORITY,
 IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBILITIES OF EACH GOVERNMENT
 REGARDING COMMUNITY HOUSING OPPORTUNITIES.
   (C)  REGARDLESS  OF  WHETHER  A  VILLAGE  PARTICIPATES  IN THE PROGRAM
 AUTHORIZED BY THIS SECTION, PROPERTIES IN THE VILLAGE SHALL  BE  SUBJECT
 TO THE SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY SECTION FOUR-
 TEEN HUNDRED FORTY-NINE-BB OF THE TAX LAW.
   §  3.  The  tax law is amended by adding a new article 33-C to read as
 follows:
                                ARTICLE 33-C
              TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS
 SECTION 1575. DEFINITIONS.
         1576. IMPOSITION OF TAX.
         1577. PAYMENT OF TAX.
 S. 4098                            10
 
         1578. LIABILITY FOR TAX.
         1579. EXEMPTIONS.
         1580. CREDIT.
         1581. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1582. DESIGNATION OF AGENTS.
         1583. LIABILITY OF RECORDING OFFICER.
         1584. DEPOSIT AND DISPOSITION OF REVENUE.
         1585. JUDICIAL REVIEW.
         1586. APPORTIONMENT.
         1587. MISCELLANEOUS.
         1588. RETURNS TO BE SECRET.
   §  1575.  DEFINITIONS.  WHEN  USED  IN  THIS ARTICLE, UNLESS OTHERWISE
 EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   1. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY, SOCIETY, ASSOCIATION,  JOINT  STOCK  COMPANY,  CORPORATION,  ESTATE,
 RECEIVER,  TRUSTEE,  ASSIGNEE,  REFEREE  OR ANY OTHER PERSON ACTING IN A
 FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
 OTHERWISE,  ANY  COMBINATION OF INDIVIDUALS, AND ANY OTHER FORM OF UNIN-
 CORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS.
   2. "CONTROLLING INTEREST" MEANS (A) IN  THE  CASE  OF  A  CORPORATION,
 EITHER  FIFTY  PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER OF ALL
 CLASSES OF STOCK OF SUCH CORPORATION, OR FIFTY PERCENT OR  MORE  OF  THE
 CAPITAL,  PROFITS  OR  BENEFICIAL  INTEREST IN SUCH VOTING STOCK OF SUCH
 CORPORATION, AND (B) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
 OTHER ENTITY, FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS  OR  BENEFI-
 CIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
   3.  "REAL  PROPERTY"  MEANS EVERY ESTATE OR RIGHT, LEGAL OR EQUITABLE,
 PRESENT OR FUTURE, VESTED OR CONTINGENT, IN LANDS, TENEMENTS OR  HEREDI-
 TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
 WHICH  ARE LOCATED IN WHOLE OR IN PART WITHIN ANY CITY OR TOWN. IT SHALL
 NOT INCLUDE RIGHTS TO SEPULTURE.
   4. "CONSIDERATION" MEANS THE PRICE ACTUALLY PAID  OR  REQUIRED  TO  BE
 PAID FOR THE REAL PROPERTY OR INTEREST THEREIN, INCLUDING PAYMENT FOR AN
 OPTION  OR  CONTRACT TO PURCHASE REAL PROPERTY, WHETHER OR NOT EXPRESSED
 IN THE DEED AND WHETHER PAID OR REQUIRED TO BE PAID BY MONEY,  PROPERTY,
 OR  ANY  OTHER  THING  OF  VALUE.  IT  SHALL INCLUDE THE CANCELLATION OR
 DISCHARGE OF AN INDEBTEDNESS OR OBLIGATION. IT SHALL  ALSO  INCLUDE  THE
 AMOUNT  OF  ANY  MORTGAGE, PURCHASE MONEY MORTGAGE, LIEN OR OTHER ENCUM-
 BRANCE, WHETHER OR NOT THE UNDERLYING INDEBTEDNESS IS ASSUMED  OR  TAKEN
 SUBJECT TO.
   (A)  IN THE CASE OF A CREATION OF A LEASEHOLD INTEREST OR THE GRANTING
 OF AN OPTION WITH USE AND  OCCUPANCY  OF  REAL  PROPERTY,  CONSIDERATION
 SHALL  INCLUDE, BUT NOT BE LIMITED TO, THE VALUE OF THE RENTAL AND OTHER
 PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROPERTY  OR
 INTEREST THEREIN, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO PURCHASE
 OR  RENEW  AND THE VALUE OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE TO THE
 EXERCISE OF ANY OPTION TO RENEW.
   (B) IN THE CASE OF A CREATION OF A  SUBLEASEHOLD  INTEREST,  CONSIDER-
 ATION  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE VALUE OF THE SUBLEASE
 RENTAL PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROP-
 ERTY,  THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO RENEW AND THE VALUE
 OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE TO THE EXERCISE OF  ANY  OPTION
 TO  RENEW  LESS  THE  VALUE OF THE REMAINING PRIME LEASE RENTAL PAYMENTS
 REQUIRED TO BE MADE.
 S. 4098                            11

   (C) IN THE CASE OF A CONTROLLING INTEREST IN ANY ENTITY THAT OWNS REAL
 PROPERTY, CONSIDERATION SHALL MEAN THE FAIR MARKET  VALUE  OF  THE  REAL
 PROPERTY OR INTEREST THEREIN, APPORTIONED BASED ON THE PERCENTAGE OF THE
 OWNERSHIP INTEREST TRANSFERRED OR ACQUIRED IN THE ENTITY.
   (D)  IN THE CASE OF AN ASSIGNMENT OR SURRENDER OF A LEASEHOLD INTEREST
 OR THE ASSIGNMENT OR SURRENDER OF AN OPTION OR CONTRACT TO PURCHASE REAL
 PROPERTY, CONSIDERATION SHALL NOT INCLUDE THE  VALUE  OF  THE  REMAINING
 RENTAL  PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS OF SUCH LEASE
 OR THE AMOUNT TO BE PAID FOR THE REAL PROPERTY PURSUANT TO THE TERMS  OF
 THE OPTION OR CONTRACT BEING ASSIGNED OR SURRENDERED.
   (E) IN THE CASE OF (1) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A
 COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER
 OF A PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE
 PLAN  SPONSOR, AND (2) THE SUBSEQUENT CONVEYANCE BY THE OWNER THEREOF OF
 SUCH STOCK IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION  WITH  THE
 GRANT  OR  TRANSFER  OF  A  PROPRIETARY LEASEHOLD FOR A COOPERATIVE UNIT
 OTHER THAN AN INDIVIDUAL RESIDENTIAL UNIT, CONSIDERATION SHALL INCLUDE A
 PROPORTIONATE SHARE OF THE UNPAID PRINCIPAL OF ANY MORTGAGE ON THE  REAL
 PROPERTY  OF  THE COOPERATIVE HOUSING CORPORATION COMPRISING THE COOPER-
 ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
 ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
 ATOR OF WHICH SHALL BE THE NUMBER OF SHARES OF STOCK BEING  CONVEYED  IN
 THE  COOPERATIVE  HOUSING  CORPORATION  IN  CONNECTION WITH THE GRANT OR
 TRANSFER OF A PROPRIETARY LEASEHOLD AND THE DENOMINATOR OF  WHICH  SHALL
 BE THE TOTAL NUMBER OF SHARES OF STOCK IN THE COOPERATIVE HOUSING CORPO-
 RATION.
   5.  "CONVEYANCE"  MEANS  THE  TRANSFER OR TRANSFERS OF ANY INTEREST IN
 REAL PROPERTY BY  ANY  METHOD,  INCLUDING  BUT  NOT  LIMITED  TO,  SALE,
 EXCHANGE,  ASSIGNMENT, SURRENDER, MORTGAGE FORECLOSURE, TRANSFER IN LIEU
 OF FORECLOSURE, OPTION,  TRUST  INDENTURE,  TAKING  BY  EMINENT  DOMAIN,
 CONVEYANCE UPON LIQUIDATION OR BY A RECEIVER, OR TRANSFER OR ACQUISITION
 OF A CONTROLLING INTEREST IN ANY ENTITY WITH AN INTEREST IN REAL PROPER-
 TY.  TRANSFER OF AN INTEREST IN REAL PROPERTY SHALL INCLUDE THE CREATION
 OF  A  LEASEHOLD  OR  SUBLEASE ONLY WHERE (A) THE SUM OF THE TERM OF THE
 LEASE OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE  YEARS,
 (B)  SUBSTANTIAL  CAPITAL  IMPROVEMENTS ARE OR MAY BE MADE BY OR FOR THE
 BENEFIT OF THE LESSEE OR SUBLESSEE, AND (C) THE LEASE OR SUBLEASE IS FOR
 SUBSTANTIALLY ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL  PROPERTY.
 NOTWITHSTANDING  THE  FOREGOING,  CONVEYANCE  OF REAL PROPERTY SHALL NOT
 INCLUDE A CONVEYANCE MADE PURSUANT TO DEVISE,  BEQUEST  OR  INHERITANCE;
 THE  CREATION,  MODIFICATION,  EXTENSION,  SPREADING, SEVERANCE, CONSOL-
 IDATION, ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION OF A MORTGAGE;  A
 MORTGAGE  SUBORDINATION  AGREEMENT,  A  MORTGAGE SEVERANCE AGREEMENT, AN
 INSTRUMENT GIVEN TO PERFECT OR CORRECT A RECORDED MORTGAGE; OR A RELEASE
 OF LIEN OF TAX PURSUANT TO THIS CHAPTER OR THE INTERNAL REVENUE CODE.
   6. "INTEREST IN THE REAL PROPERTY" INCLUDES TITLE IN FEE, A  LEASEHOLD
 INTEREST, A BENEFICIAL INTEREST, AN ENCUMBRANCE, DEVELOPMENT RIGHTS, AIR
 SPACE  AND  AIR  RIGHTS,  OR ANY OTHER INTEREST WITH THE RIGHT TO USE OR
 OCCUPANCY OF REAL PROPERTY OR THE RIGHT TO  RECEIVE  RENTS,  PROFITS  OR
 OTHER INCOME DERIVED FROM REAL PROPERTY. IT SHALL ALSO INCLUDE AN OPTION
 OR  CONTRACT  TO PURCHASE REAL PROPERTY. IT SHALL NOT INCLUDE A RIGHT OF
 FIRST REFUSAL TO PURCHASE REAL PROPERTY.
   7. "GRANTOR" MEANS THE PERSON MAKING THE CONVEYANCE OF  REAL  PROPERTY
 OR  INTEREST  THEREIN. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OR AN
 ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN  INTEREST  IN
 REAL PROPERTY, "GRANTOR" MEANS THE ENTITY WITH AN INTEREST IN REAL PROP-
 S. 4098                            12
 
 ERTY  OR  A  SHAREHOLDER  OR  PARTNER  TRANSFERRING STOCK OR PARTNERSHIP
 INTEREST, RESPECTIVELY.
   8.  "GRANTEE"  MEANS  THE PERSON WHO OBTAINS REAL PROPERTY OR INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9. "FUND" MEANS A COMMUNITY  PRESERVATION  FUND  CREATED  PURSUANT  TO
 SECTION SIX-W OF THE GENERAL MUNICIPAL LAW.
   10.  "COMMUNITY  HOUSING FUND" MEANS A COMMUNITY FUND CREATED PURSUANT
 TO SECTION SIX-X OF THE GENERAL MUNICIPAL LAW.
   11. "RECORDING OFFICER" MEANS THE COUNTY CLERK.
   12. "CITY OR TOWN" MEANS A CITY OR TOWN, EXCEPT A CITY OF ONE  MILLION
 OR MORE.
   13. "TREASURER" MEANS THE COUNTY TREASURER.
   §  1576. IMPOSITION OF TAX. 1. NOTWITHSTANDING ANY OTHER PROVISIONS OF
 LAW TO THE CONTRARY, ANY CITY OR TOWN, ACTING THROUGH ITS LOCAL  GOVERN-
 ING BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOS-
 ING  IN  SUCH  CITY OR TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR
 INTEREST THEREIN WHERE THE CONSIDERATION EXCEEDS FIVE  HUNDRED  DOLLARS,
 AT A RATE OF UP TO TWO PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCE.
 PROVIDED,  HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR REIMPOSING
 SUCH TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT TO  SECTION
 TWENTY-THREE  OF  THE MUNICIPAL HOME RULE LAW. SUCH LOCAL LAW SHALL ONLY
 BE SUBMITTED FOR THE APPROVAL OF THE ELECTORS  AT  A  GENERAL  ELECTION.
 NOTWITHSTANDING  THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE
 CITY OR TOWN MUST ESTABLISH A COMMUNITY PRESERVATION  FUND  PURSUANT  TO
 SECTION SIX-W OF THE GENERAL MUNICIPAL LAW. REVENUES FROM SUCH TAX SHALL
 BE  DEPOSITED  IN  SUCH  FUND AND MAY BE USED SOLELY FOR THE PURPOSES OF
 SUCH FUND. SUCH LOCAL LAW SHALL APPLY TO ANY CONVEYANCE OCCURRING ON  OR
 AFTER  THE FIRST DAY OF A MONTH TO BE DESIGNATED BY SUCH LOCAL GOVERNING
 BODY, WHICH IS NOT LESS THAN SIXTY DAYS  AFTER  THE  ENACTMENT  OF  SUCH
 LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANCES MADE ON OR AFTER SUCH DATE
 PURSUANT  TO  BINDING WRITTEN CONTRACTS ENTERED INTO PRIOR TO SUCH DATE,
 PROVIDED THAT THE DATE OF EXECUTION OF SUCH  CONTRACT  IS  CONFIRMED  BY
 INDEPENDENT EVIDENCE SUCH AS THE RECORDING OF THE CONTRACT, PAYMENT OF A
 DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
   2.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, IN
 ADDITION TO THE TAX AUTHORIZED BY SUBDIVISION ONE OF THIS  SECTION,  ANY
 CITY  OR  TOWN,  ACTING THROUGH ITS GOVERNING BODY, IS HEREBY AUTHORIZED
 AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING  IN  SUCH  CITY  OR  TOWN  A
 SUPPLEMENTAL TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN
 WHERE  THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT THE RATE OF UP
 TO ONE HALF OF ONE PERCENT OF THE  CONSIDERATION  FOR  SUCH  CONVEYANCE.
 PROVIDED, HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR RE-IMPOSING
 SUCH  SUPPLEMENTAL TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSU-
 ANT TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME RULE  LAW.    NOTWITH-
 STANDING  THE  FOREGOING,  PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE TOWN
 MUST ESTABLISH A COMMUNITY HOUSING FUND PURSUANT TO SECTION SIX-X OF THE
 GENERAL MUNICIPAL LAW.   REVENUES FROM SUCH SUPPLEMENTAL  TAX  SHALL  BE
 DEPOSITED  IN SUCH COMMUNITY HOUSING FUND AND MAY BE USED SOLELY FOR THE
 PURPOSES OF SUCH COMMUNITY HOUSING FUND. SUCH LOCAL LAW SHALL  APPLY  TO
 ANY  CONVEYANCE  OCCURRING  ON  OR  AFTER THE FIRST DAY OF A MONTH TO BE
 DESIGNATED BY THE GOVERNING BOARD, WHICH IS NOT  LESS  THAN  SIXTY  DAYS
 AFTER THE ENACTMENT OF SUCH LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANC-
 ES  MADE  ON  OR  AFTER  SUCH DATE PURSUANT TO BINDING WRITTEN CONTRACTS
 ENTERED INTO PRIOR TO SUCH DATE, PROVIDED THAT THE DATE OF EXECUTION  OF
 SUCH CONTRACT IS CONFIRMED BY INDEPENDENT EVIDENCE SUCH AS THE RECORDING
 OF  THE  CONTRACT, PAYMENT OF A DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES
 S. 4098                            13

 AS DETERMINED BY THE TREASURER. ANY TAX IMPOSED PURSUANT TO THIS  SUBDI-
 VISION  SHALL  BE ADMINISTERED AND COLLECTED IN A LIKE MANNER AS THE TAX
 IMPOSED BY SUBDIVISION ONE OF THIS SECTION.
   § 1577. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED PURSU-
 ANT  TO  THIS  ARTICLE  SHALL  BE PAID TO THE TREASURER OR THE RECORDING
 OFFICER ACTING AS THE AGENT OF THE TREASURER UPON  DESIGNATION  AS  SUCH
 AGENT  BY  THE TREASURER. SUCH TAX SHALL BE PAID AT THE SAME TIME AS THE
 REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE THIRTY-ONE OF  THIS  CHAPTER
 IS  REQUIRED  TO  BE  PAID.    SUCH TREASURER OR RECORDING OFFICER SHALL
 ENDORSE UPON EACH DEED OR INSTRUMENT EFFECTING A  CONVEYANCE  A  RECEIPT
 FOR THE AMOUNT OF THE TAX SO PAID.
   2.  A  RETURN  SHALL  BE  REQUIRED  TO BE FILED WITH SUCH TREASURER OR
 RECORDING OFFICER FOR PURPOSES OF THE REAL ESTATE TRANSFER  TAX  IMPOSED
 PURSUANT  TO THIS ARTICLE AT THE SAME TIME AS A RETURN IS REQUIRED TO BE
 FILED FOR PURPOSES OF THE REAL ESTATE TRANSFER TAX  IMPOSED  BY  ARTICLE
 THIRTY-ONE  OF  THIS  CHAPTER. THE TREASURER SHALL PRESCRIBE THE FORM OF
 RETURN, THE INFORMATION WHICH IT SHALL CONTAIN,  AND  THE  DOCUMENTATION
 THAT  SHALL  ACCOMPANY THE RETURN.   SAID FORM SHALL BE IDENTICAL TO THE
 REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION
 FOURTEEN HUNDRED NINE OF THIS CHAPTER, EXCEPT THAT THE  TREASURER  SHALL
 ADAPT  SAID  FORM  TO  REFLECT  THE  PROVISIONS IN THIS CHAPTER THAT ARE
 INCONSISTENT, DIFFERENT, OR IN ADDITION TO  THE  PROVISIONS  OF  ARTICLE
 THIRTY-ONE  OF  THIS  CHAPTER.    THE  REAL  ESTATE TRANSFER TAX RETURNS
 REQUIRED TO BE FILED PURSUANT TO THIS SECTION  SHALL  BE  PRESERVED  FOR
 THREE  YEARS  AND  THEREAFTER  UNTIL SUCH TREASURER OR RECORDING OFFICER
 ORDERS THEM TO BE DESTROYED.
   3. THE RECORDING OFFICER SHALL NOT RECORD AN  INSTRUMENT  EFFECTING  A
 CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
 THE  TAX  IMPOSED  PURSUANT  TO  THIS  ARTICLE  SHALL  HAVE BEEN PAID AS
 REQUIRED IN THIS SECTION.
   § 1578. LIABILITY FOR TAX. 1. THE REAL ESTATE TRANSFER  TAX  SHALL  BE
 PAID  BY  THE  GRANTEE. IF THE GRANTEE HAS FAILED TO PAY THE TAX IMPOSED
 PURSUANT TO THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX,  THE
 GRANTOR  SHALL  HAVE  THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE
 DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY THE TAX,  SUCH
 TAX  SHALL  BE  THE  JOINT  AND SEVERAL LIABILITY OF THE GRANTEE AND THE
 GRANTOR.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ALL
 CONVEYANCES ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY OTHER
 THAN MONEY, IT SHALL BE PRESUMED THAT  THE  CONSIDERATION  IS  THE  FAIR
 MARKET  VALUE  OF  THE REAL PROPERTY OR INTEREST THEREIN. THESE PRESUMP-
 TIONS SHALL PREVAIL UNTIL THE CONTRARY IS  PROVEN,  AND  THE  BURDEN  OF
 PROVING  THE  CONTRARY  SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE
 TAX.
   § 1579. EXEMPTIONS. 1. THE FOLLOWING SHALL BE EXEMPT FROM THE  PAYMENT
 OF  THE  REAL  ESTATE TRANSFER TAX: (A) THE STATE OF NEW YORK, OR ANY OF
 ITS  AGENCIES,  INSTRUMENTALITIES,  POLITICAL  SUBDIVISIONS,  OR  PUBLIC
 CORPORATIONS  (INCLUDING  A  PUBLIC  CORPORATION  CREATED PURSUANT TO AN
 AGREEMENT OR COMPACT WITH ANOTHER STATE OR DOMINION OF CANADA); AND
   (B) THE UNITED NATIONS, THE UNITED STATES OF AMERICA  OR  ANY  OF  ITS
 AGENCIES OR INSTRUMENTALITIES.
   2.  THE  TAX SHALL NOT APPLY TO ANY OF THE FOLLOWING CONVEYANCES:  (A)
 CONVEYANCES TO THE UNITED NATIONS, THE UNITED  STATES  OF  AMERICA,  THE
 STATE  OF NEW YORK, OR ANY OF THEIR INSTRUMENTALITIES, AGENCIES OR POLI-
 TICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPO-
 S. 4098                            14
 
 RATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH  ANOTHER  STATE  OR
 THE  DOMINION  OF  CANADA);  (B)  CONVEYANCES  WHICH ARE OR WERE USED TO
 SECURE A DEBT OR OTHER OBLIGATION; (C) CONVEYANCES WHICH, WITHOUT  ADDI-
 TIONAL  CONSIDERATION,  CONFIRM,  CORRECT,  MODIFY  OR SUPPLEMENT A DEED
 PREVIOUSLY RECORDED; (D) CONVEYANCES OF REAL PROPERTY WITHOUT  CONSIDER-
 ATION  AND  OTHERWISE  THAN  IN  CONNECTION WITH A SALE, INCLUDING DEEDS
 CONVEYING REALTY AS BONA FIDE GIFTS; (E) CONVEYANCES GIVEN IN CONNECTION
 WITH A TAX SALE; (F) CONVEYANCES TO EFFECTUATE A MERE CHANGE OF IDENTITY
 OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFI-
 CIAL OWNERSHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE  HOUSING  CORPO-
 RATION  OF  THE  REAL  PROPERTY  COMPRISING  THE COOPERATIVE DWELLING OR
 DWELLINGS; (G) CONVEYANCES WHICH CONSIST OF A  DEED  OF  PARTITION;  (H)
 CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT; (I) CONVEYANC-
 ES OF REAL PROPERTY WHICH CONSIST OF THE EXECUTION OF A CONTRACT TO SELL
 REAL  PROPERTY  WITHOUT  THE  USE  OR  OCCUPANCY OF SUCH PROPERTY OR THE
 GRANTING OF AN OPTION TO PURCHASE REAL PROPERTY WITHOUT THE USE OR OCCU-
 PANCY OF SUCH PROPERTY; (J) CONVEYANCES  OF  REAL  PROPERTY,  WHERE  THE
 ENTIRE  PARCEL  OF REAL PROPERTY TO BE CONVEYED IS THE SUBJECT OF ONE OR
 MORE  OF  THE  FOLLOWING  DEVELOPMENT  RESTRICTIONS:  (1)  AGRICULTURAL,
 CONSERVATION,  SCENIC,  OR  AN  OPEN  SPACE  EASEMENT,  (2) COVENANTS OR
 RESTRICTIONS PROHIBITING DEVELOPMENT,  (3)  A  PURCHASE  OF  DEVELOPMENT
 RIGHTS  AGREEMENT, (4) A TRANSFER OF DEVELOPMENT RIGHTS AGREEMENT, WHERE
 THE PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED,  (5)
 SAID REAL PROPERTY IS SUBJECT TO THE DEVELOPMENT RESTRICTION OF AN AGRI-
 CULTURAL  DISTRICT OR INDIVIDUAL COMMITMENT, PURSUANT TO ARTICLE TWENTY-
 FIVE-AA OF THE AGRICULTURE AND MARKETS LAW, (6) REAL PROPERTY SUBJECT TO
 ANY LOCALLY ADOPTED LAND PRESERVATION AGREEMENT, PROVIDED SAID EXEMPTION
 IS INCLUDED IN THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY  THIS  ARTI-
 CLE;  (K)  CONVEYANCES  OF  REAL  PROPERTY, WHERE THE PROPERTY IS VIABLE
 AGRICULTURAL LAND AS DEFINED  IN  SUBDIVISION  SEVEN  OF  SECTION  THREE
 HUNDRED  ONE  OF THE AGRICULTURE AND MARKETS LAW AND THE ENTIRE PROPERTY
 TO BE CONVEYED  IS  TO  BE  MADE  SUBJECT  TO  ONE  OF  THE  DEVELOPMENT
 RESTRICTIONS  PROVIDED  FOR IN SUBPARAGRAPH TWO OF PARAGRAPH (J) OF THIS
 SUBDIVISION PROVIDED THAT SAID  DEVELOPMENT  RESTRICTION  PRECLUDES  THE
 CONVERSION  OF THE PROPERTY TO A NON-AGRICULTURAL USE FOR AT LEAST THREE
 YEARS FROM THE DATE OF TRANSFER, AND  SAID  DEVELOPMENT  RESTRICTION  IS
 EVIDENCED  BY AN EASEMENT, AGREEMENT, OR OTHER SUITABLE INSTRUMENT WHICH
 IS TO BE CONVEYED TO THE CITY OR TOWN SIMULTANEOUSLY WITH THE CONVEYANCE
 OF THE REAL PROPERTY; OR (L)  CONVEYANCES  OF  REAL  PROPERTY  FOR  OPEN
 SPACE,  PARKS,  COMMUNITY  HOUSING, OR HISTORIC PRESERVATION PURPOSES TO
 ANY NOT-FOR-PROFIT TAX EXEMPT  CORPORATION  OPERATED  FOR  CONSERVATION,
 ENVIRONMENTAL, COMMUNITY HOUSING OR HISTORIC PRESERVATION PURPOSES.
   3.  THE GOVERNING BODY OF A CITY OR TOWN, BY LOCAL LAW MAY ESTABLISH A
 COMMUNITY HOUSING EXEMPTION. SUCH EXEMPTION MAY  NOT  EXCEED  AN  AMOUNT
 EQUAL  TO  THE  RESIDENTIAL MEDIAN SALE PRICE OF THE COUNTY IN WHICH THE
 CITY OR TOWN IS LOCATED, AS DETERMINED BY THE OFFICE  OF  REAL  PROPERTY
 SERVICES  WITHIN  THE DEPARTMENT OF TAXATION AND FINANCE. SUCH EXEMPTION
 SHALL BE ALLOWED ON THE CONSIDERATION OF THE CONVEYANCE OF IMPROVED REAL
 PROPERTY OR AN INTEREST THEREIN. THE EXEMPTION GRANTED PURSUANT  TO  THE
 PROVISIONS OF THIS SUBDIVISION SHALL ONLY APPLY TO CONVEYANCES FOR RESI-
 DENTIAL PROPERTY WHERE THE CONSIDERATION IS TWO MILLION DOLLARS OR LESS.
   §  1580.  CREDIT.  A GRANTEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX
 DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS PAID BY  SUCH
 GRANTEE  ON  A  PRIOR CREATION OF A LEASEHOLD OF ALL OR A PORTION OF THE
 SAME REAL PROPERTY OR ON THE  GRANTING  OF  AN  OPTION  OR  CONTRACT  TO
 PURCHASE  ALL  OR  A  PORTION OF THE SAME REAL PROPERTY BY SUCH GRANTEE.
 S. 4098                            15

 SUCH CREDIT SHALL BE  COMPUTED  BY  MULTIPLYING  THE  TAX  PAID  ON  THE
 CREATION  OF  THE LEASEHOLD OR ON THE GRANTING OF THE OPTION OR CONTRACT
 BY A FRACTION, THE NUMERATOR OF WHICH IS THE VALUE OF THE  CONSIDERATION
 USED  TO  COMPUTE  SUCH TAX PAID WHICH IS NOT YET DUE TO SUCH GRANTOR ON
 THE DATE OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR  WILL  NOT
 BE ENTITLED TO RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR OF WHICH IS
 THE TOTAL VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
   §  1581. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1. NOTWITHSTANDING
 THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION TWO OF
 SECTION FIFTEEN HUNDRED SEVENTY-FIVE OF THIS ARTICLE OR ANYTHING TO  THE
 CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED SEVEN-
 TY-FIVE  OF THIS ARTICLE, THE TAX IMPOSED PURSUANT TO THIS ARTICLE SHALL
 APPLY TO (A) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A COOPERATIVE
 HOUSING CORPORATION IN CONNECTION  WITH  THE  GRANT  OR  TRANSFER  OF  A
 PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE PLAN
 SPONSOR,  AND  (B)  THE SUBSEQUENT CONVEYANCE OF SUCH STOCK IN A COOPER-
 ATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER OF  A
 PROPRIETARY  LEASEHOLD  BY  THE  OWNER THEREOF. WITH RESPECT TO ANY SUCH
 SUBSEQUENT CONVEYANCE WHERE THE PROPERTY IS  AN  INDIVIDUAL  RESIDENTIAL
 UNIT,  THE  CONSIDERATION  FOR  THE  INTEREST CONVEYED SHALL EXCLUDE THE
 VALUE OF ANY LIENS ON CERTIFICATES OF STOCK OR  OTHER  EVIDENCES  OF  AN
 OWNERSHIP  INTEREST  IN  AND  A  PROPRIETARY LEASE FROM A CORPORATION OR
 PARTNERSHIP FORMED FOR THE PURPOSE OF COOPERATIVE OWNERSHIP OF  RESIDEN-
 TIAL  INTEREST  IN  REAL ESTATE REMAINING THEREON AT THE TIME OF CONVEY-
 ANCE. IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED IN PARAGRAPH  (A)
 OF  THIS SUBDIVISION, A CREDIT SHALL BE ALLOWED FOR A PROPORTIONATE PART
 OF THE AMOUNT OF ANY TAX PAID UPON THE  CONVEYANCE  TO  THE  COOPERATIVE
 HOUSING  CORPORATION  OF  THE  REAL  PROPERTY COMPRISING THE COOPERATIVE
 DWELLING OR DWELLINGS TO THE EXTENT THAT SUCH CONVEYANCE  EFFECTUATED  A
 MERE  CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF SUCH PROPERTY AND NOT A
 CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY. THE AMOUNT  OF  THE
 CREDIT  SHALL  BE  DETERMINED BY MULTIPLYING THE AMOUNT OF TAX PAID UPON
 THE CONVEYANCE TO THE COOPERATIVE HOUSING CORPORATION  BY  A  PERCENTAGE
 REPRESENTING  THE  EXTENT  TO  WHICH  SUCH CONVEYANCE EFFECTUATED A MERE
 CHANGE OF IDENTITY OR FORM OF OWNERSHIP AND NOT A CHANGE IN THE  BENEFI-
 CIAL  OWNERSHIP  OF  SUCH  PROPERTY,  AND THEN MULTIPLYING THE RESULTING
 PRODUCT BY A FRACTION, THE NUMERATOR OF WHICH SHALL  BE  THE  NUMBER  OF
 SHARES  OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN PARAGRAPH (A) OF
 THIS SUBDIVISION, AND THE DENOMINATOR OF WHICH SHALL BE THE TOTAL NUMBER
 OF SHARES OF STOCK OF THE COOPERATIVE HOUSING CORPORATION (INCLUDING ANY
 STOCK HELD BY THE CORPORATION). IN NO EVENT, HOWEVER, SHALL SUCH  CREDIT
 REDUCE  THE  TAX,  ON  A  CONVEYANCE  DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION, BELOW ZERO, NOR SHALL ANY SUCH CREDIT BE ALLOWED FOR A  TAX
 PAID  MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE ON WHICH OCCURS THE
 FIRST IN A SERIES OF CONVEYANCES OF SHARES OF STOCK IN  AN  OFFERING  OF
 COOPERATIVE  HOUSING  CORPORATION  SHARES  DESCRIBED IN PARAGRAPH (A) OF
 THIS SUBDIVISION.
   2. EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE  AN
 INFORMATION  RETURN  WITH  THE  TREASURER BY JULY FIFTEENTH OF EACH YEAR
 COVERING THE PRECEDING PERIOD OF JANUARY FIRST  THROUGH  JUNE  THIRTIETH
 AND  BY  JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING PERIOD OF
 JULY FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN  SUCH
 INFORMATION  REGARDING  THE CONVEYANCE OF SHARES OF STOCK IN THE COOPER-
 ATIVE HOUSING CORPORATION AS THE TREASURER MAY DEEM  NECESSARY,  INCLUD-
 ING,  BUT  NOT LIMITED TO, THE NAMES, ADDRESSES AND EMPLOYEE IDENTIFICA-
 TION NUMBERS OR SOCIAL SECURITY NUMBERS OF THE GRANTOR AND THE  GRANTEE,
 S. 4098                            16
 
 THE  NUMBER  OF  SHARES  CONVEYED,  THE  DATE  OF THE CONVEYANCE AND THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   §  1582.  DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO DESIG-
 NATE THE RECORDING OFFICER TO ACT AS HIS OR HER AGENT  FOR  PURPOSES  OF
 COLLECTING  THE  TAX  AUTHORIZED  BY  THIS  ARTICLE. THE TREASURER SHALL
 PROVIDE FOR THE MANNER IN WHICH SUCH PERSON MAY BE DESIGNATED AS HIS  OR
 HER  AGENT  SUBJECT  TO SUCH TERMS AND CONDITIONS AS THE TREASURER SHALL
 PRESCRIBE. THE REAL ESTATE TRANSFER TAX SHALL BE PAID TO SUCH  AGENT  AS
 PROVIDED IN SECTION FIFTEEN HUNDRED SEVENTY-SEVEN OF THIS ARTICLE.
   §  1583. LIABILITY OF RECORDING OFFICER. A RECORDING OFFICER SHALL NOT
 BE LIABLE FOR ANY INACCURACY IN THE AMOUNT OF TAX  IMPOSED  PURSUANT  TO
 THIS  ARTICLE  THAT  HE  OR SHE SHALL COLLECT SO LONG AS HE OR SHE SHALL
 COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE VALUE
 OF THE INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM OR  HER  BY
 THE PERSON PAYING THE TAX.
   §  1584.  DEPOSIT  AND DISPOSITION OF REVENUE. 1. ALL TAXES, PENALTIES
 AND INTEREST IMPOSED BY THE CITY OR TOWN UNDER THE AUTHORITY OF  SECTION
 FIFTEEN  HUNDRED SEVENTY-SIX OF THIS ARTICLE, WHICH ARE COLLECTED BY THE
 TREASURER OR HIS OR HER AGENTS, SHALL BE DEPOSITED  IN  TRUST  FUNDS  AS
 PROVIDED BY THIS SECTION FOR THE CITY OR TOWN AND SHALL BE KEPT IN TRUST
 AND SEPARATE AND APART FROM ALL OTHER MONIES IN POSSESSION OF THE TREAS-
 URER.  THE  TREASURER  OR  HIS  OR HER AGENTS SHALL PROVIDE FOR SEPARATE
 TRUST FUNDS FOR COMMUNITY PRESERVATION AND COMMUNITY  HOUSING  REVENUES.
 MONEYS  IN  SUCH  FUND  SHALL  BE  DEPOSITED  AND  SECURED IN THE MANNER
 PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW.  PENDING  EXPENDI-
 TURE  FROM  SUCH  FUND,  MONEYS  THEREIN  MAY  BE INVESTED IN THE MANNER
 PROVIDED IN SECTION ELEVEN OF THE GENERAL MUNICIPAL  LAW.  ANY  INTEREST
 EARNED  OR  CAPITAL GAIN REALIZED ON THE MONEYS SO DEPOSITED OR INVESTED
 SHALL ACCRUE TO AND BECOME PART OF SUCH FUND.
   2. THE TREASURER SHALL RETAIN SUCH AMOUNT AS HE OR SHE  MAY  DETERMINE
 TO  BE NECESSARY FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE CITY
 OR TOWN, UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED  SEVENTY-SIX  OF
 THIS  ARTICLE,  OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS OF SUCH
 TAXES TO THOSE TAXPAYERS ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS
 OF THIS ARTICLE.
   3. THE TREASURER, AFTER RESERVING SUCH REFUNDS, SHALL ON OR BEFORE THE
 TWELFTH DAY OF EACH MONTH PAY TO THE CITY COMPTROLLER OR THE TOWN SUPER-
 VISOR THE TAXES, PENALTIES AND INTEREST IMPOSED BY THE  TOWN  UNDER  THE
 AUTHORITY  OF  SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX  OF  THIS ARTICLE,
 COLLECTED BY THE TREASURER, PURSUANT TO THIS  ARTICLE  DURING  THE  NEXT
 PRECEDING  CALENDAR  MONTH.  THE AMOUNT SO PAYABLE SHALL BE CERTIFIED TO
 THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASURER, WHO  SHALL
 NOT  BE  HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION. PROVIDED,
 HOWEVER, ANY SUCH CERTIFICATION MAY BE BASED ON SUCH INFORMATION AS  MAY
 BE  AVAILABLE  TO  THE  TREASURER AT THE TIME SUCH CERTIFICATION MUST BE
 MADE UNDER THIS SECTION. WHERE THE AMOUNT SO PAID OVER TO  THE  CITY  OR
 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT DUE TO THE
 CITY  OR  TOWN,  THE  AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASUR-
 ER, WHO SHALL NOT BE HELD LIABLE FOR  ANY  INACCURACY  IN  SUCH  CERTIF-
 ICATION.  THE  AMOUNT  OF  THE  OVERPAYMENT  OR UNDERPAYMENT SHALL BE SO
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR AS  SOON  AFTER
 THE  DISCOVERY OF THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY POSSIBLE
 AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY THE TREASURER TO SUCH  CITY
 OR TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAY-
 MENT  FROM  OR  BY  ADDING  THE  AMOUNT OF ANY SUCH UNDERPAYMENT TO SUCH
 S. 4098                            17
 
 NUMBER OF SUBSEQUENT PAYMENTS AND DISTRIBUTIONS  AS  THE  TREASURER  AND
 CITY COMPTROLLER OR TOWN SUPERVISOR SHALL CONSIDER REASONABLE IN VIEW OF
 THE OVERPAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.
   4.  ALL  MONIES  RECEIVED FROM THE TREASURER SHALL BE DEPOSITED IN THE
 APPROPRIATE FUND OF THE CITY OR  TOWN,  PURSUANT  TO  SECTION  SIX-W  OR
 SECTION SIX-X OF THE GENERAL MUNICIPAL LAW.
   §  1585.  JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT OF
 ANY TAX PAYABLE UNDER SECTION  FIFTEEN  HUNDRED  SEVENTY-EIGHT  OF  THIS
 ARTICLE SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY
 OR  ANY  OTHER  REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-
 EIGHT OF THE CIVIL PRACTICE LAW AND RULES  IF  APPLICATION  THEREFOR  IS
 MADE  TO  THE  SUPREME  COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE
 NOTICE OF SUCH FINAL DETERMINATION, PROVIDED,  HOWEVER,  THAT  ANY  SUCH
 PROCEEDING  UNDER  ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND
 RULES SHALL NOT BE INSTITUTED UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO
 BE REVIEWED, WITH SUCH INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED
 FOR BY LOCAL LAW SHALL BE FIRST DEPOSITED AND THERE IS FILED  AN  UNDER-
 TAKING,  ISSUED  BY  A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN
 THIS STATE AND APPROVED BY THE STATE SUPERINTENDENT OF INSURANCE  AS  TO
 SOLVENCY  AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE SUPREME
 COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING  BE  DISMISSED
 OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
 MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT THE OPTION OF
 THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT TO COVER THE
 TAXES,  INTEREST  AND  PENALTIES  STATED IN SUCH DETERMINATION, PLUS THE
 COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF  THE
 PROCEEDING,  IN  WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY
 SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLI-
 CATION.
   2. WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,  ILLE-
 GALLY  OR  UNCONSTITUTIONALLY  ASSESSED OR COLLECTED AND APPLICATION FOR
 THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
 OFFICERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE  A  DETERMINATION
 DENYING  SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE REVIEWABLE
 BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW
 AND  RULES;  PROVIDED,  HOWEVER,  THAT (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) AN
 UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
 AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
 APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
 CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
 ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
   § 1586. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT TO THIS ARTICLE, SHALL PROVIDE FOR A  METHOD  OF  APPORTIONMENT  FOR
 DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR INTEREST
 THEREIN IS SITUATED WITHIN AND WITHOUT THE CITY OR TOWN.
   § 1587. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT  TO  THIS  ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE CITY OR
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED
 PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE DETERMI-
 NATION OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAYMENTS AND  OVERPAY-
 MENTS  AND  THE  IMPOSITION OF CIVIL PENALTIES. SUCH PROVISIONS SHALL BE
 IDENTICAL TO THE CORRESPONDING PROVISIONS OF THE  REAL  ESTATE  TRANSFER
 TAX  IMPOSED  BY  ARTICLE  THIRTY-ONE  OF  THIS  CHAPTER, SO FAR AS SUCH
 S. 4098                            18
 
 PROVISIONS CAN BE MADE APPLICABLE TO THE TAX IMPOSED  PURSUANT  TO  THIS
 ARTICLE.
   §  1588.  RETURNS  TO  BE  SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR
 THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE COUNTY,  CITY  OR  TOWN,
 INCLUDING  ANY  PERSON  ENGAGED  OR  RETAINED ON AN INDEPENDENT CONTRACT
 BASIS, TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE PARTICULARS SET  FORTH
 OR  DISCLOSED  IN ANY RETURN REQUIRED UNDER A LOCAL LAW ENACTED PURSUANT
 TO THIS ARTICLE.  PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION  SHALL
 PROHIBIT  THE  RECORDING OFFICER FROM MAKING A NOTATION ON AN INSTRUMENT
 AFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX  PAID.  NO  RECORDED
 INSTRUMENT  AFFECTING  A  CONVEYANCE  SHALL  BE  CONSIDERED A RETURN FOR
 PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY,  CITY,  OR  TOWN  IN  ANY  ACTION  OR  PROCEEDING  INVOLVING THE
 COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
 CLE TO WHICH SUCH COUNTY, CITY, OR TOWN IS A PARTY, OR A CLAIMANT, OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS  OF
 A  LOCAL  LAW ENACTED PURSUANT TO THIS ARTICLE WHEN THE RETURNS OR FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY
 OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND  MAY  ADMIT
 IN  EVIDENCE,  SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY
 TO A GRANTOR OR GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE  OR  THE
 DULY  AUTHORIZED  REPRESENTATIVE  OF A GRANTOR OR GRANTEE OF A CERTIFIED
 COPY OF ANY RETURN FILED  IN  CONNECTION  WITH  SUCH  INSTRUMENT  OR  TO
 PROHIBIT  THE  PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE
 IDENTIFICATION OF PARTICULAR RETURNS  AND  THE  ITEMS  THEREOF,  OR  THE
 INSPECTION BY THE LEGAL REPRESENTATIVES OF SUCH COUNTY, CITY, OR TOWN OF
 THE RETURN OF ANY TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR REVIEW
 THE TAX BASED THEREON.
   §  4.  Severability.  If  any provision of this act or the application
 thereof shall for any reason be  adjudged  by  any  court  of  competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation to the provision thereof directly involved in the  controversy  in
 which such judgment shall have been rendered.
   § 5. This act shall take effect immediately.