S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7987
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 16, 2025
                                ___________
 
 Introduced  by M. of A. LUCAS -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to  amend  the  private  housing  finance  law,  in  relation  to
   reduction of taxes pursuant to shelter rent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph (a) of subdivision 1 of section 33 of the private
 housing finance law, as amended by chapter 229 of the laws of  1989,  is
 amended to read as follows:
   (a) Upon the consent of the local legislative body of any municipality
 in  which  a  project  is  or  is  to be located, the real property in a
 project shall be exempt from  local  and  municipal  taxes,  other  than
 assessments  for local improvements, to the extent of all or part of the
 value of the property included  in  such  project  which  represents  an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project at the time of its acquisition by
 the  limited-profit  housing  company,  provided, however, that the real
 property in a project acquired for purposes of rehabilitation  shall  be
 exempt  to  the  extent  of  all  or  part  of the value of the property
 included in such project, and further provided that the amount  of  such
 taxes  to  be  paid  shall not be less than ten per centum of the annual
 shelter rent or  carrying  charges  of  such  project  except  that  for
 projects  located  or  to  be  located  in a city of a population of one
 million or more, [upon the consent of the local legislative body of  the
 municipality, the amount of such taxes to be paid may be set at not less
 than  (i)  the  taxes  payable with respect to the real property in such
 project with respect to the year  nineteen  hundred  seventy-three,  or,
 (ii)  if  such  project was not occupied in such year, not less than ten
 per centum of the annual shelter rent or carrying charges  first  estab-
 lished  pursuant  to subdivision one of section thirty-one of this arti-
 cle] THE AMOUNT OF SUCH TAXES SHALL BE NO MORE THAN ZERO PER  CENTUM  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11475-01-5
              

 A. 7987                             2
 
 THE  ANNUAL  SHELTER  RENT  OR CARRYING CHARGES OF THE PROJECT. UPON THE
 CONSENT OF THE LOCAL LEGISLATIVE BODY OF A MUNICIPALITY,  OTHER  THAN  A
 CITY  WITH  A POPULATION OF ONE MILLION OR MORE, IN WHICH THE PROJECT IS
 LOCATED,  THE  AMOUNT  OF  SUCH TAXES MAY BE FURTHER REDUCED TO ZERO PER
 CENTUM OR LESS OF THE ANNUAL SHELTER RENT OR  CARRYING  CHARGES  OF  THE
 PROJECT.  ANY  SUCH  GRANTED  CONSENT TO REDUCE THE AMOUNT OF SUCH TAXES
 SHALL EXPIRE EVERY TEN YEARS. IF SUCH AUTHORIZATION IS NOT RENEWED,  THE
 RATE  OF  TAXATION  SHALL  REVERT  TO  THE  LEVEL ESTABLISHED BEFORE THE
 CONSENT WAS GRANTED. Shelter rent shall mean the  total  rents  received
 from  the occupants of a project less the cost of providing to the occu-
 pants electricity, gas, heat and  other  utilities.  Total  rents  shall
 include rent supplements and subsidies received from the federal govern-
 ment,  the  state  or  a municipality on behalf of such occupants[,] but
 shall not include interest reduction payments  pursuant  to  subdivision
 (a) of section two hundred one of the Federal Housing and Urban Develop-
 ment  Act of nineteen hundred sixty-eight. The tax exemption shall oper-
 ate and continue so long as the mortgage loans of the company, including
 any additional mortgage loan the proceeds of which  are  used  primarily
 for  the  residential  portion  of the project, which additional loan is
 approved by the commissioner or the supervising agency, are outstanding.
   § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous-
 ing finance law, as amended by chapter 229  of  the  laws  of  1989,  is
 amended to read as follows:
   (c)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
 subdivision, the real property of a state urban development  corporation
 project  acquired,  owned, constructed, managed or operated by a company
 incorporated pursuant to the not-for-profit  corporation  law  and  this
 article  shall  be entitled to all the benefits provided by section four
 hundred twenty-two of the real property tax law. The real property of  a
 state  urban  development  corporation project, other than a state urban
 development corporation project acquired, owned, constructed, managed or
 operated by a company incorporated pursuant to the not-for-profit corpo-
 ration law and this article, shall be exempt from all local and  munici-
 pal  taxes, other than assessments for local improvements, to the extent
 of the value of the property included in such project as  represents  an
 increase over the assessed valuation of the real property, both land and
 improvements, acquired for the project on the date of its acquisition by
 the  limited-profit  housing  company,  provided that the amount of such
 taxes to be paid shall not be less than ten per  centum  of  the  annual
 shelter  rent  or  carrying charges of such project, as defined in para-
 graph (a) hereof, EXCEPT THAT IN A CITY WITH A POPULATION OF ONE MILLION
 OR MORE, THE AMOUNT OF SUCH TAXES SHALL BE NO MORE THAN ZERO PER  CENTUM
 OF  THE ANNUAL SHELTER RENT OR CARRYING CHARGES OF THE PROJECT. UPON THE
 CONSENT OF THE LOCAL LEGISLATIVE BODY OF THE MUNICIPALITY, OTHER THAN  A
 CITY  WITH  A POPULATION OF ONE MILLION OR MORE, IN WHICH THE PROJECT IS
 LOCATED, THE AMOUNT OF SUCH TAXES MAY BE FURTHER  REDUCED  TO  ZERO  PER
 CENTUM  OR  LESS  OF  THE ANNUAL SHELTER RENT OR CARRYING CHARGES OF THE
 PROJECT. ANY SUCH GRANTED CONSENT TO REDUCE THE  AMOUNT  OF  SUCH  TAXES
 SHALL  EXPIRE EVERY TEN YEARS. IF SUCH AUTHORIZATION IS NOT RENEWED, THE
 RATE OF TAXATION SHALL  REVERT  TO  THE  LEVEL  ESTABLISHED  BEFORE  THE
 CONSENT  WAS  GRANTED.  The  tax exemption shall operate and continue so
 long as the mortgage loans  of  such  limited  profit  housing  company,
 including  any  additional  mortgage loan the proceeds of which are used
 primarily for the residential portion of the project,  which  additional
 loan  is  approved  by  the  commissioner or the supervising agency, are
 outstanding and the project is continued to be operated  as  a  limited-
 A. 7987                             3
 
 profit housing project. If a state urban development corporation project
 qualifying  for  tax  exemption pursuant to this paragraph is sold, with
 the approval of the  commissioner,  to  another  limited-profit  housing
 company, such successor company shall be entitled to all the benefits of
 this paragraph. In the event that such sale is to a company incorporated
 pursuant  to  the  not-for-profit corporation law and this article, such
 successor company shall be entitled to  all  the  benefits  provided  by
 section four hundred twenty-two of the real property tax law.
   § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous-
 ing  finance  law,  as  amended  by  chapter 744 of the laws of 1977, is
 amended to read as follows:
   (d) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
 subdivision, when a project is financed with a mortgage loan pursuant to
 this article or article three of this chapter and (i) there is a partic-
 ipation,  new  loan  or investment pursuant to section twenty-three-b of
 this article or (ii) such mortgage loan is assigned, modified or  satis-
 fied  pursuant  to section twenty-three-a or forty-four-b or subdivision
 twenty-two-a of section six hundred fifty-four of this chapter, the real
 property of the project shall be exempt from  all  local  and  municipal
 taxes,  other  than assessments for local improvements, to the extent of
 the value of the real property included in such project which represents
 an increase over the assessed valuation of the real property, both  land
 and  improvements,  acquired for the project on the date of its original
 acquisition for the project by the original mortgagor under  a  mortgage
 loan pursuant to this article or article three of this chapter, provided
 that  the  amount  of  taxes to be paid on the project shall not be less
 than ten per centum of the annual shelter rent or  carrying  charges  of
 such  project,  as  defined in paragraph (a) of this subdivision, EXCEPT
 THAT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE  AMOUNT  OF
 SUCH  TAXES  SHALL BE NO MORE THAN ZERO PER CENTUM OF THE ANNUAL SHELTER
 RENT OR CARRYING CHARGES OF THE PROJECT. UPON THE CONSENT OF  THE  LOCAL
 LEGISLATIVE  BODY  OF  THE  MUNICIPALITY, OTHER THAN A CITY WITH A POPU-
 LATION OF ONE MILLION OR MORE, IN WHICH  THE  PROJECT  IS  LOCATED,  THE
 AMOUNT  OF  SUCH TAXES MAY BE FURTHER REDUCED TO ZERO PER CENTUM OR LESS
 OF THE ANNUAL SHELTER RENT OR CARRYING CHARGES OF THE PROJECT. ANY  SUCH
 GRANTED  CONSENT  TO  REDUCE THE AMOUNT OF SUCH TAXES SHALL EXPIRE EVERY
 TEN YEARS. IF SUCH AUTHORIZATION IS NOT RENEWED, THE  RATE  OF  TAXATION
 SHALL  REVERT  TO  THE LEVEL ESTABLISHED BEFORE THE CONSENT WAS GRANTED.
 Such tax exemption shall commence in each instance from  the  date  when
 the project becomes subject to a mortgage insured by the federal govern-
 ment  and  shall  operate  and  continue  so  long as a mortgage on such
 project is insured or held by the federal government or so long  as  the
 project  is thereafter owned by the federal government or so long as any
 residual indebtedness is outstanding, whichever is longer. When there is
 a participation, new loan or  investment  pursuant  to  section  twenty-
 three-b  of  this  article,  such  participation, new loan or investment
 shall be deemed to be the equivalent of a federally insured mortgage for
 purposes of this paragraph. Nothing contained in this paragraph shall be
 construed to limit or otherwise impair the  benefits  available  to  any
 company  eligible  for exemption from taxation pursuant to section thir-
 ty-one or section thirty-six-a of this  article,  section  four  hundred
 twenty-two  or  section  four hundred sixty-seven-c of the real property
 tax law, or section fifty-eight of the public housing law. The foregoing
 shall not be deemed to authorize any company to receive the benefits  of
 any  exemption  from  taxation  in  contravention  of  the provisions of
 section two of article eighteen of the constitution.
 A. 7987                             4
 
   § 4. Subdivision 4 of section 33 of the private housing  finance  law,
 as  amended  by  chapter  229 of the laws of 1989, is amended to read as
 follows:
   4.  Notwithstanding  the  provisions of subdivision one hereof, when a
 mutual company is organized under this article to facilitate the  acqui-
 sition  of  a  building  by  residents  thereof, the amount of local and
 municipal taxes, other than assessments for local  improvements,  to  be
 paid  on  the  real  property  included  in  such project, both land and
 improvements, shall not exceed twenty per centum of the  annual  shelter
 rent or carrying charges of such project, as defined in paragraph (a) of
 subdivision  one  hereof; provided, however, that where such acquisition
 of a building by residents thereof involves the financing  of  rehabili-
 tation  or other improvement as well as acquisition, upon the consent of
 the local legislative body of the municipality in which the  project  is
 located  the  amount  of such taxes may be further reduced provided that
 such amount shall not be less than ten per centum of the annual  shelter
 rent  or carrying charges of the project, as defined in paragraph (a) of
 subdivision one hereof; or the company may in lieu  of  requesting  such
 consent  apply for the benefits of the local law, if any, enacted pursu-
 ant to section four hundred eighty-nine of the real  property  tax  law.
 NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SUBDIVISION, IN A CITY WITH
 A POPULATION OF ONE MILLION OR MORE, THE AMOUNT OF SUCH TAXES  SHALL  BE
 NO  MORE  THAN  ZERO  PER  CENTUM OF THE ANNUAL SHELTER RENT OR CARRYING
 CHARGES OF THE PROJECT. UPON THE CONSENT OF THE LOCAL  LEGISLATIVE  BODY
 OF  THE MUNICIPALITY, OTHER THAN A CITY WITH A POPULATION OF ONE MILLION
 OR MORE, IN WHICH THE PROJECT IS LOCATED, THE AMOUNT OF SUCH  TAXES  MAY
 BE FURTHER REDUCED TO ZERO PER CENTUM OR LESS OF THE ANNUAL SHELTER RENT
 OR  CARRYING  CHARGES OF THE PROJECT. ANY SUCH GRANTED CONSENT TO REDUCE
 THE AMOUNT OF SUCH TAXES SHALL EXPIRE EVERY TEN YEARS. IF SUCH  AUTHORI-
 ZATION  IS  NOT  RENEWED, THE RATE OF TAXATION SHALL REVERT TO THE LEVEL
 ESTABLISHED BEFORE THE CONSENT WAS GRANTED. Such tax exemption, if  any,
 granted pursuant to this article shall operate and continue so long as a
 loan  made  under  this  article  or any subsequent loan approved by the
 commissioner or  the  supervising  agency  to  enhance  the  residential
 portion  of  the project and the project is continued to be operated for
 the purposes set forth in this article is outstanding.
   § 5. This act shall take effect immediately.