§ 420-c. Exemption from local real property taxation of certain low
income housing accommodations in a city having a population of one
million or more. 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 limited liability company: (a) is
organized as a non-profit housing development fund company pursuant to
article eleven of the private housing finance law, 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,
or is a wholly-owned subsidiary of such a company or is a partnership 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
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 guaranteeing the provision of
housing accommodations for persons and families of low income; and (d)
is a participant in the federal low income housing tax credit program
established pursuant 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 agreement.

2. An exemption may be granted pursuant to this section only upon
application by the owner on a form prescribed by the commissioner or any
comparable form, which application shall be accepted by the assessor of
such city as provided in this subdivision and in the rules and
regulations promulgated pursuant to this section by the department of
housing preservation and development in such city. No such application
shall be accepted by the assessor unless accompanied by a certificate of
the department of housing preservation and development in such city
certifying the applicant's eligibility pursuant to this section.
Notwithstanding section three hundred two of this chapter, an exemption
granted pursuant to this section shall commence as of the effective date
of the regulatory agreement with the 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 regardless of when the application for such exemption is
approved. The department of housing preservation and development may
promulgate rules and regulations to carry out the provisions of this
section, and may require a reasonable filing fee in an amount provided
by such rules and regulations.

3. An exemption from local real property taxation pursuant to this
section shall be governed solely by subdivisions one and two of this
section if the application for such exemption is approved before the
effective date of this subdivision and shall be governed solely by
subdivision four of this section if the application for such exemption
is approved on or after the effective date of this subdivision. Any tax
exemption pursuant to subdivisions one and two of this section that is
in effect on the effective date of this subdivision shall continue in
accordance with the provisions of subdivisions one and two of this
section; provided, however, that any amendment to a regulatory agreement
on or after the effective date of this subdivision shall require a new
application for tax exemption pursuant to subdivision four of this
section. Eligible real property that receives exemption from local real
property taxation pursuant to this section at any time shall not
simultaneously receive exemption from or abatement of local real
property taxation pursuant to any other law.

4. (a) For the purposes of this subdivision, the following terms shall
have the following meanings:

(1) The term "persons and families of low income" shall have the
meaning set forth in section two of the private housing finance law.

(2) The term "tax credit program" shall mean the federal low-income
housing tax credit program established pursuant to section forty-two of
the internal revenue code of nineteen hundred eighty-six, as amended, or
any successor statute.

(3) The term "eligible real property" shall mean real property that
(i) provides housing accommodations for persons and families of low
income, and (ii) participates in or has participated in the tax credit
program.

(4) The term "charitable organization" shall mean (i) an 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 agency, or (ii) a corporation, partnership or limited
liability company wholly owned and wholly controlled by an 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 agency.

(5) The term "eligible entity" shall mean a corporation, partnership
or limited liability company at least fifty percent of the controlling
interest of which is held by a charitable organization.

(6) The term "eligible owner" shall mean one or more eligible entities
that holds (i) legal and beneficial title to eligible real property, or
(ii) a legal and beneficial leasehold interest with a term of not less
than thirty years in eligible real property.

(7) The term "regulatory agreement" shall mean a regulatory agreement
with or approved by the municipality that requires the provision of
housing accommodations for persons and families of low income, requires
that units currently or formerly assisted under the tax credit program
be rented in accordance with the income requirements of the tax credit
program, is recorded against the eligible real property, and binds all
parties in interest to the eligible real property and their respective
successors and assigns. A regulatory agreement may include such other
terms and conditions as the municipality shall determine, including, but
not limited to, provisions requiring payments in lieu of taxes.

(b) Notwithstanding any other provision in this subdivision to the
contrary, in a city having a population of one million or more, eligible
real property of an eligible owner that is subject to a regulatory
agreement shall be exempt from local real property taxation except as
may be otherwise provided in such regulatory agreement.

(c) Notwithstanding any provision of any other general or special
state or local law or charter, (1) with respect to eligible real
property that is eligible for exemption from local real property
taxation pursuant to this subdivision on the effective date of this
subdivision and that is receiving exemption from or abatement of local
real property taxation pursuant to any other law on the effective date
of this subdivision, an eligible owner may prospectively terminate such
other exemption or abatement upon entering into a new regulatory
agreement and the eligible real property shall thereafter be
prospectively entitled to exemption from local real property taxation
pursuant to this subdivision, and (2) with respect to eligible real
property that is eligible for exemption from local real property
taxation pursuant to this subdivision on the effective date of this
subdivision and that is not receiving any exemption from or abatement of
local real property taxation pursuant to subdivisions one and two of
this section or any other law on the effective date of this subdivision,
if an eligible owner enters into a new regulatory agreement, the
eligible real property shall thereafter by prospectively entitled to
exemption from local real property taxation pursuant to this
subdivision, and (3) with respect to eligible real property that is
eligible for an exemption from local real property taxation pursuant to
this subdivision on the effective date of this subdivision and that is
receiving exemption from local real property taxation pursuant to
subdivisions one and two of this section on the effective date of this
subdivision, an eligible owner may prospectively terminate such
exemption upon entering into a new regulatory agreement and the eligible
real property shall thereafter be prospectively entitled to exemption
from local real property taxation pursuant to this subdivision.

(d)(1) An exemption may be granted pursuant to this subdivision only
upon application by the eligible owner on a form prescribed by the
commissioner or any comparable form, which application shall be accepted
by the assessor of such city as provided in this subdivision and in such
rules as may be promulgated pursuant to this subdivision by the
department of housing preservation and development in such city. No such
application shall be accepted by the assessor unless accompanied by a
certificate of the department of housing preservation and development in
such city certifying the applicant's eligibility pursuant to this
subdivision.

(2) Notwithstanding section three hundred two of this chapter, an
exemption granted pursuant to this subdivision shall commence as of the
effective date of the regulatory agreement, regardless of when the
application for such exemption is approved, and shall terminate upon the
expiration or termination of such regulatory agreement. Notwithstanding
any provision of this subdivision to the contrary, if there is a default
pursuant to the regulatory agreement, and such default remains uncured
beyond any period for such cure specified in the regulatory agreement,
the municipality may terminate such exemption or suspend such exemption
until such default is cured.

(3) The department of housing preservation and development in such
city may promulgate rules to carry out the provisions of this
subdivision, and may require a reasonable filing fee in an amount
provided by such rules.