* § 421-d. Exemption of multiple dwellings financed by the New York
state housing finance agency from local taxation. 1. The local
legislative body of any city, town or village having a population of
less than one million is hereby authorized and empowered to adopt and
amend a local law to provide that any new or rehabilitated housing
development, as defined in section forty-two of the private housing
finance law, subject to a mortgage, the loan for which was made or
financed by notes, bonds or other obligations of the New York state
housing finance agency, the interest on which is exempt from taxation
pursuant to the Internal Revenue Code of 1954, as amended, after the
adoption of such local law shall be exempt from taxation as provided by
such local law.

2. (a) Such local law may provide that such eligible property shall be
exempt from all taxes imposed by a municipal corporation, including
those imposed by or on behalf of a school district, other than special
assessments and special ad valorem levies, during construction or
rehabilitation, but for no longer than three years.

(b) Such local law may also provide that the eligible property shall
be exempt upon the conclusion of the exemption period authorized by
paragraph (a) of this subdivision, for as long as construction or
rehabilitation continues and, thereafter, for so long as such mortgage
is outstanding and the housing development, as defined in section
forty-two of the private housing finance law, is used for residential
unit purposes; provided, that the exemption authorized by this
subdivision shall be for a period not to exceed fifteen years in the
aggregate after the conclusion of the exemption authorized by paragraph
(a) of this subdivision, and shall not exceed the following limitations:
three years of full exemption, followed by three years of exemption from
eighty percent of the assessed value of such property, followed by three
years of exemption from sixty percent of the assessed value of such
property, followed by three years of exemption from forty percent of the
assessed value of such property, followed by three years of exemption
from twenty percent of the assessed value of such property; and provided
that taxes shall be paid during any such period after the taxable status
date immediately following the completion of construction or
rehabilitation at least in the amount of the taxes paid on such land and
improvements thereon during the fiscal year preceding the commencement
of such construction or rehabilitation and that the exemption from taxes
shall not be availed of concurrently under any other law.

* NB Repealed July 23, 2025