§ 421-e. Exemption of cooperative, condominium, homesteading and
rental projects from local taxation. The local legislative body of any
city, town or village is hereby authorized and empowered to adopt and
amend a local law to provide that any cooperative, condominium,
homesteading or rental project which receives payments, grants or loans
pursuant to article eighteen of the private housing finance law or any
new construction project which receives payments, grants or loans
pursuant to article nineteen of the private housing finance law shall be
exempt from taxation as provided in such local law. Such local law may
provide that such eligible property shall be exempt from all or any
portion of the taxes imposed by a municipality, including those imposed
by a school district, other than assessments for local improvements for
a period not to exceed twenty years in the aggregate after the taxable
status date immediately following the completion thereof, calculated not
to exceed the following exemptions: twelve years of full exemption
followed by two years of exemption from eighty percent of such taxation,
followed by two years of exemption from sixty percent of such taxation,
followed by two years of exemption from forty percent of such taxation,
followed by two years of exemption from twenty percent of such taxation;
provided that the tax exemption authorized by this section shall be in
addition to any other tax exemption or abatement authorized by law, and
provided further, however, that in the event a cooperative, condominium,
homesteading or rental project ceases to be subject to one or more
provisions of article eighteen of the private housing finance law
pursuant to the provisions of paragraph (c) of subdivision six-a of
section eleven hundred two of such law, any tax exemption authorized
pursuant to this section with respect to the eligible property of such
project shall terminate.