§ 422. Not-for-profit housing companies. 1. (a) Real property owned by
a not-for-profit corporation organized pursuant to the not-for-profit
corporation law and the provisions of article two of the private housing
finance law, used exclusively to provide housing and auxiliary
facilities for faculty members, students, employees, nurses, interns,
resident physicians, researchers and other personnel and their immediate
families in attendance or employed at colleges, universities,
educational institutions, child care institutions, hospitals and medical
research institutes, or for handicapped or aged persons of low income,
or owned by non-profit nursing home companies organized pursuant to the
not-for-profit corporation law and the provisions of article
twenty-eight-A of the public health law, used exclusively to provide
facilities for nursing care to sick, invalid, infirm, disabled or
convalescent persons of low income, or to provide health-related service
as defined in article twenty-eight of the public health law to persons
of low income, or any combination of the foregoing, and in addition
thereto, to provide nursing care and health-related service, or either
of them, to persons of low income who are not occupants of the project,
or owned by housing development fund companies organized pursuant to the
not-for-profit corporation law and article eleven of the private housing
finance law, used exclusively to provide housing for handicapped or aged
persons of low income, and financed by a federally-aided mortgage as
defined in said article eleven, or owned by companies organized pursuant
to the not-for-profit corporation law and the provisions of article
seventy-five of title E of the mental hygiene law, used exclusively to
provide care, treatment, training, education and residential
accommodations for operation as hostels for people with mental illness
or developmental disabilities, or owned by companies organized pursuant
to the membership corporations law and the provisions of article seven-A
of the private housing finance law, used exclusively to provide
programs, services and other facilities for the aging, shall be exempt
from taxation and exempt from special ad valorem levies and special
assessments to the extent provided in section four hundred ninety of
this chapter, provided, however, that in a city having a population of
one million or more real property owned by any such corporation which is
to provide housing accommodations, substantially all of which are or are
to be assisted by rent subsidies made or to be made available by the
Federal government pursuant to a contract under section eight of the
United States Housing Act of nineteen hundred thirty-seven, as amended,
or pursuant to a project rental assistance contract under section two
hundred two of the United States Housing Act of nineteen hundred
fifty-nine, as amended, or pursuant to a project rental assistance
contract under section eight hundred eleven of the National Affordable
Housing Act of nineteen hundred ninety, as amended, shall from and after
the commencement of construction be subject to taxation or exempt
therefrom to the extent approved by a municipality acting through its
local legislative body, as such local legislative body is defined in
subdivision twelve of section two of the private housing finance law. No
such corporation or company shall pay a dividend on any of its stock or
pay interest on any of its debentures. Provided further, however, in a
county having a population of one million or more and having not more
than three towns within such county, real property owned by housing
development fund companies organized pursuant to the not-for-profit
corporation law and article eleven of the private housing finance law,
used exclusively to provide housing for handicapped or aged persons of
low income, and financed by a federally-aided mortgage as defined in
said article eleven shall from and after the commencement of
construction be subject to taxation or exempt therefrom to the extent
approved by a municipality acting through its local legislative body, as
such local legislative body is defined in subdivision twelve of section
two of the private housing finance law. Any tax payments and/or payments
in lieu of taxes made to a municipality pursuant to the preceding
sentence shall not be passed through nor become the liability of any of
the occupants of such property.

(b) If any portion of such real property of such corporation is not
used exclusively for housing of those persons set forth in paragraph a
of this section but is leased or otherwise used for purposes pursuant to
article two of the private housing finance law, such portion, provided
it does not exceed ten per centum of the total, shall be subject to such
limited exemption as is authorized pursuant to article two of the
private housing finance law, and the remaining portion only shall be
fully exempt. If any portion of the real property of such corporation in
excess of ten per centum of the total is leased or otherwise used for
housing pursuant to article two of the private housing finance law, the
total property shall be subject to such limited exemption as is
authorized pursuant to article two of the private housing finance law.
Real property exempt from taxation pursuant to this paragraph shall also
be exempt from special ad valorem levies and special assessments to the
extent provided in section four hundred ninety of this chapter.

(c) In real property used in part for handicapped or aged persons of
low income priority and preference in the rental of such real property
for purposes not specified in paragraph a shall be given to a family of
a person legally responsible for the care of a handicapped or an aged
person residing in such real property. This preference and priority
shall apply to only one such family for each handicapped or aged tenant.

2. (a) The exemption provided in paragraphs (a) and (b) of subdivision
one of this section shall be upon condition that the property owned by
such corporation shall upon dissolution vest in such college,
university, educational institution, hospital, medical research
institute, child care institution, or other not-for-profit corporation,
if such college, university, educational institution, hospital, medical
research institution, child care institution, or other not-for-profit
corporation is exempt from taxation pursuant to the provisions of
section four hundred twenty-a or four hundred twenty-b of this article
and if no part of the net earnings of such college, university,
educational institution, hospital, medical research institute, child
care institution, or other not-for-profit corporation shall inure to the
benefit of any private individual.

(b) In the event that such college, university, educational
institution, hospital, medical research institute, child care
institution, or other not-for-profit corporation is not otherwise exempt
from taxation, title to the property shall nevertheless vest therein,
but only upon payment to the municipality of a sum equal to the total of
all accrued taxes, levies and assessments from which such property has
been exempt under the provisions of this section.