Bill Text: NY S03469 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to tax exemptions for community land trusts and income-restricted homeownership property.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2020-03-11 - PRINT NUMBER 3469B [S03469 Detail]
Download: New_York-2019-S03469-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3469--B 2019-2020 Regular Sessions IN SENATE February 7, 2019 ___________ Introduced by Sens. MONTGOMERY, ADDABBO, BENJAMIN, COMRIE, JACKSON, LITTLE, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- recommitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to tax exemptions for community land trusts and income-restricted homeownership proper- ties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 420-a of the real property tax law is amended by 2 adding a new subdivision 17 to read as follows: 3 17. (a) For the purposes of this subdivision, "community land trust" 4 shall mean a nonprofit corporation organized pursuant to section 5 501(c)(3) of the U.S. internal revenue code that satisfies the following 6 criteria: 7 (i) such nonprofit corporation's primary purpose is the creation and 8 maintenance of permanently affordable single-family or multi-family 9 residences; 10 (ii) all dwellings and units located on land owned by such nonprofit 11 corporation is sold to a qualified owner to be occupied as the qualified 12 owner's primary residence or rented to persons or families of low income 13 as defined in subdivision ten of section twelve of the private housing 14 finance law; and 15 (iii) the land owned by the nonprofit corporation, on which a dwelling 16 or unit sold to a qualified owner is situated, is leased by such corpo- 17 ration to the qualified owner for the convenient occupation and use of 18 such dwelling or unit for a renewable term of ninety-nine years. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06368-08-0S. 3469--B 2 1 (b) Any land owned by a community land trust as defined in paragraph 2 (a) of this subdivision and separately assessed improvements owned by 3 the residents thereof, shall be exempt from taxation and exempt from 4 special ad valorem levies and special assessments to the extent provided 5 in section four hundred ninety of this article. The supervising agency 6 may require the community land trust to enter into a regulatory agree- 7 ment, which shall be co-terminus with any ground lease granted by the 8 community land trust to any qualifying owner of improvements thereon. 9 Notwithstanding the foregoing, any community land trust formed pursuant 10 to section four hundred two of the not-for-profit corporation law and 11 which is located in a city or municipality with a population of less 12 than one million shall also be eligible for benefits under this subdivi- 13 sion. 14 § 2. Section 422 of the real property tax law is amended by adding a 15 new subdivision 3 to read as follows: 16 3. Exemption of income-restricted homeownership property. Income-res- 17 tricted homeownership property, including but not limited to a single or 18 two-family home or multiple dwelling, which is owned by and operated 19 exclusively for the benefit of persons or families of low income as 20 defined in subdivision ten of section twelve of the private housing 21 finance law that is subject to the terms of a regulatory agreement with 22 a supervising agency, which shall be the city of New York acting by and 23 through the department of housing preservation and development for a 24 community land trust located in the city of New York, or the New York 25 state division of housing and community renewal for any community land 26 trust located outside of the city of New York, for a term of at least 27 thirty years, or is located on any community land trust as defined in 28 paragraph (a) of subdivision seventeen of section four hundred twenty-a 29 of this title formed pursuant to section four hundred two of the not- 30 for-profit corporation law and which is located in a city or munici- 31 pality with a population of less than one million without a regulatory 32 agreement with a supervising agency, which is not otherwise fully exempt 33 from taxation, shall be assessed based upon the resale and rent 34 restrictions set forth in the ground lease when determining the taxable 35 value of such income-restricted homeownership property. The department 36 shall be authorized to promulgate suitable rules and regulations to 37 carry out the provisions of this subdivision. Notwithstanding the 38 provisions of this subdivision, any local assessor that currently 39 employs a method of property assessment and taxation for any income-res- 40 tricted homeownership property as of the effective date of the chapter 41 of the laws of two thousand twenty that added this subdivision that 42 would result in a lesser tax burden for such income-restricted homeowner 43 shall be authorized to continue to employ such method as if fully 44 authorized by this subdivision. Only a person or entity that owns the 45 improvements both legally and beneficially shall qualify for an 46 exemption under this subdivision. 47 § 3. This act shall take effect immediately and shall apply to all 48 assessment rolls published after the date this act shall have become a 49 law.
