STATE OF NEW YORK ________________________________________________________________________ 9581 IN ASSEMBLY January 23, 2018 ___________ Introduced by M. of A. DAVILA -- read once and referred to the Committee on Real Property Taxation 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 15 to read as follows: 3 15. Real property owned by a housing development fund company formed 4 pursuant to article eleven of the private housing finance law and 5 section four hundred two of the not-for-profit corporation law which 6 operates as a community land trust as defined in section two hundred 7 thirteen of the housing and community development act of nineteen 8 hundred ninety-two, exclusively for the benefit of persons or families 9 of low income as defined in subdivision ten of section twelve of the 10 private housing finance law, and separately assessed improvements owned 11 by the residents thereof, shall be exempt from taxation and exempt from 12 special ad valorem levies and special assessments to the extent provided 13 in section four hundred ninety of this chapter. The supervising agency 14 of the community land trust shall require an annual certification from 15 the community land trust that the real property land is used exclusively 16 for the benefit of persons or families of low income. The supervising 17 agency may require the community land trust to enter into a regulatory 18 agreement, which shall be co-terminus with any ground lease granted by 19 the community land trust to any qualifying owner of improvements there- 20 on. Notwithstanding the foregoing, any community land trust formed 21 pursuant to section four hundred two of the not-for-profit corporation 22 law and which is located in a city with a population of less than one 23 million shall also be eligible for benefits under this subdivision. 24 § 2. Section 422 of the real property tax law is amended by adding a 25 new subdivision 3 to read as follows: 26 3. Exemption of income-restricted homeownership property, Income-res- 27 tricted homeownership property, including but not limited to a single or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14069-01-7

A. 9581 2 1 two-family home or multiple dwelling, which is owned by and operated 2 exclusively for the benefit of persons or families of low income as 3 defined in subdivision ten of section twelve of the private housing 4 finance law and is subject to the terms of a regulatory agreement with a 5 supervising agency, which shall be the city of New York acting by and 6 through the department of housing preservation and development for a 7 community land trust located in the city of New York, or the New York 8 state division of housing and community renewal for any community land 9 trust located outside of the city of New York, for a term of at least 10 thirty years, or is located on any community land trust formed pursuant 11 to section four hundred two of the not-for-profit corporation law and 12 which is located in a city or municipality with a population of less 13 than one million without a regulatory agreement with a supervising agen- 14 cy, which is not otherwise fully exempt from taxation, shall be exempt 15 from taxation and exempt from special ad valorem levies and special 16 assessments to the extent provided in section four hundred ninety of 17 this article, provided that a portion of the assessed value of such 18 property shall be taxable in an amount that will yield a total tax for 19 all purposes at the tax rates in effect on the taxable status date of 20 the assessment roll or rolls on which such property is assessed that 21 shall not exceed either: (a) twenty per centum of the carrying charges 22 of such income-restricted homeownership property; or (b) the maximum 23 resale price of the single or two-family home or multiple dwelling, as 24 required by either a regulatory agreement with the supervising agency or 25 pursuant to the restrictions set forth in the ground lease between a 26 community land trust and the owner of such single or two-family home or 27 multiple dwelling. The taxable assessed value of any single or two-fami- 28 ly home or multiple dwelling which is subject to to tax rate based upon 29 twenty per centum of the carrying charges if such income-restricted 30 homeownership property shall be reassessed upon transfer or sale of such 31 income-restricted homeownership property. In the event such income-res- 32 tricted homeownership property is not transferred or sold for a period 33 of ten years or more, the assessor is hereby authorized to revalue or 34 update the assessment of such income-restricted homeownership property. 35 If the total assessed value of the real property for which such 36 exemption has been granted increases or decreases by more than twenty 37 percent as the result of a revaluation or update of assessments the 38 assessor shall increase or decrease the amount of the taxable assessed 39 value on the roll first reflecting such change in level or revaluation 40 by multiplying the amount of such taxable assessed value by the change 41 in level of assessment factor. If the change in level of assessment 42 factor is determined after the verification and filing of the assessment 43 roll, the assessor shall certify the amount of exemption as recomputed 44 pursuant to this paragraph to the local officers having custody and 45 control of the roll, and such local officers are hereby directed and 46 authorized to enter the recomputed exemption certified by the assessor 47 on the roll. On the assessment roll next following such revaluation or 48 update the taxable assessed valuation shall be computed based on the tax 49 rates in effect on the taxable status date as hereinabove provided. The 50 division of housing and community renewal shall be authorized to promul- 51 gate suitable rules and regulations to carry out the provisions of this 52 subsection. 53 § 3. This act shall take effect immediately and shall apply to all 54 assessment rolls published after the date this act shall have become a 55 law.