Extends the real property tax exemption afforded to not-for-profit corporations to real property housing aged persons of moderate or middle income

Title of bill

An act to amend the real property tax law, in relation to the real property tax exemption for not-for-profit housing corporations

Purpose

To provide tax exemptions for certain not-far-profit organization to help build affordable assisted living facilities.

Summary of provisions

Real Property Tax Law §422 (1)(a) is amended to include the following language: "...or owned by a not-for-profit corporation organized pursuant to the not-for-profit Corporation Law, used exclusively to provide housing for aged person of moderate or middle income who require assistance with at least one instrumental activity of daily living and some supportive services, including but not limited to congregate meals; access to medical assistance; security; housekeeping; and other incidentals..."

Justification

Assisted living permits seniors to remain in a homelike setting characterized by a mixture of independence with assistance. Assisted living combines the familiarity and independence of one's own home with an array of on-site services, including housekeeping, meal preparation, access to medical care, transportation and recreation. It offers a far less restrictive alternative to nursing home living. Assisted living is provided for those seniors who would require assistance with at least one Instrumental Activity of Daily Living (IADL) - more complex functional abilities required for independent community living which includes, but is not limited to, preparing meals, laundering clothes, using the telephone, using public transportation, driving, shopping, taking medications and money management."

However, the costs associated with assisted living makes it available to only a small percentage of the senior population. The high cost of land acquisition and construction, as well as the cost of providing services associated with assisted living, put assisted living beyond the financial reach of most seniors. The goal is to help build facilities that are affordable to middle income seniors who comprise a large portion of the 3.2 million seniors that reside in New York State.

The challenge to building affordable assisted living facilities is to maximize and utilize all methods of keeping the costs as low as possible. One of the key ways to keep the costs down is through various real estate tax exemptions. At present, there are no tax exemptions that can be utilized by not-for-profits that would assist them in this area including the Real Property Tax Law 420A.421A.

Legislative history

2001-02 A.4886 Ways & Means S.2614 Housing 2003-04 A.6903 Ways & Means S.3783 Housing 2005-06 A.1978 Ways & Means S.1049 Housing

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.