Authorizes the CDCLI Housing Development Corporation to retroactively apply for a real property tax exemption

1 Co-sponsor

• Kenneth P. LaValle

Title of bill

An act to authorize the CDCLI Housing Development Fund Corporation to retroactively apply for a real property tax exemption for certain property in the town of Brookhaven, county of Suffolk

Purpose or general idea of the bill

To allow a retroactive application for real property tax exemption for the CDCLI Housing Development Fund Corporation, a not-for-profit corporation, for certain real property owned in the town of Brookhaven, Suffolk County.

Summary of provisions

Section 1 of the bill would authorize the assessor of the town of Brookhaven, upon approval of the town board, to accept an application for exemption from real property taxes as if made pursuant to §420-a of the Real Property Tax Law. If satisfied that CDCLI Housing Development Fund Corporation would otherwise have been entitled to said exemption, the assessor, upon approval of the town board may, in his or her sole discretion, provide for a refund or cancel all remaining unpaid taxes, interest, related fines and penalties.

Justification

CDCLI Housing Development Fund Corporation is an affiliate of Community Development Corporation of Long Island and is a 501(c)3 entity organized under Article 11 of the New York Private Housing Finance Law. CDCLI is committed to assisting families and small businesses with services that support housing and economic development. Since 1969, CDCLI has assisted more than 40,000 Long Islanders and invested more than $270 million in their communities.

In 2002 and 2003 the CDCLI purchased ten single family homes scattered throughout Brookhaven. The houses were purchased with the financial assistance of federal grants to provide rental housing for homeless and disabled families. The corporation has restricted rents and a twenty year obligation to house this vulnerable population. Each house carries a mortgage with a financial institution. For the first time in FY2008 they are projecting a deficit in operating these houses. The reason for this is that rents are not rising as fast as their expenses and they expect that trend to continue throughout the twenty year contract obligation. In order to continue to own and operate the ten houses, CDCLI has made the decision to apply for a property tax exemption available under the Real Property Tax Law.

CDCLI Housing Development Fund Corporation, a not-for-profit organization pursuant to §420a of the Real Property Tax Law, acquired title to the above-mentioned parcels of property and would otherwise be entitled to a real property tax exemption on those parcels of property if the corporation filed an application for the exemption on or before the appropriate taxable status date. It is intended by this bill to ameliorate the hardship that will be suffered by CDCLI Housing Development Fund Corporation if it is required to pay the property taxes due as described above.

Legislative history

2008: Passed Senate/Assembly Real Property Taxation Cmte.

Fiscal implications

None.

Effective date

This act shall take effect immediately.