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- Referred to cities
Companion bill
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Exempts certain low income housing accommodations from local real property taxation in N.Y. city
In Assembly Committee · Real Property Taxation · Sponsor James F. Brennan
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to exemptions from local real property taxation of certain low income housing accommodations in a city with a population of one million or more
Purpose or general idea of bill
This bill amends the New York State Real Property Tax Law section 420-c to (1) allow tax exemptions for only those entities where the non-profit has 51% control, instead of 50% control as is written in current law and (2) limit the entities eligible for real property tax exemption to exclude those that are established by a for-profit entity or are a subsidiary of a for-profit corporation, partnerships or limited liability company.
Justification
The current real property tax law specifies four criteria for tax the real property tax exemption: (1) the entity must be organized to provide housing to low-income people, and hold a 501c(3) or 501c(4) exemption; (2) the project must receive Low-Income Housing Tax-Credits; (3) the project must have a regulatory agreement with a government entity, and the agreement must indicate that at least 70% of the units are restricted to 60% AMI or lower, and (4) the project must have taken out a loan from a government entity.
Under the current statute, for-profit developers are able to set up non-profits that are owned and controlled by the for-profit for the purpose of qualifying for the 420-c benefit. Further, under existing law, a non-profit must only have 50% of control of an entity in order to qualify for the abatement, often leaving the non-profit with no over-sight control of the Joint Venture Agreements.
The property tax abatement, when limited only to non-profit development corporations, allows for Community Development Corporations to submit more competitive bids and lower operating costs, providing greater benefits to the community. When limited only to non-profit developers, CDC's are better able to compete, greatly improving the overall quality of low-income housing in the city.
Prior legislative history
A10660 of 2012 - In Real Property Tax
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.