What's happening
This bill amends property tax exemption laws to bar for-profit entities from controlling low-income housing projects in New York City.
Why it matters
Closes a tax exemption loophole by explicitly prohibiting for-profit entities from establishing or controlling organizations that seek property tax breaks for low-income housing projects. this aims to ensure that only true non-profits benefit, targeting concerns about profit-driven abuse of affordable housing policy.
Tightens oversight by requiring that "charitable organizations" and "eligible entities" involved in such projects are not established or controlled by for-profit actors. this could impact existing partnerships or business models that mix for-profit and non-profit interests, potentially changing who can participate in and profit from affordable housing development in New York City.
Raises the minimum non-profit ownership threshold for partnerships or LLCs to 51% (from 50%). a subtle but meaningful change that ensures non-profits maintain majority control, further reducing the potential for for-profit influence over housing projects benefiting from tax exemptions.
May affect the pace and structure of low-income housing development. by narrowing eligibility for tax exemptions, possibly leading to fewer for-profit/non-profit hybrid projects, but potentially increasing public trust that tax benefits are being used as intended to support affordable housing.
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Who cares
Headline styles
Tax Break for Low-Income Housing
Plain English, a few words. Used as the page title.
Sponsors
10 Co-sponsors
1 Multi-sponsor
History
- Referred to real property taxation
- Referred to real property taxation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Taxes on Low-Income Housing
In Senate Committee · Cities · Sponsor Tony Avella
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3789
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. BICHOTTE -- read once and referred to the Committee on Real Property Taxation
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 420-c of the real property tax law, as amended by chapter 104 of the laws of 1999, is amended to read as follows:
1. In a city having a population of one million or more, real property owned by a corporation, partnership or limited liability company formed for the purpose of providing housing accommodations for persons and families of low income as defined in section two of the private housing finance law and used for such purpose, shall be exempt from local real property taxation, provided that such corporation, partnership or limited liability company: (a) is organized as a non-profit housing development fund company pursuant to article eleven of the private housing finance law and is not established or controlled by a for-profit entity, or is a non-profit housing corporation as defined in article eleven of the private housing finance law which is not incorporated as a housing development fund company as defined in article eleven of the private housing finance law and is not established or controlled by a for-profit entity, or is a wholly-owned subsidiary of such a company or is a partnership or limited liability company the controlling interest of which is held by such a company or corporation or by a wholly owned subsidiary of such a company or by a corporation sponsored or formed by such a company or corporation; and (b) has received a loan from a municipality, the state or the housing trust fund corporation established pursuant to section forty-five-a of the private housing finance law or any successor corporation; and (c) enters into a regulatory agreement with the munici-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01265-01-7
A. 3789 2
pality, the state or the housing trust fund corporation established pursuant to section forty-five-a of the private housing finance law or any successor corporation guaranteeing the provision of housing accommodations for persons and families of low income; and (d) is a participant in the federal low income housing tax credit program established pursuant to section forty-two of the internal revenue code of nineteen hundred eighty-six, as amended. Any exemption pursuant to this section shall expire upon the expiration or termination of the regulatory agreement.
§ 2. Subparagraphs 4 and 5 of paragraph (a) of subdivision 4 of section 420-c of the real property tax law, subparagraph 4 as added by chapter 522 of the laws of 2004 and subparagraph 5 as amended by chapter 526 of the laws of 2004, are amended to read as follows:
(4) The term "charitable organization" shall mean (i) an entity, not established or controlled by a for-profit entity, formed for purposes that include providing housing accommodations for persons and families of low income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute, from the United States Internal Revenue Service, or any successor agency, or (ii) a corporation, partnership or limited liability company wholly owned and wholly controlled by an entity, not established or controlled by a for-profit entity, formed for purposes that include providing housing accommodations for persons and families of low income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute, from the United States Internal Revenue Service, or any successor agency.
(5) The term "eligible entity" shall mean a corporation, partnership or limited liability company at least [fifty] fifty-one percent of the controlling interest of which is held by a charitable organization.
§ 3. This act shall take effect immediately and shall apply to all projects approved on or after the date on which this act shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.