STATE OF NEW YORK
________________________________________________________________________
3469--B
2019-2020 Regular Sessions
IN SENATE
February 7, 2019
___________
Introduced by Sens. MONTGOMERY, ADDABBO, BENJAMIN, COMRIE, JACKSON,
LITTLE, SALAZAR -- read twice and ordered printed, and when printed to
be committed to the Committee on Local Government -- recommitted to
the Committee on Local Government in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
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 17 to read as follows:
3 17. (a) For the purposes of this subdivision, "community land trust"
4 shall mean a nonprofit corporation organized pursuant to section
5 501(c)(3) of the U.S. internal revenue code that satisfies the following
6 criteria:
7 (i) such nonprofit corporation's primary purpose is the creation and
8 maintenance of permanently affordable single-family or multi-family
9 residences;
10 (ii) all dwellings and units located on land owned by such nonprofit
11 corporation is sold to a qualified owner to be occupied as the qualified
12 owner's primary residence or rented to persons or families of low income
13 as defined in subdivision ten of section twelve of the private housing
14 finance law; and
15 (iii) the land owned by the nonprofit corporation, on which a dwelling
16 or unit sold to a qualified owner is situated, is leased by such corpo-
17 ration to the qualified owner for the convenient occupation and use of
18 such dwelling or unit for a renewable term of ninety-nine years.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06368-08-0
S. 3469--B 2
1 (b) Any land owned by a community land trust as defined in paragraph
2 (a) of this subdivision and separately assessed improvements owned by
3 the residents thereof, shall be exempt from taxation and exempt from
4 special ad valorem levies and special assessments to the extent provided
5 in section four hundred ninety of this article. The supervising agency
6 may require the community land trust to enter into a regulatory agree-
7 ment, which shall be co-terminus with any ground lease granted by the
8 community land trust to any qualifying owner of improvements thereon.
9 Notwithstanding the foregoing, any community land trust formed pursuant
10 to section four hundred two of the not-for-profit corporation law and
11 which is located in a city or municipality with a population of less
12 than one million shall also be eligible for benefits under this subdivi-
13 sion.
14 § 2. Section 422 of the real property tax law is amended by adding a
15 new subdivision 3 to read as follows:
16 3. Exemption of income-restricted homeownership property. Income-res-
17 tricted homeownership property, including but not limited to a single or
18 two-family home or multiple dwelling, which is owned by and operated
19 exclusively for the benefit of persons or families of low income as
20 defined in subdivision ten of section twelve of the private housing
21 finance law that is subject to the terms of a regulatory agreement with
22 a supervising agency, which shall be the city of New York acting by and
23 through the department of housing preservation and development for a
24 community land trust located in the city of New York, or the New York
25 state division of housing and community renewal for any community land
26 trust located outside of the city of New York, for a term of at least
27 thirty years, or is located on any community land trust as defined in
28 paragraph (a) of subdivision seventeen of section four hundred twenty-a
29 of this title formed pursuant to section four hundred two of the not-
30 for-profit corporation law and which is located in a city or munici-
31 pality with a population of less than one million without a regulatory
32 agreement with a supervising agency, which is not otherwise fully exempt
33 from taxation, shall be assessed based upon the resale and rent
34 restrictions set forth in the ground lease when determining the taxable
35 value of such income-restricted homeownership property. The department
36 shall be authorized to promulgate suitable rules and regulations to
37 carry out the provisions of this subdivision. Notwithstanding the
38 provisions of this subdivision, any local assessor that currently
39 employs a method of property assessment and taxation for any income-res-
40 tricted homeownership property as of the effective date of the chapter
41 of the laws of two thousand twenty that added this subdivision that
42 would result in a lesser tax burden for such income-restricted homeowner
43 shall be authorized to continue to employ such method as if fully
44 authorized by this subdivision. Only a person or entity that owns the
45 improvements both legally and beneficially shall qualify for an
46 exemption under this subdivision.
47 § 3. This act shall take effect immediately and shall apply to all
48 assessment rolls published after the date this act shall have become a
49 law.