STATE OF NEW YORK ________________________________________________________________________ 6654 2025-2026 Regular Sessions IN ASSEMBLY March 6, 2025 ___________ Introduced by M. of A. LASHER -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to author- izing a reduction of taxes pursuant to shelter rent The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 1 of section 33 of the private 2 housing finance law, as amended by chapter 229 of the laws of 1989, is 3 amended to read as follows: 4 (a) Upon the consent of the local legislative body of any municipality 5 in which a project is or is to be located, the real property in a 6 project shall be exempt from local and municipal taxes, other than 7 assessments for local improvements, to the extent of all or part of the 8 value of the property included in such project which represents an 9 increase over the assessed valuation of the real property, both land and 10 improvements, acquired for the project at the time of its acquisition by 11 the limited-profit housing company, provided, however, that the real 12 property in a project acquired for purposes of rehabilitation shall be 13 exempt to the extent of all or part of the value of the property 14 included in such project, and further provided that the amount of such 15 taxes to be paid for projects located or to be located in a municipality 16 with a population of less than one million shall not be less than ten 17 per centum of the annual shelter rent or carrying charges of such 18 project [except], or such other amount less than ten per centum approved 19 by the local legislative body of such municipality, and further provided 20 that [for] projects located or to be located in a city of a population 21 of one million or more[, upon the consent of the local legislative body 22 of the municipality, the amount of such taxes to be paid may be set at 23 not less than (i) the taxes payable with respect to the real property in 24 such project with respect to the year nineteen hundred seventy-three, 25 or, (ii) if such project was not occupied in such year, not less than EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10198-02-5
A. 6654 2 1 ten per centum of the annual shelter rent or carrying charges first 2 established pursuant to subdivision one of section thirty-one of this 3 article] shall not be assessed. Shelter rent shall mean the total rents 4 received from the occupants of a project less the cost of providing to 5 the occupants electricity, gas, heat and other utilities. Total rents 6 shall include rent supplements and subsidies received from the federal 7 government, the state or a municipality on behalf of such occupants[,] 8 but shall not include interest reduction payments pursuant to subdivi- 9 sion (a) of section two hundred one of the Federal Housing and Urban 10 Development Act of nineteen hundred sixty-eight. The tax exemption shall 11 operate and continue so long as the mortgage loans of the company, 12 including any additional mortgage loan the proceeds of which are used 13 primarily for the residential portion of the project, which additional 14 loan is approved by the commissioner or the supervising agency, are 15 outstanding. 16 § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous- 17 ing finance law, as amended by chapter 229 of the laws of 1989, is 18 amended to read as follows: 19 (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 20 subdivision, the real property of a state urban development corporation 21 project acquired, owned, constructed, managed or operated by a company 22 incorporated pursuant to the not-for-profit corporation law and this 23 article shall be entitled to all the benefits provided by section four 24 hundred twenty-two of the real property tax law. The real property of a 25 state urban development corporation project, other than a state urban 26 development corporation project acquired, owned, constructed, managed or 27 operated by a company incorporated pursuant to the not-for-profit corpo- 28 ration law and this article, shall be exempt from all local and munici- 29 pal taxes, other than assessments for local improvements, to the extent 30 of the value of the property included in such project as represents an 31 increase over the assessed valuation of the real property, both land and 32 improvements, acquired for the project on the date of its acquisition by 33 the limited-profit housing company, provided that the amount of such 34 taxes to be paid for projects located or to be located in a municipality 35 with a population of less than one million shall not be less than ten 36 per centum of the annual shelter rent or carrying charges of such 37 project, as defined in paragraph (a) hereof, or such other amount less 38 than ten per centum approved by the local legislative body of such muni- 39 cipality, and further provided that projects located or to be located in 40 a city with a population of one million or more shall not be assessed. 41 The tax exemption shall operate and continue so long as the mortgage 42 loans of such limited profit housing company, including any additional 43 mortgage loan the proceeds of which are used primarily for the residen- 44 tial portion of the project, which additional loan is approved by the 45 commissioner or the supervising agency, are outstanding and the project 46 is continued to be operated as a limited-profit housing project. If a 47 state urban development corporation project qualifying for tax exemption 48 pursuant to this paragraph is sold, with the approval of the commission- 49 er, to another limited-profit housing company, such successor company 50 shall be entitled to all the benefits of this paragraph. In the event 51 that such sale is to a company incorporated pursuant to the not-for-pro- 52 fit corporation law and this article, such successor company shall be 53 entitled to all the benefits provided by section four hundred twenty-two 54 of the real property tax law.
A. 6654 3 1 § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous- 2 ing finance law, as amended by chapter 744 of the laws of 1977, is 3 amended to read as follows: 4 (d) Notwithstanding the provisions of paragraphs (a) and (b) of this 5 subdivision, when a project is financed with a mortgage loan pursuant to 6 this article or article three of this chapter and (i) there is a partic- 7 ipation, new loan or investment pursuant to section twenty-three-b of 8 this article or (ii) such mortgage loan is assigned, modified or satis- 9 fied pursuant to section twenty-three-a or forty-four-b or subdivision 10 twenty-two-a of section six hundred fifty-four of this chapter, the real 11 property of the project shall be exempt from all local and municipal 12 taxes, other than assessments for local improvements, to the extent of 13 the value of the real property included in such project which represents 14 an increase over the assessed valuation of the real property, both land 15 and improvements, acquired for the project on the date of its original 16 acquisition for the project by the original mortgagor under a mortgage 17 loan pursuant to this article or article three of this chapter, provided 18 that the amount of taxes to be paid on the project for projects located 19 or to be located in a municipality with a population of less than one 20 million shall not be less than ten per centum of the annual shelter rent 21 or carrying charges of such project, as defined in paragraph (a) of this 22 subdivision, or such other amount less than ten per centum approved by 23 the local legislative body of such municipality, and further provided 24 that projects located or to be located in a city with a population of 25 one million or more shall not be assessed. Such tax exemption shall 26 commence in each instance from the date when the project becomes subject 27 to a mortgage insured by the federal government and shall operate and 28 continue so long as a mortgage on such project is insured or held by the 29 federal government or so long as the project is thereafter owned by the 30 federal government or so long as any residual indebtedness is outstand- 31 ing, whichever is longer. When there is a participation, new loan or 32 investment pursuant to section twenty-three-b of this article, such 33 participation, new loan or investment shall be deemed to be the equiv- 34 alent of a federally insured mortgage for purposes of this paragraph. 35 Nothing contained in this paragraph shall be construed to limit or 36 otherwise impair the benefits available to any company eligible for 37 exemption from taxation pursuant to section thirty-one or section thir- 38 ty-six-a of this article, section four hundred twenty-two or section 39 four hundred sixty-seven-c of the real property tax law, or section 40 fifty-eight of the public housing law. The foregoing shall not be deemed 41 to authorize any company to receive the benefits of any exemption from 42 taxation in contravention of the provisions of section two of article 43 eighteen of the constitution. 44 § 4. Subdivision 4 of section 33 of the private housing finance law, 45 as amended by chapter 229 of the laws of 1989, is amended to read as 46 follows: 47 4. Notwithstanding the provisions of subdivision one hereof, when a 48 mutual company is organized under this article to facilitate the acqui- 49 sition of a building by residents thereof, the amount of local and 50 municipal taxes, other than assessments for local improvements, to be 51 paid on the real property included in such project, both land and 52 improvements, shall not exceed twenty per centum of the annual shelter 53 rent or carrying charges of such project, as defined in paragraph (a) of 54 subdivision one [hereof] of this section; provided, however, that where 55 such acquisition of a building by residents thereof involves the financ- 56 ing of rehabilitation or other improvement as well as acquisition, upon
A. 6654 4 1 the consent of the local legislative body of the municipality in which 2 the project is located, the amount of such taxes for projects located or 3 to be located in a municipality with a population of less than one 4 million may be further reduced provided that such amount shall not be 5 less than ten per centum of the annual shelter rent or carrying charges 6 of the project, as defined in paragraph (a) of subdivision one [hereof] 7 of this section, or such other amount less than ten per centum approved 8 by the local legislative body of such municipality; or the company may 9 in lieu of requesting such consent apply for the benefits of the local 10 law, if any, enacted pursuant to section four hundred eighty-nine of the 11 real property tax law. Notwithstanding any other provision of this 12 subdivision, projects located or to be located in a city with a popu- 13 lation of one million or more shall not be assessed. Such tax exemption, 14 if any, granted pursuant to this article shall operate and continue so 15 long as a loan made under this article or any subsequent loan approved 16 by the commissioner or the supervising agency to enhance the residential 17 portion of the project and the project is continued to be operated for 18 the purposes set forth in this article is outstanding. 19 § 5. This act shall take effect immediately.