STATE OF NEW YORK ________________________________________________________________________ 7123 2025-2026 Regular Sessions IN SENATE April 1, 2025 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing finance law, in relation to 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 shall not be less than ten per centum of the annual 16 shelter rent or carrying charges of such project except that for 17 projects located or to be located in a city of a population of one 18 million or more, [upon the consent of the local legislative body of the 19 municipality, the amount of such taxes to be paid may be set at not less 20 than (i) the taxes payable with respect to the real property in such 21 project with respect to the year nineteen hundred seventy-three, or, 22 (ii) if such project was not occupied in such year, not less than ten 23 per centum of the annual shelter rent or carrying charges first estab- 24 lished pursuant to subdivision one of section thirty-one of this arti- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11475-01-5
S. 7123 2 1 cle] the amount of such taxes shall be no more than zero per centum of 2 the annual shelter rent or carrying charges of the project. Upon the 3 consent of the local legislative body of a municipality, other than a 4 city with a population of one million or more, in which the project is 5 located, the amount of such taxes may be further reduced to zero per 6 centum or less of the annual shelter rent or carrying charges of the 7 project. Any such granted consent to reduce the amount of such taxes 8 shall expire every ten years. If such authorization is not renewed, the 9 rate of taxation shall revert to the level established before the 10 consent was granted. Shelter rent shall mean the total rents received 11 from the occupants of a project less the cost of providing to the occu- 12 pants electricity, gas, heat and other utilities. Total rents shall 13 include rent supplements and subsidies received from the federal govern- 14 ment, the state or a municipality on behalf of such occupants[,] but 15 shall not include interest reduction payments pursuant to subdivision 16 (a) of section two hundred one of the Federal Housing and Urban Develop- 17 ment Act of nineteen hundred sixty-eight. The tax exemption shall oper- 18 ate and continue so long as the mortgage loans of the company, including 19 any additional mortgage loan the proceeds of which are used primarily 20 for the residential portion of the project, which additional loan is 21 approved by the commissioner or the supervising agency, are outstanding. 22 § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous- 23 ing finance law, as amended by chapter 229 of the laws of 1989, is 24 amended to read as follows: 25 (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 26 subdivision, the real property of a state urban development corporation 27 project acquired, owned, constructed, managed or operated by a company 28 incorporated pursuant to the not-for-profit corporation law and this 29 article shall be entitled to all the benefits provided by section four 30 hundred twenty-two of the real property tax law. The real property of a 31 state urban development corporation project, other than a state urban 32 development corporation project acquired, owned, constructed, managed or 33 operated by a company incorporated pursuant to the not-for-profit corpo- 34 ration law and this article, shall be exempt from all local and munici- 35 pal taxes, other than assessments for local improvements, to the extent 36 of the value of the property included in such project as represents an 37 increase over the assessed valuation of the real property, both land and 38 improvements, acquired for the project on the date of its acquisition by 39 the limited-profit housing company, provided that the amount of such 40 taxes to be paid shall not be less than ten per centum of the annual 41 shelter rent or carrying charges of such project, as defined in para- 42 graph (a) hereof, except that in a city with a population of one million 43 or more, the amount of such taxes shall be no more than zero per centum 44 of the annual shelter rent or carrying charges of the project. Upon the 45 consent of the local legislative body of the municipality, other than a 46 city with a population of one million or more, in which the project is 47 located, the amount of such taxes may be further reduced to zero per 48 centum or less of the annual shelter rent or carrying charges of the 49 project. Any such granted consent to reduce the amount of such taxes 50 shall expire every ten years. If such authorization is not renewed, the 51 rate of taxation shall revert to the level established before the 52 consent was granted. The tax exemption shall operate and continue so 53 long as the mortgage loans of such limited profit housing company, 54 including any additional mortgage loan the proceeds of which are used 55 primarily for the residential portion of the project, which additional 56 loan is approved by the commissioner or the supervising agency, are
S. 7123 3 1 outstanding and the project is continued to be operated as a limited- 2 profit housing project. If a state urban development corporation project 3 qualifying for tax exemption pursuant to this paragraph is sold, with 4 the approval of the commissioner, to another limited-profit housing 5 company, such successor company shall be entitled to all the benefits of 6 this paragraph. In the event that such sale is to a company incorporated 7 pursuant to the not-for-profit corporation law and this article, such 8 successor company shall be entitled to all the benefits provided by 9 section four hundred twenty-two of the real property tax law. 10 § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous- 11 ing finance law, as amended by chapter 744 of the laws of 1977, is 12 amended to read as follows: 13 (d) Notwithstanding the provisions of paragraphs (a) and (b) of this 14 subdivision, when a project is financed with a mortgage loan pursuant to 15 this article or article three of this chapter and (i) there is a partic- 16 ipation, new loan or investment pursuant to section twenty-three-b of 17 this article or (ii) such mortgage loan is assigned, modified or satis- 18 fied pursuant to section twenty-three-a or forty-four-b or subdivision 19 twenty-two-a of section six hundred fifty-four of this chapter, the real 20 property of the project shall be exempt from all local and municipal 21 taxes, other than assessments for local improvements, to the extent of 22 the value of the real property included in such project which represents 23 an increase over the assessed valuation of the real property, both land 24 and improvements, acquired for the project on the date of its original 25 acquisition for the project by the original mortgagor under a mortgage 26 loan pursuant to this article or article three of this chapter, provided 27 that the amount of taxes to be paid on the project shall not be less 28 than ten per centum of the annual shelter rent or carrying charges of 29 such project, as defined in paragraph (a) of this subdivision, except 30 that in a city with a population of one million or more, the amount of 31 such taxes shall be no more than zero per centum of the annual shelter 32 rent or carrying charges of the project. Upon the consent of the local 33 legislative body of the municipality, other than a city with a popu- 34 lation of one million or more, in which the project is located, the 35 amount of such taxes may be further reduced to zero per centum or less 36 of the annual shelter rent or carrying charges of the project. Any such 37 granted consent to reduce the amount of such taxes shall expire every 38 ten years. If such authorization is not renewed, the rate of taxation 39 shall revert to the level established before the consent was granted. 40 Such tax exemption shall commence in each instance from the date when 41 the project becomes subject to a mortgage insured by the federal govern- 42 ment and shall operate and continue so long as a mortgage on such 43 project is insured or held by the federal government or so long as the 44 project is thereafter owned by the federal government or so long as any 45 residual indebtedness is outstanding, whichever is longer. When there is 46 a participation, new loan or investment pursuant to section twenty- 47 three-b of this article, such participation, new loan or investment 48 shall be deemed to be the equivalent of a federally insured mortgage for 49 purposes of this paragraph. Nothing contained in this paragraph shall be 50 construed to limit or otherwise impair the benefits available to any 51 company eligible for exemption from taxation pursuant to section thir- 52 ty-one or section thirty-six-a of this article, section four hundred 53 twenty-two or section four hundred sixty-seven-c of the real property 54 tax law, or section fifty-eight of the public housing law. The foregoing 55 shall not be deemed to authorize any company to receive the benefits of
S. 7123 4 1 any exemption from taxation in contravention of the provisions of 2 section two of article eighteen of the constitution. 3 § 4. Subdivision 4 of section 33 of the private housing finance law, 4 as amended by chapter 229 of the laws of 1989, is amended to read as 5 follows: 6 4. Notwithstanding the provisions of subdivision one hereof, when a 7 mutual company is organized under this article to facilitate the acqui- 8 sition of a building by residents thereof, the amount of local and 9 municipal taxes, other than assessments for local improvements, to be 10 paid on the real property included in such project, both land and 11 improvements, shall not exceed twenty per centum of the annual shelter 12 rent or carrying charges of such project, as defined in paragraph (a) of 13 subdivision one hereof; provided, however, that where such acquisition 14 of a building by residents thereof involves the financing of rehabili- 15 tation or other improvement as well as acquisition, upon the consent of 16 the local legislative body of the municipality in which the project is 17 located the amount of such taxes may be further reduced provided that 18 such amount shall not be less than ten per centum of the annual shelter 19 rent or carrying charges of the project, as defined in paragraph (a) of 20 subdivision one hereof; or the company may in lieu of requesting such 21 consent apply for the benefits of the local law, if any, enacted pursu- 22 ant to section four hundred eighty-nine of the real property tax law. 23 Notwithstanding any other provision of this subdivision, in a city with 24 a population of one million or more, the amount of such taxes shall be 25 no more than zero per centum of the annual shelter rent or carrying 26 charges of the project. Upon the consent of the local legislative body 27 of the municipality, other than a city with a population of one million 28 or more, in which the project is located, the amount of such taxes may 29 be further reduced to zero per centum or less of the annual shelter rent 30 or carrying charges of the project. Any such granted consent to reduce 31 the amount of such taxes shall expire every ten years. If such authori- 32 zation is not renewed, the rate of taxation shall revert to the level 33 established before the consent was granted. Such tax exemption, if any, 34 granted pursuant to this article shall operate and continue so long as a 35 loan made under this article or any subsequent loan approved by the 36 commissioner or the supervising agency to enhance the residential 37 portion of the project and the project is continued to be operated for 38 the purposes set forth in this article is outstanding. 39 § 5. This act shall take effect immediately.