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Assessor's Manual, Exemption Administration: NPCL section 1608

Land Banks
NPCL section 1608

Exemption code(s): 25900

Year originally enacted: 2011

Related statutes: NPCL Art. 16; RPTL §1102(6)

Summary: If a city, town, village or county adopts a local option to create a land bank under Not-for-Profit Corporation Law Article 16 for purposes of acquiring, holding, managing and developing tax-delinquent, tax foreclosed, vacant, and abandoned property for the eventual return of such property to productive use, such property acquired or transferred to the land bank or a lawfully organized subsidiary becomes exempt from all taxation, special ad valorem levies and special assessments. Each land bank created must be a Type-C not-for-profit corporation, with the power to design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate and otherwise improve real property or rights or real property rights and interests. The term of the exemption benefit for an acquired property extends up to when the land bank transfers the property, or until the land bank dissolves, whichever comes first.

  1. Eligibility requirements:
    1. Ownership requirements:
    2. Property must be owned by a land bank created under Article 16 of the NPCL, which for purposes of this exemption is defined as a Type-C not for profit corporation, and created by a foreclosing governmental unit or units (defined as a taxing district of a city, town, village or county). Or the property must be owned by a lawfully organized subsidiary of such land bank.
    3. Property location requirements: Property acquired or held by a land bank must be located within the foreclosing governmental unit or units which created the land bank, unless the land bank is granted authority under an intergovernmental cooperation agreement with another municipality (city, town, village, or county) to manage and maintain the property located within such other municipality. If a county creates a land bank, such land bank's power to acquire real property is limited to those portions of the county located outside of the geographic boundaries of any other land bank created by other foreclosing governmental units located partially or entirely within such county.

      Note: A school district partially or wholly located in a foreclosing governmental unit or units which created the land bank may participate in such land bank under an intergovernmental cooperation agreement concerning the land bank's operation.

    4. Property use requirements: Property acquired by the land bank must be limited to real property that is tax-delinquent, tax foreclosed, vacant or abandoned. However, a land bank may enter into an agreement to purchase other real property that is consistent with a redevelopment plan approved by the foreclosing governmental unit or units which created the land bank. In any event, the land bank must maintain all of the real property according to the laws and ordinances of the jurisdiction in which the property is located.
    5. Certification by state or local government: Creation of a land bank must be approved by the New York State Urban Development Corporation (doing business as the Empire State Development Corporation). No more than twenty five land banks may exist at any given time across the state. Furthermore, each land bank that produces a redevelopment plan must submit such a plan to the foreclosing governmental unit or units for approval.
    6. Required construction start date or other time requirement: None.
  2. Local option: Yes - Each foreclosing governmental unit may choose whether or not to create a land bank under Article 16 of the Not-for-Profit Corporation Law. The option must be exercised through adoption of a local law, ordinance or resolution after a public hearing. Once the option to create the land bank is adopted, exemption from taxation becomes available to property acquired by the land bank.
  3. Limitation on exemption:
     Limitation on exemption
    General
    municipal
    taxes
    School
    district
    taxes
    Special
    ad valorem
    levies
    Special
    assessments

    1. Amount

    Ex*

    Ex*

    Ex*

    Ex*

    2. Duration

    No
    limit**

    No
    limit**

    No
    limit**

    No
    limit**

    3. Taxing jurisdiction

    a. County or county
        special districts

    Ex***

    NA

    Ex***

    Ex***

    b. City

    Ex*

    NA

    NA

    Ex*

    c. Town or town
        special district

    Ex*

    NA

    Ex*

    Ex*

    d. Village

    Ex*

    NA

    NA

    Ex*

    e. School district

    NA

    Ex****

    NA

    NA

    Ex - Exempt Tax        Taxable NA       Not Applicable

    *If land bank is created by municipal option;

    **Unless and until sold or transferred by land bank, or until dissolution of land bank, whichever occurs first

    ***Exemption by county-created land bank is limited to areas outside of land banks created by other municipalities located partially or wholly within such county

    ****If property is located in portion of school district that is part of land bank

  4. Payments in lieu of taxes: None required.
  5. Calculation of exemption:
    1. General municipal and school district taxes: 100% of assessed value.
    2. Special ad valorem levies and special assessments: 100% of assessed value.
  6. Coding of exemption on roll:

    Code    Description of alternative codes possible
    25900

    Assessment roll section(s): Exempt (RPS Roll Section 8)

  7. Filing requirements (owner or occupant of property): None.
  8. Reporting requirements (Assessor): None.
  9. Similar exemptions: None.
Updated: