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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 2
Multiple Dwellings

Section 4.07

Chart C

Eligibility Requirements: Organizational Requirements
Housing (Multiple Dwelling) Exemptions

Type of Company Law(s) Under Which Incorporation Required Restrictions on Corporate Purposes or
Activities as Stated in Certificate of Incorporation
1. Housing development fund company (not-for-profit) PHFL Article 11 & NPCL

or

PHFL Article 11,
PHFL Article 2, & NPCL

1. Corporation must be organized exclusively to develop a housing project for persons of low income.

2. All income of corporation must be used exclusively for its corporate purposes.

3. None of the corporation's net income may inure to the benefit or profit of any private individual or organization.

2. Housing development fund company (other) PHFL Article 11
& Bsns Corp L
1. Corporation must be organized exclusively to develop a housing project for persons of low income.

2. All income of corporation must be used exclusively for its corporate purposes.

3. None of corporation's net income may inure to the benefit or profit of any private individual or organization.

4. Each of corporation's housing projects must be operated exclusively on a co-op basis (i.e., for the benefit of persons or families entitled to occupancy in the project through ownership of shares in the corporation).

3. Limited-dividend housing company organized between 5/10/26 and 6/30/39 under State Housing Law of 1926 L. 1926, Ch. 823 (State Housing Law - repealed effective 7/1/39) 1. Corporation must be organized exclusively to acquire, construct, maintain, and operate housing projects authorized by the State Board of Housing or other appropriate state authority.

2. No stockholder of corporation may receive, in repayment of his investment, any sum in excess of the par value of the stock, together with cumulative dividends at the rate of 6% per year.

4. Limited-dividend housing company (other) PHFL Article 4 1. Company must be organized exclusively to acquire, construct, maintain, and operate housing projects subject to the supervision of the State Commissioner of Housing or other appropriate state authority.

2. No stockholder of company may receive, in repayment of his investment or interest in the company's capital, any sum in excess of the par value of the stock, or of the amount of his contribution to or beneficial interest in capital, together with cumulative distributions on capital at the rate of 6% per year.

Type of Company Law(s) Under Which Incorporation Required Restrictions on Corporate Purposes or Activities as Stated in Certificate of Incorporation
5. Limited-profit
(Mitchell-Lama) housing company (co-op)
PHFL Article 2 1. Company must be organized to plan, acquire, construct, own, maintain, and operate housing projects subject to the supervision of the State Commissioner of Housing or other appropriate authority.

2. No director or subscriber of company may receive, in repayment of his investment in the company's stock, any sum in excess of the par value of the stock, together with such dividends or other compensation permitted under PHFL Article 2.

3. Company's housing projects must, to the extent of at least 80%, be occupied by persons or families entitled to occupancy through ownership of shares in the company.

6. Limited-profit
(Mitchell-Lama) housing
company (not-for-profit)
PHFL Article 2 & NPCL 1. Company must be organized exclusively to provide (a) housing and auxiliary facilities for staff members, employees, or students of a college, university, hospital, or child-care institution and their immediate families, (b) housing and auxiliary facilities for aged or handicapped persons of low income, or (c) low-income housing financed or aided by a municipality, New York State, or the federal government.

2. If company organized for purpose (a) above, its directors or trustees must be officers, Directors, or trustees of the college, university, hospital, or child-care institution. If company organized for purposes (b) or (c) above, its directors or trustees must be officers, directors, or trustees of a corporation organized under the NPCL.

3. None of the net income of the college, university, hospital, child-care institution, or not-for-profit corporation may inure to the benefit of any private individual.

7. Limited-profit
(Mitchell-Lama) housing
company (other)
PHFL Article 2 1. Company must be organized to plan, acquire, construct, own, maintain, and operate housing projects subject to the supervision of the State Commissioner of Housing or other appropriate authority.

2. No director or subscriber of company may receive, in repayment of his investment in the company's stock, any sum in excess of the par value of the stock, together with such dividends or other compensation permitted under PHFL Article 2.

Type of Company Law(s) Under Which Incorporation Required Restrictions on Corporate Purposes or Activities as Stated in Certificate of Incorporation
8. Nonprofit corporation providing housing and related research NPCL 1. All directors of corporation must be appointed by governor.

2. All of corporation's rights and properties must pass the state upon dissolution of the corporation.

9. Nonprofit corporation guaranteeing loans to finance housing NPCL All directors of corporation must be appointed by governor.
10. Not-for-profit community mental health services and mental retardation services company Mntl Hyg L Article 75 & NPCL 1. Company must be organized to plan, construct, acquire, alter, reconstruct, rehabilitate, improve, own, maintain, and operate hostels and related facilities for the care, treatment, training, education, and residence of the mentally disabled under supervision of the State Commissioner of Mental Hygiene.

2. All income of company must be used exclusively for its corporate purposes.

3. None of the company's net income may inure to the benefit or profit of any private individual or organization.

11. Not-for-profit community senior citizens centers and services company PHFL Article 7-A & NPCL 1. Company must be organized to plan, construct, acquire, alter, reconstruct, rehabilitate, improve, own, maintain and operate centers and related facilities for the aging under the supervision of the State Department of Social Services.

2. All income of company must be exclusively for its corporate purposes.

3. None of the company's net income may inure to the benefit or profit of any private individual or organization.

12. Nursing home company-
limited-profit
Pub Hel L Article 28-A 1. Company must be organized to plan, construct, acquire, alter, reconstruct, rehabilitate, own, maintain, and operate nursing homes and other health- related facilities for persons of low income subject to the supervision of the State Commissioner of Health.

2. No director, shareholder, or debenture holder may receive, in payment of his investment in the company's shares or debentures, any sum in excess of the par value of the shares or debentures, together with such dividends, interest, or other compensation permitted under Pub Hel L Article 28-A.

13. Nursing home company-
not-for-profit
Pub Hel L Article 28-A & NPCL 1. Company must be organized to plan, construct, acquire, alter, reconstruct, rehabilitate, own, maintain, and operate nursing homes and other health- related facilities for persons of low income subject to the supervision of the State Commissioner of Health.

2. All income of company must be used exclusively for its corporate purposes.

3. None of the company's net income may inure to the benefit or profit of any private individual or organization.

14. Redevelopment company PHFL Article 5 1. Company must be organized to plan, construct, own, maintain, operate, sell, and convey housing, commercial, cultural, or recreational facilities subject to the supervision of the state Superintendent of Insurance, the NYC Department of Housing Preservation and Development, or the comptroller or other chief financial officer of a municipality outside New York City, as appropriate.

2. Interest paid by the company on outstanding debentures may not exceed 6% per year; annual distributions to shareholders, partners, or beneficiaries of a trust may not exceed 6% of the company's total capital.

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