Exemption Administration Manual, Part 2: Multiple dwellings and urban renewal—Section 4.07 - RPTL Section 421-d: Multiple dwellings outside NYC financed by NYS Housing Finance Agency

Assessor Manuals

Section 4.07 - RPTL Section 421-d: Multiple dwellings outside NYC financed by NYS Housing Finance Agency

Exemption code(s)

4197_

Year originally enacted:

1983

Related statutes:

PHFL §42(24)

Summary:

If allowed by local option, new or rehabilitated housing developments outside New York City that contain five or more residential units and are subject to a mortgage financed by the NYS Housing Finance Agency are partially exempt from taxation, but liable for special ad valorem levies and special assessments, provided that:

1. The property is used for residential or residential plus auxiliary purposes (see Property use requirements below), and
2. the property is not exempt from taxation under any other law.  This exemption is in effect until July 23, 2023.

Eligibility requirements

Ownership requirements:

Property must be owned by a private individual or organization and must be subject to a mortgage financed by the NYS Housing Finance Agency.

Property location requirements:

Property must be located outside New York City.

Property use requirements:

Project must contain at least five residential units. In addition to residential use, other property uses eligible for exemption are those auxiliary uses determined by the NYS Housing Finance Agency as appropriately related to the residential portion of the project.  These auxiliary uses include commercial, recreational, cultural, communal, dining, medical and nursing treatment, day care or residential child care, and community facilities.

Certification by state or local government:

None required.

Required construction start date or other time requirement:

None.

Local option

Yes. Each city, town, and village in which the property is located may choose whether or not to allow the exemption.  The option must be exercised through adoption of a local law.

Limitation on exemption

* After the initial three years of exemption (during construction and rehabilitation), the exemption may not exceed three additional years at 100%, followed by three years at 80%, and thereafter decreasing every three years by 20%. In addition, the owner is annually liable for the amount of taxes payable in the tax year preceding the start of construction.
** The duration of exemption during construction or rehabilitation may not exceed three years unless the local law or resolution specifically extends the exemption period. Total period of exemption may not exceed 18 years.
*** If the term of the mortgage is shorter, the property is exempt only during that term.
**** If allowed by local option.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The amount of the exemption is a percentage of the increase in assessed value of the property due to the eligible alterations, installations, or improvements.

The amount of the exemption is calculated by using the following percentages of the increase in assessed value:

Special ad valorem levies and special assessments:

No exemption allowed.

Coding of exemption on assessment roll

Assessment roll section(s):

Taxable (ARLM Section 1).

Note: This code should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.

Filing requirements (owner or occupant of property)

None.

Reporting requirements (assessor)

None.

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