N.Y. Real Property Tax Law Section 420-C
Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ...

§ 420-c. Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or more.

1.

In a city having a population of one million or more, real property owned by a corporation, partnership or limited liability company formed for the purpose of providing housing accommodations for persons and families of low income as defined in Private Housing Finance Law § 2 (Definitions)section two of the private housing finance law and used for such purpose, shall be exempt from local real property taxation, provided that such corporation, partnership or limited liability company:

(a)

is organized as a non-profit housing development fund company pursuant to article eleven of the private housing finance law, or is a non-profit housing corporation as defined in article eleven of the private housing finance law which is not incorporated as a housing development fund company as defined in article eleven of the private housing finance law, or is a wholly-owned subsidiary of such a company or is a partnership or limited liability company the controlling interest of which is held by such a company or corporation or by a wholly owned subsidiary of such a company or by a corporation sponsored or formed by such a company or corporation; and

(b)

has received a loan from a municipality, the state or the housing trust fund corporation established pursuant to Private Housing Finance Law § 45-A (Housing trust fund corporation)section forty-five-a of the private housing finance law or any successor corporation; and

(c)

enters into a regulatory agreement with the municipality, the state or the housing trust fund corporation established pursuant to Private Housing Finance Law § 45-A (Housing trust fund corporation)section forty-five-a of the private housing finance law or any successor corporation guaranteeing the provision of housing accommodations for persons and families of low income; and

(d)

is a participant in the federal low income housing tax credit program established pursuant to section forty-two of the internal revenue code of nineteen hundred eighty-six, as amended. Any exemption pursuant to this section shall expire upon the expiration or termination of the regulatory agreement.

2.

An exemption may be granted pursuant to this section only upon application by the owner on a form prescribed by the commissioner or any comparable form, which application shall be accepted by the assessor of such city as provided in this subdivision and in the rules and regulations promulgated pursuant to this section by the department of housing preservation and development in such city. No such application shall be accepted by the assessor unless accompanied by a certificate of the department of housing preservation and development in such city certifying the applicant’s eligibility pursuant to this section. Notwithstanding § 302 (Taxable status date)section three hundred two of this chapter, an exemption granted pursuant to this section shall commence as of the effective date of the regulatory agreement with the municipality, the state or the housing trust fund corporation established pursuant to Private Housing Finance Law § 45-A (Housing trust fund corporation)section forty-five-a of the private housing finance law or any successor corporation regardless of when the application for such exemption is approved. The department of housing preservation and development may promulgate rules and regulations to carry out the provisions of this section, and may require a reasonable filing fee in an amount provided by such rules and regulations.

3.

An exemption from local real property taxation pursuant to this section shall be governed solely by subdivisions one and two of this section if the application for such exemption is approved before the effective date of this subdivision and shall be governed solely by subdivision four of this section if the application for such exemption is approved on or after the effective date of this subdivision. Any tax exemption pursuant to subdivisions one and two of this section that is in effect on the effective date of this subdivision shall continue in accordance with the provisions of subdivisions one and two of this section; provided, however, that any amendment to a regulatory agreement on or after the effective date of this subdivision shall require a new application for tax exemption pursuant to subdivision four of this section. Eligible real property that receives exemption from local real property taxation pursuant to this section at any time shall not simultaneously receive exemption from or abatement of local real property taxation pursuant to any other law.

4.

(a) For the purposes of this subdivision, the following terms shall have the following meanings:

(1)

The term “persons and families of low income” shall have the meaning set forth in Private Housing Finance Law § 2 (Definitions)section two of the private housing finance law.

(2)

The term “tax credit program” shall mean the federal low-income housing tax credit program established pursuant to section forty-two of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute.

(3)

The term “eligible real property” shall mean real property that (i) provides housing accommodations for persons and families of low income, and

(ii)

participates in or has participated in the tax credit program.

(4)

The term “charitable organization” shall mean (i) an entity formed for purposes that include providing housing accommodations for persons and families of low income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute, from the United States Internal Revenue Service, or any successor agency, or

(ii)

a corporation, partnership or limited liability company wholly owned and wholly controlled by an entity formed for purposes that include providing housing accommodations for persons and families of low income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the internal revenue code of nineteen hundred eighty-six, as amended, or any successor statute, from the United States Internal Revenue Service, or any successor agency.

(5)

The term “eligible entity” shall mean a corporation, partnership or limited liability company at least fifty percent of the controlling interest of which is held by a charitable organization.

(6)

The term “eligible owner” shall mean one or more eligible entities that holds (i) legal and beneficial title to eligible real property, or

(ii)

a legal and beneficial leasehold interest with a term of not less than thirty years in eligible real property.

(7)

The term “regulatory agreement” shall mean a regulatory agreement with or approved by the municipality that requires the provision of housing accommodations for persons and families of low income, requires that units currently or formerly assisted under the tax credit program be rented in accordance with the income requirements of the tax credit program, is recorded against the eligible real property, and binds all parties in interest to the eligible real property and their respective successors and assigns. A regulatory agreement may include such other terms and conditions as the municipality shall determine, including, but not limited to, provisions requiring payments in lieu of taxes.

(b)

Notwithstanding any other provision in this subdivision to the contrary, in a city having a population of one million or more, eligible real property of an eligible owner that is subject to a regulatory agreement shall be exempt from local real property taxation except as may be otherwise provided in such regulatory agreement.

(c)

Notwithstanding any provision of any other general or special state or local law or charter, (1) with respect to eligible real property that is eligible for exemption from local real property taxation pursuant to this subdivision on the effective date of this subdivision and that is receiving exemption from or abatement of local real property taxation pursuant to any other law on the effective date of this subdivision, an eligible owner may prospectively terminate such other exemption or abatement upon entering into a new regulatory agreement and the eligible real property shall thereafter be prospectively entitled to exemption from local real property taxation pursuant to this subdivision, and

(2)

with respect to eligible real property that is eligible for exemption from local real property taxation pursuant to this subdivision on the effective date of this subdivision and that is not receiving any exemption from or abatement of local real property taxation pursuant to subdivisions one and two of this section or any other law on the effective date of this subdivision, if an eligible owner enters into a new regulatory agreement, the eligible real property shall thereafter by prospectively entitled to exemption from local real property taxation pursuant to this subdivision, and

(3)

with respect to eligible real property that is eligible for an exemption from local real property taxation pursuant to this subdivision on the effective date of this subdivision and that is receiving exemption from local real property taxation pursuant to subdivisions one and two of this section on the effective date of this subdivision, an eligible owner may prospectively terminate such exemption upon entering into a new regulatory agreement and the eligible real property shall thereafter be prospectively entitled to exemption from local real property taxation pursuant to this subdivision.

(d)

(1) An exemption may be granted pursuant to this subdivision only upon application by the eligible owner on a form prescribed by the commissioner or any comparable form, which application shall be accepted by the assessor of such city as provided in this subdivision and in such rules as may be promulgated pursuant to this subdivision by the department of housing preservation and development in such city. No such application shall be accepted by the assessor unless accompanied by a certificate of the department of housing preservation and development in such city certifying the applicant’s eligibility pursuant to this subdivision.

(2)

Notwithstanding § 302 (Taxable status date)section three hundred two of this chapter, an exemption granted pursuant to this subdivision shall commence as of the effective date of the regulatory agreement, regardless of when the application for such exemption is approved, and shall terminate upon the expiration or termination of such regulatory agreement. Notwithstanding any provision of this subdivision to the contrary, if there is a default pursuant to the regulatory agreement, and such default remains uncured beyond any period for such cure specified in the regulatory agreement, the municipality may terminate such exemption or suspend such exemption until such default is cured.

(3)

The department of housing preservation and development in such city may promulgate rules to carry out the provisions of this subdivision, and may require a reasonable filing fee in an amount provided by such rules.

Source: Section 420-C — Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ..., https://www.­nysenate.­gov/legislation/laws/RPT/420-C (updated Sep. 22, 2014; accessed Oct. 26, 2024).

420‑A
Nonprofit organizations 420‑B
Nonprofit organizations 420‑C
Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ... 421‑A
Affordable New York Housing Program 421‑B
Exemption of certain private dwellings, multiple dwellings and improvements from local taxation 421‑C
Exemption of certain new multiple dwellings from local taxation 421‑D
Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation 421‑E
Exemption of cooperative, condominium, homesteading and rental projects from local taxation 421‑F
Exemption of capital improvements to residential buildings and certain new construction 421‑FF
Exemption of capital improvements to residential buildings in cities with a population between twenty-seven thousand five hundred and twe... 421‑G
Exemption from local taxation of certain multiple dwellings 421‑H
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑H*2
Exemption of capital improvements to residential buildings 421‑I
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑I*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑J
Exemption of capital investment in multiple dwelling buildings within certain cities 421‑J*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑K
Exemption of certain multiple dwellings 421‑L
Exemption of capital improvements to residential buildings in certain towns 421‑M
Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation 421‑N
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑P
Exemption of newly-constructed or converted rental multiple dwellings 421‑P*2
Exemption of capital improvements to residential new construction involving the creation of accessory dwelling units 422
Not-for-profit housing companies 423
Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract 424
Institute of arts and sciences 425
School tax relief (STAR) exemption 425‑A
Abatement of county taxes in special assessing units 426
Opera houses 427
Performing arts buildings 428
Fraternal organizations 429
Real property used for professional major league sports 430
Interdenominational centers 432
Theatrical corporations created by act of congress 434
Academies of music 436
Officers of religious denominations 438
Trustees of a hospital, playground and library 440
Infant homes 442
Soldiers monument corporations 444
Historical societies 444‑A
Historic property 446
Cemeteries 450
Agricultural societies 452
Veterans organizations 454
Indians 455
Exemption option 456
Municipal railroads 457
Exemption for first-time homebuyers of newly constructed homes 458
Veterans 458‑A
Veterans 458‑B
Exemption for Cold War veterans 458‑C
Improvements to property of severely injured members of the armed forces of the United States 459
Persons who are physically disabled 459‑A
Improvements to property made pursuant to the Americans with Disabilities Act of 1990 459‑B
Physically disabled crime victims 459‑C
Persons with disabilities and limited incomes 460
Clergy 462
Religious corporations 464
Incorporated associations of volunteer firefighters 466
Volunteer firefighters and fire companies in villages 466‑A
Volunteer firefighters and volunteer ambulance workers 466‑A*2
Volunteer firefighters and volunteer ambulance workers 466‑B
Volunteer firefighters and volunteer ambulance workers 466‑C
Volunteer firefighters and volunteer ambulance workers 466‑C*2
Volunteer firefighters and volunteer ambulance workers 466‑C*3
Volunteer firefighters and volunteer ambulance workers 466‑C*4
Volunteer firefighters and volunteer ambulance workers 466‑C*5
Volunteer firefighters and volunteer ambulance workers 466‑C*6
Volunteer firefighters and volunteer ambulance workers 466‑C*7
Volunteer firefighters and volunteer ambulance workers 466‑D
Volunteer firefighters and volunteer ambulance workers 466‑D*2
Volunteer firefighters and volunteer ambulance workers 466‑D*3
Volunteer firefighters and volunteer ambulance workers 466‑D*4
Volunteer firefighters and volunteer ambulance workers 466‑E
Volunteer firefighters and volunteer ambulance workers 466‑E*2
Volunteer firefighters and volunteer ambulance workers 466‑E*3
Volunteer firefighters and volunteer ambulance workers 466‑E*4
Volunteer firefighters and volunteer ambulance workers 466‑F
Volunteer firefighters and volunteer ambulance workers 466‑F*2
Volunteer firefighters and volunteer ambulance workers 466‑F*3
Volunteer firefighters and volunteer ambulance workers 466‑F*4
Volunteer firefighters and volunteer ambulance workers 466‑F*5
Un-remarried spouses of volunteer firefighters or volunteer ambulance workers killed in the line of duty 466‑G
Volunteer firefighters and volunteer ambulance workers 466‑G*2
Volunteer firefighters and volunteer ambulance workers 466‑H
Volunteer firefighters and volunteer ambulance workers 466‑H*2
Un-remarried spouses of deceased volunteer firefighters or volunteer ambulance workers 466‑I
Volunteer firefighters and volunteer ambulance workers 466‑J
Volunteer firefighters and volunteer ambulance workers 466‑K
Volunteer firefighters and volunteer ambulance workers 466‑L
Extension of benefits 467
Persons sixty-five years of age or over 467‑A
Partial tax abatement for residential real property held in the cooperative or condominium form of ownership in a city having a populatio... 467‑B
Tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities 467‑C
Exemption for property owned by certain housing companies or sublessees of the battery park city authority and occupied by senior citizen... 467‑D
Assessment exemption for certain living quarters constructed to be occupied by a senior citizen or disabled individual 467‑E
Rebate for owners or tenant-stockholders of one, two or three family residences or residential property held in the condominium or cooper... 467‑F
Protective and safety devices tax abatement 467‑G
Rebate for owners of certain real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of Octob... 467‑H
Partial abatement for certain rebuilt real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth... 467‑I
Real property tax abatement 467‑J
Exemption for certain residential properties located in certain counties 467‑K
Senior citizen longtime resident exemption 467‑K*2
Exemption for certain residential property required to participate in the federal flood insurance program 467‑L
Rebate for owners of certain real property in the city of New York 467‑M
Exemption from local real property taxation of certain multiple dwellings in a city having a population of one million or more 468
Fire patrol and salvage corps 469
Assessment exemption for living quarters for parent or grandparent 470
Exemption for improvements to real property meeting certification standards for green buildings 472
Pharmaceutical societies 474
Dental societies 476‑A
Railroad passenger stations 477
Tax exemption for industrial waste treatment facilities 477‑A
Tax exemption for air pollution control facilities 478
Tax exemption for off-street parking facilities providing underground shelters 479
Fallout shelter facilities 480
Forest and reforested lands 480‑A
Taxation of forest land 481
Taxation of land used for agricultural production 482
Quarantined lands 483
Exemption from taxation of structures and buildings essential to the operation of agricultural and horticultural lands 483‑A
Farm silos, farm feed grain storage bins, commodity sheds, bulk milk tanks and coolers, and manure storage and handling facilities 483‑B
Historic barns 483‑C
Temporary greenhouses 483‑D
Farm or food processing labor camps or commissaries 483‑E
Anaerobic digestion facilities 484
Urban redevelopment corporations and companies 485
Nuclear powered electric generating facilities 485‑A
Residential-commercial urban exemption program 485‑B
Business investment exemption 485‑C
Exemption from taxation of real property used in manufacture of steel in cities of fifty thousand or more persons 485‑D
Water-works corporations 485‑E
Empire zone exemption 485‑F
Banking development districts 485‑G
Infrastructure exemption 485‑H
Residential investment exemption 485‑I
Residential investment exemption 485‑I*2
Residential investment exemption 485‑J
Residential property improvement exemption 485‑J*2
Residential investment exemption 485‑J*3
Residential investment exemption 485‑J*4
Residential investment exemption 485‑J*5
Residential investment exemption 485‑K
Residential investment exemption 485‑L
Residential property improvement 485‑L*2
Residential investment exemption 485‑M
Residential investment exemption 485‑N
Residential-commercial exemption program 485‑O
New residential property exemption 485‑P
Economic transformation area exemption 485‑Q
Residential investment exemption 485‑R
Residential redevelopment inhibited property exemption 485‑S
Residential reassessment exemption 485‑S*2
Residential reassessment exemption 485‑S*3
Mixed use exemption program for villages 485‑T
Owner occupied residential property exemption program 485‑U
Class one reassessment exemption 485‑V
Residential revaluation exemption 485‑V*2
Residential and mixed-use investment exemption 485‑W
Newly constructed single-family and multi-family residential exemption 485‑X
Affordable neighborhoods for New Yorkers tax incentive 486
Non-profit medical and dental indemnity, or hospital service corporations 486‑A
Non-profit corporations operating as health maintenance organizations 487
Exemption from taxation for certain energy systems 487‑A
Exemption from taxation of conservation improvements to certain residential premises 488
Retirement systems 488‑A
Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy 489
Exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards
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Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 420-C’s source at nysenate​.gov

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