N.Y. Real Property Tax Law Section 421-M
Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation


1.

(a) A city, town or village may, by local law, provide for the exemption of multiple dwellings constructed or substantially rehabilitated in a benefit area designated in such local law from taxation and special ad valorem levies, but not special assessments, as provided in this section. Subsequent to the adoption of such a local law, any other municipal corporation in which the designated benefit area is located may likewise exempt such property from its taxation and special ad valorem levies by local law, or in the case of a school district, by resolution.

(b)

As used in this section, the term “benefit area” means the area within a city, town or village, designated by local law, to which an exemption, established pursuant to this section, applies.

(c)

The term “substantial rehabilitation” means all work necessary to bring a property into compliance with all applicable laws and regulations including but not limited to the installation, replacement or repair of heating, plumbing, electrical and related systems and the elimination of all hazardous and immediately hazardous violations in the structure in accordance with state and local laws and regulations of state and local agencies. Substantial rehabilitation may also include reconstruction or work to improve the habitability or prolong the useful life of the property; provided substantial rehabilitation shall not include ordinary maintenance or repair.

(d)

The term “multiple dwelling” means a dwelling, other than a hotel, which is to be occupied or is occupied as the residence or home of three or more families living independently of one another, whether such dwelling is rented or owned as a cooperative or condominium.

2.

(a) Eligible new or substantially rehabilitated multiple dwellings in a designated benefit area shall be exempt according to the following schedule: CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN MULTIPLE DWELLINGS During construction or Exemption substantial rehabilitation (maximum three years) 100% Following completion of work year: 1 through 12 100% 13-14 80% 15-16 60% 17-18 40% 19-20 20% (b) Provided that taxes shall be paid during any such period at least in the amount of the taxes paid on such land and any improvements thereon during the tax year preceding the commencement of such exemption. Provided further that no other exemption may be granted concurrently to the same improvements under any other section of law.

3.

To be eligible for exemption under this section:

(a)

Such construction or substantial rehabilitation shall take place on vacant, predominantly vacant or under-utilized land, or on land improved with a non-conforming use or on land containing one or more substandard or structurally unsound dwellings, or a dwelling that has been certified as unsanitary by the local health agency.

(b)

Such construction or substantial rehabilitation was commenced on or after the effective date of the local law, ordinance or resolution described in subdivision one of this section, but no later than June fifteenth, two thousand nineteen.

(c)

At least twenty percent of the units shall be affordable to individuals or families of low and moderate income whose incomes at the time of initial occupancy do not exceed ninety percent of the area median income adjusted for family size and the individual or family shall pay in rent or monthly carrying charges no more than thirty percent of their adjusted gross income as reported in their federal income tax return, or would be reported if such return were required, less such personal exemptions and deductions and medical expenses as are actually taken by the taxpayer, as verified according to procedures established by the state division of housing and community renewal. Such procedures shall be published through notice in the state register without further action required for the promulgation of regulations pursuant to the state administrative procedure act.

(d)

Such construction or substantial rehabilitation is carried out with the assistance of grants, loans or subsidies for the construction or substantial rehabilitation of affordable housing from any federal, state or local agency or instrumentality thereof.

4.

Application for exemption under this section shall be made on a form prescribed by the commissioner and filed with the assessor on or before the applicable taxable status date.

5.

In the case of property which is used partially as a multiple dwelling and partially for commercial or other purposes, the property shall be eligible for the exemption authorized by this section if:

(a)

The square footage of the portion used as a multiple dwelling represents at least fifty percent of the square footage of the entire property;

(b)

At least twenty percent of the units are affordable to individuals or families of low and moderate income, as determined according to the criteria set forth in paragraph (c) of subdivision three of this section; and

(c)

The requirements of this section are otherwise satisfied with respect to the portion of the property used as a multiple dwelling.

6.

The exemption authorized by this section shall not be available in a jurisdiction to which the provisions of section four hundred twenty-one-a or four hundred twenty-one-c of this article are applicable.

7.

A city, town or village providing an exemption pursuant to the authority of this section shall develop an income monitoring and compliance plan to meet the criteria of paragraph (c) of subdivision three of this section and such plan shall be reviewed, evaluated and approved by the state division of housing and community renewal as a condition of providing such exemption. Such plan shall include an annual certification that the multiple dwelling receiving an exemption meets the requirements of this section. Such certification shall be provided to the assessor and the state division of housing and community renewal. If such requirements are not met, then the multiple dwelling shall not qualify for the exemption in that year.

Source: Section 421-M — Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation, https://www.­nysenate.­gov/legislation/laws/RPT/421-M (updated Jul. 3, 2015; accessed Jul. 13, 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
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

Accessed:
Jul. 13, 2024

Last modified:
Jul. 3, 2015

§ 421-M’s source at nysenate​.gov

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