A 355: Provides for a partial exemption from taxation of certain residential real property transferred by a governmental entity, nonprofit housing organization, land bank or community land trust to low-income households; sets forth conditions for the discontinuance of such exemption.

  
  STATE OF NEW YORK ________________________________________________________________________ 355 2025-2026 Regular Sessions  IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. BARRETT, GLICK, HYNDMAN, WOERNER, JONES, EACHUS, LUCAS, COLTON, SIMON, DAVILA, LUPARDO, BEEPHAN, SIMPSON -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to the assessment of residential real property transferred from a charitable nonprofit housing organization to low-income persons The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property tax law is amended by adding a new 2 section 581-c to read as follows: 3 § 581-c. Assessment of residential real property transferred from a 4 charitable nonprofit housing organization to a low-income person. 1. As 5 used in this section: 6 (a) "Charitable nonprofit housing organization" means a charitable 7 nonprofit organization whose primary purpose is the construction or 8 renovation of residential housing for conveyance to a low-income person. 9 (b) "Eligible nonprofit housing property" or "property" means property 10 transferred by a charitable nonprofit housing organization to a low-in- 11 come person and occupied by such low-income person as their primary 12 residence. 13 (c) "Low-income person" means an individual or family whose household 14 income does not exceed eighty percent of the area median income (AMI), 15 adjusted for family size and as annually defined by the United States 16 department of housing and urban development, who is eligible to partic- 17 ipate in the charitable nonprofit housing organization's program based 18 on criteria established by the charitable nonprofit housing organization 19 and who occupies such property as their primary residence. 20 (d) "Initial taxable value" and "initial assessed value" means the 21 subsidized purchase price of any eligible nonprofit housing property and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00193-01-5 
 A. 355 2 1 the full fair market value for such nonprofit housing property on the 2 assessment rolls which shall not exceed the subsidized purchase price. 3 (e) "Subsidized purchase price" means an amount equal to the sum of 4 (i) the first mortgage amount filed with the county clerk, plus (ii) the 5 actual cash down payment paid by the purchaser. The closing statement or 6 sworn affidavit filed with the county clerk or local assessor's office 7 by the seller's attorney shall be conclusive evidence of the value of 8 subparagraphs (i) and (ii) of this paragraph. 9 (f) "Subsequent taxable value" and "subsequent assessed value" means, 10 in years subsequent to the calendar year of the transfer, the initial 11 assessed value of any eligible nonprofit housing property; provided, 12 however, that for as long as any low-income person owns and occupies the 13 property, the only basis for increasing the initial assessed value shall 14 be capital improvements made to the property, if any. 15 (g) "Transfer" means a conveyance of an interest in real property 16 whether by deed or a leasehold grant for not less than forty-nine years. 17 2. For any eligible nonprofit housing property acquired by a low-in- 18 come person on or after January first, two thousand twenty-six, the full 19 market value of such property shall not be greater than the initial 20 taxable value, as defined in subdivision one of this section. In the 21 year immediately succeeding the year in which the acquisition of any 22 eligible nonprofit housing property by a low-income person occurs and 23 each year thereafter, the full market value of the property shall not be 24 greater than the subsequent taxable value and subsequent assessed value, 25 as defined in subdivision one of this section. Any reassessment of any 26 eligible nonprofit housing property shall in no event exceed the greater 27 of (i) the initial taxable value and initial assessed value or (ii) the 28 subsequent taxable value and subsequent assessed value, as defined in 29 subdivision one of this section. 30 § 2. This act shall take effect immediately.