Bill Text: NY S00880 | 2025-2026 | General Assembly | Introduced
Bill Title: Enacts the housing development fund company self-determination, preservation and affordability act to clarify certain provisions relating to the dissolution and reincorporation of housing development fund companies; provides for tax exemptions and abatements for housing development fund companies.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2025-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00880 Detail]
Download: New_York-2025-S00880-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 880 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing finance law, in relation to enacting the housing development fund company self-determination, preservation and affordability act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "housing development fund company self-determination, preservation 3 and affordability act". 4 § 2. Legislative findings and declarations. 1. In 1966, the Legisla- 5 ture enacted Article 11 of the private housing finance law. Article 11 6 authorized the development of rental and cooperative housing that is 7 subject to certain income restrictions. The type of income-restricted 8 housing is referred to as housing development fund companies (HDFCs). 9 2. Beginning in the early 1980s, New York city adopted the HDFC form 10 of housing cooperative as a means to divest itself of -- and revitalize 11 -- its tax-foreclosed multi-family housing stock. At the time the city 12 was experiencing large-scale abandonment of its private low and middle- 13 income multi-family housing stock. In response to this housing crisis, 14 the city determined to turn over the ownership and management of many 15 city-owned tax-foreclosed multifamily buildings to the existing tenants 16 in the form of HDFC co-ops. 17 3. Previously, the city sold at auction nearly all of its tax-forec- 18 losed multi-family property to private investors - and that traditional 19 approach to disposing of tax foreclosed property had led to an acceler- 20 ating cycle of housing disinvestment and abandonment. The city's HDFC 21 initiative was in the city's own interests: it enabled the city to avoid EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02813-01-5S. 880 2 1 the counterproductive private auction process and to return the build- 2 ings to the tax rolls. 3 4. Over the past four decades the city's HDFC initiative proved to be 4 one of New York's most enduring housing success stories. Tens of thou- 5 sands of resident-shareholders of HDFCs played an important role in the 6 stabilization and preservation of New York city's multi-family housing 7 stock in the period following the city's fiscal crisis of the 1970s and 8 1980s. The city's large-scale creation of HDFC co-ops was a major policy 9 innovation and was an important part of the city's response to the hous- 10 ing crisis of that era. Today, there are over 1,100 HDFC co-ops in New 11 York city. 12 5. All government and community stakeholders benefitted from the 13 large-scale creation of HDFCs. The city benefitted by reducing its enor- 14 mous portfolio of tax-foreclosed apartment buildings at a time when the 15 buildings were a substantial burden to the city and when there was 16 little in the way of a private market for these properties. The resi- 17 dents benefitted by the preservation and upgrading of their own build- 18 ings and by becoming homeowners for the first time. And the surrounding 19 communities benefitted by the stabilization of the neighborhood, the 20 upgrading of housing and by the transformation of a rental community 21 into a homeowning community. 22 6. When the city imposed regulatory controls on the city-sponsored 23 HDFCs, the regulatory controls placed on HDFCs were time-limited. 24 Consequently, the HDFCs that were created in the 1980s and 1990s have 25 regulatory controls that already have expired or will soon expire. For 26 this class of HDFCs, there is a great deal of uncertainty as to their 27 legal status and their financial future. 28 7. This legislation clarifies the legal status of HDFCs with expired 29 regulatory controls in a way that protects and promotes their autonomy 30 and self-governance while strengthening the inducements for these HDFCs 31 to voluntarily agree to continue to operate as affordable housing. 32 8. An important feature of city-sponsored HDFCs is the city's use of 33 its authority to enter into a "regulatory agreement" with the HDFC. 34 Under section 576 of the private housing finance law, either the state 35 or the municipal "supervisory agency" (i.e., HPD) may enter into a regu- 36 latory agreement with an HDFC if the agency advances public funds to the 37 HDFC. Under such section of the private housing finance law, every HDFC 38 regulatory agreement must provide that: 39 (1) Households must meet income eligibility guidelines, which are 40 defined by statute as six times the annual rent plus six percent of the 41 shareholder's "original investment" in the HDFC. See paragraph b of 42 subdivision 1 of section 576 of the private housing finance law. 43 (2) Profits must be used only for capital improvements or to reduce 44 rent/maintenance. Dividends cannot be paid to owners. See paragraphs c 45 and d of subdivision 1 of section 576 of the private housing finance 46 law. 47 (3) The property may not be sold or transferred without HPD approval 48 for so long as the regulatory agreement remains in effect and/or unless 49 and until any funds or mortgages owed to the city are paid in full. See 50 paragraph e of subdivision 1 of section 576 of the private housing 51 finance law. 52 (4) The HDFC may not be dissolved without HPD approval for so long as 53 the regulatory agreement remains in effect and/or unless and until any 54 funds or mortgages owed to the city are paid in full. See paragraph e of 55 subdivision 1 of section 576 of the private housing finance law.S. 880 3 1 9. Thus, under section 576 of the private housing finance law certain 2 key restrictions remains in effect only for so long as a regulatory 3 agreement remains in effect. Put differently, the city's authority to 4 impose section 576 restrictions (including restrictions on dissolution 5 of HDFCs and on the sale and disposition of HDFC property) is limited to 6 only those HDFCs that are subject to a regulatory agreement and does not 7 extend to HDFCs in which a regulatory agreement or mortgage is no longer 8 in effect. 9 10. The city applied its section 576 authority to HDFCs in two ways: 10 i.e. (1) some of the terms of the section 576 "regulatory agreement" 11 were incorporated into various HDFC incorporation documents and in the 12 deed conveying title to the property; and (2) a regulatory agreement was 13 incorporated into mortgage documents when the city made loans to HDFCs 14 to finance capital improvements. In each case the city imposed resale 15 restrictions that had a fixed term. At the inception of the HDFC program 16 in the early 1980s, city-sponsored resale restrictions imposed by the 17 sale documents expired in ten years. By the late 1980s, city-sponsored 18 resale restrictions imposed by the sale documents ran for 25 years. 19 Furthermore, resale restrictions that were made a part of city-sponsored 20 rehabilitation loans to HDFCs ran for the life of the loan -- i.e., 21 usually 15 to 25 years. 22 11. Thus, the city used section 576 of the private housing finance law 23 as a means to impose additional terms and conditions (including resale 24 restrictions) on the operation of the HDFC for a fixed term following 25 the establishment of the housing cooperative or during the life of a 26 city-sponsored loan to the HDFC. For the vast majority of HDFCs, these 27 restrictions have expired. 28 12. There are presently over 1,100 HDFCs in New York city containing 29 approximately 25,000 apartments. Of these HDFCs, approximately 20 30 percent are subject to regulatory agreements. A substantial number of 31 non-regulated HDFCs date from the 1980s and 1990s. These older HDFCs are 32 no longer subject to city resale restrictions that expired after either 33 ten years or 25 years following the incorporation of the HDFCs. 34 13. For as long as a particular city-imposed resale restrictions 35 remained in effect, an HDFC is subject to a detailed scheme of regu- 36 lations imposed by the city pursuant to section 576 of the private hous- 37 ing finance law. In general, HPD resale restrictions govern such impor- 38 tant issues of HDFC governance as income limitations for purchasers, 39 succession rights, sublet rights, flip taxes, HPD consent as a precondi- 40 tion to the sale of an HDFC building and HPD consent to the dissolution 41 of an HDFC. Upon the expiration of the city-imposed restrictions, the 42 HDFC is no longer subject to these externally imposed regulations. 43 14. An HDFC with expired regulatory controls nevertheless remains 44 subject to Article 11 of the private housing finance law as well as to 45 various governing documents, such as its certificate of incorporation, 46 deed restrictions, proprietary lease and by-laws. Most importantly, an 47 HDFC is required to provide housing for "persons of low income," as 48 defined in paragraph a of subdivision 3 of section 573 of the private 49 housing finance law. However, once an HDFC regulatory agreement or other 50 HPD-imposed income restriction has expired, nothing in the private hous- 51 ing finance law expressly precludes these HDFC co-ops from converting to 52 a non-HDFC co-op by reincorporating as a conventional co-op (and thereby 53 opting out of the remaining statutory restrictions imposed by the 54 private housing finance law). That circumstance raised the possibility 55 that some HDFCs may opt-out of the HDFC statute and become market-rateS. 880 4 1 housing - which would represent a loss to the city's inventory of 2 affordable housing stock. 3 15. A city-established HDFC is eligible to receive a partial real 4 estate tax exemption granted by the city pursuant to section 577 of the 5 private housing finance law. Pursuant to this authority, the city in 6 1989 enacted a partial tax exemption for most city-sponsored HDFCs. The 7 tax exemption is generally referred to as the "Division of Alternative 8 Management Programs" tax exemption, or "DAMP tax exemption". 9 16. The tax exemption runs for forty years and will expire in 2029. A 10 condition of the DAMP tax exemption is that the HDFC remain an HDFC for 11 the duration of the tax exemption. Hence, an HDFC that opt-outs of the 12 HDFC statute and become market-rate housing would be required to forfeit 13 the DAMP tax exemption. 14 17. The city in 2017 proposed local legislation that would revoke the 15 DAMP tax exemption from any HDFC that declined to sign a new regulatory 16 agreement with HPD. The proposed new regulatory agreement would contain 17 many provisions that would largely deprive HDFCs of autonomy and self- 18 determination, including the imposition of external fiscal monitors paid 19 for by HDFC income, new restriction on apartment sales and subletting, 20 and limitations on the assets and other real property owned by HDFC 21 shareholders. By 2019 the city abandoned the proposed legislation in the 22 face of widespread opposition by HDFC community groups and other stake- 23 holders. 24 18. Also in 2017, the city proposed new state legislation that would 25 re-regulate HDFCs and that would change the law to ensure that all HDFCs 26 remain subject to affordability controls in perpetuity. See S2543 (2017) 27 (proposed amendment to the private housing finance law). As stated in 28 the city's memorandum in support of S2543: 29 "(T)here is a great need for an amendment to clarify that the corpo- 30 rate purpose of an HDFC -- to provide affordable housing to persons and 31 families of low income -- is perpetual in duration. Absent the checks 32 and balances provided by the (proposed amendment to private housing 33 finance law, which would subject HDFCs for the time to the requirements 34 of the not-for-profit corporation law), there may be a great loss of 35 affordable housing." 36 19. Thus, the city expressly acknowledged that, under existing law, 37 HDFCs with expired regulatory agreements have the option of remaining as 38 an HDFC or, in the alternative, the option of converting to another form 39 of housing cooperative without affordability controls. S2453 was 40 intended to eliminate the second option. Ultimately, S2453 was not 41 enacted and the statutory law governing HDFCs remains unchanged. 42 20. Contrary to the city's 2017 statement, the New York Attorney 43 General issued an opinion in 2015 to the effect that HDFC cooperatives 44 could never opt-out of the PHFL and that they were subject to the 45 perpetual regulation of the HPD Commissioner. See New York Attorney 46 General, "Guidance on Housing Development Fund Corporations Seeking to 47 Transfer or Sell Property for, or Otherwise Convert Property to Market- 48 Rate Use" (hereafter "Guidance"). HPD joined in the Guidance. The Attor- 49 ney General reached this conclusion based on their determination that 50 the statutory term "amendment" - as used in subdivision 5 of section 573 51 of the private housing finance law - encompassed and implied the commis- 52 sioner's additional authority to consent to the dissolution of an HDFC. 53 The Attorney General's Guidance is incorrect as a matter of law, in that 54 it misconstrues the plain text of the HDFC statute as well as ignores 55 the distinct treatment of the concepts of "amendment" and "dissolution"S. 880 5 1 in other New York corporate law settings, including the business corpo- 2 ration law. 3 21. Consistent with the city's 2017 statement, HDFCs always have had 4 the right under the private housing finance law -- and continue to have 5 the right under the private housing finance law -- to dissolve and rein- 6 corporate under the business corporation law or other applicable law, 7 provided that the housing development fund company: (1) was formerly 8 subject to a regulatory agreement but such regulatory agreement has 9 expired and/or was formerly subject to contractual restrictions imple- 10 menting the requirements of section 576 of the private housing finance 11 law but that such contractual restrictions have expired; and (2) had 12 formerly received a tax exemption under section 577 of the private hous- 13 ing finance law but such tax exemption either has expired or is other- 14 wise no longer being received. 15 22. This legislation squarely addresses the legal uncertainty that 16 threatens the future of many city-sponsored HDFCs. More particularly, 17 this legislation has three overriding goals: (1) to protect and promote 18 the self-determination of HDFC co-ops; (2) to provide strong incentives 19 for HDFC co-ops with expired controls to agree to remain as affordable 20 housing; and (3) to ensure that the HDFC co-ops that agree to remain as 21 affordable housing are in sound condition and are economically self-suf- 22 ficient. These three overriding objectives are complementary. 23 23. The current HDFC tax exemption for most city-sponsored HDFCs 24 co-ops is scheduled to expire in 2029. Already, many financial insti- 25 tutions have indicated a reluctance to lend to HDFCs in light of the 26 financial uncertainty associated with the scheduled expiration of the 27 HDFC tax exemption in five years. This legislation will eliminate this 28 uncertainty by providing a permanent tax incentive for HDFCs. 29 24. Currently, HDFC co-ops receive a partial tax exemption - known as 30 "the DAMP tax benefit". The DAMP tax benefit takes the form of a cap on 31 assessed valuation per dwelling unit - currently $12,542. As previously 32 noted, this legislation removes the sunsetting of the DAMP tax exemption 33 and makes the tax exemption permanent. Furthermore, the legislation 34 allows HDFC co-ops to receive the greater of the DAMP tax exemption or 35 twice the tax abatement that most market-rate co-ops presently currently 36 receive under section 467-a of the real property tax law (but which HDFC 37 co-ops presently are ineligible to receive). This increased tax benefit 38 to HDFCs is a recognition that income-restricted HDFC co-ops are enti- 39 tled to greater benefits than market-rate co-ops. This increased tax 40 benefit is a vital means to promote and protect housing affordability 41 and to provide financial stability to HDFCs. The benefit also is 42 intended as an inducement for current HDFC co-ops (with expired regula- 43 tory controls) to make a long-term commitment to remain as income-res- 44 tricted HDFCs - rather than exercising their right to reincorporate as 45 another form of housing cooperative that is not subject to income 46 restrictions. 47 25. This legislation also establishes a mechanism to ensure that HDFCs 48 that receive the tax benefit comply with the new affordability require- 49 ments. As a condition of the continuing receipt of the tax benefit, each 50 HDFC is required to file an annual certification stating that it has 51 complied with the affordability requirements. HPD is authorized to 52 review and audit the sales records of the HDFC in order to ensure 53 compliance with these requirements. Furthermore, HPD has the right to 54 suspend or revoke the tax exemption and tax abatement if HPD determines 55 that HDFC has willfully not complied with the affordability require- 56 ments.S. 880 6 1 26. For the vast majority of HDFC co-ops, the proposed enhanced real 2 estate tax benefit -- together with the availability of below-market 3 interest financing available through HPD -- would be sufficient to 4 ensure both affordability and fiscal stability. However, for perhaps 10 5 to 20 percent of HDFCs -- which are in fair to poor financial condition 6 - something more is needed. In recognition of this special need of 7 economically distressed HDFCs, the legislation extends the authority of 8 the city of New York to offer special tax relief to HDFC co-ops that are 9 in severe fiscal distress and that are in danger of tax foreclosure by 10 reason of unpaid real estate taxes. Such tax relief is conditioned on 11 the HDFC co-op agreeing to enter into a special regulatory agreement in 12 which the city exercises appropriate oversight and monitoring of the 13 HDFC. Current legislation was enacted in 2002 and authorized tax 14 forgiveness only for HDFCs that "(as of) January 1, 2002 had outstanding 15 municipal real estate taxes relating to any period prior to January 1, 16 2001." This baseline year for tax forgiveness (i.e., tax arrears as of 17 2001) has never been updated to a more current tax year. The legislation 18 updates the baseline year so that the city has the flexibility to offer 19 tax forgiveness (in appropriate cases and subject to strict controls set 20 forth in current law) for HDFC co-ops that are at risk of tax foreclo- 21 sure. In this way an economically distressed HDFC co-op is saved from 22 tax foreclosure, and may thereby provide sustainable and affordable 23 housing for years to come. This is critically important - not just for 24 the HDFC shareholders themselves - but also for neighborhood stability. 25 27. In summary, this legislation provides a much needed permanent tax 26 incentive for HDFCs -- as well as targeted tax relief for economically 27 distressed HDFCs. The permanent tax benefit will eliminate the current 28 uncertainty surrounding the expiration of the DAMP tax exemption in 2029 29 - and will thereby ease the availability of mortgage financing for 30 HDFCs. Furthermore, the permanent tax benefit will serve as a strong 31 incentive for HDFCs with expired regulatory controls to affirmatively 32 choose to remain as affordable HDFC housing subject to income 33 restrictions -- consistent with democratic principles of self-gover- 34 nance. This approach is a matter of basic fairness and justice; is 35 consistent with the promises given to HDFCs over the past thirty years; 36 and is in full accord with how all other government-sponsored private 37 housing under the private housing finance law is treated (such as Mitc- 38 hell-Lama housing and Article V redevelopment companies). Most impor- 39 tantly, this approach will ensure the long-term economic viability of 40 affordable HDFC co-ops. 41 § 3. Subdivision 5 of section 573 of the private housing finance law, 42 as amended by chapter 410 of the laws of 1984, is amended to read as 43 follows: 44 5. The secretary of state shall not file the certificate of incorpo- 45 ration of any such corporation or any amendment thereto unless the 46 consent or approval of the commissioner or the supervising agency, as 47 the case may be, is affixed thereon or attached thereto. Consent to the 48 filing of such certificate of incorporation shall be based upon findings 49 by the commissioner or supervising agency as to the character and compe- 50 tence of the sponsor. For purposes of this subdivision, the term 51 "amendment" as applied to such corporation shall mean and include any 52 changes in a certificate of incorporation as authorized in section eight 53 hundred one of the business corporation law but shall not be deemed to 54 include a dissolution of such corporation pursuant to section eight 55 hundred five of the business corporation law. The dissolution of such 56 corporation does not require the consent or approval of the commissionerS. 880 7 1 or the supervising agency. A housing development fund company has the 2 right under this section and section five hundred seventy-six of this 3 article to dissolve and re-incorporate under the business corporation 4 law or other applicable law, provided that the housing development fund 5 company: 6 a. was formerly subject to a regulatory agreement but such regulatory 7 agreement has expired and/or was formerly subject to contractual 8 restrictions implementing the requirements of section five hundred 9 seventy-six of this article but such contractual restrictions have 10 expired; and 11 b. had formerly received a tax exemption and/or tax abatement pursuant 12 to section five hundred seventy-seven of this article and such tax 13 exemption and/or tax abatement has either expired or is otherwise no 14 longer being received. 15 § 4. Section 576 of the private housing finance law is amended by 16 adding a new subdivision 4 to read as follows: 17 4. A housing development fund company that is no longer subject either 18 to a regulatory agreement or to deed restrictions entered into with the 19 commissioner or supervisory agency shall continue to be subject to the 20 oversight of the commissioner or supervisory agency, subject to the 21 limitation set forth in paragraph (d) of subdivision one of section five 22 hundred seventy-seven of this article, provided that the housing devel- 23 opment fund company continues to elect to receive a tax exemption and/or 24 tax abatement pursuant to section five hundred seventy-seven of this 25 article. If such housing development fund company elects not to receive 26 a tax exemption and/or tax abatement pursuant to such section, then it 27 shall cease to be subject to the regulation and oversight of the commis- 28 sioner or supervisory agency. 29 § 5. Subdivision 1 of section 577 of the private housing finance law, 30 as amended by chapter 658 of the laws of 1967, paragraph (a) as amended 31 by chapter 428 of the laws of 1980, paragraph (c) as added by chapter 32 494 of the laws of 1995, and paragraph (d) as added by chapter 73 of the 33 laws of 2009, is amended to read as follows: 34 1. (a) The local legislative body of any municipality in which a 35 project of a housing development fund company is or is to be located may 36 exempt and abate the real property in such project from local and munic- 37 ipal taxes including school taxes, other than assessments for local 38 improvements, to the extent of all or part of the value of the property 39 included in the completed project. The tax exemption and tax abatement 40 shall operate and continue for [such period as may be provided by such41local legislative body, but in no event for a period of more than forty42years, commencing] so long as a housing development fund company remains 43 in compliance with the requirements of this section, and shall commence 44 in each instance from the date on which the benefits of such exemption 45 first became available and effective. The tax exemption and tax abate- 46 ment shall be applied to: 47 (i) newly created housing development fund companies that are subject 48 to regulatory agreement and/or contractual or deed restrictions imposed 49 by the commissioner or supervisory agency; 50 (ii) housing development fund companies that are presently subject to 51 a regulatory agreement and/or contractual or deed restrictions imposed 52 by the commissioner or supervisory agency; and 53 (iii) housing development fund companies that are not presently 54 subject to a regulatory agreement and are not presently subject to 55 contractual or deed restrictions imposed by the commissioner or supervi- 56 sory agency but that agree to the conditions of the tax exemption andS. 880 8 1 tax abatement as hereinafter described in paragraph (b) of this subdivi- 2 sion. 3 (b) In order for a housing development fund company described in 4 subparagraph (iii) of paragraph (a) of this subdivision to be eligible 5 for a tax exemption and tax abatement pursuant to this section, such 6 company shall be required, for so long as it receives such tax exemption 7 and tax abatement, to not approve a sale of an apartment unless the 8 purchaser of the apartment provides satisfactory proof of income and 9 unless the income of the purchaser is no greater than the income limita- 10 tion specified herein. Such income limitation shall be, at the election 11 of the housing development fund company, either (i) the apartment resale 12 requirement of paragraph b of subdivision one of section five hundred 13 seventy-six of this article; or (ii) a requirement that the income of a 14 purchaser of an apartment not exceed one hundred sixty-five percent of 15 the area median income, as determined from time to time by the United 16 States department of housing and urban development. As a condition of 17 the continuing receipt of such tax exemption and tax abatement, the 18 housing development fund company shall file an annual certification with 19 the commissioner or supervisory agency that the company has complied 20 with the requirements of this section. Such certification shall be 21 limited to a listing of apartments sold or transferred in the prior 22 twelve months and a statement that the income of the purchaser or trans- 23 feree of the apartment complies with the income requirement of this 24 paragraph, except that a transferee who is a member of the transferor's 25 family or household need not comply with such requirement. 26 (c) (i) The commissioner or supervisory agency may review and audit 27 the sales records of a housing development fund company in order to 28 ensure compliance with the requirements of this section. The commission- 29 er or supervisory agency shall have the authority to suspend or revoke 30 the tax exemption and tax abatement applicable to any housing develop- 31 ment fund company, in proportion to the percentage of dwelling units at 32 a housing development fund corporation not in compliance with this 33 section, if the commissioner determines that the company has willfully 34 violated the provisions of this section, so long as the housing develop- 35 ment fund company is provided with prior written notification as to each 36 specific instance of noncompliance and to which dwelling unit such non- 37 compliance is alleged. 38 (ii) A housing development fund company shall have the right to rebut 39 allegations of a willful violation of this section, and also to charge 40 and collect additional monies from any shareholder, including successors 41 and assigns, found by the commissioner or supervisory agency to have 42 willfully not complied with the requirements of this section so as to 43 recover expenses for all losses of tax exemptions and tax abatements and 44 so as to recover all expenses associated with responding to such allega- 45 tions by the commissioner or supervisory agency. 46 (iii) Any annual certification submitted pursuant to this section that 47 has been accepted for filing and that has not been subject to a suspen- 48 sion or revocation action by the commissioner or supervisory agency for 49 a period of five years shall be deemed correct and shall not be subject 50 to further audit or review by the commissioner or supervisory agency. 51 (d) The conditions set forth in paragraph (b) of this subdivision 52 shall be the sole and exclusive conditions governing the eligibility of 53 a housing development fund company described in subparagraph (iii) of 54 paragraph (a) of this subdivision for receipt of the tax exemption and 55 tax abatement authorized in paragraph (e) of this subdivision.S. 880 9 1 (e) For each eligible housing development fund company, the annual 2 amount of the tax exemption and tax abatement authorized pursuant to 3 this section shall be the greater of: 4 (i) twelve thousand five hundred forty-two dollars, equivalent to the 5 cap on assessed value per apartment of fifty thousand dollars in the two 6 thousand twenty-four tax year, and which shall increase by two and a 7 half percent per year in each subsequent tax year; or 8 (ii) the net reduction in real estate taxes resulting from two hundred 9 percent of the tax abatement for housing cooperatives authorized by 10 section four hundred sixty-seven-a of the real property tax law. 11 (f) Where a municipality acts on behalf of another taxing jurisdiction 12 in assessing real property for the purpose of taxation, or in levying 13 taxes therefor, the action of the local legislative body of such munici- 14 pality in granting such tax exemption shall have the effect of exempting 15 the real property in such project from local and municipal taxes includ- 16 ing school taxes, other than assessments for local improvements, levied 17 by or in behalf of both such taxing jurisdictions. 18 [(c)] (g) The local legislative body of any municipality may grant an 19 exemption under paragraph (a) of this subdivision to the real property 20 of a project of any entity to which it is authorized to make a loan 21 pursuant to section five hundred seventy-six-c of this article. 22 [(d)] (h) In a city having a population of one million or more, within 23 one hundred twenty days following receipt of a written submission from 24 the supervising agency requesting a tax exemption pursuant to paragraph 25 (a) of this subdivision for the real property containing the project of 26 a housing development fund company, the local legislative body shall 27 approve or disapprove by resolution the requested tax exemption. If the 28 local legislative body fails to take such action within one hundred 29 twenty days following receipt of such written submission from such 30 supervising agency, then the tax exemption requested by the supervising 31 agency shall be deemed approved pursuant to paragraph (a) of this subdi- 32 vision. 33 § 6. Paragraph (b) of subdivision 1 of section 577-b of the private 34 housing finance law, as amended by chapter 225 of the laws of 2004, is 35 amended to read as follows: 36 (b) on January first, two thousand [two] twenty-four, had outstanding 37 municipal real estate taxes relating to any period prior to January 38 first, two thousand [one] twenty-three. 39 § 7. This act shall take effect on the first of January next succeed- 40 ing the date on which it shall have become a law.
