N.Y. RPT Law § 422

§ 422. Not-for-profit housing companies. 1. (a) Real property owned by\na not-for-profit corporation organized pursuant to the not-for-profit\ncorporation law and the provisions of article two of the private housing\nfinance law, used exclusively to provide housing and auxiliary\nfacilities for faculty members, students, employees, nurses, interns,\nresident physicians, researchers and other personnel and their immediate\nfamilies in attendance or employed at colleges, universities,\neducational institutions, child care institutions, hospitals and medical\nresearch institutes, or for handicapped or aged persons of low income,\nor owned by non-profit nursing home companies organized pursuant to the\nnot-for-profit corporation law and the provisions of article\ntwenty-eight-A of the public health law, used exclusively to provide\nfacilities for nursing care to sick, invalid, infirm, disabled or\nconvalescent persons of low income, or to provide health-related service\nas defined in article twenty-eight of the public health law to persons\nof low income, or any combination of the foregoing, and in addition\nthereto, to provide nursing care and health-related service, or either\nof them, to persons of low income who are not occupants of the project,\nor owned by housing development fund companies organized pursuant to the\nnot-for-profit corporation law and article eleven of the private housing\nfinance law, used exclusively to provide housing for handicapped or aged\npersons of low income, and financed by a federally-aided mortgage as\ndefined in said article eleven, or owned by companies organized pursuant\nto the not-for-profit corporation law and the provisions of article\nseventy-five of title E of the mental hygiene law, used exclusively to\nprovide care, treatment, training, education and residential\naccommodations for operation as hostels for people with mental illness\nor developmental disabilities, or owned by companies organized pursuant\nto the membership corporations law and the provisions of article seven-A\nof the private housing finance law, used exclusively to provide\nprograms, services and other facilities for the aging, shall be exempt\nfrom taxation and exempt from special ad valorem levies and special\nassessments to the extent provided in section four hundred ninety of\nthis chapter, provided, however, that in a city having a population of\none million or more real property owned by any such corporation which is\nto provide housing accommodations, substantially all of which are or are\nto be assisted by rent subsidies made or to be made available by the\nFederal government pursuant to a contract under section eight of the\nUnited States Housing Act of nineteen hundred thirty-seven, as amended,\nor pursuant to a project rental assistance contract under section two\nhundred two of the United States Housing Act of nineteen hundred\nfifty-nine, as amended, or pursuant to a project rental assistance\ncontract under section eight hundred eleven of the National Affordable\nHousing Act of nineteen hundred ninety, as amended, shall from and after\nthe commencement of construction be subject to taxation or exempt\ntherefrom to the extent approved by a municipality acting through its\nlocal legislative body, as such local legislative body is defined in\nsubdivision twelve of section two of the private housing finance law. No\nsuch corporation or company shall pay a dividend on any of its stock or\npay interest on any of its debentures
after\nthe commencement of construction be subject to taxation or exempt\ntherefrom to the extent approved by a municipality acting through its\nlocal legislative body, as such local legislative body is defined in\nsubdivision twelve of section two of the private housing finance law. No\nsuch corporation or company shall pay a dividend on any of its stock or\npay interest on any of its debentures. Provided further, however, in a\ncounty having a population of one million or more and having not more\nthan three towns within such county, real property owned by housing\ndevelopment fund companies organized pursuant to the not-for-profit\ncorporation law and article eleven of the private housing finance law,\nused exclusively to provide housing for handicapped or aged persons of\nlow income, and financed by a federally-aided mortgage as defined in\nsaid article eleven shall from and after the commencement of\nconstruction be subject to taxation or exempt therefrom to the extent\napproved by a municipality acting through its local legislative body, as\nsuch local legislative body is defined in subdivision twelve of section\ntwo of the private housing finance law. Any tax payments and/or payments\nin lieu of taxes made to a municipality pursuant to the preceding\nsentence shall not be passed through nor become the liability of any of\nthe occupants of such property.\n (b) If any portion of such real property of such corporation is not\nused exclusively for housing of those persons set forth in paragraph a\nof this section but is leased or otherwise used for purposes pursuant to\narticle two of the private housing finance law, such portion, provided\nit does not exceed ten per centum of the total, shall be subject to such\nlimited exemption as is authorized pursuant to article two of the\nprivate housing finance law, and the remaining portion only shall be\nfully exempt. If any portion of the real property of such corporation in\nexcess of ten per centum of the total is leased or otherwise used for\nhousing pursuant to article two of the private housing finance law, the\ntotal property shall be subject to such limited exemption as is\nauthorized pursuant to article two of the private housing finance law.\nReal property exempt from taxation pursuant to this paragraph shall also\nbe exempt from special ad valorem levies and special assessments to the\nextent provided in section four hundred ninety of this chapter.\n (c) In real property used in part for handicapped or aged persons of\nlow income priority and preference in the rental of such real property\nfor purposes not specified in paragraph a shall be given to a family of\na person legally responsible for the care of a handicapped or an aged\nperson residing in such real property. This preference and priority\nshall apply to only one such family for each handicapped or aged tenant.\n 2
t for handicapped or aged persons of\nlow income priority and preference in the rental of such real property\nfor purposes not specified in paragraph a shall be given to a family of\na person legally responsible for the care of a handicapped or an aged\nperson residing in such real property. This preference and priority\nshall apply to only one such family for each handicapped or aged tenant.\n 2. (a) The exemption provided in paragraphs (a) and (b) of subdivision\none of this section shall be upon condition that the property owned by\nsuch corporation shall upon dissolution vest in such college,\nuniversity, educational institution, hospital, medical research\ninstitute, child care institution, or other not-for-profit corporation,\nif such college, university, educational institution, hospital, medical\nresearch institution, child care institution, or other not-for-profit\ncorporation is exempt from taxation pursuant to the provisions of\nsection four hundred twenty-a or four hundred twenty-b of this article\nand if no part of the net earnings of such college, university,\neducational institution, hospital, medical research institute, child\ncare institution, or other not-for-profit corporation shall inure to the\nbenefit of any private individual.\n (b) In the event that such college, university, educational\ninstitution, hospital, medical research institute, child care\ninstitution, or other not-for-profit corporation is not otherwise exempt\nfrom taxation, title to the property shall nevertheless vest therein,\nbut only upon payment to the municipality of a sum equal to the total of\nall accrued taxes, levies and assessments from which such property has\nbeen exempt under the provisions of this section.\n