421-D - Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation.

* §  421-d.  Exemption  of multiple dwellings financed by the New York  state  housing  finance  agency  from  local  taxation.  1.  The   local  legislative  body  of  any  city, town or village having a population of  less than one million is hereby authorized and empowered  to  adopt  and  amend  a  local  law  to  provide  that any new or rehabilitated housing  development, as defined in section  forty-two  of  the  private  housing  finance  law,  subject  to  a  mortgage,  the loan for which was made or  financed by notes, bonds or other obligations  of  the  New  York  state  housing  finance  agency,  the interest on which is exempt from taxation  pursuant to the Internal Revenue Code of 1954,  as  amended,  after  the  adoption  of such local law shall be exempt from taxation as provided by  such local law.    2. (a) Such local law may provide that such eligible property shall be  exempt from all taxes imposed  by  a  municipal  corporation,  including  those  imposed  by or on behalf of a school district, other than special  assessments and  special  ad  valorem  levies,  during  construction  or  rehabilitation, but for no longer than three years.    (b)  Such  local law may also provide that the eligible property shall  be exempt upon the conclusion of  the  exemption  period  authorized  by  paragraph  (a)  of  this  subdivision,  for  as  long as construction or  rehabilitation continues and, thereafter, for so long as  such  mortgage  is  outstanding  and  the  housing  development,  as  defined in section  forty-two of the private housing finance law, is  used  for  residential  unit   purposes;   provided,  that  the  exemption  authorized  by  this  subdivision shall be for a period not to exceed  fifteen  years  in  the  aggregate  after the conclusion of the exemption authorized by paragraph  (a) of this subdivision, and shall not exceed the following limitations:  three years of full exemption, followed by three years of exemption from  eighty percent of the assessed value of such property, followed by three  years of exemption from sixty percent of  the  assessed  value  of  such  property, followed by three years of exemption from forty percent of the  assessed  value  of  such property, followed by three years of exemption  from twenty percent of the assessed value of such property; and provided  that taxes shall be paid during any such period after the taxable status  date  immediately  following   the   completion   of   construction   or  rehabilitation at least in the amount of the taxes paid on such land and  improvements  thereon  during the fiscal year preceding the commencement  of such construction or rehabilitation and that the exemption from taxes  shall not be availed of concurrently under any other law.    * NB Repealed June 30, 2011