422 - Not-for-profit housing companies.

§ 422. Not-for-profit housing companies. 1. (a) Real property owned by  a  not-for-profit  corporation  organized pursuant to the not-for-profit  corporation law and the provisions of article two of the private housing  finance  law,  used  exclusively  to  provide  housing   and   auxiliary  facilities  for  faculty  members, students, employees, nurses, interns,  resident physicians, researchers and other personnel and their immediate  families  in  attendance  or   employed   at   colleges,   universities,  educational institutions, child care institutions, hospitals and medical  research  institutes,  or for handicapped or aged persons of low income,  or owned by non-profit nursing home companies organized pursuant to  the  not-for-profit   corporation   law   and   the   provisions  of  article  twenty-eight-A of the public health law,  used  exclusively  to  provide  facilities  for  nursing  care  to  sick,  invalid,  infirm, disabled or  convalescent persons of low income, or to provide health-related service  as defined in article twenty-eight of the public health law  to  persons  of  low  income,  or  any  combination of the foregoing, and in addition  thereto, to provide nursing care and health-related service,  or  either  of  them, to persons of low income who are not occupants of the project,  or owned by housing development fund companies organized pursuant to the  not-for-profit corporation law and article eleven of the private housing  finance law, used exclusively to provide housing for handicapped or aged  persons of low income, and financed by  a  federally-aided  mortgage  as  defined in said article eleven, or owned by companies organized pursuant  to  the  not-for-profit  corporation  law  and the provisions of article  seventy-five of the mental hygiene  law,  used  exclusively  to  provide  care,  treatment, training, education and residential accommodations for  operation as hostels for the mentally ill or mentally retarded, or owned  by companies organized pursuant to the membership corporations  law  and  the  provisions  of  article seven-A of the private housing finance law,  used exclusively to provide programs, services and other facilities  for  the  aging,  shall  be  exempt  from taxation and exempt from special ad  valorem levies and special assessments to the extent provided in section  four hundred ninety of this chapter, provided, however, that in  a  city  having  a  population  of one million or more real property owned by any  such  corporation  which   is   to   provide   housing   accommodations,  substantially  all  of which are or are to be assisted by rent subsidies  made or to be made available by the Federal  government  pursuant  to  a  contract  under  section  eight  of  the  United  States  Housing Act of  nineteen hundred thirty-seven, as amended,  or  pursuant  to  a  project  rental  assistance  contract under section two hundred two of the United  States Housing Act  of  nineteen  hundred  fifty-nine,  as  amended,  or  pursuant  to  a  project  rental assistance contract under section eight  hundred eleven of  the  National  Affordable  Housing  Act  of  nineteen  hundred  ninety,  as  amended,  shall from and after the commencement of  construction be subject to taxation or exempt therefrom  to  the  extent  approved by a municipality acting through its local legislative body, as  such  local  legislative  body is defined in paragraph twelve of section  two of the private housing finance law. No such corporation  or  company  shall  pay  a dividend on any of its stock or pay interest on any of its  debentures. Provided further, however, in a county having  a  population  of  one million or more and having not more than three towns within such  county, real  property  owned  by  housing  development  fund  companies  organized  pursuant  to  the  not-for-profit corporation law and article  eleven of the private housing finance law, used exclusively  to  provide  housing for handicapped or aged persons of low income, and financed by a  federally-aided  mortgage  as  defined in said article eleven shall from  and after the commencement of construction be  subject  to  taxation  or  exempt therefrom to the extent approved by a municipality acting throughits local legislative body, as such local legislative body is defined in  paragraph  twelve of section two of the private housing finance law. Any  tax payments and/or payments in lieu of taxes  made  to  a  municipality  pursuant  to  the  preceding  sentence  shall  not be passed through nor  become the liability of any of the occupants of such property.    (b) If any portion of such real property of such  corporation  is  not  used  exclusively  for housing of those persons set forth in paragraph a  of this section but is leased or otherwise used for purposes pursuant to  article two of the private housing finance law, such  portion,  provided  it does not exceed ten per centum of the total, shall be subject to such  limited  exemption  as  is  authorized  pursuant  to  article two of the  private housing finance law, and the remaining  portion  only  shall  be  fully exempt. If any portion of the real property of such corporation in  excess  of  ten  per centum of the total is leased or otherwise used for  housing pursuant to article two of the private housing finance law,  the  total  property  shall  be  subject  to  such  limited  exemption  as is  authorized pursuant to article two of the private housing  finance  law.  Real property exempt from taxation pursuant to this paragraph shall also  be  exempt from special ad valorem levies and special assessments to the  extent provided in section four hundred ninety of this chapter.    (c) In real property used in part for handicapped or aged  persons  of  low  income  priority and preference in the rental of such real property  for purposes not specified in paragraph a shall be given to a family  of  a  person  legally  responsible for the care of a handicapped or an aged  person residing in such real  property.  This  preference  and  priority  shall apply to only one such family for each handicapped or aged tenant.    2. (a) The exemption provided in paragraphs (a) and (b) of subdivision  one  of  this section shall be upon condition that the property owned by  such  corporation  shall  upon  dissolution  vest   in   such   college,  university,   educational   institution,   hospital,   medical  research  institute, child care institution, or other not-for-profit  corporation,  if  such college, university, educational institution, hospital, medical  research institution, child care institution,  or  other  not-for-profit  corporation  is  exempt  from  taxation  pursuant  to  the provisions of  section four hundred twenty-a or four hundred twenty-b of  this  article  and  if  no  part  of  the  net  earnings  of  such college, university,  educational institution, hospital,  medical  research  institute,  child  care institution, or other not-for-profit corporation shall inure to the  benefit of any private individual.    (b)   In   the   event  that  such  college,  university,  educational  institution,  hospital,   medical   research   institute,   child   care  institution, or other not-for-profit corporation is not otherwise exempt  from  taxation,  title  to the property shall nevertheless vest therein,  but only upon payment to the municipality of a sum equal to the total of  all accrued taxes, levies and assessments from which such  property  has  been exempt under the provisions of this section.