N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1648-2.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1648-2.2 - Tax exemption subsidy

(a) Subdivision 4 of section 52 of the Public Housing Law states that the property included in a project may not, in any event, be assessed in excess of the actual cost of the project and further exempts from taxation that portion of the assessed valuation of the real property, both land and improvements, and still retained, in excess of the assessed valuation as of the date of the loan and subsidy contract. Section 73 of the Law states further that all or part of such exemption from local taxes may be applied by a municipality as a credit against the local periodic subsidy it has contracted to make to match the State subsidy.

(b) The value of the tax exemption subsidy is computed by applying the current rates of tax to the difference between the current assessed valuation of the project and the assessed valuation of the retained land, and improvements thereon, as of the date of the loan and subsidy contract. The word "retained" refers to the situation where a local agency, subsequent to the acquisition of the site of the project proper, may have ceded some land to the municipality for park, playground or street-widening purposes, etc., or may have sold some of the land originally acquired. For the purpose of computing the value of the tax exemption subsidy for the first year of project operations, however, project development cost may, under certain circumstances, be substituted for current assessed valuation. The division should be consulted in this connection as well as in connection with other special cases which may arise, particularly during the first year of project operations. Further instructions for computing the value of the tax exemption subsidy are contained in section 1648-3.7 in connection with the preparation of the subsidy schedule. See also subdivision (b) of section 1640-6.3 for a fuller discussion of the application of sections 52 and 73 of the Public Housing Law.