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(a) Application forms and filing for certificate of eligibility. Prescribed forms and applications are available from the Office. All applications must be submitted to the Office on forms approved by the Office.
(b) Documentation required of all applicants. All completed applications for tax exemption must include the following documentation:
(1) Original and two copies of the fully completed application form;
(2) Copy of the deed for the Real Property;
(3) Copy of all mortgages and notes evidencing the Loan(s) for the Real Property;
(4) Copy of the Regulatory Agreement binding the Real Property;
(5) Copy of the Allocation Document for the Real Property;
(6) Copy of the filed Certificate(s) of Incorporation, stock certificates, filed Certificate(s) of Limited Partnership and partnership agreements, as applicable, evidencing that the applicant is a Qualified Owner.
(7) Schematic drawings of all proposed or completed buildings or improvements to the Real Property, including all floors thereof, which schematic drawings identify those portions of the Real Property which are not dwelling units and clearly specify (i) areas used for common residential or ancillary residential purposes which qualify as Housing Accommodations for Persons and Families of Low Income and (ii) all areas used for commercial and otherwise ineligible purposes which do not qualify as Housing Accommodations; indicate the square footage of each such space, all drawn to a scale acceptable to the Office which scale is clearly indicated on each drawing, provided, however, that the Office may waive schematics if there is no space not used for dwelling units or other residential purposes;
(8) A certification from the City, the State or the Housing Trust Fund Corporation indicating that the applicant is not in default under the terms of the Loan and the Regulatory Agreement with respect to the Real Property which is the subject of the application if requested by the Office; and
(9) A copy of the Temporary or Permanent Certificate of Occupancy, if issued.
(10) Any such additional documentation which the Office may require.
(11) An application may contain more than one building provided that each such building is part of a project, and is specified in the deed, mortgages and notes and the Regulatory Agreement(s) for such project; and provided further that there is a final Allocation Document for each such building.
(c) Completion of application. An application for a Certificate of Eligibility must contain all documentation required by 28 RCNY § 31-04(b) and be completed within twenty-four months of the Initial Filing Date with the Office or the application may be deemed withdrawn. An application for a Certificate of Eligibility shall be deemed complete if the application includes all the documentation required in 28 RCNY § 31-04(b). The requirements of 28 RCNY § 31-04(b)(5) may be temporarily satisfied as provided in 28 RCNY § 31-02(b)(3) by a binding or non-binding reservation or a credit carry over allocation issued pursuant to § 42(h)(i)(E) of the Internal Revenue Code pending compliance with 28 RCNY § 31-02(b)(3) hereof or proof of application for such reservation or allocation. Applicants must notify the Office of any change of address and/or change of ownership of the premises and any change in the designated filing agent.
(d) Issuance of a certificate of eligibility.
(1) It is the applicant's responsibility to complete the application within twenty-four months, or, where applicable, within thirty-six months of the Initial Filing Date as provided in 28 RCNY § 31-04(c). The Office shall issue a Certificate of Eligibility for all approved applications.
(2) Failure to produce documentation satisfactory to the Office or failure to comply with these Rules may result in the denial of a Certificate of Eligibility, and rejection of the application.
(3) Notwithstanding the issuance of a Certificate of Eligibility, the tax exemption may be revoked or revised pursuant to 28 RCNY Chapter 39.
(e) Implementation of benefit. Upon issuance of a 420-c Certificate of Eligibility and payment of outstanding fees, the Office will transmit the Certificate of Eligibility to the Department of Finance
(a) Effective date of exemption. Tax exemption under 28 RCNY §§ 31-01 through 31-06 shall commence on the latter of: (i) the date of acquisition of the eligible property by the qualified owner, (ii) the effective date of a regulatory agreement, or (iii) the date of issuance of an Allocation Document, except as follows:
(1) Where Eligible Property acquired after January 5 was exempt from Real Property taxation on the date of such transfer, the property shall remain exempt for the balance of the tax year in progress and for the next full tax year.
(2) Duration of exemption. The exemption shall expire upon the expiration or termination of the Regulatory Agreement or thirty years from commencement of exemption if the Regulatory Agreement exceeds thirty years. If the extended use period as defined in the Code is terminated in accordance with § 42 of the Code, the Regulatory Agreement shall be deemed terminated.
(3) Amount of tax exemption. With respect to the portions of Real Property which are not Eligible Property, the Department of Finance will apportion assessed value between exempt portions of Real Property and non-exempt portions thereof (both as determined by the Office) based upon each portion's relative percentage of the entire parcel's full market value.
(Amended City Record 8/21/2015, eff. 9/19/2015)
(a) [Reserved.]
(b) [Reserved.]
(c) [Reserved.]
(d) [Reserved.]
(e) [Reserved.]
(f) [Reserved.]
(g) [Reserved.]
(h) Fees and Declaratory Rulings. The Office shall charge a filing fee of one hundred ($100) dollars per Application. In addition, there shall be a charge of eighty ($80) dollars per Class A dwelling unit and sixty ($60) dollars per Class B dwelling unit, as applicable, due at the time of issuance of a Certificate of Eligibility. Such fee shall be non-refundable under any circumstances, including but not limited to the subsequent revocation or revision of a Certificate. A declaratory ruling with respect to an analysis of a specific fact pattern, document or organizational structure or an interpretation of the applicability of a specific provision of the 420-c statute or Rules to an actual or hypothetical site, project, fact pattern, document or organizational structure or any other issue related to eligibility may be given by the Office upon payment of a non-refundable fee of two hundred fifty ($250) dollars payable at the time such declaratory ruling is requested in writing. In no event shall a prior ruling bind the Office as to the overall eligibility of a project for 420-c benefits.
Aggregate Floor Area. "Aggregate Floor Area" shall mean the sum of the gross areas of the several floors of a building, measured from the exterior faces of exterior walls or from the center lines of walls separating two buildings.
Allocation Document. "Allocation Document" shall mean a document issued by the Housing Credit Agency with respect to Real Property indicating either (i) that such Real Property has received a determination of credit eligibility, (ii) that such Real Property has received a binding reservation for tax credits or (iii) that such Real Property has been allocated tax credits pursuant to § 42 of the Code.
Certificate of Eligibility. "Certificate of Eligibility" shall mean the certificate issued by the Office pursuant to 28 RCNY § 31-10(d).
Charitable Organization. "Charitable Organization" shall mean (i) an entity formed for purposes that include providing Housing Accommodations for Persons and Families of Low Income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency, or (ii) a corporation, partnership or limited liability company wholly owned and wholly controlled by an entity formed for purposes that include providing Housing Accommodations for Persons and Families of Low Income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency.
City. "City" shall mean the City of New York.
Code. "Code" shall mean the United States Internal Revenue Code of 1986, as amended, or any successor statute.
Commissioner. "Commissioner" shall mean the commissioner of HPD or the commissioner of any successor agency or her or his designee.
Department of Finance. "Department of Finance" shall mean the Department of Finance of the City or any successor agency.
Eligible Entity. "Eligible Entity" shall mean a corporation, partnership or limited liability company at least fifty percent of the controlling interest of which is held by a Charitable Organization.
Eligible Owner. "Eligible Owner" shall mean one or more Eligible Entities that holds (i) legal and beneficial title to Eligible Real Property, or (ii) a legal and beneficial leasehold interest with a term of not less than thirty years in Eligible Real Property.
Eligible Real Property. "Eligible Real Property" shall mean Real Property that (i) provides Housing Accommodations for Persons and Families of Low Income, and (ii) participates in or has participated in the Tax Credit Program. If a portion of Real Property is not Eligible Real Property, tax exemption shall be apportioned in accordance with 28 RCNY § 31-09(b).
Housing Accommodations. "Housing Accommodations" shall mean Real Property used for (i) residential purposes including dwelling units, common sanitary and cooking and dining facilities, common recreation areas including outdoor recreation areas and public areas such as cellars, basements, public halls and stairs and roofs; or (ii) ancillary residential purposes including management, administrative and, for projects with an Initial Filing Date on or after the effective date of the rule adding this section, community facility uses that are authorized under use groups 3 and 4 of the Zoning Resolution. Notwithstanding the foregoing, any portion of the combined floor area of such ancillary residential purposes which exceeds twenty-five percent (25%) of the Aggregate Floor Area of the Real Property shall not qualify as Housing Accommodations.
Housing Credit Agency. "Housing Credit Agency" shall mean the State Division of Housing and Community Renewal or HPD or such other agency as shall be designated as a housing credit agency in the City by the State under § 42 of the Code.
HPD. "HPD" shall mean the Department of Housing Preservation and Development of the City or any successor agency.
Initial Filing Date. The term "Initial Filing Date" shall mean the date an initial application is submitted to the Office.
Office. "Office" shall mean the Tax Incentive Programs Unit of HPD or any successor thereto authorized to administer these Rules.
Persons and Families of Low Income. "Persons and Families of Low Income" shall mean persons or families who are in low income groups and who cannot afford to pay enough to cause private enterprise in their municipality to build a sufficient supply of adequate, safe and sanitary dwellings as set forth in § 2 of the Private Housing Finance Law.
Real Property. "Real Property" shall mean the land, buildings and other improvements subject to taxation pursuant to § 102 of the Real Property Tax Law which are the subject of an application under 28 RCNY § 31-10.
Regulatory Agreement. "Regulatory Agreement" shall mean a regulatory agreement with or approved by the City that requires the provision of Housing Accommodations for Persons and Families of Low Income; requires units currently or formerly assisted under the Tax Credit Program be rented in accordance with the income requirements of the Tax Credit Program; imposes the income and occupancy restrictions established by the Tax Credit Program on at least seventy percent (70%) of the dwelling units in such Eligible Real Property; provides that any of the dwelling units in such Eligible Real Property that are not subject to the income and occupancy restrictions established by the Tax Credit Program must be rented, upon vacancy, to persons and families whose incomes do not exceed one hundred sixty-five percent (165%) of area median income; and is recorded against the Eligible Real Property and binds all parties in interest to the Eligible Real Property and their respective successors and assigns. A regulatory agreement may include such other terms and conditions as the City shall determine, including, but not limited to, provisions requiring payments in lieu of taxes.
Tax Credit Program. "Tax Credit Program" shall mean the federal low-income housing tax credit program established pursuant to § 42 of the Code.
State. "State" shall mean the State of New York.
Zoning Resolution. "Zoning Resolution" shall mean the Zoning Resolution of the City, as amended.
(Added City Record 8/21/2015, eff. 9/19/2015)
(a) Eligibility. Real Property may be eligible for an exemption from real property taxes as set forth in
28 RCNY § 31-11 if:
(1) It is bound by a Regulatory Agreement; and
(2) An Allocation Document has been issued for the Real Property; and
(3) It is owned, at the Application Date and for the duration of such exemption, by an Eligible Owner; and
(4) It constitutes Housing Accommodations for Persons and Families of Low Income as set forth in the Regulatory Agreement or Allocation Document; and
(5) It participates in or has participated in the Tax Credit Program.
(b) Time Requirements.
(1) An application for a Certificate of Eligibility must contain all documentation required by
28 RCNY § 31-10(b) and be completed within twenty-four months of the Initial Filing Date with the Office or the application may be deemed withdrawn.
(2) If the Allocation Document submitted with the application for the Certificate of Eligibility was either a determination of credit eligibility or a binding reservation for tax credits, then a United States Treasury Form 8609, Part I of which is to be completed by a Housing Credit Agency, must be submitted for the Real Property to the Office within thirty-six months of the Initial Filing Date of the application.
(Added City Record 8/21/2015, eff. 9/19/2015)
(a) Application forms and filing for Certificate of Eligibility. Prescribed forms and applications are available from the Office. All applications must be submitted to the Office on forms approved by the Office.
(b) Documentation required of all applicants. All completed applications for tax exemption must include the following documentation:
(1) Original fully completed application form;
(2) Copy of the deed for the Real Property;
(3) Copy of any former and current Regulatory Agreements binding the Real Property to the Tax Credit Program income and other restrictions;
(4) Copy of the Allocation Document for the Real Property;
(5) Copy of the filed Certificate(s) of Incorporation, stock certificates, filed Certificate(s) of Limited Partnership and Limited Liability Companies, and partnership agreements, as applicable, evidencing that the applicant is an Eligible Owner;
(6) Schematic drawings of all proposed or completed buildings or improvements to the Real Property, including all floors thereof, that identify those portions of the Real Property which are not dwelling units and clearly specify (i) areas used for common residential or ancillary residential purposes which qualify as Housing Accommodations for Persons and Families of Low Income and (ii) all areas used for commercial and otherwise ineligible purposes which do not qualify as Housing Accommodations; indicate the square footage of each such space, all drawn to a scale acceptable to the Office which scale is clearly indicated on each drawing, provided, however, that the Office may waive schematics if there is no space not used for dwelling units or other residential purposes;
(7) A copy of the Temporary or Permanent Certificate of Occupancy, if issued;
(8) Written recognition of exemption for the applicable Charitable Organization pursuant to Section 501(c)(3) or Section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency; and
(9) Any such additional documentation which the Office may require.
(c) An application may concern more than one building provided that each such building is part of a project, and is specified in the Regulatory Agreement(s) for such project; and provided further that there is a United States Treasury Form 8609, Part I of which has been completed by the Housing Credit Agency, for each such building.
(d) Completion of application. An application for a Certificate of Eligibility must contain all documentation required by subdivision (b) of this section and be completed within twenty-four months of the Initial Filing Date with the Office or the application may be deemed withdrawn. An application for a Certificate of Eligibility shall be deemed complete if the application includes all the documentation required in subdivision (b) of this section. Applicants must notify the Office of any change of address and/or change of ownership of the premises and any change in the designated filing agent.
(e) Issuance of a Certificate of Eligibility.
(1) The Office shall issue a Certificate of Eligibility for all approved applications.
(2) Failure to produce documentation satisfactory to the Office or failure to comply with these Rules may result in the denial of a Certificate of Eligibility, and rejection of the application.
(3) Notwithstanding the issuance of a Certificate of Eligibility, the tax exemption may be revoked or revised pursuant to 28 RCNY Chapter 39.
(f) Implementation of benefit. Upon issuance of a 420-c Certificate of Eligibility and payment of outstanding fees, the Office will transmit the Certificate of Eligibility to the Department of Finance.
(Added City Record 8/21/2015, eff. 9/19/2015)
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