Volume 1 - Opinions of Counsel SBEA No. 50
Housing projects for aged persons (nonprofit) - Real Property Tax Law, §§ 422, 490:
Real property which is used exclusively to provide housing and auxiliary facilities for, among others, handicapped or aged persons of low income, and is owned by certain not-for-profit corporations as provided by section 422 of the Real Property Tax Law, is entitled to exemption from city, town, village and school district taxes. Projects located outside cities and villages are liable for certain special ad valorem levies and special assessments.
The provisions which cover tax exemptions of nonprofit housing projects for aged persons of low income are contained in section 422 of the Real Property Tax Law. This section provides for the exemption of real property, owned by not-for-profit corporations organized pursuant to the Not-for-Profit Corporations Law and the provisions of Article 2 of the Private Housing Finance Law, which is used exclusively to provide housing and auxiliary facilities for, among others, handicapped or aged persons of low income.
Section 422 also provides for the exemption of real property owned by housing development fund companies organized pursuant to the Not-for-Profit Corporations Law and Article 11 of the Private Housing Finance Law, which is used exclusively to provide housing for handicapped or aged persons of low income and which is financed by a federally-aided mortgage as defined in said Article 11.
Property which qualifies under section 422 of the Real Property Tax Law is exempt from city, town, village and school district taxes. Projects located outside cities and villages are liable only for the special ad valorem levies and special assessments levied to pay the capital construction costs (but not operation and maintenance costs) of water supply distribution systems, sewer systems, drainage improvements and street, highway, road and parkway improvements (section 490 of the Real Property Tax Law).
The law also contains provisions for a partial tax exemption where a portion of the project is not used exclusively for the housing provisions described in section 422 but is used for purposes authorized in Article 2 of the Private Housing Finance Law (commonly referred to as the Limited-Profit Housing Companies Law).
January 6, 1972
NOTE: But see Opinion 7-88.
