Department of Taxation and Finance

Exemption Administration Manual, Part 2: Multiple dwellings and urban renewal—Section 4.07

Assessor Manuals

Section 4.07

II. Urban renewal exemptions

A. Eligibility Requirements: Ownership, Location, and Project Date Requirements
Owner	Location	Project date	Statute	Exemption #
	Limitation on
1. Community development corporation	None	None	PHFL §260	H–01
2. Municipality	None	None	Gen Muny L § §506, 560	H–02
3. Municipal urban renewal agency	None	None	Gen Muny L § §555, 560	H–03
4. NYS Urban Development Corporation	None	Yes*	McK U Con L §6272	H–04
5. Urban redevelopment corporation	Cities	None	PHFL §211	H–05
6. Miscellaneous owners—urban development action area project	Cities having a population of 100,000 or more	None	Gen Muny L §696	H–06
* UDC must not expend any of the proceeds from the sale of assets to, or the borrowing from, the NYS Project Finance Agency for the construction or development of any new project which on 2/25/75 was not under construction by the UDC or the subject of a contract or other legally binding commitment for the construction or financing thereof by the UDC.

B. Eligibility requirements: Property use requirements
Exemption	Statute	Owner	Property use requirements
U–01	PHFL §260	Community development corporation	Property must be used for urban renewal purposes.
U–02	Gen Muny L §506, 560	Municipality	Property must be used for urban renewal purposes - the redevelopment, through clearance, replanning, reconstruction, rehabilitation, and concentrated code enforcement, of substandard and insanitary areas.
U–03	Gen Muny L § §555, 560	Municipal urban renewal agency	See Exemption U-02 above.
U–04	McK U Con L §6272	NYS Urban Development Corporation	Property must be used for urban renewal purposes - clearance, replanning, reconstruction, and rehabilitation of the area involved and development of recreational and other facilities incidental or appurtenant thereto.
U–05	PHFL §221	Urban redevelopment corporation	Property must be used for urban renewal purposes - clearance, rehabilitation, and reconstruction of a substandard and insanitary urban area.
U–06	Gen Muny L §696	Miscellaneous owners -- urban development action area project	Project must be used for urban renewal purposes and must include the construction of a new structure or the renovation, rehabilitation, or conversion of an existing structure where the cost of such renovation, rehabilitation, or construction is at least equal to 100% of the assessed value of the structure in the tax year immediately preceding the granting of the tax exemption.

C. Eligibility requirements: Organizational requirements
Type of company	Law(s) under which corporation required	Restrictions on corporate purposes or activities as stated in certificate of incorporation
Community development corporation	NPCL	1. Corporation must be organized exclusively to serve a civic, cultural, and/or recreational purpose. 2. All income of corporation must be used exclusively for its corporate purposes. 3. None of corporation's net income may inure to the benefit or profit of any private individual or organization.
Urban redevelopment corporation	Bsns Corp L Article 4	1. Corporation must be organized to plan and carry out a development project for the clearance, rehabilitation, and reconstruction of a substandard and insanitary urban area under the supervision of the city's planning commission and its board of estimate or other appropriate official or agency. 2. Corporation may not undertake more than one development project. 3. While any of the corporation's real property is exempt from taxation the corporation is limited in the amount that it may pay in interest on its debentures and dividends on its stock.

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Updated: July 20, 2023