A newly enacted New York law allows municipalities outside of New York City, as well as Nassau, Rockland, and Westchester Counties to adopt a new real property tax exemption for the construction or substantial rehabilitation of multiple dwellings where at least twenty percent (20%) of the units are occupied by individuals or families whose incomes do not exceed 90% of AMI. If adopted locally, the exemption will apply to general municipal taxes, special ad valorem levies, and school taxes, but not to special assessments. The exemption begins at 100% of the applicable taxes and phases out over a term of 20 years as follows:
- During construction/rehabilitation period (maximum of 3 years)-100% exemption
- Beginning the year after construction is completed:
- Years 1-12 100% exemption
- Years 13-14 80% exemption
- Years 15-16 60% exemption
- Years 17-18 40% exemption
- Years 19-20 20% exemption
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