[Adopted 5-21-2013 by L.L. No. 1-2013]
The Common Council of the City of Cortland, New York, has determined
it necessary and desirable to authorize a partial exemption from real
property taxation of the increase in assessed value attributable to
the construction of or the substantial rehabilitation of multiple
dwellings with an affordable housing component located within the
City of Cortland Central Business District. Such tax exemption is
deemed desirable in furtherance of the goals identified in the City
of Cortland Comprehensive Plan: to promote diversity in the downtown
housing market, further support the downtown economy, and encourage
investment in existing downtown buildings.
Pursuant to authority granted by the Real Property Tax Law § 421-m,
an eligible multiple dwelling constructed or substantially rehabilitated
in the benefit area designated pursuant to this article shall be eligible
for an exemption from taxation and local ad valorem levies for the
tax years commencing during the construction or rehabilitation of
such structure pursuant to the following schedule; provided, however,
that the amount of taxes paid during such period shall be at least
the amount of the taxes paid on such land and any improvements thereon
immediately preceding the commencement of the exemption. In addition,
any improvements to property receiving this exemption shall not be
eligible to receive any other exemption under any other section of
law.
|
Construction or Substantial Rehabilitation of Multiple
Dwellings
| ||
|---|---|---|
|
Phase/Year
|
Amount of Exemption
| |
|
During construction or substantial rehabilitation (maximum three
years)
|
100%
| |
|
Following completion of work, year:
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|
1 through 12
|
100%
| |
|
13-14
|
80%
| |
|
17-18
|
40%
| |
|
19-20
|
20%
| |
When used in this article, the following terms shall have the
following meanings:
The area of the City of Cortland identified as the Central
Business District on the City of Cortland Zoning Map effective as
of the date of adoption of this article.
All work necessary to bring a property into compliance with
applicable laws and regulations and shall include but not be limited
to the installation, replacement or repair of, heating, plumbing,
electrical and related systems and the elimination of all hazardous
and immediately hazardous violations in the structure in accordance
with state and local law and regulation. "Substantial rehabilitation"
shall also include reconstruction or work to improve the habitability
or prolong the useful life of the property with the exclusion of ordinary
maintenance or repair.
A dwelling, other than a hotel, which is to be occupied or
is occupied as the residence or home of three or more families living
independently from one another including dwellings rented or owned
as a cooperative or a condominium.
In order to grant the real property tax exemption provided under § 254-16, the City shall determine that:
A.
Such construction or substantial rehabilitation of a multiple dwelling
will occur on land which:
B.
At least 20% of the units shall be affordable to individuals or families
of low or moderate income whose incomes at the time of initial occupancy
do not exceed 90% of the area median income adjusted for family size
and the individual or family shall pay in rent or carrying charges
no more than 30% of their adjusted gross income as reported in their
federal income tax return or would be reported if such return were
required, less personal exemptions and deductions and medical expenses
as are actually taken by the taxpayer, as verified according to procedures
established by the State Division of Housing and Community Renewal.
The City shall consult annually with the division to determine that
the property is in compliance with the affordability requirements
of this article. If such requirements are not met, the multiple dwelling
shall not qualify for the exemption in that year.
C.
Such construction or substantial rehabilitation is carried out with
the assistance of grants, loans or subsidies for the construction
or rehabilitation of affordable housing from any state, local, or
federal agency.
D.
Such construction or substantial rehabilitation shall commence after
the effective date of this article, but no later than July 15, 2015.
E.
If such property is to be used partially as a multiple dwelling and
partially for commercial or other purposes, that:
(1)
The square footage of the portion of the property used as a multiple
dwelling represents at least 50% of the square footage of the entire
property and;
(2)
At least 20% of the units are affordable to individuals or families
of low and moderate income; and
(3)
The requirements of this article relative to a multiple dwelling
are otherwise satisfied.
F.
Any property owner seeking an exemption within the designated benefit
area shall file Form RP-421-m with the City Assessors' office for
review, prior to the applicable taxable status date of the initial
year for which the exemption is sought.
