Town of Brookhaven, NY First-Time Homebuyers of Newly Constructed Homes Exemption

Property must be owned by a private individual or individuals who: (1) have not owned property which served as their primary residence during the three-year period prior to their applying for this exemption; (2) are not married to a person who owned residential property during the three-year period prior to their applying for this exemption; and (3) do not own a vacation or investment home. Furthermore, if title to the property is transferred to someone other than the heirs or distributees of the owner(s) during the term of the exemption, the exemption will be discontinued.

The combined income for all the owners, and of any owners' spouses residing on the property, for the income tax year immediately preceding the date of application for exemption may not exceed the income limits defined by the State of New York Mortgage Agency (SONYMA) low interest rate mortgage program for the nontarget, one- and two-person household category in the county where the property is located and in effect on the contract date for the purchase and sale of the property. The applicable SONYMA limits are available on that agency's Internet website. For the purpose of this exemption, "income" means the "adjusted gross income" for federal income tax purposes as reported on the applicant's latest available federal or state income tax return, subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account or an individual retirement annuity; provided that if no such return was filed within the one-year period preceding the taxable status date, "income" means the adjusted gross income that would have been so reported if such a return had been filed. The "latest available return" means the federal and state income tax return for the tax year immediately preceding the date of making application; provided, however, that if the tax return for such year has not been filed, then the income tax return for the tax year two (2) years preceding the date of making application will be considered the latest available.

Property must be a newly constructed or reconstructed one- or two-family house, townhouse or condominium that is owner-occupied. Additionally, other than for reconstruction projects, the home must never have been occupied previously. No portion of an otherwise eligible single-family home may be leased or used primarily for nonresidential purposes while the exemption is being granted. In either case, the exemption will be discontinued.

The sales price must not exceed 125% of the maximum eligible sales price established by the State of New York Mortgage Agency (SONYMA) low interest rate mortgage program in the non-target, one-family new category for the county where the property is located and in effect on the contract date for the purchase and sale of the property. However, the maximum exemption amount is limited to 100% of those SONYMA-established sales prices. The exemption for reconstructed, altered or improved residential property is limited solely to the increase in assessed value attributable to such reconstruction, alteration or improvement, provided that the total assessed value of the property after the projection completion does not exceed 125% of the purchase price limits set by SONYMA (see above). To be eligible for this exemption on existing homes, the first-time homebuyer must have provided for such reconstruction, alteration or improvement as part of the sale contract of the home or entered into a written contract within 90 days of the sale of the property. Lastly, the value of such reconstruction, alteration or improvement must be greater than $3,000 and cannot include the value of ordinary maintenance and repairs.

Property must be constructed or reconstructed by a first-time homebuyer:

(1)

On or before December 30, 2010, unless such purchase is made pursuant to a binding written contract entered into on or before such date; and

(2)

After November 28, 2001, first-time homebuyers who first received this exemption prior to December 31, 2010, will continue to receive the exemption according to the established schedule. First-time homebuyers of existing homes seeking the exemption on the basis of reconstruction, alteration or improvement of the property must enter into a written contract within 90 days after the sale of the home.

Subdivision 5 of § 457 of the Real Property Tax Law, as amended by Chapter 657 of the Laws of 2005, provides that no exemption shall be allowed pursuant to this article for any newly constructed primary residential property purchased by a first-time homebuyer on or after December 31, 2016, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2016; provided, however, that any first-time homebuyer who is allowed an exemption pursuant to this article prior to such date shall continue to be allowed further exemptions pursuant to § 65-37 of this article.