[Adopted 5-23-2002 by L.L. No. 2-2002]
A. 
This partial real property tax exemption is being enacted to assist first-time homebuyers of moderate income in their ability to afford low to moderately priced housing in the City of Auburn. In attracting future homeowners to the City of Auburn through this article, the City would realize a direct benefit to its neighborhoods through development, stabilization and preservation of those neighborhoods and communities so affected. As a collateral benefit to this article, the City of Auburn would be able to create a positive environment for economic growth by attracting future homeowners into the City.
B. 
The aforementioned partial real property tax exemption would be available to apply to first-time homebuyers of newly built/reconstructed homes as authorized pursuant to Real Property Tax Law § 457 and all other powers granted to the City of Auburn to provide such exemptions.
Real property within the City of Auburn constructed or purchased subsequent to the effective date of this article may be exempt from City real property and special ad valorem levies, subject to and in accordance with the schedule set forth in § 265-40 and conditions outlined in § 265-41.
The exemption would apply to the increase in assessed value attributable to the construction/reconstruction pursuant to the following schedule:
Year of Exemption
Percentage of Exemption
1
50%
2
40%
3
30%
4
20%
5
10%
6 or more
0%
A. 
No exemption shall be granted for such construction/reconstruction unless one of the following criteria are met.
(1) 
Newly constructed primary residential property may be purchased by one or more persons, each of whom is a first-time homebuyer who has not been married to a homeowner in the three years prior to applying for this first-time homeowner's exemption.
(2) 
The newly constructed primary residential real property must be within the purchase price limits as defined on January 1, 2001, by the State of New York mortgage agency low-interest rate mortgage program in the non-target one-family new category for the County of Cayuga.
(3) 
A first-time homebuyer who either as part of the written contract for the purchase of the primary residential property, or who enters into a written contract within 90 days after closing of the sale of the primary residence for reconstruction, alterations, or improvements to the primary residential property, the value of which exceeds $3,000, would be eligible.
B. 
Limitations.
(1) 
Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvement, provided that the assessed value after reconstruction, alteration, or improvements does not exceed 15% more than the purchase price limits as referenced in Subsection A(2) hereinabove stated.
(2) 
A first-time homebuyer shall not qualify for the exemption authorized pursuant to this section if the household income exceeds income limits as defined as January 1, 2001, by the State of New York mortgage agency low-interest rate mortgage program in the nontarget, one- or two-person household category for the County of Cayuga.
(3) 
Newly constructed primary residential property purchased by first-time homebuyers at a sales price greater than the maximum eligible sales price shall qualify for the exemption for that portion of the sales price of such newly constructed primary residential property equal to the maximum eligible sales price, provided, however, that any newly constructed primary residential property purchased at a sales price greater than 15% above the maximum eligible sales prices shall not be allowed any exemption.
(4) 
No exemption shall be allowed for any newly constructed primary residential property purchased by a first-time homebuyer on or after December 31, 2005, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2005; provided, however, that any first-time homebuyer who is allowed an exemption prior to such date shall continue to be allowed further exemptions.
(5) 
No portion of a single-family newly constructed/reconstructed primary residential property shall be leased during the period of time when the first-time homeowner exemption shall apply to the residence. If any portion of the single-family newly constructed/reconstructed primary residential property is found to be the subject of a lease agreement, the assessor shall discontinue any exemption granted.
(6) 
In the event that a primary residential property granted an exemption ceases to be used primarily for residential purposes or title thereto is transferred to other than the heirs or distributees of the owner, the exemption granted shall be discontinued.
(7) 
Upon determining that an exemption granted should be discontinued, the Assessor shall mail a notice so stating to the owner or owners thereof. Such owner or owners shall be entitled to seek administrative and judicial review of such action in the manner provided by law, provided that the burden shall be on such owner or owners to establish eligibility for the exemption.
(8) 
The exemption cannot be used in conjunction with any other exemption currently offered by the State of New York or the City of Auburn.
This exemption shall be granted only by application of the owner(s) of such real property on a form prescribed by the State Equalization and Assessment Board. The application shall be filed with the Assessor for the City of Auburn on or before the appropriate taxable status date for the City of Auburn.
Such exemption shall be granted where the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this article. The Assessor shall approve such application and such real property shall thereafter be exempt from taxation and special ad valorem levies for City real property as provided in the schedule set forth in § 265-40 of this article commencing with the assessment roll prepared on the basis of the taxable date. The Assessor shall enter the assessed value of any taxable real property granted an exemption pursuant to this section on the assessment roll, with the amount of the exemptions shown in a separate column.