Town of North Hempstead, NY Exemption for First-time Homebuyers of Newly Constructed Homes

Subject to the qualifications and regulation set forth in this article, a partial exemption from real property taxes is hereby granted to qualified first-time homebuyers of primary residential property within the Town of North Hempstead.

Newly constructed primary residential property purchased by one or more persons, each of whom is a first-time homebuyer and has not been married to a homeowner in the three years prior to applying for this first-time homeowners exemption, shall be exempt from taxation levied by and on behalf of the Town of North Hempstead for the first five years of such ownership, subject to the following provisions, computed as follows:

	Year of Exemption	Percentage of Assessed Valuation Exempt from Tax
	1	50%
	2	40%
	3	30%
	4	20%
	5	10%

Eligibility; definitions.

(1)

Any newly constructed primary residential real property that is no more than 25% above the purchase price limits defined 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 Nassau and in effect on the contract date for the purchase and sale of such property, shall be eligible for the exemption allowed pursuant to this article.

(2)

A first-time homebuyer who either as part of the written contract for sale 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, alteration or improvements, the value of which exceeds $3,000, to the primary residential property shall be exempt from taxation to the extent provided by this article. Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvements which does not exceed 15% more than the purchase price limits as defined in Subsection C(1) of this section. For the purposes of this article, the terms reconstruction, alteration and improvement shall not include ordinary maintenance and repairs.

(3)

A first-time homebuyer shall not qualify for the exemption authorized pursuant to this article if the household income exceeds income limits defined by the State of New York Mortgage Agency Low Interest Rate Mortgage Program in the non-target, one- and two-person household category for Nassau County and in effect on the contract date for the purchase and sale of such property.

(4)

Definitions; exceptions.

(a)

The term "household income" as used herein shall mean the total combined income of all the owners, and of any owners' spouses residing on the premises, for the income tax year preceding the date of making application for the exemption.

(b)

The term "income" as used herein shall mean 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 and an individual retirement annuity; provided that if no such return was filed within the one-year period preceding the taxable status date, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. For purposes of this provision, "latest available return" shall mean the federal or state income tax return for the year immediately preceding the date of making application, which shall be considered the latest available.

(c)

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 allowed pursuant to this section 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 price shall not be allowed any exemption.

(d)

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, 2010, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2010; 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 Subsection C(1) of this section.

(e)

Discontinuation of exemption.

[1]

No portion of a single-family newly constructed 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 primary residential property is found to be subject of a lease agreement, the Assessor shall continue any exemption granted pursuant to this article.

[2]

In the event that a primary residential property granted an exemption pursuant to this article 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 pursuant to this article shall be discontinued.

[3]

Upon determining that an exemption granted pursuant to this article should be discontinued, the Assessor shall mail a notice so stating to the owner or owners thereof at the time and in the manner provided in Real Property Tax Law § 510. Such owner shall be entitled to see 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.

(f)

Such exemption shall be granted only upon application by the owner of such building on a form prescribed by the state board. The application shall be filed with the Nassau County Assessor on or before the appropriate status date of Nassau County.

(g)

If satisfied that the applicant is entitled to an exemption pursuant to this article, the Assessor shall approve the application and such primary residential property shall thereafter be exempt from taxation and special ad valorem levies as provided in this article commencing with the assessment roll prepared on the basis of the taxable status date referred to in Subsection C(4)(f) of this section.

(h)

For the purposes of this article:

[1]

"First-time homebuyer" means a person who has not owned a primary residential property and is not married to a person who has owned a residential property during the three-year period prior to his or her purchase of the primary residential property, and who does not own a vacation or investment home.

[2]

"Primary residential property" means any one- or two-family house, townhouse or condominium located in this state which is owner-occupied by such homebuyer.

[3]

"Newly constructed" means an improvement to real property which was constructed after the effective date of this article. "Newly constructed" shall also mean that portion of a primary residential property that is altered, improved or reconstructed.