The Department of Housing Preservation and Development of the City of New York issued an updated application for the 420-c tax exemption program, available here.
The application, last updated in 2007, adds language to clarify how community facility spaces can qualify for exemption under the Rules of the City of New York. It also adds a requirement for an owner affidavit related to community facility space. As of this year, projects with community facility space have also been required to enter into a restrictive declaration in order to qualify for 420-c benefits, although this requirement is not memorialized in the updated application.
Tax exemptions under Section 420-c of the Real Property Tax Law provide partial to full relief from real estate tax for low-income housing financed by tax credits with a non-profit 501c3 holding a controlling ownership interest in the project. The New York City Mayor’s Housing Plan released earlier this year pledges that the City will pursue reforms to the 420-c program to expedite processing and ensure predictability in the exemption value and implementation timing. Nixon Peabody is well versed in the intricacies of the 420-c program; contact your regular Nixon Peabody attorney for more information.