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Homes and Community Renewal

Real Property Tax Law (“RPTL”) § 421-m Program

About the RPTL § 421-m Program

The RPTL § 421-m program provides a tax exemption for certain new or substantially rehabilitated multiple dwellings from local taxation. It is applicable at the option of a city, town or village (“municipality”) or a special benefit area within such a municipality. RPTL § 421-m requires the New York State Division of Housing and Community Renewal (“DHCR”) to establish income verification procedures for tenants to be used by owners receiving the tax exemption in addition to compliance monitoring by the municipality to assure owner’s compliance with the program.

Income Population Served, Eligible Applicants and Areas

RPTL § 421-m(3)(c) requires at least twenty percent of the units shall be affordable to individuals of low or moderate income whose income at the time of initial occupancy do not exceed ninety percent of the area median income adjusted for family size and the individual or family shall pay in rent or monthly carrying charges no more than thirty percent of their adjusted gross income as reported on their federal income tax return, or would be reported if such return were required, less such personal exemptions and deductions and medical expenses as are actually taken by the taxpayer or could be taken where there is no tax return.

As used in RPTL-m(b) the benefit area means the area within a city, town or village, designated by local law, to which an exemption, established pursuant to this section, applies.

 

Program Information:

Last updated on 01/16/15