Instructions For Form Rp-421-M - Application For Real Property Tax Exemption For Certain New Or Substantially Rehabilitated Multiple Dwellings

New York State Department of Taxation and Finance

RP-421-m-Ins (2/12)

Office of Real Property Tax Services

Instructions for Form RP-421-m

Application for Real Property Tax Exemption for Certain New or Substantially

Rehabilitated Multiple Dwellings

(Real Property Tax Law, Section 421-m)

1. Authorization for exemption

Section 421-m of The Real Property Tax Law allows a city, town, or village to adopt a local law providing

an exemption from taxation and special ad valorem levies (but not special assessments) for the

construction or substantial rehabilitation of a multiple dwelling located within a designated benefit area

set forth in local law (Item 3, Form RP-421-m). After a city, town, or village has initially adopted a local

law to authorize this exemption, the county and any other municipal corporation in which the designated

benefit area is located may likewise authorize the exemption by local law, or in the case of a school

district, by resolution. In order for the property to become eligible for this exemption, the following

eligibility requirements must be met:

•

The construction or substantial rehabilitation must take place on vacant, predominantly vacant or

under-utilized land, or on land that contains a non-conforming use or a substandard, structurally

unsound or unsanitary dwelling. Substantial rehabilitation includes all work necessary to bring a

property into compliance with all applicable laws and regulations, including installation, replacement

or repair of heating, plumbing, electrical and related systems, plus the elimination of all hazardous

and immediately hazardous violations of the structure in accordance with state and local laws and

regulations. Substantial rehabilitation also includes all reconstruction necessary for improving the

habitability or prolonging the useful life of the property. Ordinary maintenance and repairs do not

qualify for exemption (Item 4).

•

The construction or substantial rehabilitation must begin on or after the effective date of the local law,

ordinance or resolution but no later than June 15, 2015 (Item 5).

•

The construction or substantial rehabilitation must be carried out with the assistance of affordable

housing grants, loans or subsidies from a federal, state or local agency (Item 6).

•

The multiple dwelling must be occupied or is to be occupied as the residence of at least three or more

families living independently of one another, whether such dwelling is rented or owned as a

cooperative or condominium. The multiple dwelling may not be used as a hotel (Item 7).

•

At least 20% of the units must be affordable to individuals and families of low and moderate incomes

as determined in accordance with the statutory criteria; resident incomes at the time of initial

occupancy must not exceed 90% of the area median income, as adjusted for family size and where

the individual or family pays no more than 30% of their adjusted gross income as reported in their

federal income tax return, or would be reported if such return were required, less such personal

exemptions, deductions and medical expenses. A municipal agency or officer must verify that the

project complies with the affordability requirements, as outlined above, and also with locally adopted

procedures; check with your local assessor on this matter. Such verification must be done in

accordance with procedures established by the New York State Division of Housing and Community

Renewal (Item 7).

•

Where the property is used partially as a multiple dwelling and also for commercial or other purposes,

the property is eligible for exemption only if the square footage of the portion used as a multiple

dwelling comprises at least 50% of the total property’s square footage (Item 8).

•

Property eligible for this exemption may not be currently receiving any other exemption (Item 9).

0 votes

Top 20 Happy Easter Cards And Gift Tags To Download For Free

Top Ten Easter Arts And Crafts Activities For Your Kids

Free Easter Coloring Pages And Easter Printables For Your Kids

Related forms

Form Rp-421-m - Application For Real Property Tax Exemption For Certain New Or Substantially Rehabilitated Multiple Dwellings Financial

Instructions For Form Rp-485-p - Application For Real Property Tax Exemption On Commercial, Business Or Industrial Property In An Economic Transformation Area Legal

Form Rp-485-p - Application For Real Property Tax Exemption On Commercial, Business Or Industrial Property In An Economic Transformation Area Financial

Instructions For Form Rp-421-n-ins Oneonta - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Instructions For Form Rp-421-j-ins [cohoes] - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Instructions For Form Rp-421-i-ins [buffalo] - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Instructions For Form Rp-421-i-ins [albany] - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Instructions For Form Rp-421-h-ins - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Instructions For Form Rp-421-k - Application For Real Property Tax Exemption For Capital Improvements To Multiple Dwelling Buildings Within Certain Cities Financial

Related Categories

Parent category: Financial

Instructions For Form Rp-421-M - Application For Real Property Tax Exemption For Certain New Or Substantially Rehabilitated Multiple Dwellings

Related Articles

Related forms

Related Categories