Article XI

Tax Incentives: Article XI

Article XI

Tax exemptions for HDFC-OWNED NEW CONSTRUCTION OR REHABILITATION of affordable housing

ELIGIBLE PROJECTS

New construction or rehabilitation of affordable housing carried out by a Housing Development Fund Company (HDFC). An HDFC is a corporation formed to build low-income housing. Each HDFC is individually chartered by HPDor the State Department of Housing and Community Renewal (DHCR).

BENEFITS GRANTED

Complete or partial exemption from real estate taxes for up to 40 years.

PROCEDURAL REQUIREMENTS

Tax Incentive Programs (TIP) receives a request for Article XI exemption from either the originating HPD loan/subsidy program or directly from the sponsor. TIP conducts a review of the project, including its ongoing and projected finances, to determine what level of exemption the project requires in order to remain financially viable. The Sponsor must also ensure that the project is in compliance with all HPD Sponsor Review requirements. Once the appropriate level of exemption has been determined by the Assistant Commissioner of Housing Incentives, a request to the City Council is routed through HPD’s Intergovernmental Unit. The City Council must calendar the item for consideration and pass a resolution authorizing the exemption. After the Article XI resolution is approved, the sponsor must request a Certificate of Eligibility to be issued by TIP. Once the Article XI certificate is issued, the Department of Finance implements the benefits.

HOW TO APPLY

Obtain additional information by calling (212) 863-6603, or writing to: Article XI Program, Article XI & 420-c Unit, HPD, 100 Gold Street, Room 9-Z3, New York, NY 10038.