Article XI

The Article XI Tax Incentive is a tax exemption for HDFC-owned new construction or rehabilitation of affordable housing.

Article XI Tax Incentive

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Eligible Projects

Eligible projects include 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 HPD or 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

HPD receives a request for Article XI exemption from either the originating HPD loan/subsidy program or directly from the sponsor. HPD 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 HPD. Once the Article XI certificate is issued, the Department of Finance (DOF) implements the benefits.

How to Apply

Contact ArtXI_420c_UDAAP@hpd.nyc.gov for information.