The Article XI Tax Incentive is a tax exemption for HDFC-owned new construction or rehabilitation of affordable housing.
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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).
Complete or partial exemption from real estate taxes for up to 40 years.
Requests for Article XI exemption originate from the HPD loan/subsidy program facilitating the project. 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 Development program facilitating the request, 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, a Certificate of Eligibility must be issued by HPD. HPD files the Certificate with the Department of Finance on the owner’s behalf, and the Department of Finance (DOF) implements the benefits.
How to Apply
Contact ArtXI_420c_UDAAP@hpd.nyc.gov for information.