Section 422. Not-for-profit housing companies

1. (a) Real property owned by
  a  not-for-profit  corporation  organized pursuant to the not-for-profit
  corporation law and the provisions of article two of the private housing
  finance  law,  used  exclusively  to  provide  housing   and   auxiliary
  facilities  for  faculty  members, students, employees, nurses, interns,
  resident physicians, researchers and other personnel and their immediate
  families  in  attendance  or   employed   at   colleges,   universities,
  educational institutions, child care institutions, hospitals and medical
  research  institutes,  or for handicapped or aged persons of low income,
  or owned by non-profit nursing home companies organized pursuant to  the
  not-for-profit   corporation   law   and   the   provisions  of  article
  twenty-eight-A of the public health law,  used  exclusively  to  provide
  facilities  for  nursing  care  to  sick,  invalid,  infirm, disabled or
  convalescent persons of low income, or to provide health-related service
  as defined in article twenty-eight of the public health law  to  persons
  of  low  income,  or  any  combination of the foregoing, and in addition
  thereto, to provide nursing care and health-related service,  or  either
  of  them, to persons of low income who are not occupants of the project,
  or owned by housing development fund companies organized pursuant to the
  not-for-profit corporation law and article eleven of the private housing
  finance law, used exclusively to provide housing for handicapped or aged
  persons of low income, and financed by  a  federally-aided  mortgage  as
  defined in said article eleven, or owned by companies organized pursuant
  to  the  not-for-profit  corporation  law  and the provisions of article
  seventy-five of the mental hygiene  law,  used  exclusively  to  provide
  care,  treatment, training, education and residential accommodations for
  operation as hostels for the mentally ill or mentally retarded, or owned
  by companies organized pursuant to the membership corporations  law  and
  the  provisions  of  article seven-A of the private housing finance law,
  used exclusively to provide programs, services and other facilities  for
  the  aging,  shall  be  exempt  from taxation and exempt from special ad
  valorem levies and special assessments to the extent provided in section
  four hundred ninety of this chapter, provided, however, that in  a  city
  having  a  population  of one million or more real property owned by any
  such  corporation  which   is   to   provide   housing   accommodations,
  substantially  all  of which are or are to be assisted by rent subsidies
  made or to be made available by the Federal  government  pursuant  to  a
  contract  under  section  eight  of  the  United  States  Housing Act of
  nineteen hundred thirty-seven, as amended,  or  pursuant  to  a  project
  rental  assistance  contract under section two hundred two of the United
  States Housing Act  of  nineteen  hundred  fifty-nine,  as  amended,  or
  pursuant  to  a  project  rental assistance contract under section eight
  hundred eleven of  the  National  Affordable  Housing  Act  of  nineteen
  hundred  ninety,  as  amended,  shall from and after the commencement of
  construction be subject to taxation or exempt therefrom  to  the  extent
  approved by a municipality acting through its local legislative body, as
  such  local  legislative  body is defined in paragraph twelve of section
  two of the private housing finance law. No such corporation  or  company
  shall  pay  a dividend on any of its stock or pay interest on any of its
  debentures. Provided further, however, in a county having  a  population
  of  one million or more and having not more than three towns within such
  county, real  property  owned  by  housing  development  fund  companies
  organized  pursuant  to  the  not-for-profit corporation law and article
  eleven of the private housing finance law, used exclusively  to  provide
  housing for handicapped or aged persons of low income, and financed by a
  federally-aided  mortgage  as  defined in said article eleven shall from
  and after the commencement of construction be  subject  to  taxation  or
  exempt therefrom to the extent approved by a municipality acting through

  its local legislative body, as such local legislative body is defined in
  paragraph  twelve of section two of the private housing finance law. Any
  tax payments and/or payments in lieu of taxes  made  to  a  municipality
  pursuant  to  the  preceding  sentence  shall  not be passed through nor
  become the liability of any of the occupants of such property.
    (b) If any portion of such real property of such  corporation  is  not
  used  exclusively  for housing of those persons set forth in paragraph a
  of this section but is leased or otherwise used for purposes pursuant to
  article two of the private housing finance law, such  portion,  provided
  it does not exceed ten per centum of the total, shall be subject to such
  limited  exemption  as  is  authorized  pursuant  to  article two of the
  private housing finance law, and the remaining  portion  only  shall  be
  fully exempt. If any portion of the real property of such corporation in
  excess  of  ten  per centum of the total is leased or otherwise used for
  housing pursuant to article two of the private housing finance law,  the
  total  property  shall  be  subject  to  such  limited  exemption  as is
  authorized pursuant to article two of the private housing  finance  law.
  Real property exempt from taxation pursuant to this paragraph shall also
  be  exempt from special ad valorem levies and special assessments to the
  extent provided in section four hundred ninety of this chapter.
    (c) In real property used in part for handicapped or aged  persons  of
  low  income  priority and preference in the rental of such real property
  for purposes not specified in paragraph a shall be given to a family  of
  a  person  legally  responsible for the care of a handicapped or an aged
  person residing in such real  property.  This  preference  and  priority
  shall apply to only one such family for each handicapped or aged tenant.
    2. (a) The exemption provided in paragraphs (a) and (b) of subdivision
  one  of  this section shall be upon condition that the property owned by
  such  corporation  shall  upon  dissolution  vest   in   such   college,
  university,   educational   institution,   hospital,   medical  research
  institute, child care institution, or other not-for-profit  corporation,
  if  such college, university, educational institution, hospital, medical
  research institution, child care institution,  or  other  not-for-profit
  corporation  is  exempt  from  taxation  pursuant  to  the provisions of
  section four hundred twenty-a or four hundred twenty-b of  this  article
  and  if  no  part  of  the  net  earnings  of  such college, university,
  educational institution, hospital,  medical  research  institute,  child
  care institution, or other not-for-profit corporation shall inure to the
  benefit of any private individual.
    (b)   In   the   event  that  such  college,  university,  educational
  institution,  hospital,   medical   research   institute,   child   care
  institution, or other not-for-profit corporation is not otherwise exempt
  from  taxation,  title  to the property shall nevertheless vest therein,
  but only upon payment to the municipality of a sum equal to the total of
  all accrued taxes, levies and assessments from which such  property  has
  been exempt under the provisions of this section.