N.Y. Comp. Codes R. & Regs. tit. 20 § 644.1

Current through Register Vol. 46, No. 45, November 2, 2024

Section 644.1 - Exemptions

Tax Law, §§ 252, 252-a, 253.3, Public Health Law, Private Housing Finance Law, Not-For-Profit Corporation Law, Banking Law, Real Property Law, Arts and Cultural Affairs Law, Mental Hygiene Law

(a) The recording of the following mortgages involving the State or the Federal Government is exempt from the taxes described in Part 642 of this Title:

(1) mortgages where the mortgagor or mortgagee in New York State or any of its agencies, instrumentalities or political subdivisions, to the extent immune from such taxation (Matter of City of New York v. Tully, 88AD2d 701, lv to app den 57 NY 2d 606); and

(2) mortgages where the mortgagor or mortgagee is the United States of America or any of its agencies or instrumentalities, to the extent immune from such taxes (Pittman v. Home Owners Loan Corporation, 308 US 21).

(b) The recording of the following mortgages is exempt from the taxes described in Part 642 of this Title by reason of express statutory provision relating to such taxes:

(1) mortgages where the mortgage is an agricultural credit association within the Farm Credit system (section 252 of the Tax Law);

(2) mortgages where the mortgagee is a federal home loan bank (section 252 of the Tax Law);

(3) mortgages made pursuant to a confirmed plan under section 1129 of chapter XI of the Bankruptcy Code (section 252 of the Tax Law and section1146[c] of the Bankruptcy Code);

(4) mortgages where the mortgagor is a railroad redevelopment corporation, and such mortgage is created during the first nine years of such corporation's existence as such (section 252 of the Tax Law);

(5) mortgages given to secure an obligation incurred and given pursuant to the provisions of section 6-a of the Banking Law, which provides that banking institutions may make certain types of loans to persons 65 years of age or older, with such loans being secured by first or second mortgages on the property of such persons (section 252-a of the Tax Law);

(6) any declarations or any lien for common charges, as such common charges are defined at section 339-ee of the Real Property Law (section 339-ee[1] of the Real Property Law);

(7) mortgages executed by a voluntary non-profit hospital corporation. For the purpose of this paragraph a voluntary non-profit hospital corporation is a hospital as such term is defined in section 2801 (1) of the Public Health Law which operates as a corporation as such term is defined in section 102 (5) of the Not-For-Profit Corporation Law (section 253[3] of the Tax Law);

(8) mortgages of a limited dividend housing company, created pursuant to article 4 of the Private Housing Finance Law (section 93[1] of the Private Housing Finance Law);

(9) mortgages of housing development fund companies formed pursuant to article 11 of the Private Housing Finance Law (section 577[2] of the Private Housing Finance Law);

(10) mortgages of a limited-profit housing company created pursuant to article 2 of the Private Housing Finance Law (section 33[5] of the Private Housing Finance Law);

(11) mortgages of a redevelopment company created pursuant to article 5 of the Private housing Finance Law, issued to the Federal Government or any instrumentality thereof, or to any municipal housing authority or other public housing agency or instrumentality thereof whose obligations are determined to be exempt from Federal taxation by the Federal Government (section 125[2] of the Private Housing Finance Law);

(12) mortgages of community senior citizens centers and service companies created pursuant to article 7-A of the Private Housing Finance Law (section 357[3] of the Private Housing Finance Law);

(13) mortgages given to secure the payment of a loan made pursuant to the provisions of article 8-B of the Private housing Finance Law (section 476 of the Private Housing Finance Law);

(14) mortgages executed by a fund formed for the purpose of insuring deposits and/or depositors created pursuant to article 6-B of the Banking Law (section 286 of the Banking Law);

(15) mortgages of a trust created pursuant to article 20 of the Arts and Cultural Affairs Law (section 20.33[2] of the Arts and Cultural Affairs Law);

(16) mortgages of a community mental health services company or community mental retardation services company created pursuant to article 75 of the Mental Hygiene Law (section 75.17[c] of the Mental Hygiene Law); and

(17) reverse mortgages recorded on or after December 2, 1993, which conform to the provisions of section 280 or section 280-a of the Real Property Law.

(c)Documentation required to claim an exemption.

(1) Whenever an exemption is claimed pursuant to the provisions of paragraphs (a)(1) and (2) or (b)(1) through (16) of this section or for any other reason except the exemption described in paragraph (b)(17) of this section, at the time that the mortgage is presented for recording an affidavit made in duplicate must be filed, signed by the mortgagor or mortgagee or any other person who has knowledge of the facts, describing the mortgage and setting forth the basis for claiming the exemption. (See paragraph [2] of this subdivision for information on the documentation required whenever the exemption described in paragraph [b][17] of this section is claimed.)

(2) Whenever an exemption is claimed pursuant to the provisions of paragraph (b)(17) of this section, at the time the mortgage is presented for recording, the following documentation must be submitted to the recording officer:

(i) for a reverse mortgage made pursuant to the provisions of section 280 of the Real Property Law, an affidavit, made in duplicate, signed by the mortgagee, setting forth the following:

(a) the mortgage is a reverse mortgage given by a mortgagor who is or mortgagors all of whom are at least 60 years of age;

(b) the reverse mortgage is of real property improved by a one- to four-family residence or condominium unit that is the residence of the mortgagor or mortgagors; and

(c) the reverse mortgage conforms to all other provisions of section 280 of the Real Property Law; and

(ii) for a reverse mortgage made pursuant to the provisions of section 280-a of the Real Property Law, an affidavit, made in duplicate, signed by the mortgagee, setting forth the following:

(a) the mortgage is a reverse mortgage given by a mortgagor who is or mortgagors all of whom are at least 70 years of age;

(b) the reverse mortgage is of real property improved by a one- to four-family residence or condominium unit that is the residence of the mortgagor or mortgagors; and

(c) the reverse mortgage conforms to all other provisions of section 280-a of the Real Property Law.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 644.1