New York Laws
Title 2 - Private Property
457 - Exemption for First-Time Homebuyers of Newly Constructed Homes.

(b) A first-time homebuyer who either as part of the written contract
for sale of the primary residential property, or who enters into a
written contract within ninety days after closing of the sale of the
primary residence for reconstruction, alteration or improvements, the
value of which exceeds three thousand dollars, to the primary
residential property shall be exempt from taxation to the extent
provided by this section. Such exemption shall apply solely to the
increase in assessed value thereof attributable to such reconstruction,
alteration or improvement provided that the assessed value after
reconstruction, alteration, or improvements does not exceed fifteen
percent more than the purchase price limits as defined in paragraph (a)
of this subdivision. For purposes of this section the terms
reconstruction, alteration and improvement shall not include ordinary
maintenance and repairs.
(c) A first-time homebuyer shall not qualify for the exemption
authorized pursuant to this section if the household income exceeds
income limits defined by the state of New York mortgage agency low
interest rate mortgage program in the non-target, one and two person
household category for the county where such property is located and in
effect on the contract date for the purchase and sale of such property.
(i) The term "household income" as used herein shall mean the total
combined income of all the owners, and of any owners' spouses residing
on the premises, for the income tax year preceding the date of making
application for the exemption.
(ii) The term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on the applicant's

latest available federal or state income tax return subject to any
subsequent amendments or revisions, reduced by distributions, to the
extent included in federal adjusted gross income, received from an
individual retirement account and an individual retirement annuity;
provided that if no such return was filed within the one year period
preceding taxable status date, "income" shall mean the adjusted gross
income that would have been so reported if such a return had been filed.
For purposes of this subdivision, "latest available return" shall mean
the federal or state income tax return for the year immediately
preceding the date of making application, provided however, that if the
tax return for such tax year has not been filed, then the income tax
return for the tax year two years preceding the date of making
application shall be considered the latest available.
3. Newly constructed primary residential property purchased by
first-time homebuyers at a sales price greater than the maximum eligible
sales price shall qualify for the exemption allowed pursuant to this
section for that portion of the sales price of such newly constructed
primary residential property equal to the maximum eligible sales price,
provided, however, that any newly constructed primary residential
property purchased at a sales price greater than fifteen percent above
the maximum eligible sales price shall not be allowed any exemption.
4. The legislative body or governing board of a county, city, town or
village may adopt a local law, or a school district, other than a school
district to which article fifty-two of the education law applies may
adopt a resolution to provide for an increase not to exceed twenty-five
per centum on the purchase price limit used for eligibility for the
exemption provided for in this section.
5. No exemption shall be allowed pursuant to this section for any
newly constructed primary residential property purchased by a first-time
homebuyer on or after December thirty-first, two thousand twenty-eight,
unless such purchase is pursuant to a binding written contract entered
into prior to December thirty-first, two thousand twenty-eight.
Provided, however, that any first-time homebuyer who is allowed an
exemption pursuant to this section prior to such date shall continue to
be allowed further exemptions pursuant to subdivision one of this
section.
6. (a) No portion of a single family newly constructed primary
residential property shall be leased during the period of time when the
first-time homeowner exemption shall apply to the residence. If any
portion of the single family newly constructed primary residential
property is found to be the subject of a lease agreement the assessor
shall discontinue any exemption granted pursuant to this section.
(b) In the event that a primary residential property granted an
exemption pursuant to this section ceases to be used primarily for
residential purposes or title thereto is transferred to other than the
heirs or distributees of the owner, the exemption granted pursuant to
this section shall be discontinued.
(c) Upon determining that an exemption granted pursuant to this
section should be discontinued, the assessor shall mail a notice so
stating to the owner or owners thereof at the time and in the manner
provided by section five hundred ten of this chapter. Such owner or
owners shall be entitled to seek administrative and judicial review of
such action in the manner provided by law, provided that the burden
shall be on such owner or owners to establish eligibility for the
exemption.
7. Such exemption shall be granted only upon application by the owner
of such building on a form prescribed by the commissioner. The
application shall be filed with the assessor of the city, town, village

or county having the power to assess property for taxation on or before
the appropriate taxable status date of such city, town, village and
county.
8. If satisfied that the applicant is entitled to an exemption
pursuant to this section, the assessor shall approve the application and
such primary residential property shall thereafter be exempt from
taxation and special ad valorem levies as provided in this section
commencing with the assessment roll prepared on the basis of the taxable
status date referred to in subdivision seven of this section. The
assessed value of any exemption granted pursuant to this section shall
be entered by the assessor on the assessment roll with the taxable
property, with the amount of the exemption shown in a separate column.
9. For purposes of this section: (a) "first-time homebuyer" means a
person who has not owned a primary residential property and is not
married to a person who has owned a residential property during the
three-year period prior to his or her purchase of the primary
residential property, and who does not own a vacation or investment
home.
(b) "Primary residential property" means any one or two family house,
townhouse or condominium located in this state which is owner occupied
by such homebuyer.
(c) "Newly constructed" means an improvement to real property which
was constructed as a primary residential property, and which has never
been occupied and was constructed after the effective date of this
section. "Newly constructed" shall also mean that portion of a primary
residential property that is altered, improved or reconstructed.

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