General
State law provides that mortgages recorded by the Agency are exempt from mortgage recording taxes imposed pursuant to Article 11 of the Tax Law. The Agency has a general policy of abating mortgage recording taxes for the debt obtained by approved projects which will be secured by a mortgage upon real property. In instances where the initial financing commitment provides for a construction financing of the Agency to be replaced by a permanent financing upon the completion of the project, the Agency’s general policy is to abate the mortgage recording tax on both the construction financing and the permanent financing.
Refinancing
In the event that the Agency retains title to or otherwise has jurisdiction over a project, it is the general policy of the Agency to abate mortgage recording taxes on any debt for the purpose of refinancing prior debt, and on any modifications, extensions and renewals thereof, so long as the Agency fees relating to same have been paid and the Agency has consented to said exemption upon written request to the Agency.
Non-Agency Projects
In the event that the Agency does not hold title to or have jurisdiction over a project, it is the policy of the Agency not to join in a mortgage relating to that project and not to abate any mortgage recording taxes relating to that project.
Exemption Affidavit
The act of granting a mortgage recording tax exemption by the Agency is confirmed by the execution by an authorized officer of the Agency of an exemption affidavit relating thereto.
Non-Exempt Mortgage
If the Agency is a party to a mortgage that is not to be granted a mortgage recording tax exemption by the Agency (a “nonexempt mortgage”), then the applicant and/or project occupant or other person recording same shall pay the same mortgage recording taxes with respect to same as would have been payable had the Agency not been a party to said mortgage (the “normal mortgage tax”). Such mortgage recording taxes are payable to the County Clerk of the County, who shall in turn distribute same in accordance with law. If for any reason a non-exempt mortgage is to be recorded and the Agency is aware that such nonexempt mortgage may for any reason be recorded without the payment of the normal mortgage tax, then the Agency shall prior to executing such non-exempt mortgage collect a PILOT equal to the normal mortgage tax and remit same within thirty (30) days of receipt by the Agency to the affected tax jurisdiction in accordance with Section 874(3) of the Act.