Creamery Hills, L.P. v. Fox

• Decision Date: 18 October 2021
• Docket Number: EF21-258
• Citation: 73 Misc.3d 728,155 N.Y.S.3d 746
• Parties: CREAMERY HILLS, L.P. and SEPP, Inc., Petitioners, v. Laura FOX, in her capacity as the Director of Real Property Tax Services for the County of Cortland; the Assessor of the Town of Harford, New York; the Town of Harford Board of Assessment Review; the Town of Harford, New York; Cortland County ; and Dryden Central School District, Respondents
• Court: New York Supreme Court

73 Misc.3d 728
155 N.Y.S.3d 746

CREAMERY HILLS, L.P. and SEPP, Inc., Petitioners,
v.
Laura FOX, in her capacity as the Director of Real Property Tax Services for the County of Cortland; the Assessor of the Town of Harford, New York; the Town of Harford Board of Assessment Review; the Town of Harford, New York; Cortland County ; and Dryden Central School District, Respondents

EF21-258

Supreme Court, New York, Cortland County.

Decided on October 18, 2021

HINMAN, HOWARD & KATTELL, LLP, By: Paul T. Sheppard, Esq., Attorneys for Petitioners, 700 Security Mutual Bldg., 80 Exchange Street, P.O. Box 5250, Binghamton, New York 13902

COSTELLO, COONEY & FEARON, PLLC, By: Christopher M. Militello, Esq., Attorney for Respondents Laurence Fitts, Assessor for the Town of Harford, Town of Harford, and Town of Harford Board of Assessment Review, 211 West Jefferson Street, Syracuse, New York 13202

MACKENZIE HUGHES LLP, By: W. Bradley Hunt, Esq., Attorneys for Respondents Laura Fox and County of Cortland, 440 S. Warren Street, Suite 400, Mackenzie Hughes Tower, Syracuse, New York 13202

HANCOCK ESTABROOK, LLP, By: James O'Shea, Esq., Attorneys for Respondent Dryden Central School District, 1800 AXA Tower I, 100 Madison Street, Syracuse, New York 13202

Mark G. Masler, J.

155 N.Y.S.3d 747

73 Misc.3d 729

Petitioner Creamery Hills, L.P. (Creamery) is a limited partnership which owns and operates Creamery Hills Senior Apartments in the Town of Harford, Cortland County (the subject property). Petitioner SEPP, Inc. is the general partner of Creamery. Pursuant to an agreement with the New York State Division of Housing and Community Renewal (the regulatory agreement), Creamery may only rent the subject property to individuals or families whose incomes at the time of initial occupancy do not exceed 60% of the area median gross income. Following tax certiorari proceedings commenced in July 2017 (Sup Ct, Broome County, Index No. EFCA2017001704) and September 2017 (Sup Ct, Broome County, Index No. EFCA2016001729), petitioners and respondents Town of Harford and Assessor for the Town of Harford (the Town Assessor) executed a court-approved settlement agreement (the settlement agreement) which provided, in accordance with RPTL 727, that the subject property's assessment would be maintained at $500,000 through 2020 except, as relevant herein, upon a town-wide revaluation.

In 2020, the Town of Harford undertook a town-wide revaluation. The Town Assessor did not use the income capitalization valuation methodology specified for income-based affordable housing properties by RPTL 581-a but, rather, valued the property

73 Misc.3d 730

at its market value. Petitioners contend that the assessor's failure to use the applicable valuation methodology upon revaluation constituted a clerical error subject to correction pursuant to article 5 of the RPTL. Accordingly, in January 2021, Creamery applied to Laura Fox, the Cortland County Director of Real Property Tax Services (the County Tax Director), for correction of the tax roll pursuant to RPTL 554. On January 29, 2021, the County Tax Director denied the application based on petitioners’ failure to submit income documentation...