In a new article, Nixon Peabody covers the new Article XI real property tax exemption term sheet from the New York City Department of Housing Preservation and Development (NYC HPD). Under Article XI of the Private Housing Law of the State of New York, the City Council may exempt real property from taxation for up to 40 years in return for an agreement to rent only to eligible tenants at affordable rents. In many respects, the new term sheet is consistent with past requirements for Article XI exemptions that may not have been formalized. The new term sheet sets clear exemption levels, mandates assumptions for cost-benefit analysis, and requires aging in place, physical needs assessments and other requirements that owners seeking Article XI exemptions should be sure to include in their planning.