senate Bill S4758

Amended

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 20 / Apr / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 18 / May / 2011
    • 1ST REPORT CAL.764
  • 23 / May / 2011
    • 2ND REPORT CAL.
  • 24 / May / 2011
    • ADVANCED TO THIRD READING
  • 01 / Jun / 2011
    • AMENDED ON THIRD READING (T) 4758A
  • 16 / Jun / 2011
    • AMENDED ON THIRD READING (T) 4758B
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 11 / Jan / 2012
    • AMEND (T) AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 11 / Jan / 2012
    • PRINT NUMBER 4758C
  • 18 / Jan / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / Mar / 2012
    • 1ST REPORT CAL.306
  • 07 / Mar / 2012
    • 2ND REPORT CAL.
  • 12 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 21 / Mar / 2012
    • PASSED SENATE
  • 21 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Mar / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

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Bill Details

Versions:
S4758
S4758A
S4758B
S4758C
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Public Housing Law
Laws Affected:
Amd ยงยง210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
A7404A, S4758C

Votes

6
0
6
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Housing, Construction and Community Development committee vote details

Sponsor Memo

BILL NUMBER:S4758

TITLE OF BILL:
An act
to amend the public housing law, in relation to federal low-income
housing credits

PURPOSE:
This bill would provide for the allocation of federal low income
housing tax credits among owners pursuant to an executed agreement.

SUMMARY OF PROVISIONS:
This bill would amend section 25 of the public housing law, relating
to the co-ordination of federal low income housing tax credits with
the state low income housing tax credit program to allow a pass
through of the credit to persons designated, members, or owners
pursuant to a written agreement among the persons designated as
partners, members or owners, which agreement documents an alternative
distribution method without regard to sharing of other tax or
economic attributes of the entity, including how the federal low
income housing tax credit is allocated to the partners, members, or
owners.

JUSTIFICATION:
Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit
is not bifurcated, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing. This
bill would allow the bifurcation of state tax credits from federal
tax credits and permit separate investors and permit separate
investors to purchase the state and federal tax credits. It would not
preclude any single investor from purchasing both the state and
federal tax credits.

The proposed change would open up the existing market to a new class
of investors including banks, corporations, and insurance companies
and would, based upon research conducted in other states which allow
bifurcation, create additional demand on the market for state tax
credits. This demand would drive up pricing among investors as
pricing as competition is increased. This would translate into
greater private investment in affordable housing without any material
cost to the state.

As an example, under the current program, a project awarded a $7.5
million allocation of state low income housing tax credit over a 10
year period would translate into a private equity investment of $3.75
million. It. is estimated that if enacted, this change would allow
the same $3.75 million to be sold to private equity investors for
$4.125 million, or 10% more. The additional investment will help


finance more units, increase affordability, and create more jobs in
New York.

This change will increase demand for and leveraging ability of a
program that has been in existence in New York since 2000, while not
requiring any increase in funding. The proposed changes are
anticipated to generate a substantial (estimated 10%) increase in
equity raised from the state tax credit program and will greatly
enhance its effectiveness in creating and fostering investment in
affordable housing throughout the state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4758

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 20, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to amend the public housing law, in relation to federal low-in-
  come housing credits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 25 of the public housing law is amended by adding a
new subdivision 3 to read as follows:
  3.  ON  AND AFTER JUNE FIRST, TWO THOUSAND ELEVEN, THE CREDITS ALLOWED
TO A PARTNERSHIP, LIMITED LIABILITY COMPANY TAXED AS  A  PARTNERSHIP  OR
MULTIPLE  OWNERS  OF  PROPERTY  SHALL  BE  PASSED THROUGH TO THE PERSONS
DESIGNATED, MEMBERS OR OWNERS PURSUANT TO AN  EXECUTED  AGREEMENT  AMONG
THE  PERSONS  DESIGNATED  AS  PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN
ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER
TAX OR ECONOMIC ATTRIBUTES OF THE ENTITY, INCLUDING BUT NOT  LIMITED  TO
HOW  THE FEDERAL LOW-INCOME HOUSING TAX CREDIT WITH RESPECT TO A PROJECT
IS ALLOCATED TO THE PARTNERS, MEMBERS OR OWNERS.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10736-01-1

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