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

                                  3707

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced  by M. of A. FITZPATRICK, FINCH, RA, MONTESANO -- Multi-Spon-
  sored by -- M. of A.  BARCLAY, CROUCH, CURRAN, GIGLIO, GOODELL,  KOLB,
  McDONOUGH,  RAIA, TEDISCO, TENNEY, THIELE -- read once and referred to
  the Committee on Housing

AN ACT to amend the public housing law, in relation to expanding the New
  York state low income housing tax credit program  to  certain  one  to
  four  family  residences  and  providing  for  the  repeal  of certain
  provisions upon expiration thereof

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

  Section  1.   Subdivisions 6 and 7 of section 21 of the public housing
law, as added by section 1 of part CC of chapter 63 of the laws of 2000,
are amended and four new subdivisions 8, 9, 10 and 11 are added to  read
as follows:
  6.  "Qualified  basis"  of  an  eligible low-income building means the
qualified basis of such building determined under section 42(c)  of  the
internal  revenue  code, or which would be determined under such section
if the 40-90 test specified in paragraph (b) of subdivision five of this
section applied under such section 42 to determine if such building were
part of a qualified low-income housing project OR IN THE CASE OF A QUAL-
IFIED RESIDENCE, MEANS ITS ADJUSTED BASIS (EXCLUDING  LAND)  IMMEDIATELY
BEFORE THE SALE OF SUCH RESIDENCE.
  7.  References  in this article to [section] SECTIONS 5, 42 AND 143 of
the internal revenue code shall mean such section as amended  from  time
to time.
  8. "QUALIFIED RESIDENCE" MEANS ANY RESIDENCE
  (A) WHICH IS LOCATED:
  (I)  IN A CENSUS TRACT IN WHICH SEVENTY PERCENT OF THE FAMILIES HAVE A
MEDIAN GROSS INCOME THAT IS LESS THAN NINETY PERCENT OF THE  GREATER  OF
AREA OR STATEWIDE MEDIAN GROSS INCOME,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05786-01-5

              

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  (II) IN A RURAL AREA (DEFINED UNDER SECTION 520 OF THE FEDERAL HOUSING
ACT OF 1949),
  (III) ON A RESERVATION FOR A FEDERALLY RECOGNIZED INDIAN TRIBE, OR
  (IV)  IN  AN  AREA OF CHRONIC ECONOMIC DISTRESS, AS DEFINED BY SECTION
143 OF THE INTERNAL REVENUE CODE; AND
  (B) WHICH IS PURCHASED BY A QUALIFIED BUYER.
  9. "RESIDENCE" MEANS
  (A) A SINGLE-FAMILY HOME CONTAINING ONE TO FOUR HOUSING UNITS, OR
  (B) A CONDOMINIUM UNIT, OR STOCK IN A COOPERATIVE HOUSING CORPORATION.
  10. "QUALIFIED BUYER" MEANS A PERSON OR PERSONS  OF  LOW  OR  MODERATE
INCOME AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION TWENTY-FOUR HUNDRED
TWO OF THE PUBLIC AUTHORITIES LAW.
  11.  "SUBSTANTIALLY  REHABILITATES"  MEANS REHABILITATION EXPENDITURES
PAID OR INCURRED WITH RESPECT TO A QUALIFIED RESIDENCE THAT ARE AT LEAST
FIFTEEN THOUSAND DOLLARS.
  S 2. Subdivisions 1, 2, 3 and 5 of section 22 of  the  public  housing
law, as added by section 1 of part CC of chapter 63 of the laws of 2000,
are amended to read as follows:
  1.  A  taxpayer subject to tax under article nine-A, twenty-two, thir-
ty-two or thirty-three of the tax law which owns an interest in  one  or
more eligible low-income buildings OR WHO SUBSTANTIALLY REHABILITATES OR
CONSTRUCTS  A QUALIFIED RESIDENCE shall be allowed a credit against such
tax for the amount of low-income housing credit allocated by the commis-
sioner to each such building. Except as provided in subdivision  two  of
this section, the credit amount so allocated shall be allowed as a cred-
it against the tax for the ten taxable years in the credit period.
  2. Adjustment of first-year credit allowed in eleventh year. The cred-
it  allowable  for  the  first  taxable  year  of the credit period with
respect to any building OR QUALIFIED RESIDENCE shall be  adjusted  using
the  rules of section 42(f)(2) of the internal revenue code (relating to
first-year adjustment of qualified basis  by  the  weighted  average  of
low-income  to total residential units), and any reduction in first-year
credit by reason of such adjustment shall be  allowable  for  the  first
taxable year following the credit period.
  3.  Amount of credit. Except as provided in subdivisions four and five
of this section, the amount of low-income housing credit  shall  be  the
applicable percentage of the qualified basis of each eligible low-income
building OR QUALIFIED RESIDENCE.
  5.  Building  limitation. The dollar amount of credit allocated to any
building shall not exceed the  amount  the  commissioner  determines  is
necessary for the financial feasibility of the project and the viability
of  the  building  as  an eligible low-income building OR AS A QUALIFIED
RESIDENCE throughout the credit period. In allocating a dollar amount of
credit to any building, the commissioner shall  specify  the  applicable
percentage  and  the  maximum  qualified  basis  which may be taken into
account under this article with respect to such building. The applicable
percentage and the maximum qualified basis with respect  to  a  building
shall  not  exceed  the  amounts determined in subdivisions one and six,
respectively, of section twenty-one of this article.
  S 3. Subdivision 4 of section 22 of the public housing law, as amended
by section 1 of part P of chapter 59 of the laws of 2014, is amended  to
read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be fifty-six million dollars. THE AGGREGATE DOLLAR
AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE  QUALI-

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FIED  RESIDENTS SHALL BE SIX MILLION DOLLARS. The limitation provided by
this subdivision applies only to  allocation  of  the  aggregate  dollar
amount of credit by the commissioner, and does not apply to allowance to
a taxpayer of the credit with respect to an eligible low-income building
for each year of the credit period.
  S  3-a.  Subdivision  4  of  section  22 of the public housing law, as
amended by section 2 of part P of chapter 59 of the  laws  of  2014,  is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall be sixty-four million dollars. THE AGGREGATE DOLLAR
AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE  QUALI-
FIED  RESIDENTS SHALL BE SIX MILLION DOLLARS. The limitation provided by
this subdivision applies only to  allocation  of  the  aggregate  dollar
amount of credit by the commissioner, and does not apply to allowance to
a taxpayer of the credit with respect to an eligible low-income building
for each year of the credit period.
  S  4.  Section  23 of the public housing law, as added by section 1 of
part CC of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
follows:
  S 23. Project monitoring. The commissioner shall establish such proce-
dures  as  he  deems  necessary for monitoring compliance of an eligible
low-income building OR QUALIFIED RESIDENCE with the provisions  of  this
article,  and  for notifying the commissioner of taxation and finance of
any such noncompliance of which he becomes aware.
  S 5. This act shall take effect immediately; provided,  however,  that
section  three  of  this  act shall expire and be deemed repealed on the
same date section 2 of part P of chapter 59 of the laws  of  2014  takes
effect  when  upon  such  date  section  three-a  of this act shall take
effect.