senate Bill S757

2011-2012 Legislative Session

Expands the New York state low income housing tax credit program to certain one to four family residences

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to housing, construction and community development
Jan 05, 2011 referred to housing, construction and community development

S757 - Bill Details

Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Public Housing Law
Laws Affected:
Amd ยงยง21, 22 & 23, Pub Hous L
Versions Introduced in 2009-2010 Legislative Session:
S4808

S757 - Bill Texts

view summary

Expands the New York state low income housing tax credit program to certain one to four family residences, including a cooperative or a condominium unit.

view sponsor memo
BILL NUMBER:S757

TITLE OF BILL:

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

PURPOSE:

To expand the State's low income housing tax credit program to include
the development of one to four family residences.

SUMMARY OF PROVISIONS:

The bill amends the Public Housing Law to expand the
definition of "eligible low-income building" for purposes of the New
York State Low Income Housing Tax Credit Program to include a one to
four family residence, including a cooperative or a condominium unit,
the owners of which would be eligible to qualify as persons and
families of low or moderate income as defined in subdivision (14) of
Section 2402 of the Public Authorities Law which governs SONYMA
forward commitment mortgages.

It further amends Section 22 of such
law to authorize a taxpayer who develops or constructs an eligible or
low-income building that is a one to four family residence, including
a cooperative or condominium unit, to be allowed a credit against the
tax imposed by either Articles 9-A, 22, 32 or 33 or the Tax Law for a
period often years in an amount allocated by the Commissioner of the
Division of Housing and Community Renewal.

Section 23 of such law is amended to add that one to four family
residences, including a cooperative or a condominium unit, shall be
monitored for compliance with the requirements of the New York State
Low Income Housing Tax Credit Program.

JUSTIFICATION:

Further increasing the rate of homeownership in the State remains one
of the more successful community development strategies since it
increases neighborhood stability and overall property values. One of
the most successful federal and now State housing production tools
has been the low income housing tax credit program which allocates
federal and state tax credits to developers of multi-family housing.

The bill draws upon the success of the state program to expand it to
provide a tax credit for the development and construction of one to
four family residences, including cooperative and condominium units.
By doing so investors would purchase the credits with the proceeds
providing equity investment for the development of housing for
purchase by low and moderate income persons.

Not only will the
program provide incentives for the construction and rehabilitation of


housing in certain areas of the state, but it will also help lower the
cost of housing to those persons who meet the financial eligibility
guidelines of SONYMA's forward commitment program.

LEGISLATIVE HISTORY:

2009-2010: S.4808 Referred to Housing, Construction & Community
Development
2007-2008: S.358 Referred to Housing, Construction & Community
Development
2006: S.6254 Referred to Finance
2005: A.2750 Referred to Housing
2003-2004: A.4508-A Referred to Housing
2002: A.10658 Held in Housing

FISCAL IMPLICATIONS:

Provides $2 million in state tax credit in the aggregate.

EFFECTIVE DATE:

This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   757

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 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 expanding the New
  York  state  low  income  housing tax credit program to certain one to
  four family residences

  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 WHICH HAS A MEDIAN GROSS INCOME WHICH DOES NOT
EXCEED EIGHTY PERCENT OF THE GREATER OF AREA OR STATEWIDE  MEDIAN  GROSS
INCOME, AS DETERMINED BY SECTION 143 OF THE INTERNAL REVENUE CODE,
  (II) IN A RURAL AREA (DEFINED UNDER SECTION 520 OF THE FEDERAL HOUSING
ACT OF 1949),

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02632-01-1

S. 757                              2

  (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, 4 and 5 of section 22 of the public housing
law, subdivisions 1, 2, 3 and 5 as added by section  1  of  part  CC  of
chapter 63 of the laws of 2000 and subdivision 4 as amended by section 1
of  part  P  of  chapter  57 of the laws of 2010, 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.
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be  twenty-eight  million  dollars.    THE  AGGREGATE
DOLLAR  AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO A QUALI-
FIED RESIDENCE SHALL BE EIGHT 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
OR A QUALIFIED RESIDENCE for each year of the credit period.
  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

S. 757                              3

shall not exceed the amounts determined in  subdivisions  one  and  six,
respectively, of section twenty-one of this article.
  S  3.  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 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.