S T A T E   O F   N E W   Y O R K
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                                  4048

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 1, 2011
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
  Committee on Housing

AN ACT to amend the public housing law, in relation to establishing  the
  downtown revitalization zone rental housing credit

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

  Section 1. The public housing law is amended by adding a  new  article
14 to read as follows:

                               ARTICLE XIV
                         DOWNTOWN REVITALIZATION
                          RENTAL HOUSING CREDIT
SECTION 600. PURPOSE AND INTENT.
        601. ADMINISTRATION.
        602. ALLOWANCE OF CREDIT.
        603. DETERMINATION OF RENTAL HOUSING CREDIT.
  S  600.  PURPOSE  AND  INTENT.  RENTAL  HOUSING TAX CREDITS ARE HEREBY
CREATED. THE PURPOSE OF THE TAX CREDITS IS TO ENCOURAGE THE CONSTRUCTION
AND REHABILITATION OF RENTAL HOUSING IN DOWNTOWN REVITALIZATION ZONES IN
THE STATE. THE DEMAND FOR TAX  CREDIT  BY  STATE  PROJECTS  EXCEEDS  THE
CURRENT  FEDERAL  CAP FOR SUCH PROJECTS. IT IS, THEREFORE, THE INTENT OF
THE LEGISLATURE THAT THIS ARTICLE COORDINATE WITH  AND  BUILD  UPON  THE
FEDERAL  LOW-INCOME  HOUSING CREDIT AND THAT THE EXISTING STATE ADMINIS-
TRATIVE STRUCTURE IN PLACE FOR SERVICING THE FEDERAL CREDIT BE  USED  TO
ALLOW  THE FEDERAL CREDIT TO BE LEVERAGED TO PRODUCE MORE RENTAL HOUSING
IN THE STATE. THE STATE  CREDIT  IS  INTENDED  TO  ALSO  ALLOW  FOR  THE
CONSTRUCTION OF MODERATE INCOME HOUSING NOT COVERED BY THE FEDERAL CRED-
IT.
  S  601.  ADMINISTRATION.  THE TAX CREDITS SHALL BE ADMINISTERED BY THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL AND SHALL UTILIZE THE EXISTING
STATE ADMINISTRATIVE STRUCTURE UTILIZED TO  DETERMINE  THE  FEDERAL  TAX

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05283-01-1
              

A. 4048                             2

CREDIT,  TO  THE  EXTENT FEASIBLE PURSUANT TO SUBDIVISION ONE OF SECTION
SIX HUNDRED TWO OF THIS ARTICLE.
  S  602.  ALLOWANCE  OF CREDIT. 1. TAX CREDITS SHALL BE ALLOWED FOR THE
CONSTRUCTION OF RENT-RESTRICTED HOUSING IN DOWNTOWN REVITALIZATION ZONES
WHICH QUALIFY FOR THE FEDERAL  TAX  CREDIT,  OR  WHICH  QUALIFY  IN  ALL
RESPECTS  FOR  THE  FEDERAL  TAX CREDIT WITH THE EXCEPTION OF THE TENANT
INCOME TEST.
  2. THE TAX CREDITS SHALL APPLY  TO  PROJECTS  WHERE  AT  LEAST  TWENTY
PERCENT  OF  THE  RESIDENTIAL UNITS OF A PROJECT ARE OCCUPIED BY TENANTS
WHOSE INCOME IS NINETY PERCENT OR LESS OF AREA MEDIAN GROSS INCOME.
  3. THE TAX CREDITS SHALL BE ALLOWED AS  A  CREDIT  AGAINST  THE  TAXES
IMPOSED BY:
  (A)  ARTICLE  NINE-A  OF THE TAX LAW, FRANCHISE TAX ON BUSINESS CORPO-
RATIONS;
  (B) ARTICLE TWENTY-TWO OF THE TAX LAW, PERSONAL INCOME TAX;
  (C) ARTICLE THIRTY-TWO OF THE TAX LAW, FRANCHISE TAX ON BANKING CORPO-
RATIONS; AND
  (D) ARTICLE THIRTY-THREE OF THE TAX LAW, FRANCHISE TAXES ON  INSURANCE
CORPORATIONS.
  S  603.  DETERMINATION  OF  RENTAL  HOUSING CREDIT. 1. THE TAX CREDITS
GRANTED PURSUANT TO THIS ARTICLE SHALL BE DETERMINED  BY  AN  APPLICABLE
PERCENTAGE  BASED  ON PREVAILING INTEREST RATES AND PROJECT CONSTRUCTION
COST,  AND IS INTENDED TO YIELD A CREDIT AMOUNT OVER TEN YEARS  APPROXI-
MATING  SEVENTY  PERCENT OF THE PRESENT VALUE OF THE COST OF A PROJECT'S
RENTAL UNITS.
  2. SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT DEEMED BY THE  COMMIS-
SIONER TO BE NECESSARY FOR PROJECT FEASIBILITY.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
taxable years commencing on or after such effective date.