Bill Text: NY A02631 | 2011-2012 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Strong Partisan Bill (Republican 18-1)

Status: (Introduced - Dead) 2012-05-08 - held for consideration in housing [A02631 Detail]

Download: New_York-2011-A02631-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2631
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 19, 2011
                                      ___________
       Introduced  by  M.  of A. FITZPATRICK, FINCH, RABBITT, REILICH -- Multi-
         Sponsored by -- M. of A.   BARCLAY, BURLING,  CONTE,  CROUCH,  GIGLIO,
         KOLB,  McDONOUGH,  RAIA,  TEDISCO, 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
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Subdivisions 6 and 7 of section 21 of the  public  housing
    2  law, as added by section 1 of part CC of chapter 63 of the laws of 2000,
    3  are  amended and four new subdivisions 8, 9, 10 and 11 are added to read
    4  as follows:
    5    6. "Qualified basis" of an  eligible  low-income  building  means  the
    6  qualified  basis  of such building determined under section 42(c) of the
    7  internal revenue code, or which would be determined under  such  section
    8  if the 40-90 test specified in paragraph (b) of subdivision five of this
    9  section applied under such section 42 to determine if such building were
   10  part of a qualified low-income housing project OR IN THE CASE OF A QUAL-
   11  IFIED  RESIDENCE,  MEANS ITS ADJUSTED BASIS (EXCLUDING LAND) IMMEDIATELY
   12  BEFORE THE SALE OF SUCH RESIDENCE.
   13    7. References in this article to [section] SECTIONS 5, 42 AND  143  of
   14  the  internal  revenue code shall mean such section as amended from time
   15  to time.
   16    8. "QUALIFIED RESIDENCE" MEANS ANY RESIDENCE
   17    (A) WHICH IS LOCATED:
   18    (I) IN A CENSUS TRACT IN WHICH SEVENTY PERCENT OF THE FAMILIES HAVE  A
   19  MEDIAN  GROSS  INCOME THAT IS LESS THAN NINETY PERCENT OF THE GREATER OF
   20  AREA OR STATEWIDE MEDIAN GROSS INCOME,
   21    (II) IN A RURAL AREA (DEFINED UNDER SECTION 520 OF THE FEDERAL HOUSING
   22  ACT OF 1949),
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03508-01-1
       A. 2631                             2
    1    (III) ON A RESERVATION FOR A FEDERALLY RECOGNIZED INDIAN TRIBE, OR
    2    (IV)  IN  AN  AREA OF CHRONIC ECONOMIC DISTRESS, AS DEFINED BY SECTION
    3  143 OF THE INTERNAL REVENUE CODE; AND
    4    (B) WHICH IS PURCHASED BY A QUALIFIED BUYER.
    5    9. "RESIDENCE" MEANS
    6    (A) A SINGLE-FAMILY HOME CONTAINING ONE TO FOUR HOUSING UNITS, OR
    7    (B) A CONDOMINIUM UNIT, OR STOCK IN A COOPERATIVE HOUSING CORPORATION.
    8    10. "QUALIFIED BUYER" MEANS A PERSON OR PERSONS  OF  LOW  OR  MODERATE
    9  INCOME AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION TWENTY-FOUR HUNDRED
   10  TWO OF THE PUBLIC AUTHORITIES LAW.
   11    11.  "SUBSTANTIALLY  REHABILITATES"  MEANS REHABILITATION EXPENDITURES
   12  PAID OR INCURRED WITH RESPECT TO A QUALIFIED RESIDENCE THAT ARE AT LEAST
   13  FIFTEEN THOUSAND DOLLARS.
   14    S 2. Subdivisions 1, 2, 3, 4 and 5 of section 22 of the public housing
   15  law, subdivisions 1, 2, 3 and 5 as added by section  1  of  part  CC  of
   16  chapter 63 of the laws of 2000 and subdivision 4 as amended by section 1
   17  of  part  P  of  chapter  57 of the laws of 2010, are amended to read as
   18  follows:
   19    1. A taxpayer subject to tax under article nine-A,  twenty-two,  thir-
   20  ty-two  or  thirty-three of the tax law which owns an interest in one or
   21  more eligible low-income buildings OR WHO SUBSTANTIALLY REHABILITATES OR
   22  CONSTRUCTS A QUALIFIED RESIDENCE shall be allowed a credit against  such
   23  tax for the amount of low-income housing credit allocated by the commis-
   24  sioner  to  each such building. Except as provided in subdivision two of
   25  this section, the credit amount so allocated shall be allowed as a cred-
   26  it against the tax for the ten taxable years in the credit period.
   27    2. Adjustment of first-year credit allowed in eleventh year. The cred-
   28  it allowable for the first  taxable  year  of  the  credit  period  with
   29  respect  to  any building OR QUALIFIED RESIDENCE shall be adjusted using
   30  the rules of section 42(f)(2) of the internal revenue code (relating  to
   31  first-year  adjustment  of  qualified  basis  by the weighted average of
   32  low-income to total residential units), and any reduction in  first-year
   33  credit  by  reason  of  such adjustment shall be allowable for the first
   34  taxable year following the credit period.
   35    3. Amount of credit. Except as provided in subdivisions four and  five
   36  of  this  section,  the amount of low-income housing credit shall be the
   37  applicable percentage of the qualified basis of each eligible low-income
   38  building OR QUALIFIED RESIDENCE.
   39    4. Statewide limitation. The aggregate dollar amount of  credit  which
   40  the  commissioner  may  allocate  to eligible low-income buildings under
   41  this article shall be twenty-eight million dollars. THE AGGREGATE DOLLAR
   42  AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE  QUALI-
   43  FIED RESIDENCES SHALL BE SIX MILLION DOLLARS. The limitation provided by
   44  this  subdivision  applies  only  to  allocation of the aggregate dollar
   45  amount of credit by the commissioner, and does not apply to allowance to
   46  a taxpayer of the credit with respect to an eligible low-income building
   47  for each year of the credit period.
   48    5. Building limitation. The dollar amount of credit allocated  to  any
   49  building  shall  not  exceed  the  amount the commissioner determines is
   50  necessary for the financial feasibility of the project and the viability
   51  of the building as an eligible low-income building  OR  AS  A  QUALIFIED
   52  RESIDENCE throughout the credit period. In allocating a dollar amount of
   53  credit  to  any  building, the commissioner shall specify the applicable
   54  percentage and the maximum qualified  basis  which  may  be  taken  into
   55  account under this article with respect to such building. The applicable
   56  percentage  and  the  maximum qualified basis with respect to a building
       A. 2631                             3
    1  shall not exceed the amounts determined in  subdivisions  one  and  six,
    2  respectively, of section twenty-one of this article.
    3    S  3.  Section  23 of the public housing law, as added by section 1 of
    4  part CC of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
    5  follows:
    6    S 23. Project monitoring. The commissioner shall establish such proce-
    7  dures  as  he  deems  necessary for monitoring compliance of an eligible
    8  low-income building OR QUALIFIED RESIDENCE with the provisions  of  this
    9  article,  and  for notifying the commissioner of taxation and finance of
   10  any such noncompliance of which he becomes aware.
   11    S 4. This act shall take effect immediately.