Bill Text: NY A06924 | 2019-2020 | General Assembly | Introduced


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: Partisan Bill (Republican 2-0)

Status: (Introduced) 2019-03-27 - referred to housing [A06924 Detail]

Download: New_York-2019-A06924-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6924
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 27, 2019
                                       ___________
        Introduced  by  M.  of  A.  FITZPATRICK -- 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),
    23    (iii) on a reservation for a federally recognized Indian tribe, or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06008-01-9

        A. 6924                             2
     1    (iv) in an area of chronic economic distress, as  defined  by  section
     2  143 of the internal revenue code; and
     3    (b) which is purchased by a qualified buyer.
     4    9. "Residence" means
     5    (a) a single-family home containing one to four housing units, or
     6    (b) a condominium unit, or stock in a cooperative housing corporation.
     7    10.  "Qualified  buyer"  means  a person or persons of low or moderate
     8  income as defined in subdivision fourteen of section twenty-four hundred
     9  two of the public authorities law.
    10    11. "Substantially rehabilitates"  means  rehabilitation  expenditures
    11  paid or incurred with respect to a qualified residence that are at least
    12  fifteen thousand dollars.
    13    §  2.  Subdivisions  1, 2, 3 and 5 of section 22 of the public housing
    14  law, subdivision 1 as amended by section 1 of part PP of chapter  59  of
    15  the  laws  of  2018 and subdivisions 2, 3 and 5 as added by section 1 of
    16  part CC of chapter 63 of the laws  of  2000,  are  amended  to  read  as
    17  follows:
    18    1.  A  taxpayer  subject  to  tax under article nine-A, twenty-two, or
    19  thirty-three of the tax law which owns an interest in one or more eligi-
    20  ble low-income  buildings,  or  a  transferee  of  such  a  taxpayer  as
    21  described  in  subdivision  eight  of  this  section,  or a taxpayer who
    22  substantially rehabilitates or constructs a qualified residence shall be
    23  allowed a credit against such tax for the amount of  low-income  housing
    24  credit  allocated  by  the commissioner to each such building. Except as
    25  provided in subdivision two of this section, the credit amount so  allo-
    26  cated  shall  be allowed as a credit against the tax for the ten taxable
    27  years in the credit period.
    28    2. Adjustment of first-year credit allowed in eleventh year. The cred-
    29  it allowable for the first  taxable  year  of  the  credit  period  with
    30  respect  to  any building or qualified residence shall be adjusted using
    31  the rules of section 42(f)(2) of the internal revenue code (relating  to
    32  first-year  adjustment  of  qualified  basis  by the weighted average of
    33  low-income to total residential units), and any reduction in  first-year
    34  credit  by  reason  of  such adjustment shall be allowable for the first
    35  taxable year following the credit period.
    36    3. Amount of credit. Except as provided in subdivisions four and  five
    37  of  this  section,  the amount of low-income housing credit shall be the
    38  applicable percentage of the qualified basis of each eligible low-income
    39  building or qualified residence.
    40    5. Building limitation. The dollar amount of credit allocated  to  any
    41  building  shall  not  exceed  the  amount the commissioner determines is
    42  necessary for the financial feasibility of the project and the viability
    43  of the building as an eligible low-income building  or  as  a  qualified
    44  residence throughout the credit period. In allocating a dollar amount of
    45  credit  to  any  building, the commissioner shall specify the applicable
    46  percentage and the maximum qualified  basis  which  may  be  taken  into
    47  account under this article with respect to such building. The applicable
    48  percentage  and  the  maximum qualified basis with respect to a building
    49  shall not exceed the amounts determined in  subdivisions  one  and  six,
    50  respectively, of section twenty-one of this article.
    51    § 3. Subdivision 4 of section 22 of the public housing law, as amended
    52  by  section 3 of part H of chapter 60 of the laws of 2016, is amended to
    53  read as follows:
    54    4. Statewide limitation. The aggregate dollar amount of  credit  which
    55  the  commissioner  may  allocate  to eligible low-income buildings under
    56  this article shall be eighty-eight million dollars. The aggregate dollar

        A. 6924                             3
     1  amount of credit which the commissioner may allocate to eligible  quali-
     2  fied  residents shall be six million dollars. The limitation provided by
     3  this subdivision applies only to  allocation  of  the  aggregate  dollar
     4  amount of credit by the commissioner, and does not apply to allowance to
     5  a taxpayer of the credit with respect to an eligible low-income building
     6  for each year of the credit period.
     7    §  3-a.  Subdivision  4  of  section  22 of the public housing law, as
     8  amended by section 4 of part H of chapter 60 of the  laws  of  2016,  is
     9  amended to read as follows:
    10    4.  Statewide  limitation. The aggregate dollar amount of credit which
    11  the commissioner may allocate to  eligible  low-income  buildings  under
    12  this  article  shall be ninety-six million dollars. The aggregate dollar
    13  amount of credit which the commissioner may allocate to eligible  quali-
    14  fied  residents shall be six million dollars. The limitation provided by
    15  this subdivision applies only to  allocation  of  the  aggregate  dollar
    16  amount of credit by the commissioner, and does not apply to allowance to
    17  a taxpayer of the credit with respect to an eligible low-income building
    18  for each year of the credit period.
    19    §  3-b.  Subdivision  4  of  section  22 of the public housing law, as
    20  amended by section 5 of part H of chapter 60 of the  laws  of  2016,  is
    21  amended to read as follows:
    22    4.  Statewide  limitation. The aggregate dollar amount of credit which
    23  the commissioner may allocate to  eligible  low-income  buildings  under
    24  this  article  shall  be one hundred four million dollars. The aggregate
    25  dollar amount of credit which the commissioner may allocate to  eligible
    26  qualified  residents  shall  be  six  million  dollars.  The  limitation
    27  provided by this subdivision applies only to allocation of the aggregate
    28  dollar amount of credit by the  commissioner,  and  does  not  apply  to
    29  allowance  to  a taxpayer of the credit with respect to an eligible low-
    30  income building for each year of the credit period.
    31    § 4. Section 23 of the public housing law, as amended by section 5  of
    32  part  PP  of  chapter  59  of  the  laws  of 2018, is amended to read as
    33  follows:
    34    § 23. Project monitoring. The commissioner shall establish such proce-
    35  dures deemed necessary for monitoring compliance of an eligible  low-in-
    36  come  building  or qualified residence with the provisions of this arti-
    37  cle, and for notifying the commissioner of taxation and finance  of  any
    38  such noncompliance.
    39    § 5. This act shall take effect immediately; provided, however, that:
    40    a.  section three-a of this act shall take effect on the same date and
    41  in the same manner as section 4 of part H of chapter 60 of the  laws  of
    42  2016 takes effect; and
    43    b.  section three-b of this act shall take effect on the same date and
    44  in the same manner as section 5 of part H of chapter 60 of the  laws  of
    45  2016 takes effect.
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