Creates the New York state housing opportunities zones act

Justification

This bill establishes a pilot project to promote the production of mixed income housing by authorizing the creation of Housing Opportunity Zones in which a wide range of benefits and incentives tailored to meet the needs of the locality proposing the zone will be made available to newly constructed or rehabilitated housing in which at least one third of the units are affordable to families of low or moderate income.

The benefits accruing to mixed income housing developed in a Zone could include locally proposed zoning modifications to encourage mixed income housing which would otherwise be difficult to construct or rehabilitate. This bill will not allow for a process by which a locality itself could modify or waive its own zoning provisions for eligible buildings in a zone as part of its Housing Opportunity Zone Designation Plan. Other benefits which could be provided in a Zone Designation Plan include possible exemptions from local real property taxes and fees, as well as reduced water and sewer rates. Each locality applying for approval would design the Designation Plan to suit its own needs, selecting benefits from a menu set out in the bill. The Commissioner would not mandate any particular benefit but would merely approve or reject a proposed Designation Plan prepared by the locality. Eligible properties designated within a Zone would also be eligible for exemption from real property recording and transfer taxes. By providing locally initiated incentives for the private sector to develop affordable housing, this bill will advance a number of goals essential for the economic and social well-being of the State. The creation of Zones will foster the involvement of for-profit developers in the provision of affordable housing, promote the development of business by spurring the creation of housing to employees with a range of incomes, help stabilize neighborhoods in danger of decline, and help promote integration. The bill also enhances the participation of localities in the siting, selection and design of affordable housing by encouraging localities to work with developers in creating Housing Opportunity Zone Designation Plan.

Legislative history

A.3349 of 1995-96 Legislative Session, A.3481 of 1997-98 Legislative Session, A.2145 of 1999-00 Legislative Session, A.1442 of 2001-02 Legislative Session, A.4536 of 2003-04 Legislative Session, A.5228 of 2005-06 Legislative Session, A.5600 of 2007-08 Legislative Session

Fiscal implications

There will be no significant reductions to existing State revenues resulting from the Implementation of Housing Opportunity Zones. Since housing development activities might not occur in these zones without tax incentives offered, granting tax exemptions to such projects does not materially reduce anticipated State revenues. Granting local tax exemptions and waiver of fees may diminish localities' real property tax revenues to the extent that property taxes have been previously collected on these exempted properties. However, since the zones will target communities in need of capital investment the value of these foregone property tax revenues will be minimal to the localities which opt to participate. Moreover, because the proposal is intended to stimulate private sector activity both the State and affected localities should expect incremental sales and personal income tax revenues resulting from such economic stimulation. Implementation and administration of this proposal will likely require a small amount of additional State and local resources.

Effective date

This act would take effect immediately.