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

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.

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 multifamily 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

S.358 (2007) S.6254 (2005) A.4508-B (2003) A.10658 (2001)

Fiscal implications

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

Effective date

This act shall take effect immediately.