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.
STATE OF NEW YORK
________________________________________________________________________
4508--B
2003-2004 Regular Sessions
IN ASSEMBLY
February 19, 2003
___________
Introduced by M. of A. YOUNG, NESBITT, FINCH, CROUCH, SPANO -- Multi-
Sponsored by -- M. of A. ACAMPORA, ALFANO, BACALLES, BARCLAY, BARRA,
BARRAGA, BROWN, BURLING, BUTLER, CALHOUN, CASALE, CONTE, ERRIGO,
FERRARA, FITZPATRICK, HAYES, HOOKER, KIRWAN, KOLB, MANNING, McDONALD,
McDONOUGH, MILLER, MILLS, MIRONES, OAKS, O'CONNELL, ORTLOFF, RAIA,
REILICH, SAYWARD, SCOZZAFAVA, STEPHENS, STRANIERE, TEDISCO, THIELE,
TOWNSEND, WARNER, WINNER, WIRTH -- read once and referred to the
Committee on Housing -- recommitted to the Committee on Housing in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06273-03-4
A. 4508--B 2
1 7. References in this article to [section] sections 5, 42 and 143 of
2 the internal revenue code shall mean such section as amended from time
3 to time.
4 8. "Qualified residence" means any residence
5 (a) which is located:
6 (i) in a census tract which has a median gross income which does not
7 exceed eighty percent of the greater of area or statewide median gross
8 income, as determined by section 143 of the internal revenue code,
9 (ii) in a rural area (defined under section 520 of the federal housing
10 act of 1949),
11 (iii) on a reservation for a federally recognized Indian tribe, or
12 (iv) in an area of chronic economic distress, as defined by section
13 143 of the internal revenue code; and
14 (b) which is purchased by a qualified buyer.
15 9. "Residence" means
16 (a) a single-family home containing one to four housing units, or
17 (b) a condominium unit, or stock in a cooperative housing corporation.
18 10. "Qualified buyer" means a person or persons or low and moderate
19 income as defined in subdivision fourteen of section twenty-four hundred
20 two of the public authorities law.
21 11. "Substantially rehabilitates" means rehabilitation expenditures
22 paid or incurred with respect to a qualified residence that are at least
23 fifteen thousand dollars.
24 § 2. Subdivisions 1, 2, 3, 4 and 5 of section 22 of the public housing
25 law, subdivisions 1, 2, 3 and 5 as added by section 1 of part CC of
26 chapter 63 of the laws of 2000 and subdivision 4 as amended by section 1
27 of part M of chapter 85 of the laws of 2002, are amended to read as
28 follows:
29 1. A taxpayer subject to tax under article nine-A, twenty-two, thir-
30 ty-two or thirty-three of the tax law which owns an interest in one or
31 more eligible low-income buildings or who substantially rehabilitates or
32 constructs a qualified residence shall be allowed a credit against such
33 tax for the amount of low-income housing credit allocated by the commis-
34 sioner to each such building. Except as provided in subdivision two of
35 this section, the credit amount so allocated shall be allowed as a cred-
36 it against the tax for the ten taxable years in the credit period.
37 2. Adjustment of first-year credit allowed in eleventh year. The cred-
38 it allowable for the first taxable year of the credit period with
39 respect to any building or qualified residence shall be adjusted using
40 the rules of section 42(f)(2) of the internal revenue code (relating to
41 first-year adjustment of qualified basis by the weighted average of
42 low-income to total residential units), and any reduction in first-year
43 credit by reason of such adjustment shall be allowable for the first
44 taxable year following the credit period.
45 3. Amount of credit. Except as provided in subdivisions four and five
46 of this section, the amount of low-income housing credit shall be the
47 applicable percentage of the qualified basis of each eligible low-income
48 building or qualified residence.
49 4. Statewide limitation. The aggregate dollar amount of credit which
50 the commissioner may allocate to eligible low-income buildings under
51 this article shall be four million dollars. The aggregate dollar amount
52 of credit which the commissioner may allocate to a qualified residence
53 shall be four million dollars. The limitation provided by this subdivi-
54 sion applies only to allocation of the aggregate dollar amount of credit
55 by the commissioner, and does not apply to allowance to a taxpayer of
A. 4508--B 3
1 the credit with respect to an eligible low-income building or a quali-
2 fied residence for each year of the credit period.
3 5. Building limitation. The dollar amount of credit allocated to any
4 building shall not exceed the amount the commissioner determines is
5 necessary for the financial feasibility of the project and the viability
6 of the building as an eligible low-income building or as a qualified
7 residence throughout the credit period. In allocating a dollar amount of
8 credit to any building, the commissioner shall specify the applicable
9 percentage and the maximum qualified basis which may be taken into
10 account under this article with respect to such building. The applicable
11 percentage and the maximum qualified basis with respect to a building
12 shall not exceed the amounts determined in subdivisions one and six,
13 respectively, of section twenty-one of this article.
14 § 3. Section 23 of the public housing law, as added by section 1 of
15 part CC of chapter 63 of the laws of 2000, is amended to read as
16 follows:
17 § 23. Project monitoring. The commissioner shall establish such proce-
18 dures as he deems necessary for monitoring compliance of an eligible
19 low-income building or qualified residence with the provisions of this
20 article, and for notifying the commissioner of taxation and finance of
21 any such noncompliance of which he becomes aware.
22 § 4. This act shall take effect immediately.
