S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2831

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced  by  M.  of A. FITZPATRICK, FINCH, RABBITT, REILICH -- Multi-
  Sponsored by -- M. of A.   BACALLES, BARCLAY, BARRA,  BURLING,  CONTE,
  CROUCH,  ERRIGO, GIGLIO, KOLB, McDONOUGH, O'MARA, QUINN, RAIA, SCOZZA-
  FAVA, TEDISCO, THIELE, WALKER -- read once and referred to the Commit-
  tee 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:

  Section 1.  Subdivisions 6 and 7 of section 21 of the  public  housing
law, as added by section 1 of part CC of chapter 63 of the laws of 2000,
are  amended and four new subdivisions 8, 9, 10 and 11 are added to read
as follows:
  6. "Qualified basis" of an  eligible  low-income  building  means  the
qualified  basis  of such building determined under section 42(c) of the
internal revenue code, or which would be determined under  such  section
if the 40-90 test specified in paragraph (b) of subdivision five of this
section applied under such section 42 to determine if such building were
part of a qualified low-income housing project OR IN THE CASE OF A QUAL-
IFIED  RESIDENCE,  MEANS ITS ADJUSTED BASIS (EXCLUDING LAND) IMMEDIATELY
BEFORE THE SALE OF SUCH RESIDENCE.
  7. References in this article to [section] SECTIONS 5, 42 AND  143  of
the  internal  revenue code shall mean such section as amended from time
to time.
  8. "QUALIFIED RESIDENCE" MEANS ANY RESIDENCE
  (A) WHICH IS LOCATED:
  (I) IN A CENSUS TRACT IN WHICH SEVENTY PERCENT OF THE FAMILIES HAVE  A
MEDIAN  GROSS  INCOME THAT IS LESS THAN NINETY PERCENT OF THE GREATER OF
AREA OR STATEWIDE MEDIAN GROSS INCOME,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02730-01-9

              

A. 2831                             2

  (II) IN A RURAL AREA (DEFINED UNDER SECTION 520 OF THE FEDERAL HOUSING
ACT OF 1949),
  (III) ON A RESERVATION FOR A FEDERALLY RECOGNIZED INDIAN TRIBE, OR
  (IV)  IN  AN  AREA OF CHRONIC ECONOMIC DISTRESS, AS DEFINED BY SECTION
143 OF THE INTERNAL REVENUE CODE; AND
  (B) WHICH IS PURCHASED BY A QUALIFIED BUYER.
  9. "RESIDENCE" MEANS
  (A) A SINGLE-FAMILY HOME CONTAINING ONE TO FOUR HOUSING UNITS, OR
  (B) A CONDOMINIUM UNIT, OR STOCK IN A COOPERATIVE HOUSING CORPORATION.
  10. "QUALIFIED BUYER" MEANS A PERSON OR PERSONS  OF  LOW  OR  MODERATE
INCOME AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION TWENTY-FOUR HUNDRED
TWO OF THE PUBLIC AUTHORITIES LAW.
  11.  "SUBSTANTIALLY  REHABILITATES"  MEANS REHABILITATION EXPENDITURES
PAID OR INCURRED WITH RESPECT TO A QUALIFIED RESIDENCE THAT ARE AT LEAST
FIFTEEN THOUSAND DOLLARS.
  S 2. Subdivisions 1, 2, 3, 4 and 5 of section 22 of the public housing
law, subdivisions 1, 2, 3 and 5 as added by section  1  of  part  CC  of
chapter 63 of the laws of 2000 and subdivision 4 as amended by section 1
of  part  XX-1 of chapter 57 of the laws of 2008, are amended to read as
follows:
  1. A taxpayer subject to tax under article nine-A,  twenty-two,  thir-
ty-two  or  thirty-three of the tax law which owns an interest in one or
more eligible low-income buildings OR WHO SUBSTANTIALLY REHABILITATES OR
CONSTRUCTS A QUALIFIED RESIDENCE shall be allowed a credit against  such
tax for the amount of low-income housing credit allocated by the commis-
sioner  to  each such building. Except as provided in subdivision two of
this section, the credit amount so allocated shall be allowed as a cred-
it against the tax for the ten taxable years in the credit period.
  2. Adjustment of first-year credit allowed in eleventh year. The cred-
it allowable for the first  taxable  year  of  the  credit  period  with
respect  to  any building OR QUALIFIED RESIDENCE shall be adjusted using
the rules of section 42(f)(2) of the internal revenue code (relating  to
first-year  adjustment  of  qualified  basis  by the weighted average of
low-income to total residential units), and any reduction in  first-year
credit  by  reason  of  such adjustment shall be allowable for the first
taxable year following the credit period.
  3. Amount of credit. Except as provided in subdivisions four and  five
of  this  section,  the amount of low-income housing credit shall be the
applicable percentage of the qualified basis of each eligible low-income
building OR QUALIFIED RESIDENCE.
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be  twenty  million  dollars.  THE  AGGREGATE  DOLLAR
AMOUNT  OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE QUALI-
FIED RESIDENCES SHALL BE SIX MILLION DOLLARS. The limitation provided by
this subdivision applies only to  allocation  of  the  aggregate  dollar
amount of credit by the commissioner, and does not apply to allowance to
a taxpayer of the credit with respect to an eligible low-income building
OR A QUALIFIED RESIDENCE for each year of the credit period.
  5.  Building  limitation. The dollar amount of credit allocated to any
building shall not exceed the  amount  the  commissioner  determines  is
necessary for the financial feasibility of the project and the viability
of  the  building  as  an eligible low-income building OR AS A QUALIFIED
RESIDENCE throughout the credit period. In allocating a dollar amount of
credit to any building, the commissioner shall  specify  the  applicable
percentage  and  the  maximum  qualified  basis  which may be taken into

A. 2831                             3

account under this article with respect to such building. The applicable
percentage and the maximum qualified basis with respect  to  a  building
shall  not  exceed  the  amounts determined in subdivisions one and six,
respectively, of section twenty-one of this article.
  S  3.  Section  23 of the public housing law, as added by section 1 of
part CC of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
follows:
  S 23. Project monitoring. The commissioner shall establish such proce-
dures  as  he  deems  necessary for monitoring compliance of an eligible
low-income building OR QUALIFIED RESIDENCE with the provisions  of  this
article,  and  for notifying the commissioner of taxation and finance of
any such noncompliance of which he becomes aware.
  S 4. This act shall take effect immediately.