S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5630
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 22, 2021
                                ___________
 
 Introduced  by M. of A. FITZPATRICK, DeSTEFANO -- 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:
 
   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,
   (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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08080-01-1
              

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   (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.
   §  2.  Subdivisions  1, 2, 3 and 5 of section 22 of the public housing
 law, subdivision 1 as amended by section 1 of part PP of chapter  59  of
 the  laws  of  2018 and subdivisions 2, 3 and 5 as added by section 1 of
 part CC of chapter 63 of the laws  of  2000,  are  amended  to  read  as
 follows:
   1.  A  taxpayer  subject  to  tax under article nine-A, twenty-two, or
 thirty-three of the tax law which owns an interest in one or more eligi-
 ble low-income  buildings,  or  a  transferee  of  such  a  taxpayer  as
 described  in  subdivision  eight  of  this  section,  OR A TAXPAYER 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 commissioner to each such building. Except as
 provided in subdivision two of this section, the credit amount so  allo-
 cated  shall  be allowed as a credit 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.
   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
 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.
   § 3. Subdivision 4 of section 22 of the public housing law, as amended
 by  section 5 of part H of chapter 60 of the laws of 2016, is amended to
 read as follows:
   4. Statewide limitation. The aggregate dollar amount of  credit  which
 the  commissioner  may  allocate  to eligible low-income buildings under
 this article shall be one hundred four million  dollars.  THE  AGGREGATE

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 DOLLAR  AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE
 QUALIFIED  RESIDENTS  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 for each year of the credit period.
   §  4. Section 23 of the public housing law, as amended by section 5 of
 part PP of chapter 59 of the  laws  of  2018,  is  amended  to  read  as
 follows:
   § 23. Project monitoring. The commissioner shall establish such proce-
 dures  deemed necessary for monitoring compliance of an eligible low-in-
 come building OR QUALIFIED RESIDENCE with the provisions of  this  arti-
 cle,  and  for notifying the commissioner of taxation and finance of any
 such noncompliance.
   § 5. This act shall take effect immediately.