S T A T E O F N E W Y O R K
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9876
I N A S S E M B L Y
April 24, 2024
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Introduced by M. of A. McDONALD -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the public housing law, the tax law and the state
finance law, in relation to establishing the shovel-ready housing
program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public housing law is amended by adding a new section
150-a to read as follows:
§ 150-A. SHOVEL-READY HOUSING PROGRAM. 1. NO LATER THAN ONE YEAR AFTER
THE EFFECTIVE DATE OF THIS SECTION, AND AFTER CONSULTATION WITH MUNICI-
PAL GOVERNMENTS THROUGHOUT THE STATE, THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL SHALL ESTABLISH A "SHOVEL-READY HOUSING PROGRAM" UNDER
WHICH MUNICIPALITIES, EXCLUDING CITIES WITH A POPULATION OF OVER ONE
MILLION, AND PLANNING COMMISSIONS OF SUCH MUNICIPALITIES, IF ANY, AT
THEIR OPTION, MAY PRE-AUTHORIZE PARCELS OF PROPERTY FOR THE CONSTRUCTION
OF HOUSING.
2. THE COMMISSIONER SHALL PROMULGATE RULES, REGULATIONS, AND REPORTING
REQUIREMENTS TO ESTABLISH THE PROGRAM PURSUANT TO SUBDIVISION ONE OF
THIS SECTION. FACTORS CONSIDERED SHALL INCLUDE, BUT NOT BE LIMITED TO,
ENVIRONMENTAL REVIEW, PERMITTING, AND LOCAL ZONING. NOTHING UNDER SUCH
PROGRAM SHALL SUPERSEDE LOCAL LAWS. THE DIVISION OF HOUSING AND COMMUNI-
TY RENEWAL SHALL ANNUALLY PUBLISH ON ITS WEBSITE A LIST OF MUNICI-
PALITIES THAT HAVE OPTED IN TO PARTICIPATE IN SUCH PROGRAM.
3. IN ORDER FOR THE DIVISION OF HOUSING AND COMMUNITY RENEWAL TO
CERTIFY A MUNICIPALITY'S PARTICIPATION IN THE PROGRAM UNDER SUBDIVISION
ONE OF THIS SECTION, SUCH MUNICIPALITY SHALL PRE-AUTHORIZE PARCELS
SUFFICIENT TO INCREASE THE NUMBER OF HOUSING UNITS IN SUCH MUNICIPALITY
BY AT LEAST ONE PER CENTUM OR A MINIMUM OF TEN UNITS, WHICHEVER IS
GREATER.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(n-3) to read as follows:
(N-3) SHOVEL-READY COMMUNITY TAX REBATE CREDIT. (1) AN INDIVIDUAL
TAXPAYER WHO MEETS THE ELIGIBILITY STANDARDS IN PARAGRAPH TWO OF THIS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15072-01-4
A. 9876 2
SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS
ARTICLE IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE OF THIS SUBSECTION
FOR THE TAX YEAR FOLLOWING THE YEAR IN THE MUNICIPALITY IN WHICH SUCH
INDIVIDUAL RESIDES BEING CERTIFIED AS PARTICIPATING IN THE SHOVEL-READY
HOUSING PROGRAM ESTABLISHED UNDER SECTION ONE HUNDRED FIFTY-A OF THE
PUBLIC HOUSING LAW.
(2) TO BE ELIGIBLE FOR THE CREDIT, THE TAXPAYER (OR TAXPAYERS FILING
JOINT RETURNS) (I) SHALL OWN AND PRIMARILY RESIDE IN REAL PROPERTY
RECEIVING EITHER THE STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW OR THE SCHOOL TAX RELIEF CREDIT
AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION, (II) SHALL HAVE HAD
QUALIFIED GROSS INCOME NO GREATER THAN TWO HUNDRED FIFTY THOUSAND
DOLLARS IN THE TAX YEAR TWO THOUSAND TWENTY, AND (III) RESIDE IN A MUNI-
CIPALITY THAT HAS CERTIFIED PARTICIPATION IN THE SHOVEL-READY HOUSING
PROGRAM ESTABLISHED UNDER SECTION ONE HUNDRED FIFTY-A OF THE PUBLIC
HOUSING LAW.
(3) (I) FOR A TAXPAYER WHO OWNED AND PRIMARILY RESIDED IN REAL PROPER-
TY RECEIVING THE BASIC STAR EXEMPTION OR WHO RECEIVED THE BASIC STAR
CREDIT, THE AMOUNT OF THE CREDIT SHALL EQUAL THE STAR TAX SAVINGS ASSO-
CIATED WITH SUCH BASIC STAR EXEMPTION IN THE TWO THOUSAND TWENTY-THREE-
-TWO THOUSAND TWENTY-FOUR SCHOOL YEAR, MULTIPLIED BY THE FOLLOWING
PERCENTAGE:
FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF
NEW YORK:
QUALIFIED GROSS INCOME PERCENTAGE
NOT OVER $75,000 163%
OVER $75,000 BUT NOT OVER $150,000 115%
OVER $150,000 BUT NOT OVER $200,000 66%
OVER $200,000 BUT NOT OVER $250,000 18%
OVER $250,000 NO CREDIT
(II) FOR A TAXPAYER WHO OWNED AND PRIMARILY RESIDED IN REAL PROPERTY
RECEIVING THE ENHANCED STAR EXEMPTION OR WHO RECEIVED THE ENHANCED STAR
CREDIT, THE AMOUNT OF THE CREDIT SHALL EQUAL THE STAR TAX SAVINGS ASSO-
CIATED WITH SUCH ENHANCED STAR EXEMPTION IN THE TWO THOUSAND TWENTY-
THREE--TWO THOUSAND TWENTY-FOUR SCHOOL YEAR, MULTIPLIED BY SIXTY-SIX
PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY
OF NEW YORK, OR ONE HUNDRED TEN PERCENT IF THE TAXPAYER'S PRIMARY RESI-
DENCE IS LOCATED WITHIN THE CITY OF NEW YORK.
(III) IN NO CASE SHALL THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION EXCEED THE SCHOOL DISTRICT TAXES DUE WITH RESPECT TO THE
RESIDENCE FOR THAT SCHOOL YEAR, NOR SHALL ANY CREDIT BE ALLOWED UNDER
THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO THIS PARAGRAPH IS
LESS THAN ONE HUNDRED DOLLARS.
(4) FOR PURPOSES OF THIS SUBSECTION:
(I) "QUALIFIED GROSS INCOME" MEANS THE ADJUSTED GROSS INCOME OF THE
QUALIFIED TAXPAYER FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME
TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A
FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED. IN COMPUTING QUALI-
FIED GROSS INCOME, THE NET AMOUNT OF LOSS REPORTED ON FEDERAL SCHEDULE
C, D, E, OR F SHALL NOT EXCEED THREE THOUSAND DOLLARS PER SCHEDULE. IN
ADDITION, THE NET AMOUNT OF ANY OTHER SEPARATE CATEGORY OF LOSS SHALL
NOT EXCEED THREE THOUSAND DOLLARS. THE AGGREGATE AMOUNT OF ALL LOSSES
INCLUDED IN COMPUTING QUALIFIED GROSS INCOME SHALL NOT EXCEED FIFTEEN
THOUSAND DOLLARS.
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(II) "STAR TAX SAVINGS" MEANS THE TAX SAVINGS ATTRIBUTABLE TO THE
BASIC OR ENHANCED STAR EXEMPTION, WHICHEVER IS APPLICABLE, WITHIN A
PORTION OF A SCHOOL DISTRICT, AS DETERMINED BY THE COMMISSIONER PURSUANT
TO SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THE REAL PROPER-
TY TAX LAW.
(5) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL
EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. FOR EACH
YEAR THIS CREDIT IS ALLOWED, ON OR BEFORE OCTOBER FIFTEENTH OF SUCH
YEAR, OR AS SOON THEREAFTER AS IS PRACTICABLE, THE COMMISSIONER SHALL
DETERMINE THE TAXPAYER'S ELIGIBILITY FOR THIS CREDIT UTILIZING THE
INFORMATION AVAILABLE TO THE COMMISSIONER ON THE TAXPAYER'S PERSONAL
INCOME TAX RETURN FILED FOR THE TAXABLE YEAR TWO YEARS PRIOR TO THE
TAXABLE YEAR IN WHICH THE CREDIT IS ALLOWED. FOR THOSE TAXPAYERS WHOM
THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMIS-
SIONER SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH
THREE OF THIS SUBSECTION, WHICH PAYMENT SHALL BE ISSUED, TO THE GREATEST
EXTENT PRACTICABLE, BY OCTOBER THIRTY-FIRST OF EACH YEAR THE CREDIT IS
ALLOWED. A TAXPAYER WHO HAS FAILED TO RECEIVE AN ADVANCE PAYMENT THAT
SUCH TAXPAYER BELIEVES WAS DUE TO SUCH TAXPAYER, OR WHO HAS RECEIVED AN
ADVANCE PAYMENT THAT SUCH TAXPAYER BELIEVES IS LESS THAN THE AMOUNT THAT
WAS DUE TO SUCH TAXPAYER, MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY
IN A MANNER PRESCRIBED BY THE COMMISSIONER.
(6) A TAXPAYER SHALL NOT BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS
SUBSECTION IF THE SCHOOL DISTRICT TAXES LEVIED UPON THE RESIDENCE DURING
THE TAXABLE YEAR REMAIN UNPAID SIXTY DAYS AFTER THE LAST DATE ON WHICH
THEY COULD HAVE BEEN PAID WITHOUT INTEREST, OR IN THE CASE OF A SCHOOL
DISTRICT WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, IF SUCH TAXES
REMAIN UNPAID SIXTY DAYS AFTER THE LAST DATE ON WHICH THE FINAL INSTALL-
MENT COULD HAVE BEEN PAID WITHOUT INTEREST. IF THE TAXES REMAIN UNPAID
ON SUCH SIXTIETH DAY, THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER UNDER
THIS SUBSECTION OR THE AMOUNT OF ADVANCE PAYMENT OF CREDIT RECEIVED BY
THE TAXPAYER PURSUANT TO PARAGRAPH FIVE OF THIS SUBSECTION SHALL BE
ADDED BACK AS TAX ON THE INCOME TAX RETURN FOR THE TAXABLE YEAR IN WHICH
SUCH SIXTIETH DAY OCCURS.
(7) ONLY ONE CREDIT PER RESIDENCE SHALL BE ALLOWED PER TAXABLE YEAR
UNDER THIS SUBSECTION. WHEN TWO OR MORE MEMBERS OF A RESIDENCE ARE ABLE
TO MEET THE QUALIFICATIONS FOR A QUALIFIED TAXPAYER, THE CREDIT SHALL BE
EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS. IN THE CASE OF SPOUS-
ES WHO FILE A JOINT FEDERAL RETURN BUT WHO ARE REQUIRED TO DETERMINE
THEIR NEW YORK TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS
SUBSECTION MAY BE APPLIED AGAINST THE TAX OF EITHER OR DIVIDED BETWEEN
THEM AS THEY MAY ELECT.
§ 3. The state finance law is amended by adding a new section 54-n to
read as follows:
§ 54-N. GRANTS TO SHOVEL-READY HOUSING MUNICIPALITIES. 1. ANNUAL
APPORTIONMENT. DURING EACH FISCAL YEAR OF THE STATE, THERE SHALL BE
APPORTIONED AND PAID TO CITIES, TOWNS AND VILLAGES, THAT HAVE CERTIFIED
PARTICIPATION IN THE SHOVEL-READY HOUSING PROGRAM ESTABLISHED UNDER
SECTION ONE HUNDRED FIFTY-A OF THE PUBLIC HOUSING LAW FROM MONEYS APPRO-
PRIATED BY THE STATE, INFRASTRUCTURE GRANTS FOR THE SUPPORT OF SHOVEL
READY HOUSING MUNICIPALITIES. SUCH FUNDING APPORTIONED AND PAID TO EACH
QUALIFIED MUNICIPALITY SHALL BE EQUAL TO DOUBLE THE MUNICIPALITIES'
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ALLOTMENT OF THE CONSOLIDATED LOCAL STREET AND HIGHWAY IMPROVEMENT
PROGRAM (CHIPS) FUNDS IN THE PREVIOUS FISCAL YEAR ENACTED BUDGET.
2. USE OF FUNDS. GRANTS TO SHOVEL-READY HOUSING MUNICIPALITIES SHALL
BE USED FOR INFRASTRUCTURE PURPOSES INCLUDING, BUT NOT LIMITED TO ROAD,
BRIDGE, SEWER, POWER GENERATION AND DISTRIBUTION, AND BROADBAND
PROJECTS. ALL OTHER PURPOSES SHALL BE CERTIFIED BY THE OFFICE OF THE
STATE COMPTROLLER TO ENSURE FUNDS ARE USED FOR PROJECTS THAT FACILITATE
THE CONSTRUCTION OF ADDITIONAL HOUSING.
§ 4. This act shall take effect immediately.