S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2709
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to excluding certain owners  of
   single  family  residential  rental properties from being eligible for
   credits for interest payments and depreciation for such rental proper-
   ties

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 210-B of the tax law is amended by
 adding a new paragraph (g) to read as follows:
   (G)  (1)  A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVI-
 SION FOR ANY INTEREST PAID OR ACCRUED  IN  CONNECTION  WITH  ANY  SINGLE
 FAMILY  RESIDENTIAL  RENTAL PROPERTY OWNED (DIRECTLY OR INDIRECTLY) BY A
 DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED, HOWEVER  THAT  THIS
 PARAGRAPH  SHALL  NOT  APPLY WITH RESPECT TO INTEREST PAID OR ACCRUED IN
 THE TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY
 IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDI-
 VIDUAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
   (2) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT  UNDER  THIS  SUBDIVISION
 FOR DEPRECIATION IN CONNECTION WITH ANY SINGLE FAMILY RESIDENTIAL RENTAL
 PROPERTY OWNED BY A DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED,
 HOWEVER THAT THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO DEPRECIATION
 IN  CONNECTION  WITH  A SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IN THE
 TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY  IS
 SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDIVID-
 UAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
   (3) FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (I)  "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION OR STATE OR
 LOCAL GOVERNMENT INSTRUMENTALITY THAT: (A) USES A GROUND LEASE  OR  DEED
 COVENANT  WITH  AN AFFORDABILITY PERIOD OF AT LEAST THIRTY YEARS OR MORE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04946-01-5
              

 A. 2709                             2
 
 TO MAKE RENTAL HOMEOWNERSHIP UNITS AFFORDABLE TO HOUSEHOLDS  AND  STIPU-
 LATES A PREEMPTIVE OPTION TO PURCHASE THE AFFORDABLE RENTALS OR HOMEOWN-
 ERSHIP  UNITS  SO  THAT  THE AFFORDABILITY OR THE UNITS IS PRESERVED FOR
 SUCCESSIVE  INCOME-ELIGIBLE  HOUSEHOLDS;  AND (B) MONITORS PROPERTIES TO
 ENSURE AFFORDABILITY IS PRESERVED.
   (II) "DISQUALIFIED SINGLE FAMILY PROPERTY OWNER"  MEANS  ANY  TAXPAYER
 WHO  OWNS  (DIRECTLY OR INDIRECTLY) MORE THAN ONE SINGLE FAMILY RESIDEN-
 TIAL RENTAL PROPERTY.
   (III) "LAND BANK" MEANS A GOVERNMENT ENTITY, AGENCY, OR PROGRAM, OR  A
 SPECIAL  PURPOSE NONPROFIT ENTITY FORMED BY ONE OR MORE UNITS OF GOVERN-
 MENT IN ACCORDANCE WITH STATE OR LOCAL LAND BANK ENABLING LAW, THAT  HAS
 BEEN  DESIGNATED  BY  ONE OR MORE STATE OR LOCAL GOVERNMENTS TO ACQUIRE,
 STEWARD, AND DISPOSE OF VACANT, ABANDONED, OR OTHER  PROBLEM  PROPERTIES
 IN ACCORDANCE WITH LOCALLY-DETERMINED PRIORITIES AND GOALS.
   (IV)  "QUALIFIED  NONPROFIT ORGANIZATION" MEANS ANY ORGANIZATION WHICH
 IS NOT ORGANIZED FOR PROFIT AND HAS AS A PRINCIPAL PURPOSE THE CREATION,
 DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. "QUALIFIED NONPROFIT
 ORGANIZATION" SHALL INCLUDE ANY COMMUNITY DEVELOPMENT  CORPORATION,  ANY
 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, ANY COMMUNITY-BASED DEVELOP-
 MENT  ORGANIZATION  QUALIFIED UNDER SECTION 570.204 OF TITLE 24, CODE OF
 FEDERAL REGULATIONS, AS IN EFFECT ON THE EFFECTIVE DATE  OF  THIS  PARA-
 GRAPH,  ANY  LAND BANK, ANY RESIDENT-OWNED COOPERATIVE OR COMMUNITY LAND
 TRUST, AND ANY SUBSIDIARY OF A PUBLIC HOUSING AGENCY.
   (V) "RESIDENTIAL RENTAL PROPERTY"  MEANS  ANY  BUILDING  OR  STRUCTURE
 WHERE EIGHTY PERCENT OR MORE OF THE GROSS RENTAL INCOME FROM SUCH BUILD-
 ING  OR  STRUCTURE  FOR  THE TAXABLE YEAR IS RENTAL INCOME FROM DWELLING
 UNITS.
   (VI) "SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY" MEANS: (A) ANY  RESI-
 DENTIAL RENTAL PROPERTY WHICH CONTAINS FOUR OR FEWER DWELLING UNITS; AND
 (B)  IMPROVEMENTS  TO  REAL  PROPERTY  DIRECTLY RELATED TO SUCH DWELLING
 UNITS LOCATED ON THE SITE OF SUCH DWELLING UNITS. "SINGLE  FAMILY  RESI-
 DENTIAL  RENTAL PROPERTY OWNER" SHALL NOT INCLUDE ANY RESIDENTIAL RENTAL
 PROPERTY WHICH IS ELIGIBLE FOR A LOW  INCOME  HOUSING  CREDIT  FOR  SUCH
 TAXABLE  YEAR  OR  WAS  CONSTRUCTED  BY  THE TAXPAYER OR ACQUIRED BY THE
 TAXPAYER AFTER ITS CONSTRUCTION BUT BEFORE THE FIRST DATE ON  WHICH  ANY
 DWELLING UNIT IN SUCH PROPERTY WAS OCCUPIED BY A RESIDENT.
   § 2. Subsection (a) of section 606 of the tax law is amended by adding
 a new paragraph 14 to read as follows:
   (14)  (A)  A  TAXPAYER  SHALL  NOT  BE  ALLOWED  A  CREDIT  UNDER THIS
 SUBSECTION FOR ANY INTEREST PAID  OR  ACCRUED  IN  CONNECTION  WITH  ANY
 SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY OWNED (DIRECTLY OR INDIRECTLY)
 BY  A  DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED, HOWEVER THAT
 THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO INTEREST PAID OR  ACCRUED
 IN THE TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROP-
 ERTY  IS SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE
 INDIVIDUAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
   (B) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION FOR
 DEPRECIATION IN CONNECTION WITH ANY  SINGLE  FAMILY  RESIDENTIAL  RENTAL
 PROPERTY OWNED BY A DISQUALIFIED SINGLE FAMILY PROPERTY OWNER; PROVIDED,
 HOWEVER THAT THIS PARAGRAPH SHALL NOT APPLY WITH RESPECT TO DEPRECIATION
 IN  CONNECTION  WITH  A SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY IN THE
 TAXABLE YEAR IN WHICH SUCH SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY  IS
 SOLD TO AN INDIVIDUAL FOR USE AS THE PRINCIPLE RESIDENCE OF THE INDIVID-
 UAL OR TO A QUALIFIED NONPROFIT ORGANIZATION.
   (C) FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
 A. 2709                             3

   (I)  "COMMUNITY LAND TRUST" MEANS A NONPROFIT ORGANIZATION OR STATE OR
 LOCAL GOVERNMENT INSTRUMENTALITY THAT: (A) USES A GROUND LEASE  OR  DEED
 COVENANT  WITH  AN AFFORDABILITY PERIOD OF AT LEAST THIRTY YEARS OR MORE
 TO MAKE RENTAL HOMEOWNERSHIP UNITS AFFORDABLE TO HOUSEHOLDS  AND  STIPU-
 LATES A PREEMPTIVE OPTION TO PURCHASE THE AFFORDABLE RENTALS OR HOMEOWN-
 ERSHIP  UNITS  SO  THAT  THE AFFORDABILITY OR THE UNITS IS PRESERVED FOR
 SUCCESSIVE INCOME-ELIGIBLE HOUSEHOLDS; AND (B)  MONITORS  PROPERTIES  TO
 ENSURE AFFORDABILITY IS PRESERVED.
   (II)  "DISQUALIFIED  SINGLE  FAMILY PROPERTY OWNER" MEANS ANY TAXPAYER
 WHO OWNS (DIRECTLY OR INDIRECTLY) MORE THAN ONE SINGLE  FAMILY  RESIDEN-
 TIAL RENTAL PROPERTY.
   (III)  "LAND BANK" MEANS A GOVERNMENT ENTITY, AGENCY, OR PROGRAM, OR A
 SPECIAL PURPOSE NONPROFIT ENTITY FORMED BY ONE OR MORE UNITS OF  GOVERN-
 MENT  IN ACCORDANCE WITH STATE OR LOCAL LAND BANK ENABLING LAW, THAT HAS
 BEEN DESIGNATED BY ONE OR MORE STATE OR LOCAL  GOVERNMENTS  TO  ACQUIRE,
 STEWARD,  AND  DISPOSE OF VACANT, ABANDONED, OR OTHER PROBLEM PROPERTIES
 IN ACCORDANCE WITH LOCALLY-DETERMINED PRIORITIES AND GOALS.
   (IV) "QUALIFIED NONPROFIT ORGANIZATION" MEANS ANY  ORGANIZATION  WHICH
 IS NOT ORGANIZED FOR PROFIT AND HAS AS A PRINCIPAL PURPOSE THE CREATION,
 DEVELOPMENT, OR PRESERVATION OF AFFORDABLE HOUSING. "QUALIFIED NONPROFIT
 ORGANIZATION"  SHALL  INCLUDE ANY COMMUNITY DEVELOPMENT CORPORATION, ANY
 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, ANY COMMUNITY-BASED DEVELOP-
 MENT ORGANIZATION QUALIFIED UNDER SECTION 570.204 OF TITLE 24,  CODE  OF
 FEDERAL  REGULATIONS,  AS  IN EFFECT ON THE EFFECTIVE DATE OF THIS PARA-
 GRAPH, ANY LAND BANK, ANY RESIDENT-OWNED COOPERATIVE OR  COMMUNITY  LAND
 TRUST, AND ANY SUBSIDIARY OF A PUBLIC HOUSING AGENCY.
   (V)  "RESIDENTIAL  RENTAL  PROPERTY"  MEANS  ANY BUILDING OR STRUCTURE
 WHERE EIGHTY PERCENT OR MORE OF THE GROSS RENTAL INCOME FROM SUCH BUILD-
 ING OR STRUCTURE FOR THE TAXABLE YEAR IS  RENTAL  INCOME  FROM  DWELLING
 UNITS.
   (VI)  "SINGLE FAMILY RESIDENTIAL RENTAL PROPERTY" MEANS: (I) ANY RESI-
 DENTIAL RENTAL PROPERTY WHICH CONTAINS FOUR OR FEWER DWELLING UNITS; AND
 (II) IMPROVEMENTS TO REAL PROPERTY DIRECTLY  RELATED  TO  SUCH  DWELLING
 UNITS  LOCATED  ON THE SITE OF SUCH DWELLING UNITS. "SINGLE FAMILY RESI-
 DENTIAL RENTAL PROPERTY OWNER" SHALL NOT INCLUDE ANY RESIDENTIAL  RENTAL
 PROPERTY  WHICH  IS  ELIGIBLE  FOR  A LOW INCOME HOUSING CREDIT FOR SUCH
 TAXABLE YEAR OR WAS CONSTRUCTED BY  THE  TAXPAYER  OR  ACQUIRED  BY  THE
 TAXPAYER  AFTER  ITS CONSTRUCTION BUT BEFORE THE FIRST DATE ON WHICH ANY
 DWELLING UNIT IN SUCH PROPERTY WAS OCCUPIED BY A RESIDENT.
   § 3. The commissioner of taxation and finance shall  promulgate  rules
 and  regulations  as  may  be  necessary or appropriate to carry out the
 provisions of this act, including to prevent the avoidance of compliance
 with this act.
   § 4. This act shall take effect immediately.