NY State Senate Bill 2025-S4416

Senate Bill S4416

2025-2026 Legislative Session

Specifies that low-income housing tax credits may be issued both for projects creating new housing and projects renovating and preserving existing housing

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Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 04, 2025	referred to housing, construction and community development

2025-S4416 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Public Housing Law
Laws Affected:: Amd §21, Pub Hous L
Versions Introduced in 2023-2024 Legislative Session:: S9097

2025-S4416 (ACTIVE) - Summary

Specifies that low-income housing tax credits may be issued both for projects creating new housing and projects renovating and preserving existing housing, nullifying a DHCR determination that projects for the renovation and preservation of existing housing do not qualify.

2025-S4416 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4416

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the public housing law, in relation to specifying that
low-income housing tax credits may be issued both for projects creating
new housing and projects renovating and preserving existing housing

 
PURPOSE:

To include the creation of new housing or renovation and preservation of
existing housing as eligible low-income building in the state

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 clarifies 4% Low Income Housing Tax Credits can be used for
renovation projects Section 2 establishes the effective date of the bill

 
JUSTIFICATION:

Low Income Housing Tax credits are the largest source of financing in
our state (and country). One type of Low Income Housing Tax Credits,
called 4% credits, are considered non-competitive, which means if a
developer meets affordability and related thresholds they qualify with-
out discretion of an application. Affordable housing developers rely on
this form of financing when they seek capital for needed large reno-
vations for affordable housing developments.

However, the State Department of Homes and Community Renewal changed the
terms of 4% HIHTC tax credits this year to stipulate that renovation, or
preservation, is no longer an applicable use of tax credits. This means
that many projects currently being planned that were relying on funds
from a 4% tax credit for desperately needed repairs to critical building
needs would be ineligible.

There are many aging housing projects across the state where tenants are
currently living in depleting conditions that need investment to prevent
leaky windows, leaking roofs, install modern HVAC systems, and much more
while preserving needed affordability. However, with this change, it is
now unclear if the total amount of investment needed is possible with
current resources. To ensure that tenants can live in quality affordable
housing, this bill will ensure that 4% tax credits can be used for reno-
vation as well as new construction.

 
LEGISLATIVE HISTORY:

2023-2024: S.9097 (May)

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2025-S4416 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4416
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to amend the public housing law, in relation to specifying that
   low-income housing tax credits may be issued both for projects  creat-
   ing  new housing and projects renovating and preserving existing hous-
   ing
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 5 of section 21 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:
   5.  "Eligible  low-income  building"  means a building located in this
 state which [either]:
   (a) EITHER:
   (I) is a qualified low-income building as defined in section 42(c)  of
 the internal revenue code[,]; or
   [(b)] (II) would be a qualified low-income building under such section
 if  the  20-50  test specified in subsection (g)(1) of such section were
 disregarded and the 40-60 test specified in such  subsection  (requiring
 that at least forty percent of residential units be both rent-restricted
 and  occupied  by  individuals  whose income is sixty percent or less of
 area median gross income) were a 40-90 test; AND
   (B) IS PART OF A QUALIFIED LOW-INCOME HOUSING PROJECT, AS  DEFINED  BY
 SECTION  42(C)  OF  THE  INTERNAL  REVENUE CODE, FOR THE CREATION OF NEW
 HOUSING, OR FOR THE RENOVATION AND PRESERVATION OF EXISTING HOUSING.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08686-01-5

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