Provides that the low income housing tax credits shall be treated as overpayments of the applicable tax, to be credited or refunded.

---

S4758-2011 Actions

• Mar 21, 2012: referred to ways and means
• Mar 21, 2012: DELIVERED TO ASSEMBLY
• Mar 21, 2012: PASSED SENATE
• Mar 12, 2012: ADVANCED TO THIRD READING
• Mar 7, 2012: 2ND REPORT CAL.
• Mar 6, 2012: 1ST REPORT CAL.306
• Jan 18, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 11, 2012: PRINT NUMBER 4758C
• Jan 11, 2012: AMEND (T) AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
• Jan 4, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
• Jun 24, 2011: COMMITTED TO RULES
• Jun 16, 2011: AMENDED ON THIRD READING (T) 4758B
• Jun 1, 2011: AMENDED ON THIRD READING (T) 4758A
• May 24, 2011: ADVANCED TO THIRD READING
• May 23, 2011: 2ND REPORT CAL.
• May 18, 2011: 1ST REPORT CAL.764
• Apr 20, 2011: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S4758-2011 Meetings

Housing, Construction and Community Development: May 18, 2011

S4758-2011 Calendars

Floor Calendar: May 23, 2011 , Floor Calendar: May 24, 2011 , Floor Calendar: May 25, 2011 , Floor Calendar: Jun 1, 2011

S4758-2011 Votes

S4758-2011 Memo

BILL NUMBER:S4758

TITLE OF BILL:
An act
to amend the public housing law, in relation to federal low-income
housing credits

PURPOSE:
This bill would provide for the allocation of federal low income
housing tax credits among owners pursuant to an executed agreement.

SUMMARY OF PROVISIONS:
This bill would amend section 25 of the public housing law, relating
to the co-ordination of federal low income housing tax credits with
the state low income housing tax credit program to allow a pass
through of the credit to persons designated, members, or owners
pursuant to a written agreement among the persons designated as
partners, members or owners, which agreement documents an alternative
distribution method without regard to sharing of other tax or
economic attributes of the entity, including how the federal low
income housing tax credit is allocated to the partners, members, or
owners.

JUSTIFICATION:
Tax credit programs are widely seen as the primary mechanism for
successfully producing and preserving affordable rental housing. As a
result of the recent financial crisis, state and federal tax credit
programs have been disrupted, as is the case in New York. The problem
has been further exacerbated in New York where the state tax credit
is not bifurcated, unlike the case in many other states.

New York's low income housing credit tax program was established in
2000 pursuant to Article 2-A of the Public Housing Law and was
designed to encourage the development of low income housing. This
bill would allow the bifurcation of state tax credits from federal
tax credits and permit separate investors and permit separate
investors to purchase the state and federal tax credits. It would not
preclude any single investor from purchasing both the state and
federal tax credits.

The proposed change would open up the existing market to a new class
of investors including banks, corporations, and insurance companies
and would, based upon research conducted in other states which allow
bifurcation, create additional demand on the market for state tax
credits. This demand would drive up pricing among investors as
pricing as competition is increased. This would translate into
greater private investment in affordable housing without any material
cost to the state.

As an example, under the current program, a project awarded a $7.5
million allocation of state low income housing tax credit over a 10
year period would translate into a private equity investment of $3.75
million. It. is estimated that if enacted, this change would allow
the same $3.75 million to be sold to private equity investors for
$4.125 million, or 10% more. The additional investment will help


finance more units, increase affordability, and create more jobs in
New York.

This change will increase demand for and leveraging ability of a
program that has been in existence in New York since 2000, while not
requiring any increase in funding. The proposed changes are
anticipated to generate a substantial (estimated 10%) increase in
equity raised from the state tax credit program and will greatly
enhance its effectiveness in creating and fostering investment in
affordable housing throughout the state.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect immediately.

S4758-2011 Text

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

                                    4758

                         2011-2012 Regular Sessions

                              I N  SENATE

                               April 20, 2011
                                 ___________

  Introduced  by  Sen.  YOUNG  -- 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 federal low-in-
    come housing credits

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Section 25 of the public housing law is amended by adding a
  new subdivision 3 to read as follows:

    3.  ON  AND AFTER JUNE FIRST, TWO THOUSAND ELEVEN, THE CREDITS ALLOWED
  TO A PARTNERSHIP, LIMITED LIABILITY COMPANY TAXED AS  A  PARTNERSHIP  OR
  MULTIPLE  OWNERS  OF  PROPERTY  SHALL  BE  PASSED THROUGH TO THE PERSONS
  DESIGNATED, MEMBERS OR OWNERS PURSUANT TO AN  EXECUTED  AGREEMENT  AMONG
  THE  PERSONS  DESIGNATED  AS  PARTNERS, MEMBERS OR OWNERS DOCUMENTING AN
  ALTERNATIVE DISTRIBUTION METHOD WITHOUT REGARD TO THEIR SHARING OF OTHER
  TAX OR ECONOMIC ATTRIBUTES OF THE ENTITY, INCLUDING BUT NOT  LIMITED  TO
  HOW  THE FEDERAL LOW-INCOME HOUSING TAX CREDIT WITH RESPECT TO A PROJECT
  IS ALLOCATED TO THE PARTNERS, MEMBERS OR OWNERS.
    S 2. This act shall take effect immediately.





   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10736-01-1