Two pieces of affordable housing legislation, S.4758C and S.6480, were recently introduced by Senator Catharine Young in the New York State Senate. S.4758C would covert the State Low-Income Housing Credit (SLIHC) into a fully refundable credit, similar to the NYS Brownfield Credit. The intent of this conversion would be to open up the market for the state tax credit to attract a broader class of investors including banks, private corporations, insurance companies, and other entities that do not have NYS tax liability. By expanding the market, the hope is that the demand and the current market value of the credits will increase. S.4758C was recently reported out of the Senate Finance Committee and has advanced to a second reading on March 12.
S.6480, also authored by Senator Catharine Young, would allow local governments to extend the real property tax exemptions for project-based Section 8 projects, and some USDA Section 515 projects. As many of these properties are nearing the 40 year maximum abatement term under current law, owners will begin to have to pay unpredictable real estate taxes based on current assessed value. Current law does not allow for an extension of the tax abatement and it is expected that many owners will not be able to afford to pay a tax based on traditional valuation processes. In this instance, many owners could chose to opt out, rather than stay within the affordable housing system once the property tax abatement expires. The Senate Housing Finance Committee recently passed S.6480 and the bill has advanced to a third reading on March 12.
New York State Assembly versions of both bills are expected to be reported in the near future.