Current through Register Vol. 46, No. 39, September 25, 2024
WHEREAS, The Tax Reform Act of 1986 ("act") establishes a
Federal tax credit for housing persons of low income, to be administered by
each state's housing agency;
WHEREAS, The amount of the low income housing credit
ceiling for New York State is $1.25 per resident annually for calendar years
1987, 1988 and 1989, based on the most recent population estimate released by
the United States Bureau of the Census before the beginning of the calendar
year to which the ceiling applies, or a limit of approximately $22,500,000 for
1987;
WHEREAS, The allocation of the low income housing credit
ceiling to particular projects will confer an economic benefit upon those
projects and will require that all allocations of low income housing credits be
coordinated by a single State housing agency in order to meet the requirements
of the act relating to the limitation;
WHEREAS, To maximize the public benefit of the low income
housing credit, its application to projects and programs in New York State
requires an allocation of the $22,500,000 limitation for 1987 to State and
local governmental units and issuing authorities for further allocation to
particular projects;
WHEREAS, To maximize the public benefit of the low income
housing credit, balanced consideration should be given to the low income
housing needs and community revitalization incentives for the entire State,
particularly in distressed areas of the State; and
WHEREAS, The act authorizes the governor of each state to
proclaim a formula for allocating the low income housing credit limit among
governmental units and other issuing authorities in the state:
NOW, THEREFORE, I, Mario M. Cuomo, Governor of the State of
New York, by virtue of the authority vested in me by the Constitution and laws
of the State of New York and the Tax Reform Act of 1986, do hereby proclaim and
order as follows:
I. Definitions
A. Code shall mean the United States Internal
Revenue Code of 1986, as amended.
B. Director of Housing shall mean the
Commissioner of Housing and Community Renewal of the State of New York acting
as the commissioner and in the position of Director of Housing pursuant to
Executive Order No. 67 [§
4.67] . If the position of Director
of Housing is vacant, during the period of such vacancy the commissioner shall
exercise the powers, functions and duties of the director for the purposes of
this Order.
C. Housing credit
agency shall mean any State housing credit agency or local housing credit
agency.
D. Local housing credit
agency shall mean any political subdivision, or any other local governmental
unit or issuing authority concerned with housing and designated by the director
as a housing credit agency, within the meaning of section 42(h)(7)(A) of the
code.
E. Low income housing credit
shall mean the credit available under section 42(b) of the code.
F. Low income housing credit ceiling shall
mean the housing credit ceiling for a calendar year applicable to the State
under section 42(h)(3)(C) of the code.
G. State housing credit agency shall mean the
New York State Division of Housing and Community Renewal, the New York State
Housing Finance Agency, the New York State Housing Trust Fund Corporation, the
New York State Mortgage Loan Enforcement and Administration Corporation as
agent for the New York State Urban Development Corporation and the New York
State Project Finance Agency, the State of New York Mortgage Agency, and any
other State agency or governmental unit concerned with housing and designated
by the Governor as a housing credit agency, within the meaning of section
42(h)(7)(A) of the code.
II. Allocation of Low Income Housing Credit
A. The low income housing credit ceiling for
any calendar year is allocated to the State Division of Housing and Community
Renewal. The director shall allocate the annual low income housing credit
ceiling to housing credit agencies within the following categories and in
accordance with the provisions of this Order:
1. 40 percent of the low income housing
credit ceiling shall be allocated to State housing credit agencies;
2. 20 percent of the low income housing
credit ceiling shall be allocated to local housing credit agencies;
and
3. 40 percent of the low income
housing credit ceiling shall be in a statewide reserve and allocated by the
director to any housing credit agency for statewide use and to insure that at
least 10 percent of the overall low income housing credit ceiling is reserved
and set aside for use by qualified nonprofit organizations materially
participating in the development and operation of the projects in accordance
with section 42(h)(5)(B) of the code.
B. The director shall monitor the further
allocation of low income housing credits in categories 1, 2 and 3 above to
insure that at least 10 percent of the overall low income housing credit
ceiling is reserved and set aside for use by qualified nonprofit organizations
materially participating in the development and operation of the projects in
accordance with section 42(h)(5)(B) of the code.
C. For any political subdivision, or any
agency, governmental unit or other issuing authority within the geographic area
represented by the political subdivision, which has a separate low income
housing credit ceiling allocation under the transition rules of the act, the
director shall allocate the low income housing credit to such subdivision, unit
or authority in accordance with this Order only after it has demonstrated
commitments fully utilizing, or the inability to utilize, any such separate
allocations of the low income housing credit or has demonstrated that it would
be more beneficial to the program or project to use an allocation of the low
income housing credit than any such separate allocations under the transition
rules of the act.
D. All potential
housing credit agencies that wish to receive an initial allocation of the low
income housing credit ceiling pursuant to paragraph A of this section shall
submit an application to the director within 30 days of the effective date of
this Order and on or before February 28th of each calendar year thereafter. The
application shall include:
1. a description
of the agency's status as a housing credit agency under the code, the amount of
low income housing credit being requested and a statement whether the project
for which the credit will be used is a qualified low income housing project (as
defined in section 42[h][5] of the code);
2. a description of the type of housing
program in which the low income housing credit will be used, indicating how the
program maximizes the benefit to low income tenants;
3. a description of how the projects in the
proposed program will meet all applicable criteria of section 42 of the
code;
4. a demonstration that the
units will be placed in service in the same calendar year in which the low
income housing credit is allocated;
5. for any political subdivision, or any
agency, governmental unit or other issuing authority within the geographic area
represented by the political subdivision, which has a separate low income
housing credit ceiling allocation under the transition rules of the act, a
statement demonstrating how such separate allocation is being used;
and
6. such other information as
the director shall require.
E. The director shall make his initial
allocation of the low income housing credit ceiling on or before April 15th of
each calendar year, for categories 1 and 2 under paragraph A of this section.
The director from time to time may make additional allocations for categories 1
and 2 of paragraph A of this section. In the event the remaining unused low
income housing credit ceiling for category 1 or 2 is insufficient for the
program or project for which an allocation has been requested or in order to
comply with paragraph B of this section, the director may make an allocation
from the statewide reserve to a housing credit agency for such program or
project.
F. After receiving an
allocation of the low income housing credit ceiling from the director, each
housing credit agency shall submit to the director, on July 1st of each
calendar year and bimonthly thereafter, a report on the progress of its
program, including a statement of the amount of its allocated low income
housing credit ceiling that is expected to remain unused. On and after
September 15th of each year, there shall be added to the statewide reserve all
low income housing credits that the director determines will remain unused.
Thereafter, upon approval of an application, the director shall, to the
greatest extent possible, promptly allocate amounts in the statewide reserve to
housing credit agencies to achieve an equitable distribution and maximize the
benefits of low income housing credits.
III. Reports
On or before March 31st of each year following the year in
which low income housing credits are allocated, the director shall submit a
report to the Governor for the prior calendar year on the amount of the low
income housing credit ceiling allocated to each housing credit agency, the
number of qualified low income housing projects to which the low income housing
credit was allocated, and such other information as the director deems
appropriate.
IV. Procedures
and Guidelines
The director is authorized and directed to establish
procedures and guidelines to implement the provisions of this Order. Such
procedures and guidelines shall set forth the amount of the low income housing
credit ceiling for the State and provide guidance for housing credit agencies
in applying for an allocation and making reports and certifications sufficient
to enable the director to make any report required by section 42 of the code.
Such procedures and guidelines may address reimbursement of processing costs
and any other matters the director deems appropriate.
V. Effectiveness
Nothing contained in this Order shall be deemed to
supersede, alter or impair any provision of the Tax Reform Act of 1986 or any
regulations promulgated thereunder. If any provision of this Order is adjudged
or ruled invalid, such judgment or ruling shall not affect any other provisions
of this Order.
VI.
Expiration
The provisions of this Order shall expire on the effective
date of legislation enacted into law for the purpose of allocating the low
income housing credit ceiling under the Tax Reform Act of 1986 and be of no
further effect after that date.
Signed: Mario M. CuomoDated: February 13, 1987
[FN*] [Revoked and superseded by Executive Order No. 4.135
(Mario M. Cuomo), §
4.135, infra.]
[FN[DAGGER]] [Revoked by Executive Order No. 5 (Eliot
Spitzer), infra.]
[Revoked by Executive Order No. 9 (David A. Paterson),
infra.]
[Revoked by Executive Order No. 2 (Andrew M. Cuomo),
infra.]
