BILL NUMBER: S8918
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the public housing law, in relation to establishing the
build up New York pilot program and the mass timber for affordable hous-
ing program; and to amend the tax law, in relation to establishing tax
credits for the mass timber for affordable housing program; and provid-
ing for the repeal of certain provisions upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
To increase the use of and investment in mass timber - a sustainable,
resilient, and efficient construction material - in New York State by 1)
piloting the use of mass timber in affordable housing retrofits and
additions, 2) providing tax incentives to encourage adoptions of mass
timber in affordable housing projects and 3) spurring investment in
facilities and machinery that produce mass timber products within the
state.
 
SUMMARY OF PROVISIONS:
Section one names the bill the "Facilitating Resilient Affordable Mass
timber Expansion Act" or "FRAME Act".
Section two sets forth the legislative intent.
Section three adds new Article 16 to the Public Housing Law to establish
a Build Up New York Pilot Program. The program will provide grants to
municipalities with a Pro-Housing Community certification to build
affordable housing accessory dwelling units utilizing mass timber and
serving households up to 150% AMI on top of existing buildings. The
pilot will last for a period of 5 years.
Section four adds new Article 17 to the Public Housing Law to establish
the Mass Timber for Affordable Housing Program. Businesses that build
new construction or major retrofits of existing buildings that will
primarily serve households up to 150% AMI using mass timber will be
eligible for the program. Participants of the program will be issued a
certificate of tax credit for the Mass Timber for Affordable Housing Tax
Credit.
Section 5 adds a new subdivision 63 to Section 210-B of the Tax Law
establishing a Mass Timber for Affordable Housing Tax Credit. Partic-
ipants of the Mass Timber for Affordable Housing Program will receive a
25% tax credit for costs directly attributable to the design, procure-
ment, and installation of mass timber In qualified affordable housing
projects. An additional 10% tax credit is allowed under the existing
investment tax credit for property that is used for the purpose of
producing, processing, or assembling mass timber.
Section 6 adds a new subsection (uuu) to Section 606 of the Tax Law
establishing a Mass Timber for Affordable Housing Tax Credit. Partic-
ipants of the Mass Timber for Affordable Housing Program will receive a
25% :ax credit of costs directly attributable to the design, procure-
ment, and installation of mass timber in qualified affordable housing
projects. An additional 10% tax credit is also allowed under the exist-
ing investment tax credit for property that is used for the purposes of
producing, processing, or assembling mass timber.
Section seven sets forth the effective date.
 
JUSTIFICATION:
Mass timber is a sustainable, resilient, and efficient construction
material that bonds together smaller, undesirable timber into large,
strong wood panels and beams. Between 1/3 rd to 1/5 th of the weight of
other construction materials like concrete and steel, mass timber is
extremely lightweight and lends itself well to building on top of exist-
ing structures. Mass timber utilizes pre-fabrication design, which
lowers construction costs and accelerates housing production, all while
reducing greenhouse gas emissions. The use of mass timber supports New
York's climate goals, promotes workforce development, and strengthens
supply chains for renewable building products.
This bill would spur the use and investment in mass timber in New York
State by 1) creating a Build Up New York pilot program, providing grants
to Pro-Housing Communities to build affordable housing accessory dwell-
ing units utilizing mass timber and serving households up to 150% AMI on
top of existing buildings; 2) establish a Mass Timber for Affordable
Housing Program and corresponding Mass Timber for Affordable Housing Tax
Credit to incentivize the use of mass timber in affordable housing
developments; and 3) provide a 10% additional tax credit to the Invest-
ment Tax Credit for facilities and machinery that produce mass timber
products within the state.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2026; provided, however, that section
three of this act shall expire and be deemed repealed five years after
such effective date.

Statutes affected:
S8918: 210-B tax law, 606 tax law