BILL NUMBER: S9571
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the public housing law, in relation to permitting multi-
ple transfers of low-income housing tax credits
 
PURPOSE:
This bill would permit multiple transfers of allocated State Low-Income
Housing Tax Credits (SLIHC) to support the financing and preservation of
affordable housing developments across New York State
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends Subdivision 1 and Paragraph (a) of Subdivi-
sion 8 of Section 22 of the Public Housing Law to authorize a transferee
of a State Low-Income Housing Tax Credit to further transfer all or a
portion of such credit to another person or entity, subject to approval
by the Commissioner of the Division of Housing and Community Renewal and
compliance with rules and documentation requirements.
Section 2 of the bill establishes the effective date.
 
JUSTIFICATION:
The State Low-Income Housing Tax Credit (SLIHC) is designed to leverage
private investment to produce and preserve affordable rental housing.
However, limiting credits to a single transfer reduces flexibility and
narrows participation in the market, and can lower the value of the
credits.
This bill strengthens a vital affordable housing finance tool at a time
of rising construction costs, higher interest rates, and constrained
capital markets. Allowing multiple transfers increases liquidity and
efficiency in the SLIHC market by enabling credits to reach investors
best positioned to use them. Other states permit multiple transfers for
this reason, recognizing that broader participation improves pricing and
maximizes the benefit of the credit. Increasing the value of the credits
will enhance the feasibility of housing development projects, help close
financing gaps, and reduce reliance on additional public subsidies, all
without increasing state appropriations.
The bill includes agency oversight and documentation requirements to
ensure transparency and continued compliance with program rules, while
explicitly protecting the eligibility of the underlying affordable hous-
ing developments. It maintains existing provisions on allowing the
application of transferred credits against taxes imposed under Articles
9-A, 22, and 33 of the Tax Law and ensures that transfers do not affect
the eligibility or compliance status of the underlying affordable hous-
ing project.
Applying the change to existing and future allocations would deliver
immediate benefits to projects already in the pipeline and support the
continued production and preservation of affordable housing statewide.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None to the State
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any low-income
housing tax credit allocated under Article 2-A of the Public Housing
Law, whether allocated before, on, or after such effective date, includ-
ing credits associated with projects that have been placed in service,
are under construction, or are in pre-development, provided that any
transfer occurring on or after the effective date shall comply with the
provisions of paragraph (a) of subdivision 8 of section 22 of the public
housing law, as amended by section one of this act.