New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 4 - Executive Orders (Mario M. Cuomo) › Section 4.135 - Executive order no. 135: prescribing procedures to allocate the state low income housing credit under the tax reform act of 1986, as amended

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, the Tax Reform Act of 1986, as amended (the
					 "Act"), establishes a Federal tax credit for housing persons of low income to
					 be administered by State housing agencies ("low income housing tax
					 credit");
WHEREAS, the Act authorizes the governor of each state to
					 proclaim a formula for allocating the low income housing tax credit limit among
					 governmental units and other issuing authorities in the State;
WHEREAS, the Act requires that the allocation of low income
					 housing tax credits be coordinated by a single State housing agency;
WHEREAS, the Act requires each agency allocating the low
					 income housing tax credits to prepare a qualified allocation plan which sets
					 forth the criteria and preferences by which low income housing tax credits will
					 be allocated to projects;
WHEREAS, the Act establishes the amount of the low income
					 housing tax credit Ceiling available to each state as $00.9375 per resident for
					 the calendar year 1990, based upon the most recent population estimate released
					 by the United States Bureau of the Census, or a limit of approximately
					 $16,500,000 for the State of New York;
WHEREAS, the low income housing tax credit should be
					 allocated in a manner which maximizes the public benefit by addressing the
					 State's need for low income housing and community revitalization incentives in
					 distressed areas of 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 New York State
					 Constitution and laws of the State of New York and the Act, 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 or Director shall mean
				  any Director of Housing so designated by the Governor. If the position of
				  Director of Housing is vacant, during the period of such vacancy, the
				  Commissioner of Housing and Community Renewal of the State of New York shall
				  exercise the powers, functions and duties of the director for the purposes of
				  this Order.
C. Low income housing
				  tax credit ceiling shall mean the dollar amount of allocation authority
				  apportioned to the State by the Act for a calendar year under section
				  42(h)(3)(c) of the Code.
D. Tax
				  credit shall mean the low income housing tax credit allocated to specific
				  projects under section 42(b) of the Code.
E. State Allocation Plan shall mean the plan
				  to guide the allocation and monitoring of the low income housing tax credit
				  ceiling in a manner which addresses State and local housing needs and, where
				  possible, addresses the most pressing State and local housing needs, fosters
				  community revitalization, saves social services and public assistance expenses
				  and/or leverages economic development.
F. Housing Credit Agency or HCA shall mean
				  any State Housing Credit Agency or Local Housing Credit Agency.
G. State Housing Credit Agency shall mean the
				  New York State Division of Housing and Community Renewal or any other State
				  agency, governmental unit or public benefit corporation concerned with housing
				  and designated by the director as an HCA, within the meaning of section
				  42(h)(7) of the Code. The Division of Housing and Community Renewal shall be
				  the main HCA in the State.
H. Local
				  Credit Agency or LCA shall mean any political subdivision, or any other local
				  governmental unit or issuing authority concerned with housing and designated by
				  the director as an HCA, within the meaning of section 42(h)(7)(A) of the
				  Code.
II. ALLOCATION OF LOW INCOME
				  HOUSING CEILING
A. The director shall, in
				  accordance with the State Allocation Plan, allocate the annual low income
				  housing credit ceiling to State and Local Housing Credit Agencies in accordance
				  with the following categories:
1. 30 percent
				  in a Statewide Reserve and allocated by the director to any HCA for statewide
				  use to insure that at least 10 percent of the overall local income housing tax
				  credit ceiling is reserved and set aside for use by qualified nonprofit
				  organizations materially participating in the development and operation of
				  projects in accordance with section 42(h)(5)(b) of the Code; to increase the
				  allocation of the low income housing tax credit ceiling to any HCA in order to
				  insure sufficient means to implement a complete program of credit activity; and
				  to provide for innovative initiatives of importance in addressing State and
				  local housing needs;
2. 45 percent
				  to State Housing Credit Agencies; and
3. 25 percent to Local Housing Credit
				  Agencies.
B. The
				  director shall monitor the further allocation of Tax Credits in categories 1,
				  2, and 3 above to insure that at least 10 percent of the overall low income
				  housing tax credit ceiling is reserved and set aside for use by qualified
				  nonprofit organizations materially participating in the development and
				  operation of projects. The director may increase an allocation of the low
				  income housing tax credit ceiling in order to insure sufficient means to
				  implement a complete program of credit activity and to provide for innovative
				  initiatives for addressing State and local housing needs. The director shall
				  also provide a priority for projects that utilize tax credit proceeds to
				  provide operating reserves or rental assistance to enable homeless or other
				  special needs populations to rent units at the shelter rent (public assistance)
				  level.
C. State and Local Housing
				  Credit Agencies that seek to receive an initial allocation of the low income
				  housing tax credit ceiling pursuant to paragraph A of this section shall submit
				  an application to the director as specified by the director in 1990 and on or
				  before January 1st of each calendar year thereafter. The application shall
				  include:
1. a qualified allocation plan, as
				  defined by the Act and the Code;
2.
				  a request for an allocation of low income housing tax credit ceiling consistent
				  with its qualified allocation plan;
3. a certification that all necessary steps
				  will be taken to fulfill the responsibilities of an HCA as set forth under the
				  Act and that it will comply with all procedures and guidelines promulgated by
				  the director; and
4. such other
				  information as the director may require.
D. In 1990, the director shall make an
				  initial allocation of the low income housing tax credit ceiling to HCA's within
				  30 days of receipt the HCA applications as specified above and by February 15th
				  of each calendar year thereafter. The director from time to time may make
				  additional allocations to such credit agencies from the Statewide
				  Reserve.
E. After receiving an
				  allocation of the low income housing tax credit ceiling from the director, each
				  HCA shall submit to the director on July 1st of each calendar year and
				  bimonthly thereafter a report on the progress of its program which shall
				  include a statement of the amount of its low income housing tax credit ceiling
				  that is expected to remain unused. On and after September 15th of each year,
				  any of the low income housing tax credit ceiling which the director determines
				  is likely to remain unused shall revert to the Statewide Reserve for
				  reallocation by the director.
III. REPORTS
On or before March 31st of each year following the year in
					 which Tax Credits were allocated, the director shall submit a report to the
					 Governor for the prior calendar year on the amount of the low income housing
					 tax credit ceiling allocated to each HCA, the number of qualified low income
					 housing projects to which the Tax 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
					 tax credit ceiling for the State and provide guidance to HCA's 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 processing and monitoring 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 Act, or any regulations
					 promulgated thereunder.
Signed: Mario M. CuomoDated: February 27, 1990
[FN*] [Revokes and supersedes Executive Order No. 91 (Mario
					 M. Cuomo), §
												4.91, supra.]
[FN[DAGGER]] [Revoked and superseded by Executive Order No.
					 11 (Andrew M. Cuomo), §
												8.11, infra.]