Assembly Speaker Carl Heastie and Housing Committee Chair Steven Cymbrowitz today announced that the enacted 2018-19 New York State budget will help spur private investment in affordable housing by making key changes to the way state Low-Income Housing Tax Credits (SLIHCs) are administered through the process of bifurcation and certification.
"With so many New Yorkers in dire need of safe, affordable housing, we have to work smarter to address the shortage as quickly as we can," said Speaker Heastie. "The enacted budget provides a common-sense measure that leverages private funds for the public good."
"Following discussions with stakeholders at this year's budget hearings, my colleagues and I recognized the need for creative, responsible action to develop more affordable housing without overburdening taxpayers," said Assemblyman Cymbrowitz. "Allowing bifurcation and certification of SLIHCs sharpens one of the most useful tools in our toolbox to help build a stronger state from the ground up."
For developers of new low-income housing units receiving SLIHCs, bifurcation and certification would allow the sale of state credits among investing partners separate from the assignment of federal credits. This will ensure the credits are available to a broader audience, providing additional incentive for much-needed investment in affordable housing developments.
This year's state budget also rejects the executive proposal to defer the payment of certain tax credits - including SLIHCs, the Brownfield redevelopment tax credit and credits for the rehabilitation of historic properties - until 2021. This deferral strategy had the potential to jeopardize the financial standing of planned affordable housing projects and construction already underway.