NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10588
SPONSOR: Rosenthal 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:
To improve the effectiveness and marketability of the State Low-Income
Housing Tax Credit (SLIHC) program by permitting multiple transfers of
allocated tax credits to support the financing and preservation of
affordable housing developments across New York State,
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends Subdivision 1 and Paragraph (a) of Subdivision 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. The legislation
maintains existing provisions 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 compli-
ance status of the underlying affordable housing project.
Section 2 establishes that the 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
the effective date, including projects that are placed in service, under
construction, or in pre-development, provided that transfers occurring
after the effective date comply with the amended provisions,
JUSTIFICATION:
This bill strengthens a vital affordable housing finance tool at a time
of rising construction costs, higher interest rates, and constrained
capital markets. The State Low-Income Housing Tax Credit (SLIHC) is
designed to leverage private investment to produce and preserve afforda-
ble rental housing. However, limiting credits to a single transfer
reduces flexibility, narrows participation in the market, and can lower
the value that credits command.
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, recog-
nizing that broader participation improves pricing and maximizes the
benefit of the credit. Higher pricing directly enhances project feasi-
bility, helps close financing gaps and reduces 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. By applying the change to existing and future allo-
cations, the bill delivers immediate benefits to projects already in the
pipeline and supports the continued production and preservation of
affordable housing statewide.
LEGISLATIVE HISTORY:
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 complies with the
amended provisions.
STATE OF NEW YORK
________________________________________________________________________
10588
IN ASSEMBLY
March 13, 2026
___________
Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to amend the public housing law, in relation to permitting multi-
ple transfers of low-income housing tax credits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 and paragraph (a) of subdivision 8 of section
2 22 of the public housing law, subdivision 1 as amended by section 1 and
3 paragraph (a) of subdivision 8 as added by section 2 of part PP of chap-
4 ter 59 of the laws of 2018, are amended to read as follows:
5 1. A taxpayer subject to tax under article nine-A, twenty-two, or
6 thirty-three of the tax law which owns an interest in one or more eligi-
7 ble low-income buildings, or [a transferee] one or more transferees of
8 such a taxpayer as described in subdivision eight of this section, shall
9 be allowed a credit against such tax for the amount of low-income hous-
10 ing credit allocated by the commissioner to each such building. Except
11 as provided in subdivision two of this section, the credit amount so
12 allocated shall be allowed as a credit against the tax for the ten taxa-
13 ble years in the credit period.
14 (a) A taxpayer allowed a credit pursuant to this article may transfer
15 the credit, in whole or in part, to another person or entity, who shall
16 be referred to as the transferee, without regard to how any federal
17 low-income housing tax credit with respect to the low-income building
18 may be allocated and notwithstanding that such other person or entity
19 owns no interest in the eligible low-income building or in an entity
20 with an ownership interest in the eligible low-income building. Trans-
21 ferees shall be entitled to apply transferred credit to a tax imposed
22 under article nine-A, twenty-two or thirty-three of the tax law,
23 provided all requirements for claiming the credit are met. A transferee
24 may [not] transfer [any] all or a portion of a credit[, or portion ther-
25 eof, acquired] received by transfer to another person or entity, subject
26 to approval by the agency and in accordance with rules promulgated by
27 the agency, provided that each transfer is properly documented and does
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15209-01-6
A. 10588 2
1 not affect the eligibility of the underlying low-income housing project
2 for program benefits.
3 § 2. This act shall take effect immediately and shall apply to any
4 low-income housing tax credit allocated under article 2-A of the public
5 housing law, whether allocated before, on, or after such effective date,
6 including credits associated with projects that have been placed in
7 service, are under construction, or are in pre-development, provided
8 that any transfer occurring on or after the effective date shall comply
9 with the provisions of paragraph (a) of subdivision 8 of section 22 of
10 the public housing law, as amended by section one of this act.
