Permits multiple transfers of low-income housing tax credits

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic1

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Brian Kavanagh says this is needed

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.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.