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; and3. 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; and4. 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.]
N.Y. Comp. Codes R. & Regs. Tit. 9 § 4.135