WHEREAS, The Tax Reform Act of 1986 ("act") establishes a Federal tax credit for housing persons of low income, to be administered by each state's housing agency;
WHEREAS, The amount of the low income housing credit ceiling for New York State is $1.25 per resident annually for calendar years 1987, 1988 and 1989, based on the most recent population estimate released by the United States Bureau of the Census before the beginning of the calendar year to which the ceiling applies, or a limit of approximately $22,500,000 for 1987;
WHEREAS, The allocation of the low income housing credit ceiling to particular projects will confer an economic benefit upon those projects and will require that all allocations of low income housing credits be coordinated by a single State housing agency in order to meet the requirements of the act relating to the limitation;
WHEREAS, To maximize the public benefit of the low income housing credit, its application to projects and programs in New York State requires an allocation of the $22,500,000 limitation for 1987 to State and local governmental units and issuing authorities for further allocation to particular projects;
WHEREAS, To maximize the public benefit of the low income housing credit, balanced consideration should be given to the low income housing needs and community revitalization incentives for the entire State, particularly in distressed areas of the State; and
WHEREAS, The act authorizes the governor of each state to proclaim a formula for allocating the low income housing credit limit among governmental units and other issuing authorities in 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 Constitution and laws of the State of New York and the Tax Reform Act of 1986, 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 shall mean the Commissioner of Housing and Community Renewal of the State of New York acting as the commissioner and in the position of Director of Housing pursuant to Executive Order No. 67 [§ 4.67 ]. If the position of Director of Housing is vacant, during the period of such vacancy the commissioner shall exercise the powers, functions and duties of the director for the purposes of this Order.C. Housing credit agency shall mean any State housing credit agency or local housing credit agency.D. Local housing credit agency shall mean any political subdivision, or any other local governmental unit or issuing authority concerned with housing and designated by the director as a housing credit agency, within the meaning of section 42(h)(7)(A) of the code.E. Low income housing credit shall mean the credit available under section 42(b) of the code.F. Low income housing credit ceiling shall mean the housing credit ceiling for a calendar year applicable to the State under section 42(h)(3)(C) of the code.G. State housing credit agency shall mean the New York State Division of Housing and Community Renewal, the New York State Housing Finance Agency, the New York State Housing Trust Fund Corporation, the New York State Mortgage Loan Enforcement and Administration Corporation as agent for the New York State Urban Development Corporation and the New York State Project Finance Agency, the State of New York Mortgage Agency, and any other State agency or governmental unit concerned with housing and designated by the Governor as a housing credit agency, within the meaning of section 42(h)(7)(A) of the code.II. Allocation of Low Income Housing Credit A. The low income housing credit ceiling for any calendar year is allocated to the State Division of Housing and Community Renewal. The director shall allocate the annual low income housing credit ceiling to housing credit agencies within the following categories and in accordance with the provisions of this Order: 1. 40 percent of the low income housing credit ceiling shall be allocated to State housing credit agencies;2. 20 percent of the low income housing credit ceiling shall be allocated to local housing credit agencies; and3. 40 percent of the low income housing credit ceiling shall be in a statewide reserve and allocated by the director to any housing credit agency for statewide use and to insure that at least 10 percent of the overall low income housing credit ceiling is reserved and set aside for use by qualified nonprofit organizations materially participating in the development and operation of the projects in accordance with section 42(h)(5)(B) of the code.B. The director shall monitor the further allocation of low income housing credits in categories 1, 2 and 3 above to insure that at least 10 percent of the overall low income housing credit ceiling is reserved and set aside for use by qualified nonprofit organizations materially participating in the development and operation of the projects in accordance with section 42(h)(5)(B) of the code.C. For any political subdivision, or any agency, governmental unit or other issuing authority within the geographic area represented by the political subdivision, which has a separate low income housing credit ceiling allocation under the transition rules of the act, the director shall allocate the low income housing credit to such subdivision, unit or authority in accordance with this Order only after it has demonstrated commitments fully utilizing, or the inability to utilize, any such separate allocations of the low income housing credit or has demonstrated that it would be more beneficial to the program or project to use an allocation of the low income housing credit than any such separate allocations under the transition rules of the act.D. All potential housing credit agencies that wish to receive an initial allocation of the low income housing credit ceiling pursuant to paragraph A of this section shall submit an application to the director within 30 days of the effective date of this Order and on or before February 28th of each calendar year thereafter. The application shall include: 1. a description of the agency's status as a housing credit agency under the code, the amount of low income housing credit being requested and a statement whether the project for which the credit will be used is a qualified low income housing project (as defined in section 42[h][5] of the code);2. a description of the type of housing program in which the low income housing credit will be used, indicating how the program maximizes the benefit to low income tenants;3. a description of how the projects in the proposed program will meet all applicable criteria of section 42 of the code;4. a demonstration that the units will be placed in service in the same calendar year in which the low income housing credit is allocated;5. for any political subdivision, or any agency, governmental unit or other issuing authority within the geographic area represented by the political subdivision, which has a separate low income housing credit ceiling allocation under the transition rules of the act, a statement demonstrating how such separate allocation is being used; and6. such other information as the director shall require.E. The director shall make his initial allocation of the low income housing credit ceiling on or before April 15th of each calendar year, for categories 1 and 2 under paragraph A of this section. The director from time to time may make additional allocations for categories 1 and 2 of paragraph A of this section. In the event the remaining unused low income housing credit ceiling for category 1 or 2 is insufficient for the program or project for which an allocation has been requested or in order to comply with paragraph B of this section, the director may make an allocation from the statewide reserve to a housing credit agency for such program or project.F. After receiving an allocation of the low income housing credit ceiling from the director, each housing credit agency shall submit to the director, on July 1st of each calendar year and bimonthly thereafter, a report on the progress of its program, including a statement of the amount of its allocated low income housing credit ceiling that is expected to remain unused. On and after September 15th of each year, there shall be added to the statewide reserve all low income housing credits that the director determines will remain unused. Thereafter, upon approval of an application, the director shall, to the greatest extent possible, promptly allocate amounts in the statewide reserve to housing credit agencies to achieve an equitable distribution and maximize the benefits of low income housing credits.III. Reports On or before March 31st of each year following the year in which low income housing credits are allocated, the director shall submit a report to the Governor for the prior calendar year on the amount of the low income housing credit ceiling allocated to each housing credit agency, the number of qualified low income housing projects to which the low income housing 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 credit ceiling for the State and provide guidance for housing credit agencies 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 reimbursement of processing 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 Tax Reform Act of 1986 or any regulations promulgated thereunder. If any provision of this Order is adjudged or ruled invalid, such judgment or ruling shall not affect any other provisions of this Order.
VI. Expiration The provisions of this Order shall expire on the effective date of legislation enacted into law for the purpose of allocating the low income housing credit ceiling under the Tax Reform Act of 1986 and be of no further effect after that date.
Signed: Mario M. CuomoDated: February 13, 1987
[FN*] [Revoked and superseded by Executive Order No. 4.135 (Mario M. Cuomo), § 4.135, infra.]
[FN[DAGGER]] [Revoked by Executive Order No. 5 (Eliot Spitzer), infra.]
[Revoked by Executive Order No. 9 (David A. Paterson), infra.]
[Revoked by Executive Order No. 2 (Andrew M. Cuomo), infra.]
N.Y. Comp. Codes R. & Regs. Tit. 9 § 4.91