Prohibits real property that has converted from a limited-profit housing company to a housing development fund company from being eligible for a shelter rent tax abatement.
Impact
The proposed changes in A08125 will notably impact the financial structures of Mitchell-Lama co-ops and similar housing projects that are converting to different ownership models. By eliminating access to tax abatements for these properties, the bill aims to preserve tax benefits for properties that continue to serve their intended purpose of providing affordable housing. As such, it could lead to increased operating costs for those affected properties, potentially impacting their affordability and availability within the increasingly competitive housing market of New York State.
Summary
A08125 is a legislative proposal which aims to modify the private housing finance laws in the state of New York, specifically targeting real properties that have undergone a conversion from a limited-profit housing company to a housing development fund company. The central tenet of the bill is to prohibit these converted properties from being eligible for shelter rent tax abatements that are currently extended under certain conditions. This amendment seeks to ensure that properties transitioning to a housing development fund company do not benefit from tax exemptions that were originally intended to assist lower-income housing projects.
Contention
Discussions surrounding A08125 may highlight a points of contention regarding the preservation of affordable housing versus the need for financial sustainability for housing development fund companies. Proponents of the bill tend to argue that the conversion from limited-profit entities diminishes the original intent of providing affordable housing, warranting the restriction on tax benefits. Conversely, opponents may raise concerns that this bill could hinder the viability of newly converted housing entities, possibly leading to rent increases that would affect the tenants relying on affordable housing in the state.
Enacts the housing development fund company self-determination, preservation and affordability act to clarify certain provisions relating to the dissolution and reincorporation of housing development fund companies; provides for tax exemptions and abatements for housing development fund companies.
Relates to limited-profit housing companies; authorizes certain companies to pay dividends or interest in excess of six percent per annum; relates to the dissolution of certain rental housing companies.
Establishes the small rental housing development initiative to provide funding to eligible applicants to construct small rental housing developments in eligible areas.
Establishes the small rental housing development initiative to provide funding to eligible applicants to construct small rental housing developments in eligible areas.
Prohibits any increase in the average monthly rental of a property by a limited-profit housing company unless the appropriate local housing agency certifies that there exists no recorded violations against such property or that all recorded violations have been cleared, corrected or abated, and that such company is maintaining all essential services required to be furnished.
Prohibits any increase in the average monthly rental of a property by a limited-profit housing company unless the appropriate local housing agency certifies that there exists no recorded violations against such property or that all recorded violations have been cleared, corrected or abated, and that such company is maintaining all essential services required to be furnished.