Directs the commissioner of the New York state division of housing and community renewal to promulgate rules and regulations relating to the low-income housing tax credit

2025 Regular Session Introduced by Michelle Hinchey

S 5002 would authorize DHCR to create formal rules governing New York’s low-income housing tax credit program.

REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Bill at a Glance

Bill Number: S 5002

Title: Directs the commissioner of the New York State Division of Housing and Community Renewal to promulgate rules and regulations relating to the low-income housing tax credit

Status: REFERRED to Housing, Construction and Community Development

Introduced: February 14, 2025

Sponsor: Michelle Hinchey (primary)

Related Bills: S 9654 (prior-session); A 6889 (companion)

Purpose and Intent

S 5002 would authorize and direct the Commissioner of the New York State Division of Housing and Community Renewal (DHCR) to promulgate rules and regulations that govern the state’s low-income housing tax credit (LIHTC) program. The bill focuses on establishing a formal regulatory framework to administer NY’s LIHTC program, clarifying how the program should operate under state law.

Key Provisions and Changes

Regulatory Authority: The bill empowers DHCR to issue rules and regulations relating to the low-income housing tax credit program in New York.

Scope of Regulation: While the bill text notes the rulemaking mandate, it does not specify the exact topics. In practice, such regulations typically cover eligibility criteria, credit allocation procedures, project compliance requirements, reporting and monitoring, for both developers and property owners, as well as enforcement and penalties.

Regulatory Process: The bill directs formal regulatory action by DHCR, meaning rules would likely follow the state’s standard rulemaking process (public notice and comment, etc.), once enacted.

Who Would Be Affected

DHCR and State Agencies: Primary implementer and regulator of the LIHTC program.

Developers and Owners: Entities applying for or claiming LIHTCs, subject to the new or revised state rules.

Tenants and Communities: Indirectly affected through changes in program administration, compliance monitoring, and project outcomes.

Procedural and Timeline Considerations

Current Status: Referred to the Housing, Construction and Community Development committee on February 14, 2025. No enactment date is provided.

Rulemaking Timeline: If enacted, DHCR would proceed with the normal NY rulemaking process to promulgate regulations related to LIHTC. Specific timelines would depend on the committee’s action, rulemaking schedules, and any required public commentary.

Context and Related Legislation

Related Bills: S 9654 (prior-session) and A 6889 (companion) suggest ongoing interest in establishing or refining NY’s LIHTC regulatory framework across sessions and chambers.

The bill aligns with general practice of states to regulate LIHTC administration to ensure consistency, accountability, and alignment with state housing goals.

Potential Implications

Increased regulatory clarity for LIHTC operations in New York.

Potential impacts on project qualification, deadlines, and compliance oversight.

Possible changes in how credits are allocated and monitored, with effects on developers, lenders, and housing outcomes.

For stakeholders, monitoring the committee actions and subsequent rulemaking by DHCR will be important to understand the concrete provisions once regulations are proposed.

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