N.Y. Public Housing Law § 21: Definitions

§ 21. Definitions. 1. (a) "Applicable percentage" means the

appropriate percentage (depending on whether a building is new,

existing, or federally subsidized) prescribed by the secretary of the

treasury for purposes of section 42 of the internal revenue code for the

month which is the earlier of

(i) the month in which the eligible low-income building is placed in

service, or

(ii) at the election of the taxpayer,

(A) the month in which the taxpayer and the commissioner enter into an

agreement with respect to such building (which is binding on the

commissioner, the taxpayer, and all successors in interest) as to the

housing credit dollar amount to be allocated to such building, or

(B) in the case of any building to which subsection (h)(4)(B) of such

section 42 applies, the month in which the tax-exempt obligations are

issued.

(b) A month may be elected under subparagraph (ii) of paragraph (a) of

this subdivision only if the election is made not later than the fifth

day after the close of such month. Such election, once made, shall be

irrevocable.

(c) If, as of the close of any taxable year in the credit period, the

qualified basis of an eligible low-income building exceeds such basis as

of the close of the first year of the credit period, the applicable

percentage which shall apply to such excess shall be two-thirds of the

applicable percentage originally ascribed to such building.

2. "Compliance period" means, with respect to any building, the period

of fifteen taxable years beginning with the first taxable year of the

credit period with respect to such building.

3. "Credit period" means, with respect to any eligible low-income

building, the period of ten taxable years beginning with

(a) the taxable year in which the building is placed in service, or

(b) at the election of the taxpayer, the succeeding taxable year,

but only if the building is an eligible low-income building as of the

close of the first year of such period. The election under paragraph (b)

of this subdivision, once made, shall be irrevocable.

4. "Eligibility statement" means a statement issued by the

commissioner certifying that a building is an eligible low-income

building. Such statement shall set forth the taxable year in which such

building is placed in service, the dollar amount of low-income housing

credit allocated by the commissioner to such building as provided in

subdivision five of section twenty-two of this article, the applicable

percentage and maximum qualified basis with respect to such building

taken into account in determining such dollar amount, sufficient

information to identify each such building and the taxpayer or taxpayers

with respect to each such building, and such other information as the

commissioner, in consultation with the commissioner of taxation and

finance, shall prescribe. Such statement shall be first issued following

the close of the first taxable year in the credit period, and

thereafter, to the extent required by the commissioner of taxation and

finance, following the close of each taxable year of the compliance

period.

5. "Eligible low-income building" means a building located in this

state which either

(a) is a qualified low-income building as defined in section 42(c) of

the internal revenue code, or

(b) would be a qualified low-income building under such section if the

20-50 test specified in subsection (g)(1) of such section were

disregarded and the 40-60 test specified in such subsection (requiring

that at least forty percent of residential units be both rent-restricted

and occupied by individuals whose income is sixty percent or less of

area median gross income) were a 40-90 test.

6. "Qualified basis" of an eligible low-income building means the

qualified basis of such building determined under section 42(c) of the

internal revenue code, or which would be determined under such section

if the 40-90 test specified in paragraph (b) of subdivision five of this

section applied under such section 42 to determine if such building were

part of a qualified low-income housing project.

7. References in this article to section 42 of the internal revenue

code shall mean such section as amended from time to time.