Bill > A08125

This bill prohibits certain housing developments that convert from a limited-profit housing company to a housing development fund company from receiving a shelter rent tax abatement (tax exemption). Specifically, the bill amends the private housing finance law to state that if a housing development fund company (a type of not-for-profit corporation) was originally a limited-profit housing company and has undergone a conversion, it will no longer be eligible for the tax exemption on shelter rent that was previously available. The bill will take effect on the first day of January following its passage and will apply to taxable years beginning on or after that date. The context suggests this change is intended to prevent certain housing developments from receiving tax benefits after changing their organizational structure, potentially closing a perceived loophole in existing housing finance regulations.