Overview: S. 2421-B / A. 1134-A
Program Description
The New
York State Historic Homeownership Rehabilitation Credit is an
innovative economic and preservation stimulus program for
rehabilitation of owner-occupied residential properties. The program
provides a 15 or 25% state income tax credit or rebate, up to $50,000
per structure, for qualified rehabilitation expenses for these
structures.
More than 44,000 National Register listed residential structures are
eligible for the program. The program provides additional incentives
for more than 11,600 owner-occupied structures in State Empire Zones
and federally-recognized distressed census tracts, assuring its
effective use by homeowners at all income levels. Owner-occupied
cooperatives and multi-unit dwellings are also eligible for the program.
Economic Impacts
Economic
data from other states with historic rehabilitation tax credits clearly
indicate that such programs accomplish significant economic development
and historic preservation benefits simultaneously. Rehabilitation
spending will stimulate construction activity and job creation and has
been proven to outperform the economic benefits of new construction in
local and regional economies.
Fiscal Impacts
There would be no fiscal impact from the proposed legislation in
2004-05, due to program implementation. Fiscal impacts from the program
would not be felt until at least 2006, due to the requirement to
certify rehabilitation expenditures. Spending catalyzed by the program
will stimulate economic growth and generate state and local tax
revenues prior to any state fiscal impacts. The economic gains of
program-supported activity will offset a significant portion of the
revenue cost to the state.
In 2001, the Division of Budget estimated the fiscal impact at $8-10
million dollars annually. Senate and Assembly fiscal analyses have
valued the impact at $5-$10 million annually
Legislative History
• Members of both conferences have supported versions
of this program since 1997.
• Indicating unanimous and bi-partisan support for
this bill, the NYS Senate passed this program “by consent,” in 2002,
• Governor Pataki included versions of this program
in his 2001-02 and 2002-03 Executive Budget proposals.
Public Policy Benefits
There are significant additional public policy benefits that result
from this program:
• Reclaim a significant portion of New York State
housing stock to counter a growing shortfall in owner-occupied
affordable housing.
• Provide for the retention of existing community
populations while also attracting new homeowners back to existing
neighborhoods.
• Leverage downtown and community revitalization.
• Assist communities in achieving painless tax-base
growth by increasing property values, encouraging additional local
investment, and attracting new business and vitality to existing
neighborhoods.
• Guide new investment back to existing municipal
infrastructure.
• Improve community appearance and pride.
• Provide New York, particularly in the metropolitan
area, with a competitive advantage by incentivizing New York
homeownership versus that in neighboring commuter states.
• Encourage the establishment of new National
Register and locally designated historic districts, as well as
municipal participation in the Certified Local Government Program.
This legislation is especially timely because it will further encourage
homeowners and homebuyers can take advantage of historically low credit
and mortgage rates. Homeownership has clearly been the strongest
investment opportunity in recent years, and this program will provide
incentives for additional home investment across the state.
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