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New YorkA 67632025-2026 Regular SessionHouse

Enacts the private activity bond allocation act of 2025

Sponsored By: Billy Jones (Democratic)

Signed by Governor

LOCAL GOVERNMENTSWAYS AND MEANSRULESLOCAL GOVERNMENT

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

Bond-funded firms must consider eligible jobseekers

Industrial and manufacturing firms using qualified small issue bonds must list new project-created jobs with state and local workforce centers. They must first consider eligible Workforce Innovation and Opportunity Act participants referred by those centers or the state Labor Department. Bond issuers must require and monitor compliance, but the law does not guarantee anyone a job. These rules do not override existing union agreements. Noncompliance does not change the bond allocation, bond validity, or tax-exempt status.

Most bond allocation rules end in 2028

The law takes effect immediately, but most covered bond allocation rules are temporary. Sections 3 through 10 and 12 through 14 expire July 1, 2028. Subdivisions 2 and 3 of section 13 expire earlier, on February 15, 2028. These dates limit how long agencies and issuers can rely on the covered rules.

New York splits tax-exempt bond capacity

New York divides its yearly private activity bond limit equally among local agencies, state agencies, and a statewide reserve. This is financing capacity, not direct household payments. Economic Development manages local shares based on population; the Budget Division handles state applications and the reserve. Reserve applicants must need capacity for federal tax-exempt interest and lack enough unused allocations or carryforwards. Except for carryforward elections, officials must reasonably expect reserve allocations to be used that calendar year. The budget director transfers reserve capacity for local and other issuers and can allocate the rest to state agencies. For multifamily housing and mortgage revenue bonds, the commissioner must seek the state housing agency leader’s recommendation.

Housing projects get capped future financing

Qualifying housing projects built over two or more years can receive bond capacity for the next two years. At least 20 percent of homes must be occupied by low-income people or families. Projects need a current-year allocation under this law or the specified federal allocation after the covered provisions expire. Future allocations count from January 1 of their year and total no more than $650 million for each future year. Local set-aside allocations need approval from the local chief executive, or governing body when there is no chief executive. Unused current-year capacity faces recapture September 15; future allocations are generally canceled unless an approved carryforward applies. For projects receiving replacement allocations from recaptured or canceled capacity, unused current-year capacity triggers cancellation by December 31, 2026, unless the specified carryforward is approved.

Bond issuers face reporting and carryover limits

Issuers must report expected year-end bond issues and unused allocations by September 1 to the commissioner or budget director. On September 15, unused local and other issuer allocations, plus unallocated state capacity, return to the statewide reserve. Issuers must promptly report later changes; officials can also reclaim overestimated allocations. Carrying unused capacity into later years requires prior approval, with requests generally due November 15; later requests can be considered. State agencies also need the director’s prior approval for elections to issue or carry forward mortgage credit certificates. The commissioner publishes local recapture totals September 15; the director publishes the prior year’s unused statewide capacity by January 15. A five-member advisory panel reviews allocations and carryforwards and receives the director’s annual report by July 1. The director must also publish allocation, issuance, unused capacity, carryforward, recapture, and projection data.

Earlier bond commitments retain allocation priority

The law preserves federal tax-law allocations made before it took effect. It sets charging rules for qualifying commitments or allocations made from January 1, 2025, through the day before it took effect. Local agency and other issuer amounts above the local set-aside are charged first to the statewide reserve. State agency amounts are charged first to the state set-aside, then to the reserve. Local agencies and other issuers must certify covered bond issues and amounts to the commissioner by October 1, 2025.

Local agencies share overlapping bond capacity

For overlapping county and smaller local agencies, bond capacity for the shared area is split 50/50 between the two levels. A village with its own agency gets a population-based share; the town’s share excludes that village. Agencies can surrender capacity to overlapping agencies using the commissioner’s procedures. Local governments can withdraw or reallocate capacity to serve their own issuers. If federal rules make an agency ineligible, its share goes to the local government it was created to benefit.

Sponsors & Cosponsors

Sponsor

  • Billy Jones

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 207 • No: 1

Senate vote • 4/30/2025

FLOOR Vote

Yes: 59 • No: 1

House vote • 3/18/2025

Assembly floor vote

Yes: 148 • No: 0

Actions Timeline

  1. SIGNED CHAP.164

    6/26/2025House

  2. DELIVERED TO GOVERNOR

    6/26/2025House

  3. RETURNED TO ASSEMBLY

    4/30/2025Senate

  4. PASSED SENATE

    4/30/2025Senate

  5. 3RD READING CAL.692

    4/30/2025Senate

  6. SUBSTITUTED FOR S7526

    4/30/2025Senate

  7. REFERRED TO LOCAL GOVERNMENT

    3/18/2025Senate

  8. DELIVERED TO SENATE

    3/18/2025House

  9. PASSED ASSEMBLY

    3/18/2025House

  10. ORDERED TO THIRD READING RULES CAL.110

    3/18/2025House

  11. RULES REPORT CAL.110

    3/18/2025House

  12. REPORTED

    3/18/2025House

  13. REPORTED REFERRED TO RULES

    3/18/2025House

  14. REPORTED REFERRED TO WAYS AND MEANS

    3/18/2025House

  15. REFERRED TO LOCAL GOVERNMENTS

    3/12/2025House

Bill Text

  • Original

    3/12/2025

    PDF

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