New YorkA 67632025-2026 Regular SessionHouseWALLET

Enacts the private activity bond allocation act of 2025

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 1 costs, 2 mixed.

New York splits bond cap three ways

The state splits its annual private activity bond limit three ways: one‑third for local agencies by population, one‑third for state agencies, and one‑third in a statewide reserve. The Budget Director runs the reserve and may send part to the Commissioner of Economic Development for local and other issuers. To get reserve funds, local issuers must show the allocation is needed to keep interest tax‑exempt, other allocations are not enough, and the bonds are likely to be used this year. In places with county and sub‑county agencies, the local share is split 50/50; if a local agency is ineligible, its share goes to the city, town, or county that created it. These rules end July 1, 2028.

Future bond promises for multi-year housing

The state can promise bond cap for up to two future years for housing projects built over two or more years with at least 20% low‑income units, along with a current‑year allocation. Future allocations count on January 1 of the named year and can be canceled if the current‑year amount is not used by September 15, or by December 31, 2026 unless a carryforward is approved. Total future allocations from each of the next two years are capped at $650 million per year.

Job postings for bond‑funded factories

For industrial or manufacturing projects financed with qualified small issue bonds, issuers must list new jobs with the State Labor Department and the local one‑stop career center. Employers must first consider candidates the one‑stop center refers who are eligible for WIOA. Issuers monitor compliance. Not following this rule does not affect bond allocation or tax‑exempt status. These rules end July 1, 2028.

Transition rules for 2025 allocations

For bonds issued using the statewide ceiling from January 1, 2025 to the act’s effective date, issuers can certify amounts by October 1, 2025. Any local amount over the local set‑aside is charged first to the statewide reserve; state agency commitments are charged first to the state set‑aside, then the reserve. The law also preserves any bond allocations used or promised before this act under the federal Tax Reform Act of 1986.

Deadlines and recapture for bond cap

By September 1 each year, state and local issuers report expected bond issues and any unused allocation. On September 15, unused and unallocated amounts are recaptured and moved to the statewide reserve; late‑year overestimates can also be recaptured. Issuers need the Director’s or Commissioner’s prior approval to file any carryforward or mortgage credit certificate election. Requests to use unused ceiling in future years are due by November 15; the Director posts the prior year’s unused ceiling by January 15. The November 15 and January 15 steps expire February 15, 2028; the other rules end July 1, 2028.

Advisory panel on bond cap priorities

A five‑member advisory panel now reviews bond allocation priorities; the Governor’s designee chairs. The Budget Director and the Economic Development Commissioner must notify the panel within five working days of allocation or carryforward requests and share application materials. They must also tell the panel of approval or exclusion decisions at least five working days before telling applicants. These oversight rules end July 1, 2028.

Sponsors & Cosponsors

Sponsor

Billy Jones
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 59 • No: 1

House vote • 4/30/2025

FLOOR Vote