Housing

The "Private Activity Bond Allocation Act of 2025" establishes a new formula for distributing the statewide volume ceiling for certain tax-exempt private activity bonds. These bonds are used by state and local agencies, as well as other entities, for purposes such as housing, economic development, and job creation. The act divides the statewide ceiling into three main portions: a local agency set-aside based on population, a state agency set-aside, and a statewide bond reserve. This structure aims to provide an orderly and efficient process for allocating these bonds, which require an allocation to maintain their federal tax-exempt status.

S 7798 makes technical adjustments to New York State's 2025-26 aid to localities budget, specifically reallocating $90 million from the General Fund to the "Underserved Communities and Civic Engagement Program." The bill directs funding to seven specific nonprofit organizations, including the Asian American Foundation, New York Urban League, and Catholic Charities Community Services, for services like housing assistance, workforce training, and healthcare in underserved areas. This is a procedural budget modification with no new policy changes, simply adjusting existing allocations. The bill became law on May 23, 2025, and applies immediately to the 2025-26 fiscal year.

This bill allows any town in New York with a 2020 census population between 69,000 and 69,500 to create a homestead exemption for real property taxes. It enables qualifying towns to offer an exemption similar to the existing STAR school tax relief program, capping the exemption at $50,000 in property value. Property owners must apply annually using a standard form, and the exemption applies only to eligible homes meeting the same criteria as STAR. This directly affects homeowners in qualifying towns by potentially reducing their local property tax burden.