New York Senate Bill S06518

New York 2025-2026 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25
• Refer: 1/7/26

Caption

Establishes the public housing fund to be used by the division of housing and community renewal to support existing public housing utilizing money from the real property transfer tax.

Summary

This bill creates a new “public housing fund” in the State Finance Law and directs that 10% of the taxes, interest, and penalties collected under the real property transfer tax be deposited into that fund. The fund would be held jointly by the State Comptroller and the Commissioner of Taxation and Finance, kept separate from other state monies, and made available to the Division of Housing and Community Renewal (DHCR). The stated purpose is to support existing public housing. The bill also amends the Tax Law to redirect a portion of real property transfer tax revenue away from the current distribution and into the new housing fund. It would take effect on April 1 following enactment. In practical terms, the measure creates a dedicated revenue stream for public housing operations or preservation, while leaving the remainder of the tax structure intact.

Impact

The bill would amend Tax Law section 1421 and add new State Finance Law section 92-kk, thereby creating a new statutory fund and changing how a portion of real property transfer tax receipts are allocated. It would require the Comptroller to deposit the specified share of revenue into the public housing fund and authorize DHCR to access those monies through the usual voucher and warrant process. The measure would affect state fiscal administration, the Comptroller, the Department of Taxation and Finance, and DHCR, and would provide a dedicated funding source for existing public housing authorities or developments.

Sentiment

Based on the bill text and available context, the measure appears to be framed as a supportive housing-finance initiative with a clear policy goal of preserving public housing. There are no recorded committee transcripts or votes in the provided materials, so there is no documented opposition or amendment debate to indicate broader legislative sentiment. The introduction and referral to the Budget and Revenue Committee suggest it is being treated primarily as a fiscal allocation bill.

Contention

The main potential point of contention is the diversion of real property transfer tax revenue, since dedicating 10% of those receipts to public housing could reduce amounts available for other state purposes or existing earmarks. Fiscal stakeholders may question the impact on the state budget, especially because the bill creates an ongoing dedicated funding stream rather than a one-time appropriation. No specific objections, supporters, or negotiated compromises are reflected in the provided record.