Relates to requiring affordable housing projects to calculate and only use the area median income for the specific county that the project is located in for determining affordability.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7778
SPONSOR: Simon TITLE OF BILL:
An act to amend the real property tax law, in relation to requiring
affordable housing projects to calculate and only use the area median
income for the specific county that the project is located in for deter-
mining affordability
PURPOSE:
To create actual affordable housing by requiring the use of the partic-
ular county's AMI in determining affordability levels.
SUMMARY OF PROVISIONS:
When calculating affordable housing, any city having a population of one
million or more shall use the area median income proportional to the
county in which the program is located
JUSTIFICATION:
In determining affordability for affordable housing purposes, New York
uses a number known as the area median income (AMI) which is determined
on an annual basis by the U.S. Department of Housing and Urban Develop-
ment. New York, like any other state, has diverse counties where the
area median income differs greatly. The current formula used for afford-
ability often results in increasing the overall AMI for neighborhoods by
grouping more affluent neighborhoods with lesser affluent neighborhoods
in the same calculation. Because of this grouping, currently, when hous-
ing is being built in lesser affluent neighborhoods, the AMI of that
neighborhood is calculated to be higher than it actually is. Because of
this calculation, when projects are built, countless numbers of individ-
uals are no longer able to afford housing in their own community. This
forces lifelong residents to move away. By no longer using a "regional"
AMI formula that increases the AMI for lesser affluent neighborhoods, an
AMI calculation based solely on the county where the project is being
located is a step in the right direction to actually have affordable
housing in the neighborhood where the project is located.
A great example of how AMI is currently used to increase what is deemed
affordable in a particular area is seen in New York City. AMI for the
five boroughs is calculated together with the AMI's of, Westchester,
Putnam, & Rockland counties. The residents in the five boroughs all have
different income levels. There is also a great discrepancy in the income
levels between Westchester, Putnam, & Rockland counties, with the five
boroughs. Therefore, it is unfair in determining what is affordable in a
particular area in New York City by (1) grouping all the boroughs
together; and (2) by grouping other non-New York City counties in the
affordability calculation.
Determining AMI for affordability projects under a county specific
approach will more accurately reflect the affordability in that partic-
ular county where the project is being located, rather than the current
formula of using the Metropolitan region AMT. Under this proposal,
affordable housing being built in a specific area will actually reflect
the median income of the people who already live there.
LEGISLATIVE HISTORY:
2021-2022 A2015 Barnwell -referred to housing
2019-2020 A2676
2017-2018 A5968
FISCAL IMPACT:
None
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
7778
2023-2024 Regular Sessions
IN ASSEMBLY
June 15, 2023
___________
Introduced by M. of A. SIMON -- read once and referred to the Committee
on Housing
AN ACT to amend the real property tax law, in relation to requiring
affordable housing projects to calculate and only use the area median
income for the specific county that the project is located in for
determining affordability
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 421-a of the real property tax law
2 is amended by adding a new paragraph e to read as follows:
3 e. "Area Median Income (AMI)." Whenever calculating the affordability
4 of a project, AMI shall be based solely on the specific county where the
5 project shall be located.
6 § 2. All affordable housing projects, including, but not limited to,
7 421-a projects, shall only use the area median income (AMI) for the
8 specific county that the project is located in for determining afforda-
9 bility.
10 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09715-01-3
