Amends the low income housing tax credit eligibility requirement to at least sixty percent of residential units be both rent-restricted and occupied by individuals whose income is one hundred twenty-five percent or less of area median gross income.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1264
SPONSOR: Walker TITLE OF BILL:
An act to amend the public housing law, in relation to low income hous-
ing tax credit eligibility
PURPOSE OR GENERAL IDEA OF BILL:
The bill expands the eligibility threshold for tenants in state LIHTC
multi-family developed properties to up to 125% of AMI or less.
SUMMARY OF PROVISIONS:
JUSTIFICATION:
The AMI for the City of New York as of December 2013 increased to
$63,000 per annum. Currently forty-six percent of New Yorkers are
considered poor or almost poor. The current eligibility threshold of 60%
of AMI as the LIHTC maximum, excludes households of 2-4 members.
Consider that the starting salary for a sanitation worker is $33,746.
Were that person to marry a teacher starting a career at a salary of
$44,370, their combined salary of $78,116 would exclude them as well as
a food service worker and a cook with starting salaries of $23,000 and
$24,C00 respectively and a combined salary of $47,000.
Area Median Income (AMI) Household
30% of AMI 50% of AMI 60% of AMI 80% of AMI
Size
(extremely (very low low income (low income)
low income) income) housing tax
credit maximum)
$18,050 $30,100 $36,120 $48,100
$20, 600 $34,400 $41,280 $55,000
$23,200 $38,700 $46,440 $61,850
$25,750 $42, 950 $51,540 $68,700
This bill would incentivize developers to create housing for the work-
ing-poor wherein a family of two, three or four facing the challenge of
finding affordable housing. If we consider that as of April 2014, the
average rent in New York City is $3,017 per month and $2,899 for an
average apartment within ten miles of New York City, it is clear that
there exists an affordable housing gap for households earning 100% of
the AMI or slightly more.
To keep the essential service, municipal, administrative, health care
and educator workforce accessible to meet the needs of the City it is
necessary to provide affordable housing.
PRIOR LEGISLATIVE HISTORY:
2015-2016: A.813 - Referred to Housing
2017-2018: A6268 - Referred to Housing
2019-2020: A6262 - Referred to Housing
2021-2022: A4406 - Referred to Housing
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
