Relates to requiring affordable housing projects to calculate and only use the area median income for the specific zip code 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: A5720
SPONSOR: Ardila 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 zip code that the project is located in for
determining affordability
PURPOSE:
To create actual affordable housing by requiring the use of the partic-
ular zip code'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 of the zip code in
which the program is located
When determining AMI for affordability purposes, any affordable housing
project located in the 5 Counties of New York City, whenever an the
affordable housing project is being located in a zip code where that zip
code's AMI would be higher than the New York City Region AMI, as deter-
mined by HUD, the AMI to be used for affordability purposes, will be the
AMI that HUD has determined to be the New York City Region's AMI.
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 nei ghborhoods, 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 zip code 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 exam-
ple 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, & Rock-
land 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 c ounties in the
affordability calculation. Determining AMI for affordability projects
under a zip code specific approach will more accurately reflect the
affordability in that particular zip code where the project is being
located, rather than the current formula of using the Metropolitan
region AMI. 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:
2017-2018: A5505A
2019-2020 A3109
FISCAL IMPACT:
None
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
5720
2023-2024 Regular Sessions
IN ASSEMBLY
March 23, 2023
___________
Introduced by M. of A. ARDILA -- 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 zip code 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 zip code where
5 the 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 zip code that the project is located in for determining afford-
9 ability. However, for any affordable housing project in the five coun-
10 ties that make up New York City, including, but not limited to a 421-a
11 project, that is being located in a zip code where the AMI for that
12 specific zip code is higher than the New York City Region AMI, as
13 defined by HUD, the AMI for the affordability project, including, but
14 not limited to a 421-a project, will be the AMI that HUD has determined
15 to be the New York City Region AMI.
16 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09674-01-3
