Establishes an affordable housing program to be administered by the division of homes and community renewal which will provide loans or grants to certain property owners; provides that property owners receiving such loans or grants shall rent such property for no more than thirty-three percent of a tenant's income.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7503
TITLE OF BILL:
An act to amend the private housing finance law, in relation to estab-
lishing an affordable housing program
PURPOSE OR GENERAL IDEA OF BILL:
To establish an income-based affordable housing program (as opposed to
area median income). Rent for each individual or family will be defined
as 33% of their income.
SUMMARY OF PROVISIONS:
Section 1 establishes an affordable housing program as follows: Section
1300 provides relevant definitions.
Section 1301 describes loans and grants. Section 1302 outlines the rules
and enforcement. Section 1303 is a severability clause. This housing
program is one in which the rent will be defined to and restricted at
33% of the tenant's income.
Section 2 provides for an immediate effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Most affordable housing programs determine eligibility and set prices
relative to average median income (AMI). Yet, according to the Associ-
ation for Neighborhood & Housing Development, "In New York City, 100%
AMI for a three-person household is 28% higher than the actual median
household income." As such, apartments that are marketed as 'affordable'
based on'AMI are often not affordable to those most in need. Further-
more, they found that AMI is becoming increasingly different from real
incomes each year. New York City is facing an affordable housing crisis.
Based on these discrepancies, this bill will create an income-based
affordable housing system. Rather than basing eligibility and rent on
AMI, in this system, tenants' own income will determine their rent
burden. In this program, rent will be defined as one third (33%) of the
tenant individual's or family's income. In this way-regardless of income
level or tax bracket-all renters will be paying rent that is the same
proportion of their income. This is a step in the right direction for
actually affordable housing.
Internicola, Sarah, and Lucy Block. "New York City's AMI Problem, and
the Housing We Actually Need." Association for Neighborhood and Housing
Development, 19 Sept. 2022.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.