A07503 Summary:

BILL NOA07503
 
SAME ASNo Same As
 
SPONSORCunningham
 
COSPNSR
 
MLTSPNSR
 
Add Art 32 1300 - 1303, Priv Hous Fin L
 
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.
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A07503 Actions:

BILL NOA07503
 
05/25/2023referred to housing
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A07503 Committee Votes:

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A07503 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7503
 
SPONSOR: Cunningham
  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): N/A   JUSTIFICATION: 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: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: Immediately.
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