senate Bill S7527

Relates to amending the low income housing tax credit eligibility requirements

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 15 / May / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

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.

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Bill Details

Versions:
S7527
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Public Housing Law
Laws Affected:
Amd ยง21, Pub Hous L

Sponsor Memo

BILL NUMBER:S7527

TITLE OF BILL: An act to amend the public housing law, in relation to
low income housing tax credit eligibility

PURPOSE:

The bill expands the eligibility threshold for tenants in state LIHTC
multi-family developed properties to up to 125% of AMI or less.

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 $24,000 respectively and a combined salary of $47,000.

Area Median Income (AMI)

Household 30% of AMI 50% of 60% of AMI 80%
Size AMI AMI
(very low (low income
(extremely income) housing tax (low
credit
low income) maximum)
income)

1 $18,050 $30,100 $36,120
$48,100

2 $20,600 $34,400 $41,280
$55,000

3 $23,200 $38,700 $46,440
$61,850

4 $25,750 $42,950 $51,540
$68,700

This bill would incentivize developers to create housing for the
working poor wherein a family of two, three or four facing a the
challenge of finding affordable housing in an environment. If we
consider that as of April, 2014, the average rent in the City is
$3,017 per month and $2,899 for an average apartment within ten miles
of the 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.

LEGISLATIVE HISTORY:

None. New bill.

FISCAL IMPLICATIONS:

TBD

EFFECTIVE DATE:

This act shall take place immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7527

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT to amend the public housing law, in relation to low income hous-
  ing tax credit eligibility

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision 5 and subdivision 6 of section
21  of the public housing law, as added by section 1 of part CC of chap-
ter 63 of the laws of 2000, are amended to read as follows:
  (b) would be a qualified low-income building under such section if the
20-50 test specified in subsection (g)(1) of such  section  were  disre-
garded  and  the 40-60 test specified in such subsection (requiring that
at least forty percent of residential units be both rent-restricted  and
occupied  by  individuals  whose income is sixty percent or less of area
median gross income) were a [40-90] 60-125 test.
  6. "Qualified basis" of an  eligible  low-income  building  means  the
qualified  basis  of such building determined under section 42(c) of the
internal revenue code, or which would be determined under  such  section
if  the  [40-90]  60-125  test specified in paragraph (b) of subdivision
five of this section applied under such section 42 to determine if  such
building were part of a qualified low-income housing project.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15233-01-4

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