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.