Senate Bill S4458

                                
 
BILL NUMBER: S4458A

SPONSOR: GIANARIS
 
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. In calculating
affordability, the local zip code's AMI will be used, rather than
regional AMI figures that inflate affordability levels in some counties.

 
SUMMARY OF PROVISIONS:

When determining the Area Median Income (AMI) for all affordable housing
projects, the AMI for the particular project shall be calculated by
determining the AMI in the specific zip code where the project is
located. However, for projects in a zip code with an AMI greater than
              

the current HUD metropolitan area AMI, the current lower metropolitan
AMI will be used for eligibility

 
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 zip codes 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 neighborhoods, 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 example 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, & Rockland 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 counties in the
affordability calculation.

Determining AMI for affordability projects under a zip code specific
approach will more accurately reflect the affordability in that partic-
ular 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 actual-
ly reflect the median income of the people who already live there.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPACT:

None

 
EFFECTIVE DATE:
This act shall take effect immediately for all future projects NOT
already agreed to and signed under previous contracts.