BILL NUMBER:  S4571                 Revised 04/03/17

 TITLE OF BILL :

An act to amend the real property tax law, in relation to requiring
that affordable housing programs in a city having a population of one
million or more to calculate the area median income based on the
specific county in which the project will be located

 PURPOSE :

To create actual affordable housing by requiring the use of the
particular 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. The local zip code's AMI shall be the sole number
to be used for all affordability purposes and calculations.

 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 Development. New York, like any other state, has diverse zip
codes where the area median income differs greatly. The current
formula used for affordability 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 housing 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 individuals 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 of Putnam
County. The residents in the five boroughs all have different income
levels. There is also a great discrepancy in the income levels between
Putnam County 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
particular 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
actually reflect the median income of the people who already live
there.

 LEGISLATIVE HISTORY :

2017: A6226 (Barnwell)
 FISCAL IMPACT :

None

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