BILL NUMBER: S3751

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to require educational institutions with an endowment of over ten
billion dollars to provide a certain percentage of affordable housing
units

 
PURPOSE OR GENERAL IDEA OF BILL:

To require the provision of affordable housing by universities with
endowments large enough to fund real estate purchases that erode the
real estate tax base.

 
SUMMARY OF PROVISIONS:

Section 1 provides the requirement that universities located in a city
over one million people with an endowment over $10 billion dollars shall
provide 30 percent of the units in any building where housing units are
provided by the university.

              

Section 2 states that this act shall take effect immediately.

 
JUSTIFICATION:

Many universities have been consistently expanding their real estate
portfolios to provide housing to faculty, staff, and students.  However,
this practice replaces affordable housing for local residents with
university buildings only available to university affiliates.

In addition, because university property is not subject to real estate
taxation, this practice erodes the tax base of the locality and results
in loss of badly needed tax revenue. With reduced local tax revenues
come increased local demands for state funds. This practice of monied
universities consistently purchasing ordinary buildings and turning them
into tax-free university property is not sustainable for the State or
for our cities.

By requiring that 30% of units be allocated for affordable housing
available to all New Yorkers, New York will take an impactful step in
the right direction. Monied universities in large cities will be
required to keep some affordable housing, and give back to the communi-
ties which are suffering as a result of their unchecked expansion.
Universities that unfairly take advantage of beneficial tax treatment
must take a step towards equitable co-existence.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Savings.

 
EFFECTIVE DATE:
Immediately.