Senate Bill S5226A

                                 
BILL NUMBER: S5226A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the general business law, in relation to setting stand-
ards for advertising deeply affordable housing

 
PURPOSE:

Establishes clear and consistent standards for defining and advertising
deeply affordable housing in New York State to reduce confusion, miti-
gate mistrust, and make it easier for individuals to navigate their
housing options.

 
SUMMARY OF PROVISIONS:

Section 1: Amends the general business law by adding a new section 350-
a-1, which:

*Defines "deeply affordable housing" as a unit affordable to households
making 60% or less of the area median income (AMI)
              

*Establishes that misrepresenting a housing unit as deeply affordable
when it does not meet these standards constitutes false advertising.

*Requires advertisements that promote both market-rate and deeply
affordable units in the same development to specify the percentage or
number of each unit type.

*Mandates that municipal and state government agencies adhere to these
advertising standards when providing information about deeply affordable
housing availability.

*Clarifies that these provisions do not affect eligibility for tax cred-
its, grants, or other affordability programs with different definitions
but require that all advertising comply with these standards.

Section 2: Establishes the effective date.

 
JUSTIFICATION:

Many New Yorkers searching for affordable housing find themselves priced
out, encountering housing labeled as affordable or deeply affordable
only to find that the pricing is far beyond their means.  Rents are
often advertised as affordable when they are priced for households earn-
ing up to 120% of the area median income (AMI), which far exceeds what
many low- and moderate-income renters consider affordable. For instance,
a one-bedroom apartment in New York City advertised as affordable may
cost upwards of $3,261 per month. This creates confusion, fosters
mistrust in the housing market, and makes it harder for individuals to
navigate their options.

By implementing a standardized definition for deeply affordable and
requiring greater transparency in advertisements, this bill ensures that
renters receive accurate and reliable information about their housing
options. Clarity in housing advertisements benefits not only renters but
also developers and communities. When expectations align with reality,
opposition to new developments may decrease, especially in areas where
resistance to affordable housing stems from misunderstandings about what
affordability means. This bill promotes fairness in the housing market
and fosters greater public trust in the systems designed to address
affordability issues.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

Minimal, as enforcement will fall under existing regulatory frameworks.

 
EFFECTIVE DATE:
This act shall take effect 180 days after becoming law.
 
JUSTIFICATION:
Many New Yorkers searching for affordable housing find themselves priced
out, encountering housing labeled as affordable only to find that the
pricing is far beyond their means. Rents are often advertised as afford-
able when they are priced for households earning up to 120% of the area
median income (AMI), which far exceeds what many low- and moderate-in-
come renters consider affordable. For instance, a one-bedroom apartment
in New York City advertised as affordable may cost upwards of $3,261 per
month. This creates confusion, fosters mistrust in the housing market,
and makes it harder for individuals to navigate their options.
By implementing standardized definitions and requiring greater transpar-
ency in advertisements, this bill ensures that renters receive accurate
and reliable information about their housing options. Clarity in housing
advertisements benefits not only renters but also developers and commu-
nities. When expectations align with reality, opposition to new develop-
ments may decrease, especially in areas where resistance to affordable
housing stems from misunderstandings about what affordability means.
This bill promotes fairness in the housing market and fosters greater
public trust in the systems designed to address affordability issues.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
Minimal, as enforcement will fall under existing regulatory frameworks.
 
EFFECTIVE DATE:
This act shall take effect 180 days after becoming law.