Bill S7527-2013

Relates to amending the low income housing tax credit eligibility requirements

Amends the low income housing tax credit eligibility requirement to at least sixty percent of residential units be both rent-restricted and occupied by individuals whose income is one hundred twenty-five percent or less of area median gross income.

Details

Actions

  • May 15, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 7527 IN SENATE May 15, 2014 ___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the public housing law, in relation to low income hous- ing tax credit eligibility THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (b) of subdivision 5 and subdivision 6 of section 21 of the public housing law, as added by section 1 of part CC of chap- ter 63 of the laws of 2000, are amended to read as follows: (b) would be a qualified low-income building under such section if the 20-50 test specified in subsection (g)(1) of such section were disre- garded and the 40-60 test specified in such subsection (requiring that at least forty percent of residential units be both rent-restricted and occupied by individuals whose income is sixty percent or less of area median gross income) were a [40-90] 60-125 test. 6. "Qualified basis" of an eligible low-income building means the qualified basis of such building determined under section 42(c) of the internal revenue code, or which would be determined under such section if the [40-90] 60-125 test specified in paragraph (b) of subdivision five of this section applied under such section 42 to determine if such building were part of a qualified low-income housing project. S 2. This act shall take effect immediately.

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