Requires housing affordability impact notes be submitted with proposed rules

1 Co-sponsor

• Andrew Raia

1 Multi-sponsor

• Joseph Saladino

BILL NUMBER:A10647

Title of bill

An act to amend the state administrative procedure act, in relation to requiring housing affordability impact notes in relation to certain rules

Purpose or general idea of bill

To require every agency proposing a rule or regulation which increases or decreases the cost of housing to include a note which provides an estimate of the rulers impact on hous- ing.

Summary of specific provisions

This bill would add a new Section 202-f to the State Administrative Procedure Act requiring that every state agency proposing the adoption, repeal, or amendment of any rule affect- ing the cost of single-family residences to present along with the rule a housing affordability impact note. The Division of Housing and Commu- nity Renewal, the Housing Finance Agency, and the State of New York Mortgage Agency are excluded. The note must contain a reliable estimate of the anticipated impact of the rule on such housing. Any agency proposing such a rule would be required to present a copy of the rule with a request for a housing affordability impact note to the Division of Housing and Community Renewal. The Division would have to prepare the note and submit it to the agency within five calendar days, unless an extension is needed. Any extension, though, could not exceed 30 days. In preparing the note, the Division could solicit assistance from a state- wide trade organization representing the real estate or home building industry. If the Division determines that rule's impact, a statement to that effect may be filed with the rule. The housing affordability note itself would have to be factual in nature and would have to provide a reliable estimate in dollars of the rule's housing impact. It must also include both the immediate and long-range effect of the measure. The note must be prepared on the basis of a single-family residence and may include an estimate for a larger development as an analysis of the long- range effect of the measure. If the Division determines that no dollar estimate is possible, the note must contain a statement to that effect setting forth the reasons why no dollar estimate can be given. In addi- tion, no comment or opinion can be included in the note with regard to the merits of the measure; however, technical or mechanical defects may be noted.

Effects of present law which this bill would alter

Adds a new Section 202-f to the State Administrative Procedure Act.

Justification

Many factors enter into the equation for determining the cost of building affordable housing. These factors are not necessarily limited to the cost of labor and materials but may include costs related to the regulatory barriers, environmental concerns, permits, infrastruc- ture, and tax considerations. This bill reflects an attempt to identify the costs of constructing or purchasing residential housing which results from the promulgation of regulations. By doing so, it is hoped that these costs can be decreased or limited.

Prior legislative history

A3S20 of 1996; A4915 of 2004; A1001 of 2006; A5729 of 2008; A3874 of 2009

Fiscal implications for state and local governments

None.

Effective date

The first day of January next succeeding the date on which it becomes law.