What's happening
This bill requires new multiple dwellings in New York City to have at least 40% affordable units to qualify for certain tax benefits.
Why it matters
Significantly raises the affordability standard. By requiring that at least 40% of units in new multiple dwellings be affordable, the bill sets a much higher bar than many previous requirements, which often mandated a lower share. This could lead to a larger portion of new housing stock being accessible to lower- and moderate-income residents.
Targets affordability to local income levels. The bill ties affordability to the mean household income of each specific zip code, rather than using citywide or regional averages. This ensures that “affordable” units are genuinely within financial reach for people living in the immediate neighborhood, addressing concerns that broad averages can price out locals.
Limits tax benefits as leverage. Developers will only qualify for valuable property tax exemptions (under section 421-a) if they meet the new affordability threshold, using tax incentives as a tool to push for deeper and broader affordability rather than offering them for minimal affordable set-asides.
Potentially reshapes development economics. By making the tax benefit contingent on a high percentage of affordable units, the measure could influence how and where developers choose to build, potentially reducing purely luxury developments but possibly impacting overall housing production if developers find the threshold too high.
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Who cares
Headline styles
Require Affordable Housing Units
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1451
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sen. AVELLA -- 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 administrative code of the city of New York, in relation to certain exemptions on multiple dwellings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The administrative code of the city of New York is amended by adding a new section 11-245.10 to read as follows:
§ 11-245.10 Exemption on certain multiple dwellings. Notwithstanding any provisions of law to the contrary, no benefits under section four hundred twenty-one-a of the real property tax law shall be available for any new multiple dwelling on any tax lots now existing or hereafter created for which construction is commenced on or after the effective date of this section unless no fewer than forty percent of the dwelling units in such multiple dwelling are affordable to and made available for occupancy by individuals or families whose household incomes, respectively, are equal to or less than the mean household income for individuals and families within the zip code of the area in which the proposed dwelling is to be constructed.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01190-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, in relation to certain exemptions on multiple dwellings
Purpose or general idea of bill
The purpose of this bill is to change the calculation of the income eligibility criteria for new housing construction participating in the 421-a property tax benefit program so that such calculation is not distorted by income levels outside of the community in which the new construction is located.
Summary of provisions
Section 1 of the bill amends the administrative code of the city of New York by adding a new section 11-245.10, which would require no fewer than 40 percent of the dwelling units in new multiple dwellings to be made affordable and available for occupancy by individuals or families whose household incomes, respectively, are equal to or less than the mean household income for individuals and families within the zip code of the area in which the proposed dwelling is to be constructed, for such a dwelling to be eligible to receive benefits under section 421-a of the real property tax law.
Section 2 provides for this act to take effect immediately.
Justification
Real property tax benefits for the construction of new housing should be structured in a way that provides the maximum amount of affordable housing to those truly in need. This has not always been the case, in part, because the current calculation of the Area Median Income includes zip codes that inflate the calculation. Accordingly, when the City confers benefits pursuant to section 421-a, the income eligibility criteria for individuals and families should be more closely related to the income levels of the population within the communities where these units are located. This bill would make sure that the income eligibility calculation only uses incomes of individuals and families in the zip code of the area in which the proposed dwelling is to be constructed.
Prior legislative history
None.
Fiscal implications
To be determined.
Effective date
This act shall be effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.