What's happening
This bill changes eligibility for low-income housing tax credits by replacing the "40-90" test with a "60-125" test.
Why it matters
Expands eligibility for low-income housing tax credits to higher-income households. By changing the threshold from "40-90" to "60-125," the bill allows buildings where at least 60% of units are both rent-restricted and occupied by individuals earning up to 125% of the area median income (AMI), rather than being limited to those earning 90% or less. This could help middle-income families who previously did not qualify for these units.
Potentially increases the supply of mixed-income housing. The new test encourages developers to include more moderate- and middle-income residents, which may help promote economically diverse communities and reduce concentrations of poverty in certain neighborhoods.
Could change the financial dynamics for developers. With the higher income limit, projects may become more financially viable, as a larger pool of potential tenants may support stronger cash flow, potentially spurring more housing development, especially in high-cost areas.
May affect the allocation of resources for the lowest-income households. While the change broadens eligibility, it could also mean that fewer units are reserved for those at the bottom of the income scale, possibly impacting the most vulnerable populations if not balanced by other policy measures.
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Who cares
Headline styles
Broaden Housing Tax Credit
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
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Housing Tax Credit Access
In Assembly Committee · Housing · Sponsor Latrice Walker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3624
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
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 housing tax credit eligibility
The People of the State of New York, represented in Senate and Assembly, 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 chapter 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 disregarded 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.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07400-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the 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 (low (extremely income) credit low 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 fox 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
2015-16: S.2762/A.6813 - Referred to Housing, Construction and Community Development 2014: S.7527 - Referred to Housing Construction and Community Development
Fiscal implications
TBD
Effective date
This act shall take place immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.