What's happening
This bill requires affordable housing programs in New York City to calculate area median income (AMI) based on the specific zip code of each project.
Why it matters
Targets housing affordability more precisely. By basing AMI calculations on individual zip codes rather than a citywide or regional average, the bill aims to ensure affordable housing programs better reflect local income realities, potentially making units more accessible to lower-income residents in high-cost neighborhoods.
Could reshape eligibility for affordable housing. The change may alter who qualifies for affordable housing in different neighborhoods, possibly tightening eligibility in wealthier areas and expanding it in lower-income zip codes—affecting both applicants and developers.
Potential impact on development incentives and project feasibility. Developers may need to adjust project plans or financing, as localized AMI calculations could change the required rent levels, influencing where and how much affordable housing is built throughout New York City.
Addresses concerns about displacement and gentrification. The bill responds to criticism that current citywide AMI measures overstate affordability in gentrifying areas, aiming to reduce displacement by aligning affordable housing requirements more closely with neighborhood residents’ actual incomes.
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Who cares
Headline styles
Use Zip Code for AMI
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
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.
Use Local Income for Housing
In Assembly Committee · Housing · Sponsor Brian Barnwell
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4572
2017-2018 Regular Sessions
IN SENATE
February 17, 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 real property tax law, in relation to requiring that affordable housing programs in a city having a population of one million or more to calculate the area median income based on the specific zip code in which the project will be located
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 421-a of the real property tax law is amended by adding a new paragraph e to read as follows:
e. "Area Median Income (AMI)." Whenever calculating the affordability of a project, AMI shall be based solely on the specific zip code where the project shall be located. This definition shall only apply to new multiple dwellings located in cities having a population of one million or more.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10159-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to requiring that affordable housing programs in a city having a population of one million or more to calculate the area median income based on the specific zip code in which the project will be located
Purpose
To create actual affordable housing by requiring the use of the particular zip code's AMI in determining affordability levels. In calculating affordability, the local zip code's AMI will be used, rather than regional AMI figures that inflate affordability levels in some counties.
Summary of provisions
When determining the Area Median Income (AMI) for all affordable housing projects, the AMI for the particular project shall be calculated by determining the AMI in the specific zip code where the project is located. The local zip code's AMI shall be the sole number to be used for all affordability purposes and calculations.
Justification
In determining affordability for affordable housing purposes, New York uses a number known as the area median income (AMI) which is determined on an annual basis by the U.S. Department of Housing and Urban Development. New York, like any other state, has diverse zip codes where the area median income differs greatly. The current formula used for affordability often results in increasing the overall AMI for neighborhoods by grouping more affluent neighborhoods with lesser affluent neighborhoods in the same calculation. Because of this grouping, currently, when housing is being built in lesser affluent neighborhoods, the AMI of that neighborhood is calculated to be higher than it actually is. Because of this calculation, when projects are built, countless numbers of individuals are no longer able to afford housing in their own community. This forces lifelong residents to move away. By no longer using a "regional" AMI formula that increases the AMI for lesser affluent neighborhoods, an AMI calculation based solely on the zip-code where the project is being located is a step in the right direction to actually have affordable housing in the neighborhood where the project is located.
A great example of how AMI is currently used to increase what is deemed affordable in a particular area is seen in New York City. AMI for the five boroughs is calculated together with the AMI of Putnam County. The residents in the five boroughs all have different income levels. There is also a great discrepancy in the income levels between Putnam County with the five boroughs. Therefore, it is unfair in determining what is affordable in a particular area in New York City by (1) grouping all the boroughs together; and (2) by grouping other non-New York City counties in the affordability calculation.
Determining AMI for affordability projects under a zip code specific approach will more accurately reflect the affordability in that particular zip code where the project is being located, rather than the current formula of using the Metropolitan region AMI. Under this proposal, affordable housing being built in a specific area will actually reflect the median income of the people who already live there.
Legislative history
2017: A6228 (Barnwell)
Fiscal impact
None
Effective date
This act shall take effect immediately for all future projects NOT already agreed to and signed under previous contracts.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.