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S6949Senate2019-2020 SessionSame asA8985

Adjust Rental Surcharge Rules

Official title

“Relates to persons and families in company projects who are required to pay a rental surcharge”

Sponsor Brian KavanaghSD-26Affects Housing
Status
In Assembly Committee
Housing
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 5 of 7

In Assembly · Housing

What's happening

This bill amends rental surcharge calculations for certain low-income families in company housing projects, adjusting income limitation formulas.

Why it matters

  1. Protects current tenants from sudden rent increases. by specifying that existing low-income families in company housing who qualified under older, more generous income limits (“seven times” or “eight times” rent, depending on family size) will continue to have their surcharges calculated under those formulas, rather than stricter new ones.

  2. Helps prevent displacement of vulnerable tenants. by ensuring that families with two or fewer dependents who were eligible prior to the 2019 law change, and larger families with three or more dependents, are not penalized by newly tightened income eligibility rules.

  3. Clarifies and preserves continuity. by explicitly stating which income limitation and surcharge formula applies to which groups, reducing confusion for tenants and housing providers and helping households better predict housing costs.

  4. Reinforces the intent of affordable housing policy. by maintaining access for families who would otherwise lose protections due to changes in state law, supporting household stability in company housing projects.

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Who cares

Headline styles

Adjust Rental Surcharge Rules

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Brian Kavanagh

Senator · Senate District 26

Chair, Housing, Construction And Community Development

No co-sponsors yet.

History

  1. Referred to housing
  2. Delivered to assembly
  3. Passed senateVote 56–4
  4. Ordered to third reading cal.28
  5. Referred to rules
  6. Referred to rules

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.

A8985Assembly

Limit Rent Surcharges

In Assembly Committee · Ways And Means · Sponsor Steven Cymbrowitz

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6949

IN SENATE

January 6, 2020

Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the private housing finance law, in relation to persons and families in company projects who are required to pay a rental surcharge

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (a) of subdivision 2 of section 31 of the private housing finance law, as amended by a chapter of the laws of 2019, amending the private housing finance law relating to the aggregate annual income of low income persons or families eligible for accommodations in a company project, as proposed in legislative bills numbers S.4133 and A.5350, is amended to read as follows:

(a) The dwelling or non-housekeeping accommodations without board in a company project shall be available for persons or families of low income whose probable aggregate annual income at the time of admission and during the period of occupancy does not exceed, the greater of (i) the median income for such persons or families for the metropolitan statistical area in which the project is located, or if a project is located outside a metropolitan statistical area, the median income for such persons or families for the county in which the project is located, as most recently determined by the United States department of housing and urban development, in which case any person or family becoming eligible for admission pursuant to this subparagraph shall pay, from the time of admission, a rental surcharge as provided for in subdivision three of this section, computed on the basis of the income limitations applicable to such persons or families in the absence of this subparagraph, or (ii) eight times the rental, including the value or cost to them of heat, light, water and cooking fuel, of the dwellings that may be furnished to such persons or families, except that in the case of families with three or more dependents, such ratio shall not exceed nine to one. Persons or families with two or less dependents eligible for admission or continued occupancy pursuant to subparagraph (ii) of this paragraph or subparagraph (ii) of this paragraph prior to the effective date of a chapter of

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

S LBD09545-02-9

S. 6949 2

the laws of two thousand nineteen that amended subparagraph (ii) of this paragraph, shall pay a rental surcharge computed on the basis of an income limitation of seven times the rental and families with three or more dependents eligible for admission or continued occupancy pursuant to subparagraph (ii) of this paragraph or subparagraph (ii) of this paragraph prior to the effective date of a chapter of the laws of two thousand nineteen that amended subparagraph (ii) of this paragraph, shall pay a rental surcharge computed on the basis of an income limitation of eight times the cost of the rental, including in each instance the value or cost to the persons or families of heat, light, water and cooking fuel, of the dwellings furnished to such persons or families.

The "probable aggregate annual income" in the case of dwelling accommodations means the annual income of the chief wage earner of the family, plus all other income of other members of the family over the age of twenty-one years, plus a proportion of income of gainfully employed members under the age of twenty-one years, the proportion to be determined by the company as approved by the commissioner or the supervising agency, as the case may be, excluding therefrom a deduction of fifteen thousand dollars from the income of secondary wage earners of the family or a larger deduction if approved by the commissioner or the supervising agency, as the case may be, except that the company, as approved by the commissioner or the supervising agency, as the case may be, may exclude a proportion of the income of other members of the family over the age of twenty-one years for the purpose of determining eligibility for admission or continued occupancy, or for establishing the rental of such family, or for all such purposes; in the case of such non-housekeeping accommodations it means the annual income of the occupant, provided that the commissioner or supervising agency, as the case may be, may make rules and regulations relative to the allocation of the income of a family among the members thereof for the purpose of determining the income attributable to such occupant.

§ 2. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the private housing finance law relating to the aggregate annual income of low income persons or families eligible for accommodations in a company project, as proposed in legislative bills numbers S.4133 and A.5350, takes effect.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the private housing finance law, in relation to persons and families in company projects who are required to pay a rental surcharge

Purpose

This is a chapter amendment that makes changes to provisions of L.2019, ch. 726.

Summary of provisions

Current household income restrictions range from $50,000 to $95,000 (depending on household size) for Mitchell-Lama rental units. This bill allows households with $9,000 to over $30,000 (depending on household size) more in annual income to be eligible for admission to rent Mitc- hell-Lama units.

Justification

This bill expands the number of households eligible to apply for a rental unit in a Mitchell-Lama development by increasing the maximum income limit from 7 times the annual rent for 1-3 person households and 8 times the annual rent for 4+ person households to 8 and 9 times the annual rent, respectively. The bill, as written, unintentionally elimi- nates surcharges based on maximum eligible income for entry by increas- ing the maximum eligible income for entry.

Surcharges are calculated into the building's overall budget and help to keep rents for lower income households low. Without surcharges, HPD and the Executive believe more buildings will request budget-based rent increases, which are spread out over all units, regardless of the tenant's household income.

The chapter amendment would allow tenants to be eligible for admission at the higher income of 8/9x the annual rent, but would maintain the status quo of requiring tenants with household incomes at or above the 7/8x ratio to pay a surcharge, in addition to their base rent.

Legislative history

Chapter amendment to Chapter 726 of the Laws of 2019.

Fiscal implications

None

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.