New bill seeks to reform how AMI is calculated for 421a projects

Affordability would be calculated based on individual zip codes

TRD New York /
Feb.February 21, 2017 09:15 AM

A new bill seeks to change how affordability in housing projects is calculated, a measure that could dramatically reshape the makeup of projects built under a new 421a.

Democratic State Senator Michael Gianaris and Assemblymember Brian Barnwell introduced legislation that would change how area media income (AMI) is calculated. The U.S. Department of Housing and Urban Development looks at AMI regionally, using a formula that lumps the five boroughs together with Putnam, Westchester, and Rockland counties. For 2016, the HUD placed the region’s AMI at $65,200.

The proposed legislation would require affordable housing developers to instead calculate AMI based on the specific zip code of the area where the project is being built.

“It shouldn’t matter what is affordable in Westchester to determine what is affordable in Queens,” Barnwell said in a statement. “This proposal will help lifelong residents of the area to be better able to actually afford the new housing. No longer will lifelong residents be forced out due to gentrification.”

The bill specifically singles out 421a projects — though the legislation doesn’t use the new proposed name for the program, Affordable New York — noting that these and other affordable housing developments would be required to use the new AMI formula. The latest proposal to revive the tax abatement offers six different affordability options, requiring a certain number of units in each project to be for tenants making anywhere from 40 percent to 130 percent of AMI.

Last week, Upper East Side Sen. Liz Krueger criticized one option that extends a 35-year abatement to projects citywide and requires 30 percent of each project’s units to be at 130 percent of AMI, which she said isn’t sufficiently affordable.

The new proposed rules would apply to future projects and not those that are already approved under previous contracts.


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo has given the go-ahead to reopen schools for in-person learning statewide (Getty; iStock)

School’s back on. Will the NYC resi market follow suit?

School’s back on. Will the NYC resi market follow suit?
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
111 Leroy Street and 817 Fifth Avenue (StreetEasy, Google Maps)

Luxury deals plummet in Manhattan — again

Luxury deals plummet in Manhattan — again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...