Committee on Land Use

Summary

This local law, Int. No. 1433, sponsored by Council Members Dinowitz, Louis, Ayala, Stevens, Gennaro, Brooks-Powers, Feliz, Farías, Brewer, Avilés, Hudson, Riley, Menin, Banks, Zhuang, Hanif, Narcisse, Gutiérrez and the Public Advocate (Mr. Williams), amends Title 26 of the New York City administrative code. It establishes minimum percentages for 2- and 3-bedroom rental units in projects receiving city financial assistance.

Key Provisions:

• Unit Mix Requirements: The Department of Housing Preservation and Development (HPD) must ensure that, over every 5-year period starting from the law's effective date, the aggregate number of units in city-funded construction or rehabilitation projects includes:
  • 2-bedroom units: No less than the citywide percentage of households with 3 or 4 members, based on the most recent 5-year American Community Survey data.
  • 3-bedroom units: No less than the citywide percentage of households with 5 or more members, based on the most recent 5-year American Community Survey data.
• Borough Distribution: To promote equitable distribution, no more than 35 percent of these required 2- and 3-bedroom units can be located in a single borough.
• Effective Date: The law takes effect immediately upon enactment.

Justification:
The legislation aims to address a shortage of affordable 2- and 3-bedroom units for larger households, noting that many families with 3 or more members struggle to find suitable housing, leading to overcrowding. Data indicates that only 8.1% of new construction affordable units financed by the city between 2015-2024 were 3-bedrooms or larger.

Fiscal Impact & Concerns:
While the City Council's Finance Division and the Office of Management and Budget (OMB) initially estimated no direct impact on revenues or expenditures, OMB's capital impact analysis suggests a potential $16,000 cost premium per development unit and a 15% decrease in new construction unit production. HPD, in its testimony, expressed "deep concern," estimating that the requirements could add ~$49,000 per dwelling unit and would "significantly increase per-unit costs, reduce the total number of homes HPD can finance, and make it harder to achieve overall housing goals." HPD also argued that its current targets already exceed demand for larger units, citing Housing Connect data where 81% of profiles are for 1- or 2-person households. The New York Housing Conference also opposed legislating these requirements, advocating for flexibility through HPD's term sheets.

Citizen Impact

This law aims to increase the availability of affordable 2- and 3-bedroom apartments in city-funded projects, potentially reducing overcrowding for larger families. However, HPD warns it could lead to higher per-unit costs or a reduction in the total number of new affordable homes built.

Confidence

medium

Thinking

• This is a proposed local law to amend the NYC administrative code.
• The law specifically targets city-funded rental housing projects for older adults.
• It concerns the 'maximum citywide percentage of studio apartments' in these projects.
• The agenda item title does not specify whether this maximum percentage will be increased or decreased.
• The full text of the local law is not provided, only the agenda item title.

Summary

This item proposes a local law to amend the administrative code of New York City, focusing on city-funded rental housing projects for older adults. The amendment will adjust the maximum citywide percentage of studio apartments allowed in these projects, though the specific change (increase or decrease) is not detailed in the agenda title.

Citizen Impact

This local law could alter the availability and mix of studio apartments in future city-funded rental housing developments for older adults, potentially impacting housing choices for seniors.

Confidence

medium

Summary

This local law, Int. No. 1443, sponsored by Council Members Nurse, Louis, Brewer, Hanif, Stevens, Gutiérrez, and Public Advocate Williams, amends the New York City administrative code to mandate specific affordability targets for rental units in projects receiving city financial assistance. The Department of Housing Preservation and Development (HPD) must ensure that, on average over any five-consecutive-fiscal-year period, at least 30% of all dwelling units in city-assisted projects are affordable for extremely low-income (ELI) households (no more than 30% of Area Median Income, e.g., $43,740 for a family of three) and at least 20% are affordable for very low-income (VLI) households (more than 30% but no more than 50% of AMI, e.g., $72,900 for a family of three). Units designated for homeless individuals/families and supportive housing will count towards the ELI requirement. This legislation aims to address the significant housing needs of the most rent-burdened New Yorkers, as nearly 50% of renter households are ELI or VLI. The law takes effect immediately and is not anticipated to have a direct fiscal impact on city expenses or revenue, as it directs the allocation of existing financial assistance.

Citizen Impact

This law directly benefits extremely low-income and very low-income New Yorkers by ensuring a greater supply of housing they can afford. It provides crucial support for the 820,000 ELI and 440,000 VLI households who are most vulnerable to rent burden, making it easier for them to find stable and affordable homes.

Confidence

high