421-a Extension AMI changes (low income, tenants, construction)

[Posthomealone]

As I understand it, Hochul’s budget is due by the end of this month and she’s pitching to extend 421-a by a few years. I remember reading somewhere that she was going to bring down the AMI brackets as an incentive for affordable housing organizations to back this extension, but haven’t been able to find more real info (even speculative) but perhaps I’m looking in the wrong places. Does anyone have intel? And if so… does the lower AMI apply to buildings already under construction or only those that file for permits post budget approval? Am just trying to build some hope that this 130% AMI is on the way out for us in need of more affordable housing.

[linamonroll]

Originally Posted by Posthomealone

As I understand it, Hochul’s budget is due by the end of this month and she’s pitching to extend 421-a by a few years. I remember reading somewhere that she was going to bring down the AMI brackets as an incentive for affordable housing organizations to back this extension, but haven’t been able to find more real info (even speculative) but perhaps I’m looking in the wrong places. Does anyone have intel? And if so… does the lower AMI apply to buildings already under construction or only those that file for permits post budget approval? Am just trying to build some hope that this 130% AMI is on the way out for us in need of more affordable housing.

I have no insight on this actual proposal but will (almost definitely) not be retroactive. If a building has already been approved under the old rules, it will continue to move forward under the old rules. They would face all kinds of lawsuits if they changed the rules for approved buildings because developers have secured financing relying on the various tax incentives of the old program.

[Gilmoregal]

I guess we will find out in April when the new AMIs come out

[BugsyPal]

Originally Posted by Posthomealone

As I understand it, Hochul’s budget is due by the end of this month and she’s pitching to extend 421-a by a few years. I remember reading somewhere that she was going to bring down the AMI brackets as an incentive for affordable housing organizations to back this extension, but haven’t been able to find more real info (even speculative) but perhaps I’m looking in the wrong places. Does anyone have intel? And if so… does the lower AMI apply to buildings already under construction or only those that file for permits post budget approval? Am just trying to build some hope that this 130% AMI is on the way out for us in need of more affordable housing.

AMI brackets are part of contractual deal done at the time, they are not retroactive.

Indeed backdating (making something retroactive) normally is illegal unless some very specific details apply.

IIRC governor is pushing for 80% AMI which while better than 130% to 165% isn't low enough to satisfy usual suspects. They want all or most at or < 50% AMI, which just is not going to happen.

Lower AMI means deeper subsidy required from somewhere or developers won't build a GD thing.

Entire premise of "low income" and "affordable housing" is market rate tenants pay more to help subsidize lower income tenants. Between this and various tax incentives that allow these lottery projects to go forward.