BILL NUMBER: S3397B
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to enacting the
"faith-based affordable housing act" and residential development on
religious land
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow religious corporations to bypass restrictive and regressive
zoning barriers in order to build affordable housing on their land
 
SUMMARY OF PROVISIONS:
Section one of this bill names it the "Faith-Based Affordable Housing
Act."
Section two adds a new section 96-c to the General Municipal Law which
stipulates that places of worship such as temples, churches, mosques,
and synagogues are allowed to bypass local zoning laws that restrict
their ability to develop their land, so long as they meet the following
requirements:
The organization must be building mixed-income or 100% affordable hous-
ing, which can be either rental or coop units. Inside New York City, the
building must conform to the City's Mandatory Inclusionary Housing (MIH)
affordability standards:
- Option 1: 25% of units are set aside for households earning 60% area
median income (AMI), with 5% set aside for 40% AMI
- Option 2: 30% of units set aside for 80% AMI
- Option 3: 20% of units set aside for 40% AM
Outside of New York City, where market-rate property cannot cross subsi-
dize as much affordable housing, the building would need to set aside at
least 20% of units for 80% AMI.
The affordability requirements prescribed in the bill would be a mini-
mum, however, and would not prevent a developer from building more deep-
ly affordable housing if they so chose.
The property must be solely owned by the religious organization, who
will typically partner with a developer to build the affordable housing
via a sale or long-term ground lease of their property. While this bill
does not prescribe specific ownership structures, it's important to note
that in many cases a religious organization is simply providing the
property that the affordable housing is built on rather than building it
themselves.
The housing must contain at least four units.
The construction must be primarily residential. New buildings, for exam-
ple, cannot dedicate more than 35% of floor area to non-residential
purposes (such as religious, educational, charitable, or community
facility use).
The housing adheres to the following density limits:
- No more than ten feet above the height otherwise allowed on the parcel
and 30 units per acre, or 2.2 FAR if the property is located in New York
City
- For publicly financed buildings, no more than twenty feet above the
height otherwise allowed on the parcel and 50 units per acre, or 3.0 FAR
if the property is located in New York City
Within New York City, developers could also cite a higher density within
800 feet (approximately one block) of the parcel if one exists.
As publicly financed developments such as those receiving Low-Income
Housing Tax Credits (LIHTC) are heavily subsidized and thus more afford-
able than mixed-income housing, this latter 20' category would act as a
density bonus for deeply affordable housing.
Outside of New York City, however, total development on a covered parcel
would not be able to exceed 100 units or five percent of the existing
housing stock, whichever is lower, unless the parcel is within 1/4 mile
of a transit station, in which case the overall size of the development
would be capped at 250 residential units.
Affordable units must be physically integrated into the design of the
development and distributed among various sizes (studio, one-, two-,
three- and four-bedroom units) in the same proportion as other units.
Affordable units must be distributed evenly among floors and cannot have
less than 90% of the floor area of market rate units. Affordable units
should not be distinguishable from market-rate units from the building
exterior and should have the same interior furnishings. Affordable units
should not have a separate entrance to common amenities or charge addi-
tional fees for access to common areas.
When a religious organization is selling or leasing land, they must
undergo a Division of Housing and Community Renewal (DHCR)-approved
training on real estate development, funding sources for affordable
housing, types and selection of vendors, and a review of the statutory
requirements for such sale or lease.
Localities can reasonably regulate the construction of sidewalks, rear
yards, side yards, and curb cuts for accessory parking or loading so
long as it does not impede the full development of the building. They
cannot otherwise impose requirements such as the provision of off-street
parking, minimum, maximum, or average unit sizes, the prioritization of
units to residents of certain neighborhoods, the prioritization of hous-
ing units for any age group, minimum purchase prices for coops, the
adherence to any local building or fire code beyond the standard code,
the provision of municipal services or utility access, density or
affordability requirements other than what is prescribed in the bill, or
any other requirement deemed by a court to impede the full development
of affordable housing on the land. Localities also cannot demand more
than $0.25 per square foot for permits and may not charge other fees.
Building departments shall ministerially and without discretionary
review or a hearing process applications for building permits under the
bill within sixty days of an application, unless the application is
incomplete or deficient, in which case the locality must tell the appli-
cant how they can remedy and resubmit the application.
Full environmental reviews under the State Environmental Quality Review
Act (SEQRA) would not be required so long as the landowner submits the
following certifications: that a Phase I Environmental Site Assessment
(ESA) has been completed, that soil and water testing has been completed
pursuant to Department of Environmental Conservation (DEC) standards,
and that a qualified environmental professional attests that the build-
ing will not violate state wetland or drinking water laws.
In the event that a coop building is resold, the units must be similarly
restricted by the AMI levels set above for new shareholders.
The bill would preserve all existing laws and regulations which regulate
how a property that has been designated a historic landmark by a locali-
ty may be altered. In New York City, for example, this means that a
faith-based organization wishing to alter a landmarked church would be
unable to do so before securing a certificate of appropriateness from
the NYC Landmarks Preservation Commission.
Parties that do not receive a timely processing of their application, or
are unfairly denied, have recourse under Article 78 of the Civil Prac-
tice Law and Rules. Attorneys fees against a local government who does
not prevail in an Article 78 proceeding are permitted.
DHCR, the NYS Attorney General, and DEC would promulgate regulations
within a year on enforcement mechanisms to ensure permanent affordabili-
ty, occupancy standards, marketing and leasing standards, and the
content of the training that must be undertaken by a religious organiza-
tion in the event of a sale or lease. Such marketing standards would
include that the housing would need to conform to existing human and
civil rights laws, such as but not limited to the federal Fair Housing
Act (42 USC § 3601-19) and Article 15 of the NYS Executive Law, which
prevent any property owner from considering an applicant's religious
beliefs or practices.
DHCR shall provide technical assistance to localities as necessary.
Section three of the bill sets the effective date.
 
JUSTIFICATION:
New York State faces a dire housing affordability crisis, leading to
nation-leading homelessness rates and median rents and co-op prices that
are out of reach for the majority of low- and middle-income renters and
shareholders. In August 2023, the average monthly rent for an apartment
in New York City jumped to a record-high $5,600 - despite the fact that,
according to the city's most recent Housing and Vacancy Survey, the
median renter household in NYC makes only $50,000 a year. A study from
the Regional Plan Association shows that the state needs to build
817,000 more homes over the next decade just to meet expected population
and job growth - yet restrictive and outdated zoning rules in munici-
palities across the state stand in our way.
Following the recent precedent of other states who have enacted as-of-
right development laws for faith-based organizations, such as Washington
and California, this bill recognizes the unique role that houses of
worship play as pillars of the communities. they serve. In addition to
acting as spiritual and emotional havens for their congregations, houses
of worship frequently take on the role of food pantry, job training
center, clothing distribution center, direct aid provider, and safe
haven for adults and families experiencing homelessness. They produce
economic halo effects, creating on average over $140,000 of value per
year through the contribution of volunteer time, space at below market
rates, and cash and in-kind donations to community-serving programs.
Four out of five individuals who visit a house of worship are benefici-
aries of the organization's programming rather than members, and houses
of worship attract millions of visitors a year while raising the proper-
ty values of those around them.
Yet, despite the many benefits they provide, faith-based organizations
often find themselves in precarious financial positions due to the
expensive upkeep of their historic properties. They are land-rich but
cash-poor, often subsisting off of fixed or slow-growing income supports
while their expenses rise. When they seek to redevelop their property
with affordable housing, providing a sorely needed public good while
shoring up revenue, they run into zoning barriers that prevent them from
doing so.
This bill, the Faith-Based Affordable Housing Act, would dramatically
accelerate the timeline on which affordable housing on religious proper-
ty can be built while reducing bureaucratic hurdles. It allows houses of
worship such as temples, synagogues, mosques, and churches to bypass
local zoning rules so long as they are building affordable housing that
complies with reasonable density standards. Localities would not be able
to impose burdensome regulations on affordable developments such as the
provision of off-street parking or adherence to new building codes that
render such development impractical or prohibitively expensive to
pursue. Building departments would ministerially review applications,
and congregations would be able to bypass full environmental impact
assessments required under SEQRA in favor of simpler certifications more
appropriately curtailed to the size and scope of the development.
The housing would also go to support localities by generating signif-
icant new revenue, since it would be subject to property taxes just like
any other kind of housing. The tax exemption in Real Property Tax Law
(RPTL) § 420-a that faith-based organizations currently receive for
their properties, which applies narrowly to land that they actually own
and which is used exclusively for religious or charitable purposes, i.e.
chapels, would not apply, as the new residential housing would not meet
this definition under RPTL.
This bill represents a thoughtful approach to our state's housing crisis
by allowing those organizations which have always served as pillars of
their community to provide the public good of affordable housing. It
provides a means through which faith-based organizations can realize the
full value of their land, ensuring that they are able to retain their
properties for years to come while respecting the local context and
history of the neighborhoods they serve. In creating a simpler, more
streamlined approach to building permitting for churches with parking
lots and other land not currently zoned yet perfectly suited for resi-
dential use, New York will be helping maintain some of our most cele-
brated community nexuses while creating badly needed affordable housing.
 
PRIOR LEGISLATIVE HISTORY:
2024: S7791A - Referred to Housing, Construction and Community Develop-
ment
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
Immediate