New York Assembly Bill A05905

New York 2025-2026 Regular Session

• Introduced: 2/24/25
• Refer: 2/24/25
• Refer: 1/7/26

Caption

Requires affordable housing units to be equally distributed throughout building projects.

Summary

This bill amends New York’s real property tax law, specifically the 421-a affordable housing tax incentive provisions, to require that affordable units in qualifying projects be proportionally dispersed throughout a development rather than concentrated on certain floors, in separate buildings, or in isolated areas. It also requires affordable units to have equal access to common spaces, amenities, and ingress and egress routes as market-rate units. The bill includes a local flexibility provision for cities with populations of one million or more, allowing the city council to waive the dispersion and equal-access requirements by majority vote for a particular project. It also states that projects completed before the effective date must still comply with the equal-access requirement, and the act would take effect immediately and apply to projects still under construction when it becomes effective.

Impact

The bill would change the conditions attached to the 421-a property tax exemption for certain affordable housing projects by imposing design and placement standards on affordable units. Developers receiving the benefit would need to integrate affordable units more evenly throughout buildings and ensure residents have the same access to amenities and building circulation as market-rate tenants. In New York City, the bill would also give the city council authority to waive these requirements for specific projects, which could affect how the incentive is administered locally and how projects are planned, financed, and approved.

Sentiment

The available record does not include committee debate or recorded votes, so there is no direct evidence of support or opposition from transcripts. Based on the bill text and caption, the measure appears aimed at promoting more equitable and less segregated affordable housing placement within mixed-income developments, suggesting a policy rationale centered on fairness and integration. The inclusion of a waiver for large cities indicates an effort to balance that goal with local discretion and project-specific flexibility.

Contention

The main likely point of contention is whether mandating the distribution of affordable units throughout a project is an appropriate state-level requirement or an unnecessary constraint on development design and financing. Developers and some housing stakeholders may object to the added compliance burden or to limits on how projects are configured, while housing advocates may support the bill as a way to prevent the isolation of affordable tenants and ensure equal treatment. The waiver provision for cities of one million or more suggests that local officials may want flexibility, and that tension between uniform statewide standards and local control is the bill’s clearest policy issue.