On March 15th, one-house budget bills were passed by the Assembly and Senate as part of the NY State FY 2017 budget process in which lawmakers are expected to enact a budget by April 1.  NYHC applauds both houses for budgets that will significantly increase investment to affordable housing and for supporting Governor Cuomo’s budget proposal for a statewide affordable housing plan.

  • Both bills propose approximately $2 billion in new funding for Governor Cuomo’s proposed 5-year Housing Program offered in his Executive Budget.  Details of the Housing Program are expected to be released by HCR this spring.  While neither house has programmed the $2 billion in their appropriation bills to match their funding priorities, the Assembly has identified key priorities for the new program as outlined below, including $100 million in funding for NYCHA and the establishment of a new senior housing program, which NYHC has been advocating for.  It is unclear how this will play out in budget negotiations since funding priorities are not being specified in the budget bills and the Housing Program is very broadly defined to cover most HCR finance programs and State housing initiatives in the Executive Budget.
  • Neither the Assembly nor the Senate budget bills include PACB or ESDC approvals for bond projects, which is a good sign for budget negotiations later this month.  NYHC strongly opposes new PACB and ESDC approvals for bond projects (PACB is also tied to appropriations in the new Housing Program in the Executive Budget), which we believe will be very damaging for affordable housing production.

The Assembly and Senate also propose several new housing policy initiatives in their one-house bills.  However, it seems unlikely that most of them will find support in budget negotiations.  The only new initiative found in both bills, with only slight differences in oversight, is a community restoration fund to create a mortgage note purchase program among other activities related to foreclosure recovery.  Here are housing highlights from the one house bills:

ASSEMBLY HOUSING BUDGET
The Assembly budget for the most part follows the appropriations outlined in the Governor’s Executive Budget for about $2 billion in capital from the general fund and $150 million in capital from the Mortgage Insurance Fund in FY2017.  While not specified in the budget bills, Assembly priorities for funding in a 5-year housing plan are as follows according to a press release:

  • $100 million per year, for NYCHA capital repairs;
  • $50 million per year, for the repair and revitalization of Mitchell-Lama properties;
  • $30 million per year, for a Senior Affordable Housing Program;
  • $25 million per year, for a State version of Section 8 Voucher Program;
  • $25 million per year, for a Foreclosure Prevention Program;
  • $25 million per year, for the Low Income Housing Trust Fund; and
  • $10 million per year, for Public Housing Modernization

The Assembly budget also includes legislative language to establish the following new programs:

  • New Senior Housing Finance Program funding projects up to $75k per unit serving residents age 62+ earning less than 60% AMI.  NYHC supports this new program and recommends raising the per unit subsidy limitation to ensure it is sufficient to create housing affordable to low-income seniors, especially if there is not a financeable rental assistance program included in projects. NYHC advocates for $50 million per year for this program to prepare for our growing senior population.
  • New York State Community and Housing Stabilization Fund creates a new HCR program to purchase mortgage notes on one to four unit homes at discounted rates among other uses aimed at improving revitalizing distressed properties and aiding homeowners/properties in foreclosure. This program was recommended in our NYHC 2017 policy priorities and we hope to see it funded!
  • New Rental Assistance Program aiding households earning less than 50% AMI, this program is modeled on the federal Section 8 Housing Choice Voucher Program. 50% of vouchers will target households earning 30% AMI and less. Rental assistance is critical to create housing opportunities for very low-income households. We are eager to learn more about this proposal, which would require multi-year funding to provide sufficient stability to tenants and landlords.

For more information on Assembly policy proposals: https://assembly.state.ny.us/2016budget/?sec=assembly_proposal

SENATE BUDGET
The Senate’s housing budget also mirrors the Governor’s proposal but funds the new housing program at $1.83 billion instead of $1.97 billion as per Executive and Assembly budgets.  Many of the new housing initiatives and proposed policy changes outlined in the Senate originate from the Independent Democratic Conference as follows:

  • Middle-income Housing Credit– Similar to the State Low Income Housing Credit, a Middle Income Housing Credit is proposed for multifamily residential buildings housing families earning up to 130% AMI. NYHC is supportive of mixed-income projects and more tools to finance them.
  • Community Reinvestment Program Fund– The program is designed to be controlled by the state comptroller to purchase mortgage notes on one to four unit homes at discounted rates among other uses aimed at improving revitalizing distressed properties and aiding homeowners/properties in foreclosure. NYHC supports this program aimed at mitigating the impact of the foreclosure crisis and creating new affordable homeownership opportunities across the State.
  • New Supportive Housing Siting & Renewal Approval requires the NYC Planning Commission to hold a public community forum prior to approving the location or continued operation of a supportive housing facility or social services center. NYHC strongly opposes this new approval that may foster NIMBYism.
  • NYCHA Proposals NYHC supports State funding for NYCHA in line with their strategic capital plan and operational improvements outlined in the comprehensive Next Generation NYCHA Plan.
    • New York City Housing Authority Repair Certificate Program to grant zoning benefits to developers which perform capital repairs to housing projects.  The NYC Planning Commission would grant amendments to zoning resolutions which increase the allowable development in areas covered by a NYCHA repair certificate. It is unclear how this program trading repairs in public housing for zoning in other parts of the city could work.
    • New Authority for the New York City Council to Oversee NYCHA mandates that NYCHA produce reports about any facets of its operations or the condition of the projects under its management, including any project based Section 8 voucher developments in which the authority has an ownership  stake.
    • Establishes the Public Housing Revitalization Fund providing monies to NYCHA for the repair, reconstruction, rehabilitation and upgrade of projects in order to prevent further deterioration.  Funds will be available only until January 1, 2017 unless a reform plan from the New York City Housing Authority laying out proposals for the streamlining of its operations has been received.
    • Establishes Preferences for NYCHA Waitlists including a preference for veterans for public housing and provides homeless domestic violence victims the same preference as granted to the homeless for public housing and Section 8 vouchers.
  • Rural Mobile Home Replacement Program– Allocated $5 million through the Mortgage Insurance Fund (MIF), the new program would grant up to $75,000 to eliminate older, dilapidated mobile homes and replace them with new modular or stick-built homes on site.
  • Establishes New Senior Heating Assistance Program in which OTDA administers a program for heating assistance payments or allowances to residents 65 years of age or older and who do not receive assistance under the low-income energy assistance program and having an annual household income of $50,000 or less for a single person household or $75,000 or less for a household of two or more.
  • Extends SCRIE and DRIE benefit to rent-burdened households. Dwelling units may qualify for an abatement of taxes to cover rent increases in cases where households are paying a maximum rent or legal regulated rent which exceeds one-half of the combined income of all members of the households.

For more information on Senate policy proposals see bill number S64 for the 2016-2017 state fiscal year: https://public.leginfo.state.ny.us/navigate.cgi?NVDTO: