New York State’s existing five-year housing plan ends March 31, 2021. Given the importance of housing, the low costs of borrowing, and the need for consistent and predictable funding, the state should renew the commitment to affordable housing and create a new five-year housing plan starting in state fiscal year 2021-2022.
In a new policy brief by the New York Housing Conference, we find that the debt service costs in the first five years are small relative to the spending and the housing and economic impact. We also find that now is a good time to borrow to fund the capital budget. Stimulus spending during recessions can shorten and lessen the economic downturn, while interest rates are currently near historic lows and state bond ratings remaining high.
Read the policy brief here.