GOVERNOR HOCHUL's 2024 BUDGET FUELS AFFORDABLE HOUSING MOMENTUM IN UPSATE NEW YORK
With the passage of the Fiscal Year 2024 Budget, Governor Kathy Hochul made significant strides toward making “the Empire State a more affordable, more livable, safer place for all New Yorkers.” The 2024 Budget includes a number of new programs and protections that benefit affordable housing developers and owners, as well as support the development of new affordable housing throughout New York State.
“The Governor and Legislature have created new and significant tools to address the housing crisis facing New Yorkers. As former New York State Housing Commissioner, I see great possibilities and look forward to working with our clients to put these tools to their best use in order to create and preserve housing opportunities for all New Yorkers.” Brian E. Lawlor, of counsel.
The following is a summary of the affordable housing initiatives included that are available to new and existing projects in Upstate New York:
Funding for New Housing Programs
The budget provides funding to the Division of Housing and Community Renewal for the following housing programs:
$40 Million for Infill Housing: Funding for the construction, preservation, or rehabilitation of small infill homes in areas outside of New York City, with priority given to projects in Buffalo, Rochester, Syracuse, Albany, and Binghamton.
$40 Million for Land Banks: Funding for land banks to use toward the redevelopment of blighted and abandoned properties.
$75 Million for NY Housing of the Future Rental Program and $75 Million for NY Housing for the Future Co-Op Program: Funding to support the development of limited equity cooperative housing and income-limited rental housing on appropriate sites, including state-owned, municipal, or not-for-profit-owned properties. The programs aim to create homeownership and rental opportunities for households earning up to 130% of AMI. Additionally, projects will be entitled to real property tax exemptions without the formation of a housing development fund company.
$40 Million for Vacant Apartment Repair and Rehabilitation: Funding to support the repair and rehabilitation of vacant apartments (5 units or less) outside of New York City.
$250 Million for Providing Housing on Underutilized Sites: Funding for the redevelopment of underutilized sies for housing, which will be administered through the New York State Urban Development Corporation. Funding can be used for acquisition, planning, and other costs incidental to the redevelopment project.
Tax Exemptions for Affordable Housing and Accessory Dwelling Units
Real Property Tax Law §§421-p & 421-pp. The budget provides real property tax exemptions under new Sections 421-p and 421-pp of the Real Property Tax Law. Municipalities (other than New York City) and school districts may adopt a local law or resolution opting into the exemption, which will provide real property tax exemptions for affordable housing multi-family rental properties constructed or converted in designated “benefit areas” located within the municipality.
Prohibition Against Insurance Discrimination
The budget also amends New York’s insurance laws to provide a strong shield of protection for affordable housing property owners from insurance discrimination. Insurers are now prohibited from canceling coverage, refusing to issue policies, or adjusting premiums based on whether the property provides affordable rentals, receives Section 8 vouchers, or the tenants' source of income. This robust protection also prevents discrimination due to buildings owned by limited equity cooperatives, public housing authorities, or cooperative housing corporations, ensuring the security and stability of our affordable housing sector.
Conclusion
The measures outlined in the New York State budget represent a significant step forward in supporting the affordable housing industry in Upstate New York. Industry professionals should consider how these provisions can benefit their projects and the communities they serve. If you have questions or wish to learn more about these opportunities, please contact Brian Lawlor (blawlor@woh.com), Daniel Hubbell (dhubbell@woh.com), David Craft (dcraft@woh.com) or any of our other attorneys at (518) 487-7600.
