NYS to receive $270M in federal funding for affordable housing, Hochul says

ALBANY — New York will receive $270 million to create affordable, low-income housing at 28 developments across the state, including nearly $24 million for Long Island, Gov. Kathy Hochul announced Tuesday.

The funding, through the federal Low-Income Housing Tax Credit and subsidies, is expected to build or preserve more than 1,800 homes, Hochul said at a news conference.

Projects include $8.9 million for a 53-unit mixed-use Port Jefferson Commons development in Port Jefferson, and $15 million for the 96-unit One Carleton Green development in Central Islip, according to a news release.

"These critical federal resources make it possible for us to provide New Yorkers with new opportunities to access affordable, modern, sustainable homes that also provide access to child care, supportive services, and the amenities that individuals and families need to thrive," Hochul, a Democrat, said in the release.

Meanwhile Tuesday, Nassau County Republicans held a news conference in Floral Park to criticize proposed housing-related legislation in the State Legislature that would create a state authority to develop affordable housing.

The legislation was not included in Hochul’s budget proposal or the one-house budget proposals released by the Democratic majorities in the Senate and Assembly. 

Hochul's announcement comes as state and federal governments look to combat an affordable housing crisis by increasing housing supply, particularly in areas with high costs of living, such as Long Island.

The federal funding is expected to help the state meet the five-year, $25 billion housing goal set under Hochul to create or preserve 100,000 affordable homes. The state is halfway to meeting its goal, having created or restored 55,000 homes, Hochul said.

Financing for the federal credit is through New York State Homes and Community Renewal, which has allocated $61 million in federal and state low-income tax credits and more than $200 million in subsidies for the 28 projects, according to Hochul's news release.

The projects awarded the funding must meet sustainability standards and each development will offer free broadband internet services to residents, according to the release.

"If we want to solve our historic home shortage, we must invest in affordable housing," U.S. Rep. Paul Tonko (D-Amsterdam) said in the release. "Supporting affordable, sustainable housing benefits everyone in our communities."

On Long Island, lawmakers have often criticized Hochul over past proposals to build more housing statewide.

Hochul, early in her tenure, proposed construction mandates and incentives to boost housing, as well as giving the state the authority to override local zoning laws if goals weren't met. The proposal was met with outrage from suburbanites, particularly on Long Island.

Nassau Republican lawmakers on Tuesday stressed the need for local governments to have control over zoning decisions, which often determine where housing can be built.

Hempstead Supervisor Donald X. Clavin Jr., North Hempstead Supervisor Jennifer DeSena and Oyster Bay Supervisor Joseph Saladino criticized state legislators for introducing a bill that would create a New York State Social Housing Development Authority for the "construction, acquisition, and rehabilitation of permanently affordable housing," according to the bill.

Social housing often involves government financing of housing in partnership with nonprofits, with units remaining permanently affordable after construction, said Susanne Schindler, a research fellow at the Harvard Joint Center for Housing Studies.

The New York bill proposes an authority that would acquire and renovate housing with rents capped at 25% of tenants’ gross incomes.

Such an authority wouldn’t be responsive to Long Island residents’ opinions on housing proposals, Clavin said. "When residents are opposed to something, you do the right thing and you don’t approve it, because that’s what the residents want."

The proposal would give the authority the ability to purchase properties, but it doesn't appear to give it any special power that would override local law. The bill would require the authority to "develop policies and procedures for engaging with local community members, elected officials, and other local leaders in the determination of project sites and the evaluation of development proposals" and also to "incorporate community feedback into the development of project proposals."