FINANCE

NEW YORK STATE HOUSING COMMISSIONER DEFENDS BUDGET AMID LEGISLATIVE SKEPTICISM ON FUNDING GAPS Albany — New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas defended Governor Hochul's 2024-2025 housing budget before joint legislative committees Wednesday, emphasizing the urgency of the state's housing crisis while facing pointed questions from lawmakers about missing funding for established programs. Visnauskas cited alarming data to underscore the crisis: New York City's rental vacancy rate stands at 1.41 percent, the lowest in 56 years, with virtually no availability for units renting below $2,400. A healthy vacancy rate ranges between 5 and 8 percent, she noted. The commissioner reported that the state is on track to create and preserve nearly 40,000 affordable homes in the first two years of the Governor's $25 billion five-year Housing Plan. She highlighted accomplishments including expending all $450 million in American Recovery Act funds to assist 18,000 households, providing $26 million to 24 land banks, and awarding $12 million through a Clean Energy Initiative. However, Assembly Housing Chair Linda Rosenthal and Senate Housing Chair Brian Kavanagh (filling in for Finance Chair Liz Krueger) pressed Visnauskas on significant funding gaps. Rosenthal questioned why the Executive Budget includes no funding for HOPP (Housing Opportunities for People with Pets) or increases for Neighborhood and Rural Preservation Programs, despite their demonstrated success and oversubscription. "Why weren't these programs important enough for the Governor to fund?" Rosenthal asked. Visnauskas responded that the Legislature would need to add such funding. Sen. Kavanagh focused on the vagueness of major initiatives. He questioned the $250 million allocation for repurposing state properties for housing, noting it lacks clear affordability requirements or parameters for the 15,000 units the administration hopes to produce. He also questioned why the Empire State Development Corporation, rather than HCR, would manage the capital allocation, and requested a list of potential sites. On the Pro-Housing Communities program—launched by executive order in July 2023—Kavanagh sought clarity on its legal authority and mechanics. Visnauskas confirmed that 20 localities have been certified so far, with about 100 others in process. She explained that localities must submit annual permit data to maintain certification, effectively creating an ongoing accountability mechanism. Assemblyman Keith Brown, substituting as Housing ranker, raised concerns about SUNY campus housing proposals at Farmingdale and Stony Brook, asking whether the administration had discussed unit counts, eligibility criteria, and local coordination with supervisors. Visnauskas acknowledged she had not been involved in conversations with SUNY leadership about their specific needs. The hearing also surfaced questions about the 421-a tax exemption program, which expired and has not been renewed. Visnauskas confirmed that 70 percent of the 70,000 units produced between 2010 and 2020 utilized the exemption, and that its absence has contributed to a significant drop in rental housing permits in 2023. The hearing was the 13th and final in a series of joint fiscal committee hearings on the Governor's proposed budget. Additional testimony from housing advocates, industry representatives, and tenant organizations was scheduled to follow. NEW YORK — Housing Commissioner Visnauskas defended the Governor's 2024-2025 housing budget proposal before a joint legislative committee Wednesday, fielding pointed questions about rent-stabilized housing maintenance, tenant protections, and the state's new Pro-Housing Community certification program. The commissioner announced a $40 million "Resilient and Ready" program to help homeowners make flood-mitigation improvements, responding to criticism from Sen. Helming about slow state response to July flooding in Ontario County that left many residents ineligible for federal assistance. On rent-stabilized housing, Visnauskas acknowledged a dramatic decline in major capital improvement applications over five years but resisted calls for stronger intervention, saying HCR has not seen a corresponding rise in housing code violations. Assemblyman Ra cited New York City's latest housing vacancy survey showing the first increase in 35 years in dilapidated conditions in rent-stabilized units, and questioned whether the $15,000 cap on improvements over 15 years made sense given building age and maintenance needs. Sen. Myrie emphasized tenant protections, citing Comptroller DiNapoli's report showing evictions up 180 percent since the pandemic moratorium ended but still 27 percent below pre-pandemic levels due to the Housing Stability and Tenant Protection Act. He raised concerns about the lack of capital funding for NYCHA in the executive budget. The commissioner detailed the Pro-Housing Community program, which conditions discretionary state grants on municipal certification. Twenty communities have been certified so far, with approximately 100 more in process. Sen. Hoylman-Sigal pressed on enforcement, asking whether the state could claw back grants if localities failed to meet commitments. Visnauskas said the program uses incentives, not penalties, but localities must submit ongoing data to remain certified or lose eligibility for future rounds. On a proposed new tax abatement for rental construction (485-x), Visnauskas acknowledged that key details—including the level of abatement and affordability requirements—remain to be negotiated with New York City, prompting Assemblyman Dilan to question whether the Legislature would be voting on a proposal without knowing specifics. Visnauskas also disclosed that HCR is hiring approximately 30 additional people to address a backlog of rent overcharge complaints, citing challenges with civil service hiring processes. Sen. Salazar asked what the Legislature could do to help; Visnauskas said the agency is working with the Department of Civil Service to adjust job classifications to attract more applicants. The hearing was interrupted briefly by protesters objecting to the testimony process, but Chairwoman Weinstein clarified that all individuals and organizations that submitted testimony according to posted rules were listed to testify, and those who failed to submit could do so in writing by end of day. NEW YORK STATE HOUSING BUDGET HEARING HIGHLIGHTS TENSIONS OVER AFFORDABILITY, SUPPLY, AND COMMUNITY CONTROL A joint legislative hearing on the 2024-2025 Executive Budget revealed sharp disagreements between state housing officials and lawmakers over how to address New York's affordability crisis, with particular tension over whether building more housing or ensuring affordability should take priority. Housing and Community Renewal Commissioner Visnauskus defended the Governor's proposed $500 million RUSH program to develop 15,000 housing units on state-owned property, emphasizing that increased housing supply is the primary tool to relieve pressure on the market. However, multiple legislators challenged this approach, arguing that supply-side solutions alone will not help low-income New Yorkers if new units remain unaffordable. Sen. Cleare (D-Manhattan) made the strongest case for direct state housing development, noting that over 50 percent of her district pays more than 30 percent of income in rent, with median incomes of just $43,000 in New York City and $53,000 statewide for Black communities. "Never has anyone walked into my office and said you've got to get us some more luxury housing," she said, calling for a return to the Mitchell-Lama model of state-developed housing rather than relying on private developers. Assemblyman Braunstein (D-Queens) raised concerns about the Creedmoor site, noting that ESDC proposed 2,800 units in eight-story buildings despite community recommendations for 1,000 units of varied types. He questioned whether future RUSH projects would similarly override local zoning through General Project Plans without genuine community agreement. Sen. Borrello (R-Cattaraugus) challenged the state's $3 billion rent assistance program, citing a Politico report and saying the state did a "pretty poor job" verifying hardship, with property owners reporting tenants who could pay simply stopped paying rent. He also raised concerns about workforce housing projects losing their designation due to inflation during development timelines. Assemblywoman Tapia (D-Bronx) highlighted source-of-income discrimination against voucher holders and criticized new buildings in her district requiring $107,000 minimum income for studios in a neighborhood with $39,000 median income, calling it "fostering gentrification." The Commissioner acknowledged the state allocates $2 million for fair housing testing and noted HCR achieved 29 percent MWBE contracting last year, exceeding 60 percent in procurement. He also disclosed that of 40,000 affordable homes created or preserved, about 10,000 are new and over 20,000 are preserved. The hearing, held Feb. 14 before the Senate Finance Committee, underscored the challenge of balancing housing supply with affordability and community input in New York's ongoing housing crisis. NEW YORK — Housing Commissioner Visnauskas defended the Hochul administration's supply-focused approach to the state's affordable housing crisis at a joint legislative budget hearing Wednesday, arguing that building 800,000 units over the next decade—double the prior decade's output—is essential to addressing affordability. But lawmakers and housing advocates pushed back, with several testifiers arguing that supply alone cannot solve the immediate crisis facing cost-burdened renters and deteriorating affordable housing stock. The hearing on the 2024-2025 Executive Budget revealed sharp disagreements over housing strategy. While Visnauskas cited 18 Gowanus projects that will create 5,000 units including 1,400 permanently affordable units, Assemblywoman Kelles countered that new construction takes years—citing a 47-year national average for the full development process—while renters face eviction today. "We can walk and chew gum at the same time," she said, urging support for immediate relief measures including expanded Housing Access Voucher Programs and renter protections. Assemblyman Taylor expressed frustration over conditions at Mitchell-Lama properties, describing a $150 million capital improvement project at Esplanade Gardens where residents lack adequate electricity and have brown water, despite rent increases. "The sun is setting on a lot of their lives, and they can't even stay there anymore," he said. Advocates testified on multiple fronts. The New York State Association for Affordable Housing requested $250 million for an affordable housing relief fund to address pandemic-related financial distress, while the Neighborhood Preservation Coalition opposed a proposed $4.8 million budget cut to the Neighborhood Preservation Program, warning it would harm frontline workers. The Community Preservation Corporation cited a 51 percent statewide renter cost burden and called for restoration of the expired 421-a tax credit through legislation 485-x. Insurance discrimination emerged as a bipartisan concern. Multiple testifiers, including public housing authority directors, urged passage of legislation prohibiting insurers from discriminating against affordable housing properties or Section 8 voucher holders. Per-unit insurance premiums have increased 17 percent annually since 2020, a 50 percent jump from pre-pandemic rates, according to CPC. The hearing also featured testimony supporting legalization of basement apartments in New York City. Sylvia Morse of Basement Apartments Safe for Everyone urged passage of Article VII, Part S, noting that current Multiple Dwelling Law requirements create prohibitive conversion costs—six figures in the East New York pilot—that prevent safety upgrades in units housing tens of thousands of New Yorkers, particularly in communities of color. She cited 11 deaths in subgrade units during Hurricane Ida. Sen. Kavanagh clarified that New York City has not yet applied for Pro-Housing Community status, which would make it ineligible for programs like the Downtown Revitalization Initiative unless it demonstrates commitment to removing housing development barriers. He also established that the state's 40,000 vacant apartments—4 percent of stock—align with the historic 5 percent threshold for declaring a housing emergency, suggesting current vacancy levels are not abnormal despite some warehousing concerns. NEW YORK — Housing advocates and legal services providers testified before the state Legislature on Wednesday that proposed budget cuts to affordable housing programs and legal services would undermine efforts to address the state's housing crisis, while also raising concerns about the feasibility of the Governor's basement apartment legalization proposal. The joint Finance Committee hearing on the 2024-2025 Executive Budget revealed deep disagreements over housing policy priorities. Advocates for the Homeowner Protection Program, which provides legal services and housing counseling, called for full restoration of $40 million in funding after the Governor's budget proposed eliminating it. Jay Inwald of Legal Services NYC criticized the characterization of HOPP as merely a "legislative add," calling it an annual exercise that forces advocates to repeatedly fight for funding that should be permanent. Christie Peale of the Center for New York City Neighborhoods testified that HOPP serves 15,000 families annually and has served 120,000 over more than a decade, saving the state $1.2 billion annually in property value preservation and taxes. She noted that 75 percent of HOPP clients in New York City are people of color, making the program a racial justice issue. Randy Dillard of the Right to Counsel Coalition called for $260 million in state funding to implement statewide right to counsel for tenants facing eviction under bill S2721. He cited data showing that after right to counsel was implemented in New York City in 2017, 84 percent of represented tenants stayed in their homes, evictions dropped 40 percent, and landlord lawsuits decreased 30 percent. Assemblyman Braunstein raised significant concerns about the Governor's basement apartment legalization proposal, questioning whether it adequately addresses safety regulations, noting that conversion costs estimated at $300,000 to $500,000 per unit are prohibitive, and pointing out that the proposal would subsidize illegal landlords while prohibiting legal homeowners from converting basement apartments. Ms. Morse of the BASE program responded that the Multiple Dwelling Law drives up costs and that New York City's Building and Housing Maintenance Codes provide adequate safety regulation. Mark Streb of the Neighborhood Preservation Coalition testified that a proposed $30,000 cut to each of approximately 134 NPCs would eliminate 20-30 hours of weekly staff work per organization, representing a 33-34 percent funding reduction during a housing crisis. He noted that last year marked the first funding increase after decades of flat funding. The hearing also addressed the Emergency Rental Assistance Program, with Mr. Simmons of the Syracuse Housing Authority noting that the program helped address $2.3 million in arrears in Syracuse and allowed families previously prohibited from public housing to access it. The committee heard testimony on multiple housing initiatives including affordable housing relief funds, 421-a tax credit reforms, and legal services expansion, with advocates generally supportive of the Governor's proposals but seeking additional funding and modifications to address implementation concerns. NEW YORK — Tenant advocates and legal services providers testified before the Senate Finance Committee on February 14 that a proposed housing package being negotiated at leadership level is 'totally unacceptable,' warning that it would reimpose vacancy decontrol protections and leave millions of unregulated tenants without basic eviction defenses. Michael McKee, treasurer of the Tenants Political Action Committee, told lawmakers that the package includes three problematic provisions: a watered-down version of good-cause eviction, another iteration of the failed 421-a tax credit program, and a 'CHIP/REBNY vacancy reset bill' that he characterized as 'a wolf in sheep's clothing' that would harm long-term rent-stabilized tenants. 'It took us 25 years to repeal vacancy decontrol; we are not about to sit silent while it gets reimposed,' McKee said, noting that approximately 1.6 million unregulated tenants statewide would be left unprotected under the proposed language. McKee also urged oversight hearings into the implementation of ETPA-Upstate New York in Kingston and Newburgh, describing 'mass confusion' and landlord misconduct in Kingston, where seven families—six of them Black—were evicted from a building despite being technically protected by the law, because they could not afford lawyers. However, Sen. Brian Kavanagh pushed back, stating: 'There is not at this point a bill that's being cooked up that I'm aware of that includes the elements that you referred to.' He expressed concern about the budget process where programs are zeroed out in January and then restored. Testifiers also praised a new social housing development authority bill introduced by Sen. Cordell Cleare and Assemblymember Emily Gallagher, which McKee called 'a new Mitchell-Lama program.' McKee cited Vienna's social housing model, where 62 percent of residents live in some form of social housing with rents around 600 euros ($650). Legal services providers testified about the critical need for right to counsel protections and adequate funding. Randy Dillard requested $260 million to support lawyers, organizers, and administrative infrastructure for a statewide right to counsel program. Jacob Inwald of Legal Services NYC emphasized that preserving homeownership through foreclosure defense is essential to preventing gentrification and the loss of affordable housing. Sen. Jackson expressed strong support for right to counsel, stating it 'should be for everyone going into the courts.' Sen. Cleare raised concerns about gentrification in his Harlem district and the exodus of Black residents from New York State, asking what legislative solutions could preserve diverse communities. The hearing highlighted deep divisions over housing policy, with tenant advocates demanding strong protections and legal services funding, while some lawmakers expressed skepticism about the scope and feasibility of proposed reforms. NEW YORK STATE LEGISLATURE HEARS HOUSING CRISIS TESTIMONY; LABOR, DEVELOPERS, ADVOCATES CLASH ON SOLUTIONS Albany — A joint legislative budget committee hearing on New York's 2024-2025 housing budget revealed deep divisions over how to address the state's affordability crisis, with labor unions and housing advocates largely supporting the Governor's tax incentive proposals while some nonprofits warned against prioritizing market-rate development. The hearing, held Feb. 14, featured six panels of testifiers addressing the expiration of the 421-a tax incentive program in 2022, which caused residential construction projections in New York City to plummet from 30,000 to 11,000 units annually. The Governor's proposed 485-x replacement program would save over 33,000 rental units currently in the pipeline, according to the New York Building Congress. Manny Pastreich of 32BJ SEIU, representing nearly 100,000 working New Yorkers, painted a stark picture of the labor crisis: approximately 13,000 of his members live outside New York City with commutes exceeding one hour, and a few hundred live in Pennsylvania with two-hour commutes. He cited data showing that from 2010 to 2020, New York City's population increased by 630,000 residents and gained a million jobs, but housing stock grew by only 200,000 units. "That's literally the definition of demand overwhelming supply," Pastreich said. The panelists largely agreed on the need for an "all-tools approach" combining supply-side solutions, tenant protections, and rental assistance. Annemarie Gray of Open New York advocated for state-level zoning reforms, noting that New York's 1.4 percent apartment vacancy rate is the lowest in over 50 years. Bria Donohue of the American Institute of Architects highlighted office-to-residential conversions as a key opportunity, noting that extending the Multiple Dwelling Law eligibility date from 1961 to 1990 would open approximately 120 million square feet of office space for conversion. However, Emily Goldstein of the Association for Neighborhood and Housing Development broke ranks, opposing the 485-x replacement, arguing it primarily uses public resources for market-rate housing rather than affordable units. She emphasized that many nonprofit affordable housing buildings still carry pandemic-era rental arrears. Sen. Myrie pressed panelists on whether the Legislature could simultaneously address housing supply, zoning restrictions, and tenant protections. All agreed it was feasible. Sen. Martins of Nassau County pushed back against the term "exclusionary zoning," arguing that some economically challenged communities prefer market-rate development in their downtowns. Assemblywoman Rosenthal raised concerns about 213,000 eviction filings statewide in the previous year, questioning whether supply-focused solutions adequately address immediate tenant needs. Panelists responded by advocating for right-to-counsel legislation, good-cause eviction protections, and a Housing Access Voucher Program. New York State legislators heard urgent testimony Wednesday on the state's deepening housing crisis, with advocates calling for billions in new funding and policy changes to address evictions, homelessness, and deteriorating public housing conditions. At a joint Finance Committee hearing on the 2024-2025 Executive Budget, testifiers presented stark data: housing prices have surged 40 percent since the pandemic, New York ranks second nationally for homelessness, and nearly 200,000 eviction filings occurred in 2022. Research presented by the NAACP Legal Defense Fund documented severe racial disparities, finding Black New Yorkers are 4.6 times more likely to face eviction threats than white residents, and counties with higher Black renter populations experience dramatically higher eviction rates. Barbara Williams, a 33-year public housing resident in Washington Heights, delivered emotional testimony about uninhabitable conditions in NYCHA buildings, describing apartments with no kitchens, black mold, and roach infestations. She requested $4.5 billion in state capital repairs to preserve 40,000 public housing units, noting that 800 residents at her development face eviction for rent arrears because public housing residents were excluded from pandemic aid. Advocates pushed for passage of good-cause eviction protections, the Housing Access Voucher Program, and increased funding for fair housing testing—requesting an increase from $2 million to $8 million annually. Rural housing representatives testified that the Governor's budget cuts funding for programs serving rural communities, including the Rural Preservation Program and USDA 515 preservation efforts. They warned that approximately 15,000 rural households could lose their homes as USDA mortgages expire. Sen. Kavanagh and Sen. May, chair of the Legislative Commission on Rural Resources, engaged substantively with testifiers, with May stating she is "fighting to put these programs back in the budget." The hearing underscored deep divisions between the Legislature and Governor Hochul's administration on housing priorities, with advocates criticizing the Governor for catering to real estate interests while residents face displacement and homelessness. The New York State Senate Finance Committee concluded its 2024-2025 Executive Budget hearings on February 14, with housing policy as the final topic under review. The hearing highlighted a geographic divide in housing needs, with Assemblywoman Rosenthal emphasizing that while much discussion centered on New York City's housing challenges, rural and upstate communities face equally pressing struggles to maintain affordable housing and remain economically viable. Rosenthal pledged to advocate for increased funding for housing support across all regions of the state, signaling legislative intent to address housing affordability beyond urban centers. The hearing was chaired by Chairwoman Helene Weinstein, with Sen. Kavanagh serving as cochair. Weinstein thanked Sen. Liz Krueger for her work coordinating all budget hearings, along with Assemblyman Ra and Sen. O'Mara for their participation. The conclusion of the housing hearing marked the end of the full budget hearing cycle for the 2024-2025 Executive Budget. The transcript excerpt does not include substantive testimony from the housing panel itself, focusing instead on closing remarks from legislators.