FINANCE

NEW YORK STATE SENATE FINANCE COMMITTEE — The state's housing commissioner defended the Governor's $1.025 billion commitment to New York City's City of Yes program during a joint legislative budget hearing on February 27, asserting the funding would flow directly through the state housing agency into affordable housing projects with long-term affordability protections. Commissioner RuthAnne Visnauskas of New York State Homes and Community Renewal testified that the City of Yes initiative, which the city projects will add 80,000 housing units through zoning reforms, would be paired with state funding targeted exclusively toward affordable housing—including new rental construction, homeownership opportunities, and preservation of existing stock like Mitchell-Lama buildings. Assemblyman Michael Novakhov, a Republican, pressed Visnauskas on whether the state could trust the city to properly spend the funds given "existing uncertainties at City Hall" and whether a new mayoral administration would continue the program. Visnauskas responded that state funding would follow standard program guidelines and income-testing requirements, and that projects would need local approvals before receiving financing. Sen. Brian Kavanagh, the Senate Housing Committee chair, focused on implementation details of several new initiatives, including a mixed-income revolving loan fund designed to unlock stalled rental projects by providing construction financing when interest rates and capital costs make projects unviable. Visnauskas said the fund would operate as a second mortgage, with money expected to return to the fund within approximately 24 months as projects complete and convert to permanent financing. Visnauskas reported that the state's five-year Housing Plan has surpassed the halfway point, creating and preserving 55,000 affordable homes toward a goal of 100,000. The plan includes 4,200 homes with support services for vulnerable individuals and 5,700 mortgages to first-time low-income homebuyers. She also highlighted 277 certified municipalities in the Pro-Housing Communities Program and noted that the 421-a tax incentive extension resulted in 71,000 units in stalled projects applying for the benefit. Assemblywoman Linda Rosenthal, the Assembly Housing Committee chair, questioned the commissioner on enforcement of rent-stabilized apartment registration requirements, noting that fines for non-registration resulted in 100,000 to 200,000 additional apartments registering on-time. She also raised concerns about Mitchell-Lama buildings in precarious financial condition and asked whether the state should invest more capital to stabilize them. Visnauskas said the state invests $50 to $100 million annually in Mitchell-Lamas and is excited about the proposed reduction in shelter rent tax exemptions from 10 to 5 percent, which would impact over 160 Mitchell-Lama buildings. Rosenthal also pressed Visnauskas on contingency planning should the federal government cease funding Section 8 vouchers and other HUD programs. Visnauskas acknowledged there is "no great answer" if HUD programs disappear, saying the state would rely on the federal government to continue funding programs that have existed since 1978. The hearing was the 14th in a series of joint fiscal committee hearings on the Governor's 2025-2026 budget proposal. New York State Housing Commissioner Visnauskas faced pointed questions about housing affordability, program capacity, and regional disparities during a joint legislative budget hearing on February 27, as lawmakers challenged whether billions in proposed spending will meaningfully address the state's housing crisis. The Commissioner defended the executive budget's housing initiatives, including a $1 billion "City of Yes" program for New York City, $50 million for modular housing development, and measures to restrict institutional investor purchases of single-family homes. However, legislators from across the state raised concerns about whether these investments adequately address homelessness, infrastructure constraints, and affordability. Sen. Helming (R) directly challenged the disconnect between substantial housing spending and persistent homelessness, noting that New York has the highest veteran homelessness rate in the nation except Hawaii. She questioned whether $100 million allocated for Pro-Housing Communities infrastructure would be sufficient, citing a builder's estimate of $3.2 million just to bring electric capacity to 186 homes in an upstate community. Assemblywoman Lee raised concerns about oversight of a $50 million capital improvement project at Knickerbocker Village in Manhattan, where tenants reported unannounced contractor visits and lack of quality control. She questioned whether $6,000 was adequate funding for tenant representation at an upcoming regulatory hearing. Assemblyman Chang challenged the mathematical feasibility of reducing housing costs while labor, materials, and environmental compliance costs rise, and questioned whether modular housing solutions apply to New York City, where most housing funding is directed. Sen. Walczyk pressed the Commissioner on data gaps regarding institutional investor ownership of single-family homes and sought clarification on how proposed algorithmic restrictions would function in practice. The Commissioner acknowledged the state lacks a comprehensive database tracking institutional investor-owned homes. Assemblywoman Torres highlighted insurance costs for multifamily affordable housing rising 103 percent over four years, with average annual costs reaching $1,700 per unit, threatening the viability of affordable housing developments. She also advocated for more family-size units in Bronx development rather than studios. The Commissioner acknowledged housing pressures across the state but defended the flexibility of proposed programs, noting that HCR still has over $100 million to spend on public housing authorities and $1.2 billion in supportive housing funding. She stated the state built 400,000 units over the past decade but needs to double that production to 800,000 units over the next 10 years to meet job growth demands. Sen. Cleare raised concerns about affordability on state-owned land, noting that units in the Seneca project rent for $44,000 annually in a community with $55,000 average pretax income, and highlighted seven-year waiting lists for senior housing. NEW YORK — Housing Commissioner Visnauskas faced pointed questioning from state legislators on Wednesday over the lack of spending details in the Governor's $1 billion City of Yes housing program and concerns that major initiatives remain underfunded and slow to deploy. At a joint legislative hearing on the 2025-2026 Executive Budget, Sen. Tom O'Mara (R-Batavia) expressed skepticism about the vague language surrounding how the $1 billion state commitment would be spent, noting there is no detailed outline for allocation across Mitchell-Lama properties, NYCHA, preservation, or new construction. "It is concerning to me, with the lack of detail, and it frankly should be to everybody in the Legislature," O'Mara said, comparing it to another $1 billion Sustainable Futures Program with similarly sparse guidance. Visnauskas said the funding would flow through existing state housing programs but acknowledged the details would be negotiated during the budget process. The Commissioner also confirmed the state has committed $2 billion to match the City of New York's $2 billion contribution to City of Yes. Chairwoman Liz Krueger (D-Manhattan) raised alarm about the slow pace of supportive housing deployment, noting that while the state targets 10,000 supportive housing units (7,000 new, 3,000 preservation), groups are unable to access $250 million in dedicated funding. She also expressed skepticism that a proposed 75-day waiting period on institutional investor purchases of single-family homes would meaningfully slow corporate real estate acquisition, citing national data showing private equity ownership of single-family homes has grown from 1,000 to nearly 1 million in two decades. Assemblywoman Chantel Jackson (D-Manhattan) pressed Visnauskas on enforcement mechanisms for Mitchell-Lama property maintenance, questioning whether the state has real leverage to ensure owners complete capital repairs identified in yearly assessments. "It doesn't sound like there's much to the enforcement part," Jackson said. Visnauskas reported that 278 municipalities have been certified for the Pro-Housing Communities Program with $650 million available exclusively to them, and another 150-200 have submitted letters of intent. First awards of $100-125 million were announced last month. However, Assemblywoman Levenberg noted communities are struggling to access infrastructure funding needed to support housing development, particularly for water, sewer, and electrical upgrades. The hearing also surfaced concerns about underfunded programs. Assemblywoman Kelles reported that the Low Income Housing Tax Credit and Small Rental Development Initiative are heavily oversubscribed, with only about half of applicants able to be funded. She noted Ithaca has experienced a 274 percent increase in homeless children over 14 years and a 50 percent increase in the last two years alone. Visnauskas acknowledged the state has spent over half of a $300 million senior housing allocation and is well on track for the 7,000 new supportive housing units, but preservation projects have proven more difficult to execute. She also highlighted a successful NYCHA pilot program in Woodside, Queens, that achieved 87 percent cost reductions through heat pump retrofits, suggesting potential for broader energy efficiency initiatives. The hearing revealed a pattern: while the state has committed substantial capital—$4.5 billion over five years with over $3 billion to be spent—legislators across both chambers expressed frustration that programs remain oversubscribed, deployment is slow, and critical infrastructure gaps persist. The budget process will determine whether additional funding and clearer spending guidelines are provided. NEW YORK — Housing advocates and public housing officials urged the state Legislature on Thursday to significantly increase funding for affordable housing preservation, modernization, and community services, warning that without additional investment, thousands of units could be lost to financial distress and deteriorating conditions. The testimony came during a joint legislative hearing on the 2025-2026 Executive Budget on Housing, where representatives from five housing organizations presented detailed requests for state funding while largely praising the Governor's housing initiatives. The most contentious moment involved the Neighborhood Preservation Coalition's Mark Streb, who sharply criticized the Governor's proposed budget for cutting funding to the Neighborhood Preservation Program by $4.8 million—from $17.63 million to $12.83 million. Streb called the reduction "draconian" and warned that it would "severely impact the vital services provided" by not-for-profit housing organizations that provide eviction protection, housing counseling, and home improvement services. He requested the Legislature restore funding to $18.8 million plus a $350,000 carveout. Jolie Milstein of the New York State Association for Affordable Housing requested $150 million for an affordable housing relief fund to support preservation of properties in financial distress, noting that many buildings built during the COVID pandemic are struggling with low collection rates and lack sufficient reserves. She also advocated for changes to allow multiple transfers of state tax credits and $3 million to help smaller not-for-profit projects with capital costs. Bill Simmons of the New York State Public Housing Authorities Directors Association requested $75 million for public housing modernization outside New York City, noting that authorities have experienced 40 percent increases in insurance costs. He highlighted that public housing authorities have utilized $250 million over the past five years for modernization projects. Erin Burns-Maine of the Community Preservation Corporation raised alarms about the former Signature Bank portfolio of 35,000 rent-stabilized units, noting that 50 to 67 percent are experiencing financial or physical distress. She warned that "the realities of this portfolio are a harbinger of what's to come for the city's larger rent-stabilized stock." Earlier in the hearing, Housing and Community Renewal Commissioner RuthAnne Visnauskas discussed the administration's housing initiatives, including the Pro-Housing Communities Program and efforts to support existing affordable housing portfolios facing stress from rising labor, insurance, and utility costs. She acknowledged that post-pandemic collection rates remain lower than pre-pandemic levels. Sen. Brian Kavanagh engaged extensively with both the commissioner and testifiers, asking detailed questions about preservation needs and insurance solutions. He indicated he has a bill on state tax credit transferability. Chairwoman Liz Krueger focused on rent-stabilized apartment registration enforcement and raised concerns about tenant protections during building transitions from gas to electric heating. The hearing underscored deep concerns among housing advocates that the state's affordable housing crisis is worsening, with existing properties in distress and insufficient funding to address preservation needs. NEW YORK — State housing officials and advocates testified before the Senate Finance Committee on Wednesday about the 2025-2026 Executive Budget's housing proposals, with testimony highlighting both the scale of housing needs and the limitations of current funding levels. The hearing focused on several key initiatives: a proposed revolving loan fund for housing development, the Pro-Housing Community Program, public housing transformation projects, and legal services for eviction prevention. Sen. Cordell Cleare pressed witnesses on whether proposed programs would address affordability in predominantly Black communities like Harlem, where average incomes of $55,000 cannot sustain housing costs of $44,000-50,000. "No one has ever walked up to me in my decades of public service in this community and said, you know what, Cordell, you've got to get some more of that luxury housing," Cleare said, questioning whether supply-side solutions would target the right income levels. William Simmons of the New York State Public Housing Association requested $75 million for public housing transformation, detailing Syracuse's East Adams Neighborhood Transformation Project, which will expand housing stock from 600 to 1,400 units at an estimated cost of $800 million. The project has already secured a $50 million HUD competitive revitalization grant. Jolie Milstein of the New York State Association for Affordable Housing endorsed increasing the Pro-Housing Community Program from the Executive Budget's $100 million to $150 million, citing infrastructure costs as a major barrier to development. She noted that grid capacity limitations present challenges for electrification goals. Rosalind Black of Legal Services NYC highlighted the success of the Housing-Public Benefits Initiative, which pairs housing attorneys with benefits advocates to prevent evictions. The program handled over 7,000 cases from October 2023 through 2024, a 480 percent increase from the prior year. Black requested $10 million in state funding for New York City (up from $4 million in year two) and proposed increasing the overall NYC legal services pool from $10 million to $30 million. Sen. Robert Jackson praised Legal Services NYC's work, calling it "so, so important" for helping people stay in their homes. Sen. Brian Kavanagh sought to clarify funding structures, confirming that $40 million goes to upstate legal services and $10 million to New York City. The hearing revealed tensions between supply-side housing strategies and targeted affordability solutions, with advocates emphasizing that increasing housing production alone may not address the needs of the lowest-income New Yorkers without additional subsidies and legal protections. NEW YORK STATE LEGISLATURE — Housing advocates and nonprofit leaders testified before a joint legislative budget committee on Feb. 27 that the Governor's 2025-2026 housing proposals, while welcome, do not match the urgency of New York's affordability crisis, which has left nearly 160,000 people homeless and pushed 200,000 families into eviction filings last year. Testifiers across multiple panels urged lawmakers to fund the Housing Access Voucher Program (HAVP), a statewide rental assistance initiative that would provide vouchers to nearly 13,000 households regardless of immigration status or criminal record. Rebekah Meyer of the Rochester-Monroe Anti-Poverty Initiative cited research showing that rental assistance programs significantly reduce homelessness and cost less than shelter services, while Emily Goldstein of the Association for Neighborhood and Housing Development emphasized that building alone cannot solve the crisis: "Vouchers can help people today." The hearing also highlighted support for the Faith-Based Affordable Housing Act, which testifiers said could generate 60,000 new homes over a decade. Annemarie Gray of Open New York cited polling showing 74 percent voter support statewide and 77 percent on Long Island, contradicting local official resistance. "This is a small minority of people who are making the most noise," Gray said. Sen. Brian Kavanagh, who chaired portions of the hearing, signaled support for several proposals, indicating forthcoming legislation on embodied carbon in construction materials and asking detailed questions about the revenue-positive impact of the Governor's fair assessment proposal for affordable housing. Testifiers also supported the Governor's $1 billion City of Yes commitment but noted it risks being diluted when spread over five years. Shakti Robbins-Cubas of the New York Housing Conference said NYCHA and Mitchell-Lamas "could easily absorb the full $1 billion allocation and still fall short of their capital needs." Michael Barrett of Habitat for Humanity requested increasing the fair assessment discount range from 25-50 percent to 25-75 percent, arguing it would maximize homeownership potential. Bria Donohue of the American Institute of Architects called for $10 million to help local manufacturers develop low-carbon building materials, citing that construction materials account for 7 percent of global greenhouse gas emissions. The hearing underscored deep concern about federal funding uncertainty, with advocates warning that state programs like HAVP are critical as federal housing support may become less stable. NEW YORK STATE SENATE HOUSING HEARING HIGHLIGHTS EXECUTIVE BUDGET GAPS ON HOMELESSNESS, RURAL HOUSING Albany — Advocates, homeless individuals, and housing nonprofits testified Thursday before a joint legislative committee on housing, urging lawmakers to reject significant cuts to rural housing programs and push the Governor's office to fund the Housing Access Voucher Program, which both chambers have supported for years. The hearing on the 2025-2026 Executive Budget revealed stark contrasts between legislative priorities and the Governor's proposals. While the Senate and Assembly have each included $250 million for HAVP in their one-house budgets, Assemblywoman Rosenthal noted the "missing link" is the Executive. Testimony painted a dire picture of New York's housing crisis. Chris Mann of Win, the largest shelter provider in New York City, reported that homelessness doubled last year to nearly 160,000 people statewide, with the number of children in shelter doubling since 2022 to over 50,000. Nearly 200,000 eviction filings occurred statewide last year, and 2.9 million renters are cost-burdened. Mann cited a Win analysis showing a $250 million HAVP investment would provide nearly 13,000 households with vouchers and could save the state up to $1 billion over five years. Tracie Adams, a 62-year-old HIV-positive individual with two felonies who experienced homelessness and eviction, testified that HAVP would help people like her who don't qualify for Section 8. "It's just a piece of paper that needs to be signed," she said. "We can eradicate homelessness in the State of New York." Bebhinn Francis, an organizer with the National Union of the Homeless Albany chapter, shared her personal experience of 578 days of homelessness from 2021 through 2024. She cited a State Comptroller report showing Albany city and county saw a 38 percent increase in homelessness between 2022 and 2024. Rural housing advocates delivered sharp criticism of the Executive Budget. Michael Borges of the Rural Housing Coalition testified that the budget eliminates $10 million in funding for USDA 515 affordable rental property preservation and $7 million for the Small Rental Development Initiative, while cutting the Rural Preservation Program by over $2 million. A joint survey with the Association of Towns of 900 municipalities identified lack of infrastructure, insufficient local capacity, and lack of state funding as the three main obstacles to rural housing development. April Ramadhan of New York State Rural Advocates reported that Governor Hochul's budget proposes a 30 percent cut to the Rural Preservation Program. She noted that Rural Preservation Companies undertook 204 infrastructure projects, wrote over 564 grants, and managed nearly 4,700 affordable rental units in the past year. She advocated for $8.6 million in Rural Preservation Program funding and noted that in rural areas without public water and sewer, well and septic installation can cost $50,000 to $60,000 per home. Sen. Kavanagh, who cosponsors the Affordable Independent Senior Housing Resident Assistant Program with Assemblywoman Rosenthal, highlighted that initiative as an important but sometimes overlooked investment. Eustacia Smith of West Side Federation for Senior and Supportive Housing testified that the program would cost $2 million per year over five years and estimates indicate yearly net savings to Medicaid of $4.5 million while servicing approximately 1,600 older adults. Patrick Boyle of Enterprise Community Partners, which has committed $5.7 billion to affordable housing in New York since 1987, called for $47 million in housing navigation services, $50 million for the Shelter Arrears Eviction Forestallment program, and $7 million for fair housing testing. Sen. May, chair of the Legislative Commission on Rural Resources, expressed appreciation for the advocates' work and noted there are many legislative advocates for their funding requests. She questioned whether faith-based properties could return to tax rolls as a way to overcome local opposition to the Faith-Based Affordable Housing Act. The hearing underscored a pattern: while the Legislature has prioritized housing investments, the Executive Budget has cut or eliminated programs serving vulnerable populations, particularly in rural areas and among the homeless. The New York State Legislature's final budget hearing on housing on Thursday focused on homelessness, shelter system dysfunction, and tenant ownership proposals, with witnesses painting a stark picture of interconnected crises affecting vulnerable New Yorkers. Testimony revealed systemic failures in the shelter system, particularly payment delays to operators. A shelter operator testified that providers are owed millions of dollars and struggling to make payroll, while upstate advocates described how sanctions—where individuals sanctioned from food stamps are simultaneously barred from shelters—force homeless people onto the streets. "If you're sanctioned, you can't go in the shelter because you have no form of payment. So that means I gotta sleep outside," one witness stated. Sen. Rachel May highlighted a troubling trend in Central New York, where homeless families now outnumber individual adults for the first time, and advocated for her sanctions relief bill (S4417), noting it has struggled to gain traction. The hearing's centerpiece was testimony supporting the Tenant Opportunity to Purchase Act (TOPA), which would give tenants the right to collectively purchase their buildings when landlords sell. Advocates requested $250 million in annual funding over four years. Jared Young, a Hell's Kitchen tenant organizer, provided emotional testimony about decades of neglect in his 30-unit building, now listed at $4 million, and stated his tenant union is ready to purchase immediately if funding becomes available. Chelsea Diaz of the New Economy Project cited TOPA's success in Washington D.C., where the policy has created 16,000 affordable units since 2006. Julian Morales of the Fifth Avenue Committee testified that his organization is pursuing a preservation purchase of a LIHTC building housing 30 low-income families whose regulatory agreement expires next month. However, skepticism emerged. Chairwoman Krueger raised concerns based on 1980s tenant ownership experiences, when tenants inherited buildings in poor condition and lacked capital for necessary repairs. Assemblyman Chang questioned whether the $250 million figure was justified and whether TOPA funding would be fairly allocated between New York City and upstate. Sen. Kavanagh signaled support for TOPA funding in the budget, asking whether tenants could conclude transactions within a year if capital became available. Young confirmed his building could be purchased immediately with funding. The hearing underscored tensions between addressing immediate homelessness crises and implementing longer-term housing solutions, with advocates arguing both are essential to New York's affordability emergency.