New York allocates $1B for affordable housing through City of YES program

The New York State Assembly's Ways and Means Committee convened on February 27, 2025, for the 2025 Joint Legislative Budget Hearing focused on housing. The meeting addressed critical funding initiatives and the ongoing challenges in the state's housing sector.

The session began with discussions on public housing capital needs. Officials highlighted that existing funds are insufficient to meet the demand, particularly in cities like Buffalo, Schenectady, Syracuse, and White Plains. The state has allocated $40 million each for two new programs aimed at infill housing and rental assistance, with expectations of high demand for additional funding in the future.

The committee also examined the City of YES housing program, which proposes a $1 billion investment from the state to support the construction of affordable housing units. The city aims to add approximately 80,000 units through various measures, with the state funding intended for both new construction and the preservation of existing affordable housing. However, specific unit targets for the state funding were not established, as the funds are designed to be flexible.

Concerns were raised regarding the oversight of capital improvements in rent-regulated housing, particularly at Knickerbocker Village. The Department of Housing and Community Renewal (DHCR) was questioned about its role in ensuring quality standards for renovations funded by a $50 million investment. The commissioner assured that oversight mechanisms are in place to monitor the progress and quality of improvements.

The meeting also touched on the impact of institutional investors on the housing market, with officials acknowledging the challenges posed by these entities in acquiring single-family homes. A proposal was discussed to create a 75-day window for potential homeowners to purchase properties before they are acquired by institutional investors, aiming to level the playing field for individual buyers.

Additionally, the committee addressed the need for infrastructure improvements to support housing development, particularly in areas facing electric capacity shortages. A budget allocation of $100 million was proposed to assist communities in upgrading infrastructure to facilitate housing construction.

Overall, the hearing underscored the urgent need for increased funding and strategic oversight in New York's housing initiatives, as officials grapple with the complexities of meeting the state's growing housing demands. The discussions set the stage for future legislative actions aimed at enhancing housing availability and affordability across New York.