The $229 billion New York State budget lacks most of Gov. Hochul’s ambitious housing proposals
After weeks of negotiations, Governor Kathy Hochul and New York lawmakers finally reached an agreement on the state budget. The $229 billion spending plan arrived almost a month late. The proposed budget includes an increase to the state's minimum wage, a $1.1 billion investment in the MTA, and changes to the bail reform. However, the state’s spending plan did not bring much relief to landlords and tenants.
Most housing proposals put forward by Gov. Hochul did not make it into the budget. Without them, the Good Cause eviction bill and the New York Housing Compact plan have little to no chance of moving forward. Housing Justice for All, a statewide coalition advocating for renters and homeless New Yorkers, criticized the lack of affordable housing initiatives in the state budget.
“This budget is an embarrassment and a collective failure,” the Housing Justice for All coalition shared in the statement. “In the face of a record affordability crisis that’s driving New Yorkers out of the state in droves, our state’s leaders put their heads in the sand instead of reaching a deal to protect millions of renters and provide a pathway to housing for our state’s homeless neighbors.”
There were a few real estate measures that Governor Kathy Hochul and lawmakers could agree on. New York State will allocate $391 million to expand the Emergency Rental Assistance Program (ERAP) to tenants of public and government-subsidized housing. The proposal to ban gas hookups in new buildings also appeared in the FY2024 state budget, making New York the first state to enact such restriction.
Earlier this year, Governor Hochul introduced the New York Housing Compact plan, which sets housing production targets for all cities and towns across the state. The ambitious proposal faced resistance from local municipalities and was eventually scrapped from the state budget. However, lawmakers still have about five weeks before this year’s legislative session ends.
“We have a crisis for far too many New Yorkers. Affordable housing, their rent, their mortgage is out of reach.” Governor Hochul said. “That's why I proposed a bold housing plan. The legislature saw it differently. They're not ready to commit to the kind of transformative change I proposed. And I know change can be hard, but we're not walking away from this issue, and I won't stop working hard and fighting to make housing more affordable for New Yorkers.”
Resources:
“Governor Hochul Announces Agreement on FY 2024 State Budget,” (New York State, 2023)
“Video, Audio, Photos & Rush Transcript: Governor Hochul Announces Agreement on FY 2024 New York State Budget,” (New York State, 2023)
“Gov. Kathy Hochul announces $229 billion budget including bail reform, mental health care, MTA investments,” by Dick Brennan (CBS News, 2023)
“New York finally gets a budget, but it doesn't include major housing initiatives,” by Emily Myers (Brick Underground, 2023)
“Here’s how real estate fared in the state budget,” by Kathryn Brenzel (The Real Deal, 2023)
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