Governor Hochul’s new plan would set housing production targets for NY municipalities

by Verus Real Estate

In New York, the demand for affordable housing has long exceeded the supply. In the past decades, state officials have come up with different solutions to address the shortage of affordable housing. Recently, New York Governor Kathy Hochul unveiled a bold plan to build 800,000 new homes across the state over the next ten years.  

Dubbed “New York Housing Compact”, the new proposal would set housing production targets for all cities, towns, and villages in New York. Downstate counties served by the MTA would be required to increase their housing supply by 3 percent in the next three years. Towns in upstate New York will also need to grow their housing stock but only by one percent.

“New York faces a housing crisis that requires bold actions and an all-hands-on-deck approach,” said Governor Hochul. “Every community in New York must do their part to encourage housing growth to move our State forward and keep our economy strong.”

Gov. Hochul’s plan includes a $250 million Infrastructure Fund and a $20 million Planning Fund to facilitate housing production across New York. In addition, the ambitious proposal would encourage local municipalities to build more multi-family homes within half a mile of train and bus stations. In her State of the State address, Governor Hochul revealed that, in the past decade, New York “has created 1.2 million jobs – but only 400,000 new homes”. 

The New York Housing Compact plan received positive feedback from housing advocates but faced resistance from municipalities. Under the governor's proposal, municipalities must either meet the new housing production targets or provide a valid reason for denying a new construction. Otherwise, the state could step in and override local zoning rules. 

The State Housing Approval Board would be able to approve a new housing development that meets affordability criteria but does not conform to existing zoning laws. Nassau County Executive Bruce Blakeman opposed Hochul’s proposal, arguing that the decision to build more housing is supposed to be made at a community level. 

“I think basically, it's not a good idea to do planning for Long Island from Albany,” said Blakeman on WNYC’s "The Brian Lehrer Show”. “I think that they call it local land use because local people should have a big say on what is built around them, and that's been fundamental for years. I don't think we have to ship that policy.”

 

 

 

Resources:

Governor Hochul Announces Statewide Strategy to Address New York’s Housing Crisis and Build 800,000 New Homes,” (New York State, 2023)

Remarks as Prepared: Governor Hochul Delivers 2023 State of the State,” (New York State, 2023)

Hochul faces an ‘uprising’ over her plan to build new housing in NYC suburbs,” by Janaki Chadha (Politico, 2023)
Gov. Hochul’s ambitious housing plan meets suburban blockade,” by David Brand and Jon Campbell (Gothamist, 2023)

Nassau County Exec on Gov. Hochul's Call for More Housing for Long Island,” by The Brian Lehrer Show (WNYC, 2023)

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