Gov. Hochul and Legislators Clash Over Rental Assistance in NY Budget Proposal
TL/DR –
New York Gov. Kathy Hochul is at odds with the Senate and Assembly over their proposal to allocate $250 million in the budget for a Housing Access Voucher Program, with the governor preferring to focus on increasing housing supply. Hochul announced a $270 million initiative to build 28 projects comprising around 1,800 low-income housing units across the state, funded by a mix of state and federal tax credits. Housing advocates and lawmakers argue rental assistance should be prioritized in the budget, as it can help prevent evictions and homelessness, and complements rather than replaces federal aid.
Governor and Legislators Disagree Over Rental Assistance Funding
Despite projecting a harmonious budgetary procedure, Governor Kathy Hochul and lawmakers are in contention over the rental aid sum for the annual budget. This comes as they seek to mitigate the state’s persisting affordable housing dearth.
Although assembly and senate proposed $250 million for a Housing Access Voucher Program in their individual one-house budgets, Governor Hochul remains unswayed, prioritizing bolstering the housing supply.
“The more supply we have, the lower the prices. This crisis affects anyone looking for a home,” Hochul illuminated during a media briefing.
The governor, alongside U.S. Rep. Paul Tonko and Senator Pat Fahy, announced $270 million for constructing 28 projects or approximately 1,800 units for low-income families statewide at an affordable housing event in Albany.
The capital originates from state and federal tax credits, and as Hochul noted, “We’re getting there, I can feel it.”
Simultaneously, housing advocates gathered in hundreds at the Capitol, demanding that the governor include Housing Access Voucher Program funding in the forthcoming budget. They argue for immediate help as new unit construction is time-intensive.
Assembly Housing Committee Chair Linda Rosenthal stated state vouchers could avert foreclosure or eviction for 20,000 low-income households. “Why not have them in a home instead of suffering on the street? The state will pay either way,” she opined.
Several lawmakers suggested that the Governor’s proposed $3 billion budget to send one-time inflation “rebate” checks to specific tax filers could instead fund rental aid.
Senate Housing Committee Chair Brian Kavanagh concurred, asserting the rental assistance could reduce homelessness and stabilize families. “The state needs to step up and ensure we’re including rental aid in this budget,” he communicated to Spectrum News 1.
While Hochul resists the state compensating for proposed federal program cuts, Kavanagh clarified that the voucher program complements, not substitutes, federal aid.
“We’re not aiming to fund all New Yorkers’ needs through this, but it’s a significant, valuable tool,” said Kavanagh.
The Senate and Assembly also proposed other housing reforms, including permanently allocating $40 million for the Homeowner Protection Program. This helps individuals grappling with mortgage payments. The governor funded this program in her budget without making it a law.
The executive budget also envisages $500 million to repurpose state sites and generate 15,000 new units in the next two years.
Lawmakers vow to keep pressuring the governor to prioritize state-sponsored rental aid in the final budget, due April 1.
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