April 10, 2008 – Governor David A. Paterson and Legislative leaders today announced a historic increase in funding for New York’s housing programs. The Enacted Budget includes more than $300 million in funds that will be used to address the severe shortage of affordable housing impacting New York State.
“Affordable housing is critically important for the health and vibrancy of our state,” said Governor Paterson. “It is an engine for economic development and job creation, helps to strengthen families and communities and improves the quality of life for working families, senior citizens and people living with disabilities.”
For nearly two decades, State funding for housing has failed to keep pace with inflation. In fact, since 2001-02, in all but two budget years, the State’s investment in housing capital remained unchanged at approximately $105 million.
The new budget includes a $200 million increase in funding over traditional levels. The new funds will help build and preserve affordable housing all across the State and increase the effectiveness of important state programs that provide a wide variety of services.
Senate Majority Leader Joe Bruno, said: “As part of the 2008-09 State Budget, the Legislature and the Governor have partnered to make a sound investment to address the State’s real housing needs so that quality, affordable housing is a reality for many more New York families.”
Assembly Speaker Sheldon Silver, said: “This budget increases the critical investments that help working New Yorkers find affordable housing and assists those at risk of losing their homes due to unethical subprime loans. The legal services, financial counseling and mediation made available through this budget will help those facing foreclosure keep the dream of owning their own home and contributing to the community in which they live.”
Senator John J. Bonacic, Chairman of the Senate Housing, Construction and Community Development Committee, said: “The need for affordable housing throughout New York State is insatiable. Yet, affordable housing is a crucial component of healthy communities, families, and economic development initiatives. I am pleased to work with Governor Paterson to put forth a State budget that invests in affordable housing. The economic vitality of our communities throughout the State depends upon that investment.”
Assemblymember Vito Lopez, Chairman of the Assembly Housing Committee, said: “Now more than ever, New York must make these critical investments that will serve to stabilize and improve our communities. By funding the construction of new homes, improving existing structures and developing residential infrastructure from Buffalo to Long Island, we can increase the quality of lives of thousands of hardworking New Yorkers. I am proud that the Assembly and Speaker Silver continue to make affordable housing a real priority by taking the lead in ensuring critical funding for affordable housing.”
Senator Liz Krueger, Ranking Minority Member of the Senate Housing, Construction and Community Development Committee, said: “This year’s budget marks a turning point for housing policy in New York State. Our State has finally recognized that housing policy and investments should be part of our broader economic development policy, by stimulating the state economy and creating jobs while at the same time addressing the affordable housing crisis in our urban and rural communities. These new funds represent the first significant increase in State capital investment in housing construction and preservation since 1985.”
Assemblymember Michael Fitzpatrick, Ranking Minority Member of the Assembly Housing Committee, said: “This generous appropriation will go a long way toward development and help many young families to realize the American Dream. I applaud the Governor for his leadership during this very difficult time in the housing market.”
Deborah VanAmerongen, Commissioner of the Division of Housing and Community Renewal (DHCR), said: “Thanks to the leadership of Governor Paterson and the members of the Legislature, we are making an unprecedented investment in affordable and supportive housing that will pay dividends for all the residents of New York State.”
Priscilla Almodovar, President and Chief Executive Officer of Housing Finance Agency (HFA), said: “These funds will improve the capacity of our agencies to address the affordable housing needs throughout New York State. They will also give us the ability to better leverage private and other public sources. I thank the Governor and the State Legislature for their confidence in the work we are doing at HFA.”
David Hansell, Commissioner of the Office of Temporary and Disability Assistance (OTDA) commended the Governor and Legislature for increasing funding for supportive housing in the Homeless Housing Assistance Program (HHAP) by $6.5 million. Commissioner Hansell said: “The demand for HHAP funds, which help some of the State’s most vulnerable residents, continues to grow, yet until this year funding for the program has remained flat. This program provides more than shelter – it provides support that helps address the causes of homelessness, and enables at-risk individuals to reach the greatest degree of self-sufficiency possible.”
Funding for individual housing programs includes:
– $60 Million for the Housing Trust Fund Corporation, which oversees a variety of programs to create decent affordable housing by providing loans and grants for the rehabilitation of existing vacant or underutilized housing, as well as the construction of new housing.
– $54 million for the NYS Housing Finance Agency for its Mitchell-Lama Rehabilitation and Preservation and All Affordable programs, which provides flexible, low-cost financing to owners of state-financed Mitchell Lama developments who, in return, keep rents affordable and rehabilitate their properties, as well as to owners who build 100% affordable housing projects.
– $45 million for the NYS Affordable Housing Corporation, a subsidiary of HFA which creates homeownership opportunities for low- and moderate-income families by providing grants to governmental, not-for-profit and charitable organizations to help with the construction and renovation costs.
– $36.5 million for the Homeless Housing Assistance Program, which provides capital grants and loans for housing and support services for the homeless. Funds can be used for the acquisition, construction or rehabilitation of housing for homeless persons and families, including special needs populations.
– $25 million to fund homeownership counseling for families facing the crisis of possible foreclosure, as well as to prevent similar occurrences.
– $17 Million for the Homes for Working Families program which provides assistance to the Housing Trust Fund Corporation to facilitate bond financing for the new construction or rehabilitation of family or senior rental projects.
– $17.8 million for the Public Housing Modernization program, which provides grants to housing authorities across the State for capital improvements and repairs.
– $15 million for a flood relief program which will assist homeowners affected by repeated flooding in certain counties in the Southern Tier, and Mohawk and Hudson Valleys.
– $4 million for the Access to Home program, which provides funds to not-for-profit organizations and municipalities to make the homes and apartments of low and moderate income New Yorkers with disabilities more accessible.
– $4.4 million for the HOPE/RESTORE program, which provides funds to help elderly residents make emergency repairs to dangerous conditions in their homes.
– $6 million for the Rural Area Revitalization Program, which provides financial and technical resources to New York communities for the restoration and improvement of housing, commercial areas and public/community facilities in rural communities.
– $5 million for the Main Street Program, which provides financial resources and technical assistance to business improvement districts and other not-for-profit organizations that are committed to revitalizing historic down towns, mixed-use neighborhood commercial districts, and village centers.
– $5 million for the Infrastructure Development Demonstration Program, which provides assistance with the cost of infrastructure improvements, such as sewer, water and utility lines, in association with development of affordable housing.
– $6 million for the Homeownership and Economic Stabilization for Long Island Program (HELP) which provides employees of participating businesses financial assistance to purchase and rehabilitate a home on Long Island.
– $4 million for the State Low Income Housing Tax Credit Program, which provides tax reductions to encourage the development of affordable housing.
– $3.5 million for Urban Initiatives, which provides financial and technical resources to New York communities for the restoration and improvement of housing, commercial areas and public/community facilities in urban neighborhoods.
Governor’s Office Contact:
Errol Cockfield
Errol.Cockfield (at) chamber.state.ny (dot) us
212.681.4640 | 518.474.8418
