Albany, NY – March 31, 2009 – (RealEstateRama) — In the midst of the worst economic downturn New York has faced in many decades, Governor Paterson and legislative leaders agreed to a 2009-10 State Budget that will close the largest budget gap in State history, institute significant governmental reforms and help to stabilize New York’s long-term finances.
Fortunately, the Governor, Assembly Speaker and Senate Majority Leader understand that the creation and preservation of affordable housing is a powerful tool for economic development and have provided DHCR with the resources we need to carry out our mission.
Some of the budget highlights for DHCR include:
- $74.2 million for the agency’s capital programs, which is approximately our traditional level of funding;
- $4 million for the New York State Low Income Tax Credit Program;
- $253 million in Tax Credit Assistance Program funding, which is a component of the Federal American Reinvestment and Recovery Act (ARRA). These funds will be used to rescue developments which face funding gaps caused by the devaluation of tax credits brought on by the economic downturn;
- $11.6 million and $4.9 million for the Neighborhood and Rural Preservation Programs respectively. These appropriations will allow funding of approximately $75,000 for each of the preservation companies. In addition, the Legislature added additional funds for the preservation companies, we are awaiting guidance on the distribution of those funds;
- $263 million for the Weatherization Assistance Program (WAP). This is approximately two-thirds of the $394 million included the ARRA for New York’s WAP. The remaining funds will be budgeted in the future;
- $8.6 million for Community Development Block Grant program. This is a large portion of the $13 million in CDBG included in the stimulus package for DHCR;
- $25 million for continuation of the Subprime Foreclosure Prevention Program. This year’s appropriation is funded from the federal fiscal stabilization fund;
- The budget also strengthens our Urban Initiatives program by eliminating the cap of $100,000 per award, and allows the program to serve municipalities with populations of 25,000 or more.
The budget agreement also includes DHCR’s recommendation to close three borough/district rent offices in Nassau, Rockland and Staten Island. These closing were justified by the reduced number of office visits and increased use of our website to access the information and forms available at the district offices. The agency will continue to ensure that owners and residents of rent regulated housing are served through the remaining rent offices and the excellent customer service provided on-line and over the telephone.
Thanks to the spending controls and efficiencies we’ve instituted, including greater use of technology, DHCR has been able to reduce costs and maintain resources for our programs. The 2009-10 budget reduces operational funding for travel, supplies and nonpersonal service fixed costs including leases, utilities, and telephones. If spending controls are tightly managed, DHCR should have sufficient resources to meet its fixed cost requirements.
