Governor Signs Bills to Build and Preserve More Affordable, Sustainable Housing in New York City

ALBANY—New York Gov. Kathy Hochul signed several bills into law on Oct. 23 geared at building and preserving more affordable, energy-efficient housing in New York City.

The governor signed S. 4709A/A. 7758, which authorizes New York City to adopt a new affordable housing rehabilitation program to replace the former J-51 program.

The governor also signed Legislation S. 2985C/A.6655A establishes the “Housing Affordability, Resiliency, and Energy Efficiency Investment Act of 2023,” giving New York City more flexibility to provide loans and grants for affordable housing and other related investments. These can include climate resiliency improvements to help ensure the sustainability of affordable housing. Hochul also put her signature on Legislation A. 7359/S. 6750, which increases the New York City Housing Development Corporation’s bonding capacity.

“In light of New York’s housing crisis, I am proud to sign this legislation, which will allow for the construction and preservation of more affordable, sustainable, and sorely needed housing in New York City,” Gov. Hochul said. “I am committed to increasing the housing supply to address our housing shortage, and I will continue to work with the Legislature on solutions to ensure that all New Yorkers have a safe, stable, and affordable place to call home.”

S.4709A/A.7758 enables New York City to replace the former J-51 program, which expired on June 29, 2022. The legislation allows New York City to provide tax abatement benefits for eligible construction projects to preserve and improve certain affordable rental and homeownership buildings. In doing so, the legislation will help to retain and improve the quality of the city’s existing affordable housing supply, which is critical to supporting low- and moderate-income families and ensuring the city and state do not lose ground as they seek to add much needed housing, state officials noted.

S.2985C/A.6655A establishes the Housing Affordability, Resiliency, and Energy Efficiency Investment Act of 2023, giving New York City more flexibility to provide loans and grants for affordable housing and other related investments.

The legislation modernizes existing financing laws that support the construction, maintenance, and rehabilitation of affordable housing and helps to ensure that these programs can also support resiliency and energy efficiency upgrades in line with the Climate Leadership and Community Protection Act. The legislation also allows the city to use municipal funds to provide down payment assistance to prospective homebuyers. By giving the city more flexibility to provide loans and grants, this legislation will help to create and preserve more affordable housing, expand homeownership opportunities for more New Yorkers, and support the State’s climate resiliency and energy efficiency goals.

Legislation A.7359/S.6750 increases the bonding capacity for the New York City Housing Development Corporation, the nation’s largest municipal housing finance agency and one of the nation’s top issuers of affordable multifamily housing bonds, to $19 billion. Without an increase, HDC is expected to run out of bonding capacity by mid-2024. By increasing the availability of municipal housing bonds, this legislation will support the creation and preservation of more affordable housing in New York City, as well as support critical investments in public housing.

New York City Mayor Eric Mayor Adams praised the governor for signing the bills. “As rents continue to rise and working people struggle to afford to stay in New York, our administration is moving aggressively to make the changes we can at the city level to build much-needed housing,” Mayor Adams said. “But our partners in government increasingly understand the need for bold action to address the city’s affordability crisis. I want to thank Governor Hochul, Senator Kavanagh, Assemblymember Rosenthal, and all of our legislative partners for helping to get these bills passed and signed into law today. We are looking forward to continued partnerships across the five boroughs and the state to deliver critical resources and policy changes so New York can continue to work for working people.”