Governor Hochul today signed legislation to build and preserve more affordable, energy-efficient housing in New York City. Legislation S. 4709A/A. 7758 authorizes New York City to adopt a new affordable housing rehabilitation program to replace the former J-51 program. 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. Legislation A. 7359/S. 6750 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,” Governor 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.”
Legislation 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 Senator Brian Kavanagh said, “These bills are essential to our efforts to increase the availability of affordable housing, to maintain and enhance existing housing, and to meet our climate and sustainability goals. The new Affordable Housing Rehabilitation Program is a bigger, better version of the old J-51 tax abatement program, while the Housing Affordability, Resiliency, and Energy Efficiency Investment Act modernizes numerous New York City housing subsidy programs, making them more flexible and eliminating obstacles to getting funding to projects where it is needed. Both of these programs, as well as the increase in HDC’s ability to access capital, will ensure that we’re incentivizing and subsidizing critical housing construction, preservation, and rehabilitation work that might not otherwise be possible, protecting tenants and homeowners, and supporting the energy efficiency and resiliency improvements to mitigate the growing threats posed by extreme weather events and meet our statewide goal of eliminating climate changing pollution. I thank the other bill sponsors–Assembly Housing Chair Linda Rosenthal, Senator Iwen Chu, and Assemblyman Ed Braunstein–as well as all our colleagues and the housing advocates who supported these bills, the City of New York for working closely with us on each of the provisions, and of course Governor Kathy Hochul for signing this legislation and for her steadfast leadership.”
State Senator Toby Ann Stavisky said, “I want to thank Governor Hochul for signing this legislation which restores and improves a new J-51 tax abatement incentive. This program helps property owners who have been squeezed by local taxes and regulations modernize their buildings, improving safety and quality of life for their residents. This legislation will allow more middle class co-ops and condos to make capital improvement upgrades ranging from heating systems and plumbing, to windows, elevators and more. It will also be retroactive to work done since the former bill expired. With the cost of living on the rise, it is critical that we make sure our working middle class families can live in affordable housing.”
Assemblymember Edward Braunstein said, “As middle-class co-op and condo owners – many of whom are seniors on a fixed income or young families – grapple with a rising cost of living, it is imperative that New York State does its part to alleviate the burden. With the new Affordable Housing Rehabilitation Program, formerly known as J-51, I fought hard to raise the assessed value threshold, allowing even more co-ops to qualify for this cost-saving program, which in turn will hold down maintenance costs. I want to thank the Mayor’s Office for working with me on the bill, Governor Hochul for signing it into law, and Senators Stavisky and Kavanagh for partnering to see through its passage.”
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. 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.
Today’s bill signing builds on the recommendations of the “New” New York panel convened by Governor Hochul and New York City Mayor Eric Adams to reimagine a New New York that propels the city and the region forward for its next chapter of equitable, inclusive growth. In the “Making New York Work For Everyone” report released in December, the panel laid out a set of 40 proposals, including a replacement for the J-51 program and the passage of the Housing Affordability, Resiliency, and Energy Efficiency Investment Act.
Assemblymember Linda B. Rosenthal said, “Modernizing the outdated and rigid rules that have long hampered the Department of Housing Preservation and Development’s ability to build and maintain affordable housing is a great step in our efforts to ensure all New Yorkers have a safe and affordable place to live. With the signing of the Housing Affordability, Resiliency and Energy Efficiency Investment Act, we can prioritize the construction and preservation of housing and community facilities that are energy efficient, sustainable and meet the needs of our communities today. I thank Governor Hochul for signing HAREEIA and other pieces of legislation into law that will strengthen our housing stock, and I look forward to continuing our work to protect homeowners and tenants statewide.”
Legislation A.7359/S.6750 increases the bonding capacity for the New York City Housing Development Corporation (HDC), 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.
State Senator Iwen Chu said, “As NYC continues battling a dire housing affordability crisis, HDC bonds play a crucial role in building and sustaining the necessary affordable housing stock that will keep seniors, veterans, and low- to middle-income New Yorkers housed. I’m proud to have worked with my colleagues to secure this imperative $1 billion increase in the NYC Housing Development Corporation’s bonding authority which will support the creation and preservation of necessary affordable rental and homeownership opportunities, while creating job opportunities for New Yorkers.”
Assemblymember Nikki Lucas said, “With an increase from HDC bond authority it will support the creation and preservation of much-needed affordable rental and homeownership opportunities, while further helping to stimulate a recovering economy through job creation.
New York City Mayor Eric Mayor Adams said, “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. 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.”
