“On Tuesday, January 21, Governor Cuomo presented his proposed FY 2014-15 State Budget calling for 1.7% growth in total spending. The plan which includes a $489 million tax cut package provides significant new investments in existing affordable housing programs over the prior year. Most noteworthy is a proposed increase of $33 million for the Homeless Housing Assistance Program, bringing the total annual funding level for the program to $63 million.

Consistent with the Governor’s State of the State message, the budget calls for $100 million in federal storm recovery funds to be used to create and preserve 3,000 affordable housing units in multi-family developments, but no further details were provided.

The proposed budget would continue the House NY program created last year to rehabilitate the State’s remaining Mitchell Lama portfolio which suffers from significant physical deterioration. The 44 project Mitchell Lama portfolio which was moved last year from the Urban Development Corporation to the Housing Finance Agency, will benefit from an additional $32 million in FY 2014-15 if the plan is approved by the legislature.

The Low Income Housing Trust Fund Program would also see a significant increase, $11.5 million over last year for total annual program funding of $46.7 million.The Executive Budget calls for a two-year extension of the State Low-Income Housing Tax Credit Program, but funding would remain flat over last year. It is interesting to note that the Governor proposed extending the Brownfield Tax Credit by ten years.

The Executive Budget calls for significant reforms to the State Brownfield Tax Credit Program (BTC). In addition to the lengthy extension, the Governor proposes a new five percent BTC bonus for sites where affordable housing projects would be developed. However, the Governor also proposes to target the tangible tax credits to sites that are vacant and tax delinquent, upside down sites, or priority development projects, which would severely limit the number of eligible sites.”

NH&RA thanks New York Housing Conference for the analysis of the New York State Budget