Gov. Cuomo speaking about his 2015 agenda (photo: Kevin P. Coughlin/Office of the Governor)
Existing programs are simply not sufficient to meet the demand for more affordable homes in New York State, in large part because they do not serve people across a wide range of incomes. Budget season is the perfect time to address this problem.
Strict income restrictions coupled with limited subsidy are obstacles to many families that apply for affordable homes. A recent New York Times article highlighted the challenges faced by many – people like Leigh Lumford, a Brooklyn resident who was rejected for an affordable apartment because she surpassed the income requirement by only $3,000 a year. Narrow income ranges make it nearly impossible for many families at the middle and very low end of the income spectrum to get the help they deserve.
However, there is a lot that New York State can do to help meet the housing needs of these individuals and families. The windfall from mortgage foreclosure and other settlements is an opportunity to make affordable housing programs work better for more New Yorkers. At NYSAFAH, we are calling for this year's budget to include a new $500 million fund to encourage the development of mixed-income housing. Mixed-income development serves a broader range of people and helps foster economic diversity, spur community revitalization, and create jobs.
Hardworking individuals shouldn't be forced into long commutes and less time with their families because of a shortage of affordable, middle-income housing. Teachers, firefighters and other professionals often find they can't afford to live in the communities where they work due to a shortage of quality rental housing plaguing towns throughout the state.
Proven programs, like the State Low Income Housing Tax Credit (SLIHC), encourage private investment in affordable housing projects. Today, there is more demand for SLIHC than credits available, which means some projects that would help middle-income families are never built. The State should increase funding for SLIHC by infusing $150 million into the program to help generate capital for mixed-income projects. Unlike federal programs, SLIHC supports housing for moderate- to middle-income households earning up to 90 percent AMI, and has helped build affordable homes in every corner of the state.
The Brownfield Tax Credit program is another important driver of affordable housing development, providing much-needed resources for the remediation of environmentally contaminated areas as well as credits to build affordable housing on remediated sites. Governor Cuomo has identified affordable housing as a priority use for the program, and its reauthorization this year is essential to continue transforming vacant lots into affordable homes for New York residents.
In addition to meeting the housing needs of low-, moderate- and middle-income New Yorkers, the Governor should be commended for establishing a NY/NY IV program to provide 5,000 units of permanent supportive housing for New York's homeless population. However, only a small fraction of those in need are ever placed in a supportive housing unit, even though supportive housing saves at least $10,000 per person per year. With approximately 80,000 homeless individuals throughout the state, NYSAFAH is calling for additional funding to develop and preserve 30,000 units of supportive housing over the next 10 years.
The growing demand for more affordable and supportive housing means communities, industry members, advocates, and lawmakers must come together to forge creative, new tools to get the job done. This year's budget and the funds from settlements are a once-in-a-generation opportunity to throw our support behind programs that make a real and measurable difference in the lives of New Yorkers.
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Jolie Milstein is President & CEO of the New York State Association for Affordable Housing (NYSAFAH), the largest trade association for the affordable housing industry statewide.
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