Authorizes cities and towns, except New York city, to establish community housing funds

• Democratic10

◆ The sponsor's argument

Why April Baskin says this is needed

The lack of affordable housing opportunities across the state is severe. This issue has been exacerbated by the COVID-19 pandemic. Communities statewide have seen sudden increases in population due to influxes of people leaving more densely populated urban areas for more rural areas. The demand for housing in these areas is currently at an all time high. This increased demand has further driven up housing costs and has reduced the supply of housing units available for the local workforces. The increased demand for affordable housing opportunities resulting from the pandemic makes the need for increased community housing more acute. Finally, the lack of housing opportunities is resulting in residents being forced to live in substandard, illegal conditions. This legis- lation was modeled after Chapter 445 of the Laws of 2021 (Peconic Bay Region Community Housing Act) that was enacted to address this issue on Long Island's east end. It would authorize the governing boards of towns and cities, except cities with a population of one million or more, to establish a Community Housing Fund (CHF), by local law. It is the public purpose of this legislation to give designated cities and towns the authority and resources needed to establish a dedicated fund to provide needed housing opportunities. Specifically, this legislation would permit each town to establish a community housing fund to increase hous- ing opportunities in its area. Said fund would be financed by a local real estate transfer tax of up to 2%, which would be imposed by local law, subject to a mandatory referen- dum. This dedicated fund would be used to provide community housing opportunities for eligible residents, including: (a) financial assist- ance to eligible first-time homebuyers, not to exceed 50% of the cost of the home, (b) production of community housing for ownership or rental purposes (where public/private partnerships would be permitted to produce community housing), (c) rehabilitation of buildings for communi- ty housing, (d) acquisition of interests in existing housing for commu- nity housing, (e) housing counseling. The legislation permits eligible local governments to establish regionally adjusted purchase price limits set under guidance from the NYS Mortgage Agency for the county in which the town or city is located, and would include single family homes, two-family homes, accessory apartments, townhouses, and condominiums. Local governments are also authorized to set income limits under guidance from the NYS Mortgage Agency for the county in which the town or city is located. Each eligi- ble local government may also establish a community housing exemption from the real estate transfer taxes authorized by this act up to an amount not exceeding the residential median sales price in the county in which the eligible local government is located, as determined by the State Department of Taxation and Finance.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.