Governor Hochul Announces Launch of Comprehensive $25 Billion Housing Plan in Historic FY 2023 Budget

Governor Kathy Hochul today announced the launch of a comprehensive, $25 billion housing plan in the historic FY 2023 State Budget. The Budget includes a bold $25 billion, five-year housing plan that will create or preserve 100,000 affordable homes across New York, including 10,000 with support services for vulnerable populations. The Enacted Budget will also make continued major investments to build new supportive housing, preserve existing multifamily developments, construct new homes for seniors, create new opportunities for first-time homeowners, and improve energy-efficiency across the state’s current housing stock. 

“Creating and maintaining affordable, safe, secure homes for New York’s families, seniors, veterans, adults with special needs, and individuals experiencing homelessness is a cornerstone of my administration and this year’s Budget builds on that commitment,” Governor Hochul said. “These comprehensive investments are vital to serving low- and moderate-income renters and homeowners, preserving and protecting our existing housing stock, investing in manufactured homes and parks across the state, and assisting those experiencing housing insecurity, and I thank the legislative leaders for their work in helping ensure these historic investments.”  

Governor Hochul is building on the success of the state’s current housing plan with the creation of a new $25 billion, five-year plan that will focus on economic recovery, social justice, climate action, and improved digital connectivity. 

The plan is comprised of $5.7 billion in capital resources, $8.8 billion in State and Federal tax credits and other federal allocations, and $11 billion to support the operation of shelters and supportive housing units and to provide rental subsidies. 

This also provides for the electrification of an additional 50,000 homes as part of the state’s plan to electrify one million homes and make another one million electrification-ready. 

Highlights of the plan include:  

• $1.5 billion for the creation and preservation of supportive housing that provides individuals and families that need supportive services and are experiencing homelessness or housing insecurity with the on-site resources they need to thrive and live independently;
•  $1 billion for new construction of multifamily affordable housing to help individuals and families find new opportunities to live affordably; 
• $450 million to preserve existing multi-family rental housing that will serve to strengthen existing affordable housing across the state and allow individual and families to remain stably housed; 
• $400 million to advance homeownership opportunities across the state, especially in historically underserved markets, and to give low-income families the opportunity to have the dream of first time homeownership; 
• $300 million for senior housing to help older New Yorkers age in place safely in homes that meet their health needs in the communities they love; 
• $250 million for a nation-leading electrification fund to improve energy efficiency in low-income housing units; 
• $220 million for Mitchell-Lama developments across the state to preserve affordability and make important long-term capital improvements as well as the creation of permanently affordable homeownership; 
• $200 million to preserve public housing outside New York City – this housing often serves the lowest-income New Yorkers and is need of capital investment; and
• $105 million to preserve rural rental properties, and mobile and manufactured home parks. 

The FY 2023 Enacted Budget will also address several additional key housing priorities such as $350 million in capital improvements for the New York City Housing Authority and $100 million for the Housing Our Neighbors With Dignity Act to convert vacant commercial properties and distressed hotel properties across the state. 

Furthermore, $85 million in funding will help bring current accessory dwelling units across the state — including basement apartments, garage units, and backyard cottages — into code compliance and improve safety for these alternative housing options.

$50 million has been allocated for Land banks to purchase and redevelop vacant or abandoned properties to better serve the public interest. 

$35 million will be dedicated to create an Eviction Prevention Legal Assistance Program to make free legal counsel more readily available to low- and moderate-income tenants to defend against eviction proceedings. 

$35 million will support the state’s Homeowner Protection Program which will help ensure that New Yorkers do not have to face the loss of their home because they do not have legal assistance or qualified housing counseling. 

The Rural Preservation and Neighborhood Preservation Programs will receive their first increase in funding since their inception more than 40 years ago. By providing more than $18 million in funding, the programs will be open to more Neighborhood and Rural Preservation Companies who provide local, frontline support for housing needs in communities and neighborhoods throughout the state. 

A total of $36 million will go to the New York State Affordable Housing Corporation (AHC) to increase homeownership opportunities for low- and moderate-income families by providing grants to governmental, not-for-profit and charitable organizations to help subsidize the cost of newly constructed houses and the renovation of existing housing. 

The state’s Fair Housing Testing Program will be provided an additional $2 million in order to increase the ability to proactively investigate suspected housing discrimination and to enhance education and outreach efforts on fair housing rights and requirements to landlords, tenants, real estate professionals, and local governments.