BILL NUMBER: S1398A
SPONSOR: RYAN S
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to estab-
lishing the block by block homeownership program
 
PURPOSE:
This bill would codify the Block-by-Block Homeownership Program, under
which the Division of Housing and Community Renewal constructs,
preserves, and rehabilitates one-to two-family homes in upstate cities.
 
SUMMARY OF PROVISIONS:
Section 1: amends the Private Housing Finance Law to create a new Arti-
cle 33: Block by Block Homeownership Program. Section 1300 of this new
article outlines the need for new affordable housing development in
upstate New York, in particular, the cities of Buffalo, Rochester, Syra-
cuse, Albany, and Binghamton. Section 1300 outlines requirements that
this housing be accessible to low-to-moderate income earners.
Subsection 1301(1) of the new article describes the Block-by-Block
Homeownership Program. The Division of Housing and Community Renewal
(DHCR) is directed to make funding available for the construction, pres-
ervation, and rehabilitation of one- to two-family housing units in
cities with a population of less than one million, with a focus on the
cities of Buffalo, Rochester, Syracuse, Albany, and Binghamton. DHCR is
further directed to promulgate regulations to put this plan into effect.
Subsection 1301(2) specifies that funding for the program shall be
prioritized in the cities of Buffalo, Rochester, Syracuse, Albany, and
Binghamton.
Subsection 1301(3) specifies that houses built under the Block-by-Block
Homeownership Program shall be sold to low- or moderate-income individ-
uals or families, or to non-profits for the purposes of resale to such
individuals or families.
Subsection 1301(4) specifies that subsequent sales shall only be made to
low-and moderate-income individuals and families who own no other real
property and who intend to use the dwelling as their primary residence.
Subsection 1301(5) specifies that additional loans or grants may be used
in conjunction with this program.
Section 2: effective date.
 
JUSTIFICATION:
There are currently 13,000 residential vacant lots in the City of
Buffalo, including roughly 7,500 owned by the city. These vacant lots
currently sit languishing, providing little to no tax revenue to the
city or county. They also serve as a source of blight for communities,
driving down the value of surrounding homes. Utilizing infill housing
that matches the style of the community will simultaneously increase
supply, making housing more affordable for new buyers, while improving
the quality of the neighborhoods in which they are built, which will
increase the value of surrounding homes. In addition, these new homes
will generate millions in tax revenue that can be used to further
improve the livability and desirability of the cities in which they are
built.
Housing prices are on the rise throughout the state. In many areas the
culprit is a low supply of turn-key ready real estate on the market.
Buffalo is a prime example of this phenomenon, as supply has consistent-
ly failed to keep pace with demand. Out of the largest 100 metro areas
in the United States, Buffalo ranked second to last in housing supply as
of January 2023, with just over a month's worth of housing supply. When
combined with the rising population in the city, a perfect storm of low
supply and high demand has created an extremely tight housing market,
making it difficult for new homebuyers to enter the market. This is a
common pattern across upstate cities, including Rochester, Syracuse,
Albany, and Binghamton.
Housing is also an economic and racial justice issue. In the City of
Buffalo, two-thirds of households make less than $70,000. Combined with
home prices that have been inflated by low supply, this means that the
mortgage payment on an average home is a significant obstacle to those
who might want to enter the housing market. This problem is exacerbated
when considering the housing gap between white households and black
households. While homeownership rates for white people have risen to
more than 70% nationwide, the black homeownership rate has stayed stag-
nant at around 34%. Research has found that the gap in Buffalo is even
wider than the national average. Addressing this gap should be a priori-
ty for the state, and one of the best ways that goal can be accomplished
is by increasing housing supply and lowering housing costs.
The Block-by-Block Program seeks to remedy these issues by building one-
and two-family homes on vacant lots that fit the aesthetic of existing
neighborhoods, and selling them at affordable prices to low and moderate
income individuals and families across upstate New York, with a focus on
Buffalo, Rochester, Syracuse, Albany, and Binghamton.
 
LEGISLATIVE HISTORY:
2024: S.8585/A.9918 Referred to Housing
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:.
This act shall take effect immediately.