BILL NUMBER: S10503
SPONSOR: BOTTCHER
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to estab-
lishing the pro-housing communities incentive fund; and making an appro-
priation therefor
 
PURPOSE::
To encourage municipalities across New York State to support and facili-
tate the creation of new housing by establishing a state-funded incen-
tive program that rewards local governments for producing net new hous-
ing units, including affordable, supportive, senior, and public housing.
 
SUMMARY OF PROVISIONS::
Section one of the bill adds a new Article 28 to the Private Housing
Finance Law establishing the "Pro-Housing Communities Incentive Fund,"
to be administered by the New York State Housing Trust Fund Corporation.
The bill defines "net new housing units" and "eligible housing units" to
include rental housing, homeownership housina,_ affordable housing,
supportive housing. senior housing, accessory dwelling units, mixed-use
developments with residential units and conversions from nonresidential
to residential use.
The legislation establishes incentive payments to municipalities based
on the number and type of housing units produced, including:
*$10.000 per net new housing unit;
*$15,000 per affordable housing unit serving households earning up to 80
percent of area median income;
*$20,000 per deeply affordable, supportive, public, or formerly homeless
housing unit; and
*$5,000 per accessory dwelling unit.
Funds awarded under the program may be used for a broad range of munici-
pal purposes, including infrastructure improvements, planning and zoning
functions, affordable housing preservation, code enforcement, public
safety, climate resilience, and property tax relief.
The bill establishes annual certification and reporting requirements for
participating municipalities and directs the corporation to verify hous-
ing production data.
The legislation also includes anti-displacement and anti-earning
protections to prevent municipalities from qualifying for payments
through demolition of occupied housina, conversion of Protected housina
stock, or other abusive practices.
Municipalities designated as "Pro-Housing Communities" by the State
would receive a 25 percent bonus on all incentive payments.
Section two appropriates $250 million to implement the program.
Section three provides that the act shall take effect immediately and
apply to housing units receiving certificates of occupancy on or after
the next January first following enactment
 
JUSTTFICATION:
New York State continues to face a severe housing shortage that has
driven up rents, home prices, and housing instability in communities
across the state. While the need for additional housing is widely recog-
nized, municipalities often face fiscal and other barriers to approving
and supporting new residential development. Local governments are
frequently required to absorb the impacts of growth on infrastructure,
public services, and municipal operations without receiving direct
financial support tied to housing production.
This legislation creates a meaningful incentive structure to encourage
municipalities to facilitate the development of new housing while ensur-
ing that local communities directly benefit from growth. By rewarding
municipalities for producing housing, particularly affordable, support-
ive, and deeply affordable housing, the bill aligns state housing goals
with local fiscal interests.
The bill also recognizes that municipalities require flexibility in how
incentive funds are used. Allowing local governments to invest in
infrastructure, planning capacity, public safety, environmental resili-
ence, and tax relief ensures that communities can responsibly accommo-
date growth while addressing local priorities.
Importantly, the legislation includes strong safeguards against
displacement and manipulation of the program by prohibiting incentives
for demolition of occupied housing without replacement or conversion of
protected affordable housing into market-rate units At a time when New
York urgently needs additional housing production at all income levels,
this legislation provides a collaborative, incentive-based framework to
encourage municipalities to become active partners in addressing the
state's housing crisis.
 
LEGISLATIVE HISTORY::
New bill.
 
FISCAL IMPLICATIONS::
The bill appropriates $250 million to the New York State Housing Trust
Fund Corporation for implementation of the program. Additional fiscal
implications to the state would depend on future appropriations and
housing production levels.
 
EFFECTIVE DATE::
This act shall take effect immediately and shall apply to housing units
receiving certificates of occupancy on or after January first next
succeeding the date on which it shall have become law.