Kathy Clown's Housing Compact is kaput but Mayor Swagger's City Of Yes housing plan stumbles on

 

THE CITY

With Gov. Kathy Hochul abandoning her proposal to force New York’s suburbs to build more housing, Mayor Eric Adams’ administration and its allies are redoubling their efforts to ensure the city gains the power to spur more housing construction by converting office buildings, extending tax credits for developers and allowing greater density.

To help push those through, the governor for the first time has indicated she is willing to accept a statewide rent voucher program, a key objective of tenant advocates. The program would provide money to the city’s public housing authority to cover unpaid rent, say sources who have been briefed by those in the negotiations. As THE CITY has previously reported, more than 70,000 NYCHA tenants owe a total of $466 million in back rent.

The sudden rush of developments from Albany on Tuesday may serve as a break in the impasse that has held up the state budget, now 19 days late — but they also mean a significant defeat for Hochul.

Tuesday’s concession by the governor comes after she made housing the centerpiece of her policy goals once she won the governor’s race in November. Hochul called on the state to build 800,000 new housing units over the next decade, a number that includes the 500,000 new units that Adams promised to create over the next 10 years.

The governor’s original Housing Compact proposal established goals for new housing in every community and set up a statewide board that could greenlight projects that had been rejected in towns and villages that failed to meet their housing goals. Lawmakers in the state’s suburban districts — especially in Long Island and Westchester — had staunchly opposed the plan, saying it ripped control away from locals.

As word circulated in the capital on Tuesday that Hochul was giving up on her previous housing requirements, the governor essentially conceded defeat.

“After weeks of negotiation, the legislature continues to oppose core elements of the Housing Compact, including the requirement that communities across the state meet growth targets,” Hochul said in a statement. “I will continue to discuss other elements of the plan and policy changes that will increase supply and make housing more affordable.”

Instead of specific requirements for new housing creation, the budget is now likely to include some version of a proposal the legislature has made to create a $500 million fund for infrastructure upgrades, such as improving roads and sewers, to communities that meet goals for new housing.

Groups that have spent the last year arguing that the state’s housing shortage is a result of too little housing development, and that local community resistance preserves segregation in the suburbs, wasted little time in blasting state lawmakers.

“We are extremely disappointed that the legislature failed to address segregation and the housing shortage by rejecting the visionary Housing Compact and instead capitulated to powerful NIMBYs who prefer the status quo,” said Rachel Fee, executive director of the New York Housing Conference. “By doing so, New York’s elected officials have once again let their constituents down and signaled that the ongoing housing emergency is acceptable.”

The housing goals would have applied to every community district in the city as well.

Still alive are proposals advanced by the Adams administration. They include legislation to ease the conversion of obsolete office buildings into residential housing — possibly including a tax break to encourage some of the units to be designated as below-market-rate housing; changes to state law to allow thousands of basement apartments to be legalized, and extending a deadline for completion of residential buildings that poured their foundations before the valuable 421-a tax break expired last spring. 

In a statement on Tuesday, a spokesperson for Adams promised to keep pushing the administration’s plan.

“Our administration has been on the ground daily in Albany in recent months advancing critical tools like flexible regulations for office conversations, lifting the floor area ratio cap, creating a pathway to make basement and cellar apartments safe and legal, and creating tax incentives to develop new housing while maintaining housing quality,” said Charles Lutvak, a spokesperson for the mayor.