New York Lawmakers Should Adopt This Plan to Truly Spur Affordable Housing

The major dictionaries usually declare their “word of the year” awards in December, but for anyone following New York politics we have an early front-runner: “affordable.”

Gov. Kathy Hochul used the word dozens of times in her Jan. 14 State of the State address, applying it to multiple policy priorities. She repeated that call a week later when she unveiled her executive budget proposal, notably promising to tackle the state’s ever-worsening shortage of affordable housing and to “build, and build, and build some more.”

Unfortunately, it’s not that simple.

Just days after the governor announced her 2025-26 spending plan, the Albany Times Union reported that soaring construction costs could very well derail her plan to build our way out of this mess. One Saratoga County developer reported seeing the cost of building a 124-unit project jump from $14 million to $24 million in just six months.

The rising costs of materials, labor and insurance are placing immense financial pressure on housing developers in New York, creating significant roadblocks that make it harder to “build, build, build” our way out of the crisis.

To be clear, Hochul should be applauded for proposing an executive spending plan that includes a commitment to mitigate the housing crisis with key investments in affordable housing. The $1 billion she has allocated to Mayor Eric Adams’s City of Yes rezoning is expected to spur the creation of over 80,000 new homes in the city. The creation of a $50 million revolving loan fund for mixed-income housing, along with $100 million of infrastructure upgrades in pro-housing communities and $25 million to support housing programs, will also help.  

But it’s not enough. If we fail to address the multiple factors that are driving up construction costs, and are inextricably linked to the affordability crisis, the situation will only worsen. Further, preserving affordable housing must be equally prioritized. Every unit taken offline due to a lack of preservation adds to the growing demand for new construction.

Simply put, our leaders in Albany need to do more and think bigger. The solution must be far more encompassing than simply “build, and build, and build some more.”

It now falls to state lawmakers to embrace — and expand on — the governor’s agenda so New Yorkers can get the relief they deserve. The affordable development community stands ready to work with Albany to overcome the challenges that are hindering both preservation efforts and the urgent need for new construction.

As we enter the fourth year of Hochul’s ambitious five-year, $25 billion housing plan to create and preserve 100,000 affordable homes statewide, it’s clear that progress has been made. However, this plan was never intended to be a static endeavor, but rather an active process to tackle New York’s housing supply crisis. To truly do so, New York must make building and preserving affordable housing a priority everywhere, not just in its urban centers. Anything less means we are losing ground to this crisis.

That is why the New York State Association for Affordable Housing (NYSAFAH) is calling upon lawmakers to adopt its “State of Yes Housing for All” initiative to add $1 billion in funding for affordable housing capital, operating support and tax credits statewide. The consequences of the affordable housing crisis have no geographic boundaries, and neither should our solutions.

A top priority within the State of Yes Housing for All is to establish a $150 million Affordable Housing Relief Fund for projects that have operating deficits caused by escalating expenses — most notably insurance, COVID-19 rent arrears and forfeited rent increases. These projects are in desperate need of funds to bridge the gap between operating revenue and actual costs to ensure affordability obligations are met. They are also in need of capital funds for repairs to protect tenant health and safety. 

The governor’s proposal to double the State Low-Income Housing Tax Credit (SLIHC) program is a welcomed investment, particularly for NYSAFAH’s members who championed the creation of the program 25 years ago. However, the program needs an update to allow the credits to be transferred more than once to potential investors. This change will help increase the value of SLIHC and result in greater private investment in affordable housing projects. 

This State of Yes Housing for All initiative is a step toward ensuring that every community, whether urban or rural, has access to high-quality, affordable homes.

The next few months are essential. As they work toward a budget deal, the governor and state lawmakers must prioritize affordable housing solutions. The executive budget proposal is a promising start. With the right collaboration and focused approach toward providing equity among urban, suburban and rural communities, the state can become a true affordable housing leader for all New Yorkers.

Jolie Milstein is president and CEO of the New York State Association for Affordable Housing.