$2B Housing Fund inches forward

One day after Gov. Andrew Cuomo awarded $150 million of the $2 billion set aside to fund affordable and supportive housing projects, advocates applauded Cuomo for further directing New York State Division of Budget officials to sign a long awaited memorandum of understanding initiating a process to release additional promised funds. But the MOU detailing the governor’s plan to spend those funds is already facing some reluctance from the state Assembly and Senate, where they must be approved.

“By advancing the state’s largest commitment to affordable and supportive housing, hundreds of thousands of New Yorkers will be able to find a safe place to call home,” Cuomo said in a Sept. 14 statement after the state budget director signed the MOU. “I call on the state Legislature to join me in this effort, and sign the memorandum of understanding so we can fully realize the transformational benefits this historic investment will bring for New York’s most vulnerable residents.”

In January, Cuomo pledged to spend $20 billion over five years to expand affordable and supportive housing. That figure is divided between creating and preserving 100,000 units of affordable housing and developing 6,000 supportive units and 1,000 emergency beds. Advocates, citing the mounting affordable housing and homelessness crises, have criticized the slow progress toward finalizing the MOU and agreeing on how to spend the first $2 billion. The $150 million awarded Tuesday funded supportive housing proposals by 84 community-based organizations across the state, and was the most significant step forward related to distributing the money set aside in April’s budget since an RFP was released in June. 

The New York State Association for Affordable Housing (NYSAFAH), a group that has criticized the governor for the delay in signing the MOU, shifted its focus to pressuring Assembly Speaker Carl Heastie and Senate Majority Leader John Flanagan to do their part.

“New Yorkers are counting on Speaker Heastie and Majority Leader Flanagan to join the governor by signing the MOU to release $2 billion in affordable housing funds,” Jolie Milstein, NYSAFAH’s president and CEO said in a statement “As the statewide housing crisis continues, low- and middle-income families cannot afford any further delay.”

It’s unclear whether the legislature will support the spending plan as it exists right now. Both the Assembly and Senate seem concerned about whether their priorities are being respected.

“We remain hopeful that all sides can reach resolution and will continue working in good faith to achieve a balanced proposal that preserves affordability statewide and creates necessary housing opportunities for seniors and veterans in our upstate communities,” said Scott Reif, a spokesman for the Senate Republicans. “A one-way MOU won't accomplish that, " he said, characterizing the governor’s spending plan as one that didn't take everyone’s concerns into consideration.

The Democrat-led Assembly has backed a plan that would emphasize funding public housing repairs, revitalizing Mitchell-Lama homes and expanding affordable housing for seniors and other vulnerable populations. “If (the MOU) helps jumpstart the conversation and meets our priorities then great,” said Assembly majority spokesman Michael Whyland. “If it doesn’t, we’ll continue to fight like we always have to address New York’s vast array of housing needs.”

A funding breakdown provided by the New York Housing Conference said the proposed MOU includes an additional $500 million to develop supportive housing and $100 million for upgrades and repairs at the New York City Housing Authority. Another $425 million would go to building or converting units as affordable rentals for households earning up to 60 percent of the area median income (AMI); $150 million is designated for rentals for those earning 130 percent of the AMI.

“This is a perfect example of the partnership between government and the nonprofit sector in addressing some of the most pressing social issues,” said Allison Sesso, executive director of the Human Services Council, an umbrella group of social services organizations. “It is important in moments like this to appreciate what each brings to the table – nonprofits bring expertise, capacity, and connections to communities, and government supplies the substantial funds needed to support such a significant expansion of these worthwhile programs.”

On Sept. 13, Cuomo’s office released the list of providers who received grants from the first $150 million. That money is targeted to support 1,200 new permanent supportive housing units for homeless veterans, domestic violence victims, senior citizens and people with disabilities, as well as those who are chronically homeless or have substance abuse or mental health issues. Wrap-around services for these residents will include job training, counseling and crisis intervention, legal services, and benefits and health-care assistance.

Out of the 121 projects awarded throughout the state, 42 will be operated in New York City by nonprofits such as BronxWorks, Community Access, Hebrew Home for the Aged, Services for the Underserved and Comunilife.

Carole Gordon, senior vice president for housing development at The Bridge, said she was “delighted” about the announcement. “We have purchased a property in the Bronx and this award will enable us to create 65 units of supportive housing for chronically homeless mentally ill adults, disabled seniors and veterans, all of whom desperately need this housing to live more independently and successfully in the community,” she said.

That building will also include 43 affordable units for families, single adults and seniors.

The grants announced Tuesday include the $150 million from the money set aside in the MOU and $387 million from the state’s Homeless Housing and Assistance Program and other sources. The awards cover service and operations costs and are conditioned on providers getting capital funding from other sources such as the Division of Homes and Community Renewal and the Office of Temporary and Disability Assistance Homeless and Housing Assistance Program. The awards are being made available through renewable five-year contracts and granted once projects are built and ready to open. About 80 percent of the units that are ultimately funded will be located in the city, a number consistent with the state’s homeless population, the governor’s office said.