State lawmakers won't be starting from scratch when they return to Albany in a few weeks and resume work to tackle New York's shortage of housing supply.
After making housing a priority in this year's State of the State, Gov. Kathy Hochul rejected the housing proposal the Senate and Assembly posed at the end of session — failing to reach an agreement on any policy after disagreements over tenant protections brought conversations to a stand-still multiple times this year.
The Legislature's proposal was not publicly released, but would have asked localities to submit housing needs to the state to help shape incentives. Lawmakers leading the negotiations say the proposal will serve as a starting point for conversations when session begins Jan. 3.
"I think that the work we did in the spring was very productive," Senate Housing Committee chair Brian Kavanagh told Capital Tonight.
Legislators said they have their work cut out for them to address the state housing crisis, and continue to explore tax breaks to promote new development in wake of the expiration of New York City's 421a affordable housing tax incentive, programs to transform unused office or retail space into new apartments and to embolden legal protections for tenants.
"There's been an ongoing conversation about whether and how those should be renewed," said Kavanagh, a Democrat from Lower Manhattan.
Hochul unsuccessfully proposed an ambitious housing compact in her last executive budget to build 800,000 housing units across the state over a decade with construction mandates that proved to be unpopular. Recent reports reveal the governor will drop the mandates intended to increase affordable housing units statewide.
Housing negotiations deteriorated as Hochul and the Legislature clashed on including Good Cause Eviction provisions in the last state budget, or a law to limit rent increases and the reasons a property owner can evict a tenant.
Legislative leaders earlier this year said the policy was a dealbreaker to reach a housing deal, but Assembly Housing Committee chair Linda Rosenthal says it's too early to draw hard boundaries on any policy looking ahead to 2024.
"I don't think we should lay down these strict guidelines right now," the assemblywoman said. "Let us see what is possible."
The Legislature's proposal narrowed implementing the Good Cause policy in New York City and allowing other local governments to decide to opt-in to the change.
"If you look at the eviction rates, and if you look at how many people are being hauled into court, if you look at how many people have no access to legal representation in court ... there are not enough attorneys to represent everyone who's entitled, so we also want to expand that across the state," Rosenthal said.
Hochul has since gone rogue in taking action — declaring executive orders this summer, including $650 million in grants, to create new affordable housing. State Homes & Community Renewal has not named which municipalities will be priority recipients, or those that applied to be "Pro-housing communities" as localities that support of housing projects.
Applications remain open and the agency will review applications on a rolling basis, according to Hochul's office.
"Like 73% of New Yorkers, Gov. Hochul believes housing affordability is a major problem," Hochul spokesman Justin Henry said in a statement, citing results from a November Marist Poll. "The housing crisis is pushing New Yorkers out of state to Connecticut and New Jersey that have built thousands more homes over the last decade than New York has. That's why Gov. Hochul proposed the boldest plan in a generation to drive down housing costs by building more supply. After the Legislature flatly rejected it and failed to introduce a viable alternative, Governor Hochul refocused her efforts on sweeping executive action that took effect in July. Until the Legislature is ready to come back to the table with a serious approach to build more housing in New York, the governor is focusing on using her executive powers to address the housing crisis."
About 50 localities have expressed interest to the state department, and have 90 days to submit their application and be reviewed for certification. No certifications or grant funding have been awarded to date.
Hochul also signed legislation in October to help homeowners in manufactured home parks.
Kavanagh and Rosenthal said housing conversations have continued throughout the year with stakeholders, including property owners and labor unions. Advocates have expressed concerns about protections for workers for housing projects in high demand, including better wages and benefits.
Housing negotiations will be centered in the budget, as many proposals will require spending, but other policy changes may be saved for separate legislation.
Kavanagh said it will be complicated to strike a balance of affordable programs that offer the greatest public benefit, but that different points of view do not mean the Legislature and governor don't share similar housing priorities.
"It's not like the Legislature has one point of view and the governor has another," he said. "The governor, of course, has a statewide perspective and needs to balance all of those interests."
Compromise will be tricky to accomplish with hundreds of lawmakers from all areas of the state vying for different needs within their districts — particularly during an election year.
"Well, that's the art of legislating, isn't it?" Rosenthal said.
The Assembly will hold a hearing in New York City on Monday to examine the state's various housing needs and to explore which ideas will offer the greatest public benefit at the cheapest as $4.3 billion deficit looms over New York.
Michael Borges, executive director of the Rural Housing Coalition, is set to testify Monday. He's one of several advocates reminding lawmakers to pay attention to all parts of the state when deciding housing policy, as the most effective solutions will differ by region — especially in rural communities.
"We are a significant portion of the state," said Borges, adding 74% of the counties in the state have a majority of their population living in rural communities.
The state defines a rural community as a locality with 25,000 people or fewer.
He pleaded with Hochul not to cut funding for the state's Rural Preservation Program, Mobile Home Replacement Program, Small Rental Development Initiative and others that boost housing in rural areas.
"Everybody's saying that the housing crisis is a priority — I'm hoping that's something that is a priority for the state," Borges said.
About 78% of housing in rural communities across the state is owner-occupied, Borges said, and programs to preserve existing housing and mobile home parks are top priority in upstate areas with less population density. There are about 1,800 mobile home parks across New York.
"The state does not do enough to preserve those options, either," he said. "And they're an affordable, owner-occupied option for communities."
But any completed housing plan would be a change for New Yorkers, as long as something gets over the finish line.
"And hopefully soon," Kavanagh said. "Because, you know, we know this is a crisis and people are waiting for a real response from the state."