Gov. Kathy Hochul continues to unveil proposals related to her 2025 State of the State Address agenda. This week, she announced a package intended to make home ownership easier for New Yorkers.

The most significant of the proposals is an effort to prevent large-scale investors from buying up single and two-family homes, which some say is exacerbating New York’s housing woes.

“Shadowy private equity giants are buying up the housing supply in communities across New York, leaving everyday homebuyers with fewer and fewer affordable options,” she said. “I’m proposing new laws and policy changes to put the American dream of owning a home within reach for more New Yorkers than ever before.”

While the particulars of the governor’s plan remain unclear, when state Sen. Liz Krueger saw the proposal, she said it looked quite familiar.

“Oh, here’s one idea we’ve already put into legislative language,” she said.

That language is in the form of a bill Krueger sponsors alongside Assemblymember Michaelle Solages. Introduced last year, it would impose a 50% tax on the fair market value of any future purchase of such properties, and requires hedge funds and similar institutional investors to decrease their holdings of such homes by 10% year over year for 10 years or face tax penalties.

The money would go to a down payment trust fund that would be put toward housing grants.

Krueger called the practice a lose-lose.

“For consumers trying to own their own homes, it skyrockets the rental prices for homes, it causes problems in communities,” she said.

While Krueger’s proposal imposes a tax, Hochul’s proposal appears to center around disqualifying large scale investors from using existing tax programs and incentives. It also would create a 75-day waiting period for institutional investors to make an offer on such properties.   

“I don’t think it’s strong enough, making them wait 75 days doesn’t make them change their behavior. My bill actually makes it much more expensive,” Krueger said.

Krueger urged the governor and her staff to take a look at the bill as they finalize their agenda ahead of next week’s State of the State address, and said she wouldn't be "the least bit offended" if it was adopted in full. In the meantime, Krueger stressed she is looking forward to seeing details of Hochul’s plan and working with the legislature to nail down a solution.

Both proposals have drawn criticism.

Ken Girardin of the right-leaning think tank Empire Center called the issue the least of New York’s housing troubles.

“It’s a combination of high property taxes combined with rent control policies, and land use obstacles that prevent us from increasing the supply of housing,” he said.

Further, he said the governor hasn’t proven that there even is a problem.

“We have a boogey man, and we have this populist fix. No data, no evidence,” he said.

Krueger countered that data from multiple studies have demonstrated a nationwide problem that while worse in other states, is growing in New York.

“This is moving fast, it’s moving throughout the country, this is a real issue that needs a real solution,” she said.

This proposal is in addition to the governor announcing a plan to invest $100 million to spur starter home construction and assist first-time buyers with downpayment.