The New York Housing Compact is a comprehensive, multi-pronged strategy announced by Governor Kathy Hochul to address the state’s housing crisis and build 800,000 new homes over the next decade. The plan aims to meet the historic shortage of housing in New York and support renters and homeowners.
The strategy’s success hinges on local participation and growth across the state. In other words, if communities don’t buy-in, then the state will fail to meet its goals.
New York State is currently facing a severe, once-in-a-generation housing crisis. According to the Population Reference Bureau, more than half of New York renters are rent-burdened, meaning they pay more than 30 percent of their income on rent, the second-highest rate in the nation. In the New York City metro area, rents have risen 30 percent since 2015, and home prices have risen 50 percent over the same period. Across Upstate New York, rents have risen 40 to 60 percent since 2015, while home prices have risen 50 to 80 percent.
The New York Housing Compact will call on all levels of government to meet the ongoing crisis. The plan includes statewide housing targets that require all cities, towns, and villages to achieve new home creation targets on a three-year cycle. Localities will decide how to best meet their new home construction targets. From repurposing underutilized office parks and strip malls to offering new incentives towards multifamily buildings communities can choose how to tailor their strategies to increase housing supply. To encourage the inclusion of affordable housing as part of the new growth, affordable units will be assigned extra weight in calculating localities’ progress toward their goals.
The New York Housing Compact will also make available a $250 million Infrastructure Fund and $20 million Planning Fund to support new housing production statewide. The plan will also create a new Housing Planning Office within New York State Homes and Community Renewal to provide municipalities with support and guidance.
In localities that do not meet growth targets or do not take steps to implement Preferred Actions, proposed housing developments that meet particular affordability and design standards will be facilitated for approval. This will ensure that even if localities do not meet their targets, housing production will continue to take place.
Overall, the New York Housing Compact is a comprehensive strategy that calls upon all levels of government to meet the ongoing housing crisis in the state. It includes a range of measures aimed at increasing housing supply, promoting affordability, and encouraging sustainable development.