Coming up with a replacement for the now-expired 421-a affordable housing tax break has long been a priority for the real estate industry, which has framed it as an essential tool for housing production and blamed its absence for a dearth of new residential building plans. Although the legislature has so far shown almost no interest in passing a replacement program, extending the completion deadline for projects already in it was seen as more realistic. However, even that seems to be off the table barring a last-minute resurrection of a version of the legislature’s housing package.
The so-called Housing Access Voucher Program will also apparently be left on the cutting-room floor, the legislative leaders said. City officials had urged Albany to enact the program, which would have given rental aid to people who are homeless or at risk of eviction.
Another bill agreed upon by lawmakers was a replacement of J-51, a bygone tax break for property owners who renovate multifamily buildings.
In the statement, Wood said Hochul will “continue fighting to address our housing crisis,” including through executive actions in the coming weeks.
Homeowners for an Affordable New York, a coalition of real estate groups that formed last year as a stringent opponent of good cause, celebrated its apparent demise.
“The self-described socialists pushing good cause eviction failed to understand that attempting to craft housing policy through bullying, intimidation, and harassment was always a losing proposition,” the group said in a statement. “It is now clear that a majority of lawmakers understand that good cause eviction would increase homelessness, devastate New York’s future housing supply, and wreck local budgets.”
Housing Justice for All, a tenants group that has been equally outspoken in its support for good cause, urged the legislature to pass its housing package despite not having the governor’s backing.
“Gov. Hochul would not veto a wildly popular omnibus bill in the midst of a historic housing crisis. We urge the state legislature to call her bluff,” the statement reads. “Ending the legislative session without having passed any meaningful housing initiatives is a reality that no member of the public will accept.”
If the last-minute package fails, it would mark the second major defeat for housing legislation in Albany in recent months, despite Hochul calling it a top priority. Her proposal during budget negotiations, dubbed the New York Housing Compact, would have required downstate communities to increase their housing supply by 3% every three years, but this plan ultimately collapsed in the face of opposition across the political spectrum in the Legislature.