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S 10503

Establishes the pro-housing communities incentive fund

2025 Regular Session Introduced by Erik Bottcher

Creates a fund that pays municipalities for net new housing, prioritizing affordable and public housing, with safeguards against displacement and a regional funding focus.

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Bill Summary · S 10503

Overview

S.10503, introduced in the New York Senate by Senator Bottcher, creates the Pro-Housing Communities Incentive Fund within the Private Housing Finance Law. The bill establishes a new funding program to reward municipalities for producing net new housing units, with emphasis on affordable, deeply affordable, and publicly supported housing. It provides for annual incentive payments to eligible municipalities, outlines permissible uses of the funds, sets certification and reporting requirements, and includes anti-displacement and anti-gaming safeguards. The measure also offers a 25% bonus for designated “pro-housing” communities and appropriates $250 million for the program.

Main purpose and intent

  • Stimulate the production of net new housing across New York by providing financial incentives to municipalities.
  • Prioritize affordable, deeply affordable, supportive, and publicly assisted housing.
  • Promote equitable housing growth while safeguarding against displacement and artificial eligibility manipulation.

Key provisions and changes

  • Article 28 creates the Pro-Housing Communities Incentive Fund, to be administered by the New York State Housing Trust Fund Corporation.
  • Definitions (Section 1240):
    • Net new housing unit: a dwelling unit that receives occupancy authorization after the act’s effective date, increases housing stock, and does not simply replace demolished/converted units (with exceptions for deeply affordable or public housing replacements).
    • Eligible housing unit: includes rental, owner-occupied, affordable, supportive, senior housing, ADUs, conversions from nonresidential to residential, mixed-use with residential, and public/Mitchell-Lama housing.
  • Incentive payments (Section 1242):
    • $10,000 per net new housing unit.
    • $15,000 per net new affordable unit (affordable to households up to 80% of AMI).
    • $20,000 per net new deeply affordable, supportive, public housing, or formerly homeless unit.
    • $5,000 per net new ADU.
    • Amounts adjustable annually based on funds and regional housing need.
  • Permitted uses of funds (Section 1243):
    • Municipal projects: infrastructure (sewer, water, schools, parks, streets, transit, public realm), planning and permitting staff, affordable housing preservation/production, code enforcement, public safety, climate resilience, property tax relief, community facilities.
    • Funds need not be spent directly on the specific housing development that generated the award.
    • Proration possible if demand exceeds appropriations; priority to affordable, supportive, public housing, and regions with severe shortages.
  • Certification and reporting (Section 1244):
    • Annual municipality certifications detailing unit production, affordability, location, demolitions, and zoning/permits.
    • NYSHFBC to verify using occupancy permits, building data, assessment rolls, etc.
  • Anti-displacement and anti-gaming (Section 1245):
    • Prohibits payments for units created via displacement, rent-regulated conversions to market-rate, sham classifications, or violations of fair housing, environmental, labor, or tenant protections.
    • If replacement housing occurs, incentives only apply to net increases unless replacement provides greater affordability or public benefit as determined by the corporation.
  • Bonus for certified pro-housing communities (Section 1246):
    • Designated “pro-housing communities” receive a 25% bonus on all payments.
    • Ineligible for payments if required housing production data are not submitted.
  • Annual reporting (Section 1247):
    • NYSHFBC must publish annual report detailing payments, units produced and affordable, units demolished, regional distribution, and program recommendations; report due by December 31 each year to key state leaders.
  • Appropriation (Section 2):
    • $250,000,000, or as much as necessary, from the General Fund to the NYSHFRC to implement the act.
  • Effective date (Section 3):
    • Immediate enactment with applicability to housing units receiving occupancy permits on or after January 1 following enactment.

Parties affected

  • Municipalities (cities, towns, villages) that produce net new housing units and seek incentive payments.
  • Residents of eligible housing units, especially those in affordable and deeply affordable segments.
  • New York State Housing Trust Fund Corporation (administering agency) and related state agencies.
  • Developers and property owners involved in eligible housing projects, subject to anti-displacement safeguards.

Procedural and timeline notes

  • Took effect immediately upon enactment.
  • Applies to units receiving occupancy certificates on or after the act’s effective date.
  • Requires annual reporting and ongoing certification from municipalities.
  • Payments are subject to annual appropriation and potential proration based on funds available and regional needs.

Overall, the bill creates a substantial, performance-based mechanism to fund housing production, with a strong emphasis on affordability, anti-displacement protections, and regional targeting to address shortages.

Compiled from official sources — confirm details with the bill’s official record.

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