Crain’s: State launches $650M incentive program meant to boost housing production
August 31, 2023 The state of New York has introduced a $650 million initiative called the Pro Housing Communities Program to incentivize housing production in communities that commit to increasing their housing supply. Downstate communities meeting an annual growth rate target of 1% and upstate communities meeting a target of ⅓% will receive priority for funding. Municipalities seeking priority must provide information on zoning rules and housing permits over the past 5 years. Communities meeting growth targets will be certified as pro-housing, while others can still qualify by affirming their commitment to increasing housing supply. Communities initiate the application process by emailing a letter of intent, which will be reviewed by the Division of Housing and Community Renewal within 90 days. Pro-housing communities must annually resubmit information on housing permits and zoning to maintain their designation. These certified communities will receive priority for discretionary fund programs such as the Downtown Revitalization Initiative, Market New York, and the Public Transportation Modernization and Enhancement Program. Funds like the Long Island Investment Fund and Mid-Hudson Momentum Fund are also included to support housing growth in areas with historically slow development. Additionally, Governor Hochul announced a pilot replacement program for the 421-a affordable housing tax break in Gowanus and mandated state agencies to identify state-owned sites suitable for residential projects. Earlier attempts to enforce statewide housing supply increases faced resistance in the Legislature, leading to the introduction of this incentive-based program instead of a mandatory requirement, reflecting the governor’s belief that incentives alone can’t drive meaningful change.