Governor Kathy Hochul has unveiled a historic $252 billion budget for New York State, marking the largest in its history. A significant portion of this budget, totaling $1.025 billion, is allocated to support the “City of Yes for Housing Opportunity” initiative. Recently approved by the City Council, this program aims to address the housing shortage by creating over 80,000 new housing units within the next 15 years.
The strategy includes revising zoning laws, reducing parking requirements, and mandating the inclusion of income-restricted units to promote housing development. In addition to bolstering housing construction, Governor Hochul advocates for measures to assist first-time homebuyers. She has reiterated her commitment to providing down payment assistance and promoting the construction of more “starter homes” to make homeownership more accessible for New Yorkers.
Furthermore, the governor calls on Congress to repeal the cap on state and local tax (SALT) deductions. The current cap limits the amount taxpayers can deduct on their federal tax returns for state and local taxes paid, which has been a point of contention, particularly among higher-income residents in high-tax states like New York. Repealing this cap could provide significant tax relief to many New Yorkers, potentially improving housing affordability and financial stability for homeowners.
Governor Hochul emphasized the critical need to increase housing supply to address affordability issues, stating, “The cost of housing and rent will never come down if we don’t increase the supply. We have to build, build, and build some more.” She also highlighted the broader economic benefits of expanding the housing market, noting that increased construction will create jobs, stimulate local economies, and help stabilize rising rent costs.
The Hochul administration is seeking concrete actions to address the city’s housing crisis, such as investing in housing development, supporting homebuyers, and advocating for tax relief. The premises sound good, but we will see what will be actually implemented.
