Conor Gillis - Government Affairs Field Rep, NYSAR

Final State Budget Summary
State lawmakers approved a $229 billion state budget, nearly a month after the April 1 deadline. Much of the delay in a final budget plan was due to disagreements in the Legislature over Governor Hochul’s Housing Compact proposal to boost housing construction, changes to the state’s bail reform laws, and consideration of additional tenant protections, including “good cause” eviction. In the end, all housing policy was excluded from the budget, raising the possibility that the issue of housing and tenant protections could be taken back up before the Legislature adjourns in June.

The final budget includes a new mandate on all new construction to be all-electric beginning December 31, 2025 for buildings 7 stories or less, and larger buildings by December 31, 2028. Other major items in this year’s budget include modifications to the state’s bail reform laws to allow judges more discretion to set bail in violent cases, an increase in the state’s minimum wage to $17/hr. downstate and $16/hr. upstate by 2026 and then annually indexed to inflation, a new lead paint certification process for rentals outside of NYC, and allowing the revival of 14 charter schools in NYC. NYSAR will be monitoring expected regulatory proposals to implement the new electrification and lead certification laws and will be providing our perspective during any public comment periods. Click here for a summary of this year’s state budget.

New York set to ban gas furnaces, stoves in new buildings
Under the state budget agreement announced by Gov. Hochul, New York will require new buildings to be zero-emissions starting in 2026, however details have yet to be released. Gov. Hochul indicated that she excpects the deal to include rebates to consumers. It is expected that the state’s budget will ban fossil fuel combustion in most new buildings under seven stories starting in 2026, with larger buildings covered in 2029, meaning that there will be no propane heating, gas furnaces or gas stoves in most new construction. Back-up emergency generators are likely to be allowed. NYSAR will continue to provide updates on this measure as more details are released.

NYSAR meets with Sen. Sanders’ office on coop disclosure
NYSAR staff met with Sen. James Sanders’ office (D-Queens) to discuss advancing NYSAR-supported coop fairness and transparency legislation (A.1778; S.2964-A; and S.5789/A.2685). Sen. Sanders authors one of these bills and is a sponsor of another.

NAR forms Housing Solutions Coalition to address national rent control issues
NAR recently announced the creation of the Housing Solutions Coalition, which NAR is a founding member of. The coalition is comprised of five national trade associations in an effort to address various rent control initiatives across the country. It will serve as a clearinghouse to organize efforts to oppose rent control initiatives, working together on policies and solutions that lead to the creation and preservation of more affordable housing.

Albany Common Council vote overrides affordable housing veto

The city’s Common Council gave its final approval to a new ordinance that would mandate an increase in the number of affordable housing units in new developments. The council voted 12-2 to override Mayor Kathy Sheehan’s veto at its April 17 meeting. Sheehan had repeatedly said she shared the council’s goal of increasing affordable housing in the city but believed the ordinance would make it financially difficult, if not impossible, for developers to make their projects work.

The city already had an existing quota that required developers of buildings with more than 50 units to dedicate 5 percent of the building as affordable units.

The change creates a system that increases the percentage of affordable units as a development gets larger. Developments with 20 to 49 units will need to keep 7 percent of their units as affordable housing. The number rises to 10 percent for developments with up to 60 units, 12 percent with developments up to 75 units and is capped at 13 percent in buildings with more than 75 units.