The Division of Housing and Community Renewal (DHCR) supervises, maintains and develops affordable housing for New York State residents. This is accomplished by providing construction and rehabilitation loans and grants, administering rent control, rent stabilization and rent subsidy programs and supervising management of State assisted housing stock.

The Division is included in the Transportation, Economic Development, and Emvironmental Conservation appropriation bill.

The Governor recommends an All Funds appropriation of $309,432,000, a decrease of $17,461,735 or 5.3 percent from State Fiscal Year (SFY) 2002-03.

State Operations

The Executive proposes an appropriation for State Operations of $85,478,000, a net decrease of $724,000 over current year levels.

Adjustments include the following:

• General Fund decrease of $130,000 in the Administration Program due to staff attrition of three Full Time Equivalent (FTE) positions;

• General Fund decrease of $848,000 in the Community Development Program due to staff attrition of two FTE positions and a reduction in non-personal service and travel expenses;

• General Fund decrease of $620,000 in the Housing Program due to attrition of three FTE positions, non-personal service, and contractual expenses;

• General Fund and Special Revenue Other decrease of $1,812,000 due to attrition of seven FTE positions, two positions from the General Fund and five positions from Special Revenue Other;

• General Fund increase of $639,000 in the Administration Program for the transfer of building operations to the Hampton Plaza from the Office of General Services;

• General Fund decrease of $30,000 in the Community Development Program for non-personal service spending reductions;

• General Fund decrease of $30,000 in the Housing Program for non-personal service spending reductions;

• General Fund increase of $240,000 in the Housing Information Systems Program for an adjustment for contractual service payments to the Office for Technology;

• Special Revenue Other increase of $2,911,000 in the Administration Program to establish the Indirect Cost Recovery Rate for administering grant programs;

• Special Revenue Other increase of $571,000 in the Housing Program for indirect costs and fringe benefits in the Mortgage Servicing Account;

• Special Revenue Other increase of $485,000 in the Rent Administration Program for non-personal service adjustments; and

• Special Revenue Other decrease of $2,100,000 in the Small Cities Community Development Program for the elimination of distinct funding for the administration of the Program. The cost for the administration of this Program will be taken from the grant funds.

The Executive recommends an Aid to Localities appropriation of $149,754,000, a net decrease of $16,737,735 from SFY 2002-03.

The Executive recommends the following decreases in the General Fund:

• $500,000 for the elimination of the Long Island Housing Partnership;

• $7,095,000 for the Neighborhood Preservation Program which includes the elimination of the technical assistance awards;

• $2,905,000 for the Rural Preservation Program which includes the elimination of the technical assistance;

  $1,700,000 for the Periodic Subsidies-Local Areas, which represents a decline in debt service payments to Public Housing Authorities;

• $300,000 for the Periodic Subsidies-Urban Areas, which represents a prepayment of the final debt service payment for this Program;

• $150,000 for the Lead Based Paint Abatement Program;

• $440,000 for the Urban Homeownership Assistance Program; and

• $3,647,735 for the Community Projects Fund.

The Executive appropriates $58,000,000 in federal funds for the Small Cities Community Development Block Grant Program.

The Executive fails to continue the Low Income Housing Tax Credit Program.

Capital Projects

The Executive recommends Capital Projects appropriations of $74,200,000, reflecting no change from SFY 2002-03. This includes:

• $25,000,000 for the Affordable Housing Corporation;

• $29,000,000 for the Low Income Housing Trust Fund;

• $400,000 for the Housing Opportunity Program for the Elderly;

• $12,800,000 for the Public Housing Modernization Program; and

• $7,000,000 for the Homes for Working Families Program.

Article VII

The Executive proposes legislation to direct DHCR to terminate existing contracts and re-establish new funding and program standards for the Neighborhood and Rural Preservation Programs.

The Executive proposes legislation to increase the Service Contract Obligation Revenue (SCOR) bond cap by $116,000,000 in order to provide the bonding authority necessary to reimburse housing programs.