NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2325
SPONSOR: McDonald (MS) TITLE OF BILL:
An act to amend the public housing law, the tax law and the state
finance law, in relation to establishing the shovel-ready housing
program
PURPOSE OR GENERAL IDEA OF BILL:
To make the process of increasing the housing supply easier and more
attainable by creating the "Shovel Ready Housing Program" to establish a
procedure for municipalities to pre-authorize parcels of property for
the construction of housing.
SUMMARY OF PROVISIONS:
Section 1 establishes the "Shovel Ready Housing Program". The Division
of Housing and Community Renewal in consultation with municipal govern-
ments throughout the State, will create the program, which will estab-
lish a procedure for municipalities, excluding cities with a population
of over one million, to pre-authorize parcels of property for the
construction of housing. All rules, regulations and reporting require-
ments will be established by the Commissioner. Municipalities must opt-
in to the program. An annual list of those municipalities who opt-in
will be published on their website.
Section 2 establishes the "Shovel Ready Community Tax Rebate Credit" for
those taxpayers who reside in municipalities that have opted-into the
Shovel Ready Housing Program, who also have income below $250,000 and
who own property that receive the STAR exemption or school tax relief
credit.
Section 3 establishes grants to Shovel Ready Housing-certified munici-
palities in an amount equal to double their CHIPS (consolidated local
street and highway improvement program) funding. This funding can be
used by municipalities for infrastructure purposes including, but not
limited to, road, bridge, water, wastewater, power generation and
distribution, and broadband projects.
Section 4 sets the effective date.
JUSTIFICATION:
A housing shortage is a pervasive problem throughout NYS which is driv-
ing housing costs upward. A big hurdle to building new housing is the
plethora of hoops that must be jumped through, including environmental
reviews, permitting, and local zoning.
This bill aims to make the process easier and more attainable by allow-
ing municipalities to pre-authorize certain parcels of property for
construction that fit the needs of their community such as small starter
homes, three-bedroom apartments for families or condos for seniors. To
qualify, a municipality would have to apply and be certified by the
Division of Housing and Community Renewal into a "Shovel Ready Housing
Program."
Municipalities who opt in would be eligible for grants equal to double
their CHIPS (consolidated local street and highway improvement program)
funding. The grants could then be used for infrastructure purposes,
including things such as roads, bridges, water, wastewater, power gener-
ation and broadband.
Taxpayers who reside in these Shovel Ready Housing-certified communities
will also benefit through this bill as it brings back property tax
rebates.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A.9876/S.8940
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
