The New York Housing Conference wants Gov. Andrew Cuomo to steer funds from the state’s budget surplus to boost the creation of affordable apartments.
Updated: November 26, 2014 12:51 p.m.
A nonprofit is proposing that Gov. Andrew Cuomo steer $1 billion of the state’s budget surplus to create an affordable-housing capital fund.
The New York Housing Conference announced its idea Wednesday, and is the latest organization to line up for a piece of the budgetary pie.
Mr. Cuomo has been left with an extra $5.1 billion this year, which made its way into the state’s coffers largely through legal settlements from financial firms such as Bank of America. The governor has vowed to spend the money on a one-time expense, rather than something that will need to be continually funded in the future, and the nonprofit is arguing it has a worthy cause.
“We feel really strongly that there is an affordable-housing crisis, and we have to think more broadly about how it impacts our economy,” said Rachel Fee, executive director of the Manhattan-based organization. “The capital fund could be used to build on existing [state and local] affordable-housing programs, which leverage private investment.”
The fund, which would offer loans or credit enhancement to developers, would be run by the state Homes and Community Renewal agency, and according to Ms. Fee, even though it would represent a one-time expenditure, any low-interest loans could be recycled back into the fund to invest in future affordable housing.
However, should the fund actually be created, the organization stressed, the money should be spent in addition to any existing budgets, and not be used to make up for any shortfalls.