New York could soon introduce a bill aimed at resolving the state's housing affordability crisis after state leaders reached a deal on the framework of a new legislative plan, according to a report.
New York state leaders held closed-door talks during the weekend with Gov. Kathy Hochul, D-NY. During the talks, the lawmakers and the governor agreed to provide tax breaks that would make it more affordable for real estate developers to build more properties. They also agreed to provide more protections for tenants to make it more difficult for landlords of market-rate units to evict renters.
Furthermore, the agreement includes letting landlords of rent-stabilized apartments increase rental prices and lifting the size limits on new apartment buildings in the Manhattan area. The latter would give developers the option to convert vacant office spaces into housing.
Information about the closed-door talks and the agreements were first reported by The New York Times, citing three people familiar with the conversations.
New York's Housing Affordability Crisis
The bill aims to address the state's growing affordability crisis by building a projected tens of thousands of affordable homes in the coming years.
The agreement comes as developments across New York have stalled and rents are forecasted to increase in the summer months. The number of vacant apartment units in the state has also fallen to 1.4% in 2023, the lowest rate recorded since 1968, per city data. The affordability crisis is further exacerbated by the influx of migrants in the state's shelter system.
"What we're on the cusp of doing is creating a generational shift in how New York State is operating in the housing market," Hochul said in an interview before the deal was revealed.
The full framework of the new legislation is expected to be presented to the Senate and the Assembly this week. However, the outlet noted that some parts of the bill may still change or be removed.
It is unclear whether the bill would clear the state's Legislature. Already, the bill has garnered criticism from some groups, including the Legal Aid Society, which called the negotiations a "blank check," as reported by the NY Daily News. Aaron Sirulnick, chairman of the board of the Rent Stabilization Association, also said the deal would just prevent the ability of landlords to renovate rent-stabilized apartments.
READ NEXT: Nearly 40% of Renters in the US Believe Homeownership Is No Longer Possible: Survey
