Budget talks: Legislative opposition threatens Hochul housing plan

ALBANY — Gov. Kathy Hochul on Tuesday said she’s not relenting at this point on her affordable housing proposal that would empower the state to overrule local zoning officials who reject new housing projects, but the State Legislature "continues to oppose core elements" of her housing proposal.

That opposition by the Democratic majorities of the Senate and Assembly could soon result in the removal of Hochul's housing proposal from the state budget. The issue has become a sticking point in negotiations for a budget that was due March 31. All sides agreed, however, that for now Hochul's housing proposal, including targets for up to 3% growth in housing over the next three years on Long Island, is still on the table.

“After weeks of negotiations the State Legislature continues to oppose core elements of the Housing Compact, including the requirement that communities across the state meet growth targets,” Hochul said. She said she would continue to push her proposal to “increase supply and make housing more affordable.”

The state is operating on emergency budget "extenders" to keep the state running and most employees paid until a 2023-24 state budget is adopted. The third extender ends Thursday.

Legislative leaders have sought to block the mandate that would allow the state to overrule local zoning, which could force changes in neighborhoods to add apartments and more houses in an effort to increase the availability of housing and lower its cost. Instead, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins advocate doubling the $250 million in incentives Hochul proposes for municipalities to pay for roads and other infrastructure to accommodate more housing.

“It remains clear that merely providing incentives will not make the meaningful change that New Yorkers deserve,” Hochul said Tuesday in a rare statement during state budget negotiations.

“I don’t think anything has been finalized,” said Heastie about housing proposal after Tuesday morning’s negotiating session. “I need to understand what the entire package looks like.”

Heastie then gave an assessment of the closed-door talks on the overall budget: “We’re within reach, but we’re not close.”

Hochul’s statement on Tuesday followed a report on Twitter and by some affordable housing lobbyists that she was dropping her provision to allow a state board to approve new housing projects rejected by local officials for issues other than public safety. Some independent studies, including the New York University Furman Center for Real Estate and Urban Planning, agree with Hochul’s position that a state mandate is needed to increase housing in towns that have long blocked new development.

Republicans and Democrats have recognized the need for more affordable housing, but many oppose the potential loss of local control.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.