New federal law opens door for more housing on Long Island

For decades, Long Island has struggled to add housing. And it’s not alone.

The demand is certainly there. But the supply has been missing, as roadblocks have consistently thwarted the Island’s success — and similar efforts across the country.

Now, there’s a significant federal effort to pave the way for increased housing production, known as the 21st Century ROAD to Housing Act. The act is a rarity, a piece of legislation passed with bipartisan support in Congress, including a “yes” from all four Long Island House members. Despite his initial support, President Donald Trump ultimately chose not to sign the legislation because he was unhappy that Congress wasn’t passing a voting law he is pushing. The housing bill became law by default after his inaction.

The law takes some steps that may seem familiar to New Yorkers. Gov. Kathy Hochul and the State Legislature have discussed and even attempted some of the ideas before — with modest success — but in some ways the federal law goes further. The act incentivizes communities to allow housing-friendly zoning and developers to construct housing on vacant and abandoned buildings and properties. It also places restrictions on the ability of private investment companies to purchase single-family homes by limiting how many they can buy — which does occur on the Island, albeit not to the extent of other parts of the country, and can at times affect individuals’ homebuying efforts. And it expands exemptions and eliminates some steps in environmental and other reviews to make residential construction approvals simpler.

LAYERS OF LAWS, RULES

The act also broadens lending, giving smaller banks and credit unions a chance to make mortgages.

The broad federal efforts could have significant upsides for Long Island, its builders and would-be homebuyers. The law, for instance, establishes new grants and pilot programs to encourage communities to relax zoning laws to allow for more housing. It also eases and modernizes the permitting process, which could remove one of the most cumbersome factors that often delay or make more costly housing construction in regulation-heavy states like New York. The federal guidelines come just after New York State lawmakers passed reforms to the state environmental review law, changes that simplify the process.

The question now is how the revised state laws, the federal changes and local zoning rules will work together. Area builders, advocates and municipal officials will have to assess which types of housing and which developments benefit from the regulatory shifts.

Also still to be determined: whether any Long Island municipalities will take advantage of the new federal incentives and programs that encourage more housing development. We’ve already seen some towns and villages become part of Hochul’s “pro-housing community” network, a designation that gives them the chance to apply for a variety of state grants. How the federal offers will work with existing state programs remains to be seen. But if there’s enough federal money up for grabs under the new law, area towns and villages might just come on board.

VACANT SPACES

The federal legislation emphasizes the importance of building housing on vacant or underused lots. That part of the act seems written for a region like Long Island, which has plenty. Some of our mostly vacant malls and commercial properties are just begging for an economic transformation — and housing is the key. State lawmakers like Assemb. Michaelle Solages have tried to bring such changes about; perhaps the federal incentives can do the trick. Little will change without buy-in from local governments, however.

Also to be determined: how much of the federal bill will specifically address the need for truly affordable housing. Experts and economists often note that adding supply should in turn improve affordability. They’re right, but Long Island demands a variety of housing types and price points. It’s unclear whether the new law will encourage that range of housing.

That’s particularly important because a key piece of the law is a new Federal Housing Administration program that spotlights and expands the offering of mortgages valued at $100,000 or less. Right now, such a program wouldn’t help Long Island homebuyers much — if at all.

Overall, the 21st Century ROAD to Housing Act can have a big impact — but it’s far from a cure-all. It doesn’t do anything to tackle some of the biggest factors that hold up housing construction: The cost of supplies. Developers’ and investors’ financing complexities. Rising interest rates. And the pushback from community members worried about traffic, school enrollment and loss of open space.

Some local leaders and area builders, however, have successfully navigated such challenges. So, it wouldn’t be surprising if villages like Patchogue and Westbury and Mineola — who’ve long been “pro-housing” — take advantage of new federal perks and move future projects forward. But Long Island would truly benefit if others, in towns like Hempstead, Oyster Bay, Islip and Riverhead, where there are real opportunities to build housing right now, take advantage of this law and finally move forward on existing and future development efforts.

It bodes well that none of Long Island’s local leaders, including Republicans like Nassau County Executive Bruce Blakeman and Hempstead Town Supervisor John Ferretti Jr., have critiqued the federal law as they did Hochul’s efforts. Now they should actively push for the housing that Trump and congressional representatives are encouraging.

If they get on the “road to housing,” current and future Long Islanders might be able to find the home they’ve been seeking.