Invest More Than $486 Million in Housing for Vulnerable New Yorkers

Nearly three million households in New York are financially insecure in their homes, paying over 30 percent of their income on housing costs.

Governor Cuomo today announced that he will invest more than $486 million in funding to provide housing for the State’s most vulnerable residents. The funding includes:

• $229 million in capital resources for 2015-16 continuing the five-year House NY program, an increase of $32 million over available resources in 2014-15;
• $257 million from the J.P. Morgan Chase settlement funds to support the following programs over the next several years: construction and rehabilitation of affordable housing, revitalization of neighborhoods, as well as encouraging community renewal activities; improvements to public, seniors and veterans housing; and low-cost financing and access to capital through Community Development Financial Institutions.

In 2013, Governor Cuomo launched House NY, a $1 billion investment over five years to create and preserve 14,300 affordable housing units, augmented by an additional $130 million added by the Governor in 2014. This initiative was the largest housing investment made by the State in at least 15 years.

Additionally, the Governor’s investment of federal storm recovery funds for affordable housing serves as a catalyst to attract private investment to the market—lowering mortgage costs and leading to more affordable rents.

Invest Additional $220 Million in Homeless Services 

The homeless population in New York is 80,590, making up 14 percent of the nationwide homeless population and is the second highest homeless population in the country, according to a 2014 HUD homeless census. The State currently spends approximately $780 million on homeless service programs administered or overseen by the Office of Temporary and Disability Assistance, including emergency homeless shelters, the development of new homeless housing, homelessness prevention activities, and rental assistance.

Continuing this support, Governor Cuomo proposed to invest an additional $220 million in homeless services over the next several years, including funding for New York City rental assistance and other programs that address the City’s growing homeless population. There are currently 60,352 homeless people in the shelter system, including 14,519 families, the largest number of homeless families in the country, according to the HUD homeless census. In 2014, the City’s shelter populations were up by 20 percent or more, and more than 20 additional shelters opened that year.

Invest $183 Million to Support NY/NY IV Housing Program

The State will use $183 million of J.P. Morgan Chase settlement funds to support a new NY/NY IV program to create 5,000 new supportive housing units for populations requiring additional support; New York City’s LINC 1 rental assistance program; and a cap on the rent contribution for public assistance recipients diagnosed with HIV/AIDS in New York City so they can afford to stay in their homes.

Commit $4.5 Million to Advance Anti-Hunger Task Force 

Currently, more than 3 million New Yorkers are food insecure, meaning they do not always have access to enough food for active, healthy lives. In 2013, Governor Cuomo created the Anti-Hunger Task Force, a statewide effort made up of experts, advocates, and government officials focused on ending hunger and increasing access to local foods in New York State.

In response to the recommendations outlined by the Anti-Hunger Task Force, the Governor today announced that he is committing $4.5 million to bolster the State’s emergency food system which will help 2,600 emergency food providers support the more than 3 million New Yorkers who access emergency food programs each year. The Governor will also invest $250,000 to help child and adult care programs maximize federal funds that subsidize free food for children and adults in those programs and $250,000 for programs to help connect schools with New York farmers to ensure that schools have the best access healthy, locally-grown food.

Additionally, the Governor will leverage federal funds to completely re-envision the State’s Human Services Information Technology Systems to improve client services and service coordination. This overhaul will make it easier for food insecure New Yorkers to tap into the benefits they need and get connected with other vital state-supported services.

The Task Force identified a few areas where federal funds are underutilized in the State: the Child and Adult Care Food Program (CACFP), which provides funding in the form of reimbursements for food served in day cares, after school programs, and emergency shelters; Community Eligibility Provision, which reimburses a percentage of funding to schools or districts that offer universal free meals to all students; and Summer Food, which is another federal reimbursement program for meals in low income communities.

Create a $50 Million Nonprofit Infrastructure Capital Investment Program

The nonprofit sector provides services to many New Yorkers, including the State’s most vulnerable populations. Many of the services that nonprofits provide on behalf of the state result in long-term cost avoidance and savings by intervening to help avoid crisis situations. To support the work of the State’s nonprofit partners, the Governor will create a one-time $50 million Nonprofit Infrastructure Capital Investment Program.

The Program will make targeted investments in capital projects that will improve the quality, efficiency, accessibility, and reach of nonprofit human services organizations that serve New Yorkers. Grants will be awarded through a competitive process, with priority given to nonprofits with State contracts that provide direct services in high-need communities, particularly smaller nonprofits and nonprofits that lack access to other capital funding opportunities.

The Governor will present the Executive Budget Proposal on January 21. Are you ready to work with your State representatives to negotiate a budget that’s best for your community?  March 2-3 Rural Advocates meet in Albany. Save the date and be ready to let your legislators know that Rural New York needs their support!

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The New York Legislative Session for FY 2016 begins Monday, January 7. With the recent passing of former Governor Mario Cuomo,  Governor Andrew Cuomo has postponed his State of the State address. As announce by the leaders,  “due to extenuating circumstances the Governor’s 2015 State of the State address has been rescheduled to Wednesday, January 21st at 1:30PM, to be held in the Empire State Convention Center”

Both Senate and House passed an omnibus appropriations bill addressing domestic housing and community development programs.  HUD’s HOME program took a hit, from 1,000 million in FY 14 to 900 million in FY 15 and CDBG a hit as well from $3.1 million in FY14 to $3.066 million in FY15. Housing Counseling bumped up from $45 million to $47 million in FY 15 Continue reading →

Applications will be due on Friday, February 13, 2014

Advocates fought hard to increase the per unit cap to $10,000 per unit from $5000 for the RESTORE program and this was approved by the legislature in 2014. However, this is not reflected in the NOFA even though repairs of roofs, furnaces, electric work and plumbing are specifically eligible. It does note the lifetime cap is increased to $10,000. Questions remain!

A special thank you to those who have renewed their 2014 membership before the end of the year and help us end the year in the “black”!  If you haven’t yet renewed, there’s still time…

The growing need to stabilize mobile homes, consumer awareness about land contracts and rural land banks were just some of the topics discussed at the Rural Advocates Annual meeting in Cooperstown.  A funding pool for the purchase, rehabilitation and resale of vacant units to low income and working families was identified as a need to address the impact of foreclosure.  The cost of bringing basic Infrastructure to single family homes as well as rental units including mobile home parks and the need for security deposit revolving funds were some priorities for this year.

The Preservation Program is the most effective and efficient delivery system for affordable housing programs as long as every company has a community presence.  Several counties fail to have that presence although they may be incorporated into an existing contract “service area” and without a go-to, recognized program for each County, there continues to be program gaps in rural New York.  Advocates called for consistent and active management of contracts to produce reliable data. To that end, they support funding for additional HCR staffing after an 80% program staff cut and an increase in funding for RHC for TA and support for assistance in collecting data for effective program evaluation.

New needs identified include technology update and training through a one time technical advancement compliance program for preservation companies. Groups need training on communicating electronically.

Anticipating a decrease in Federal housing funds, increases to AHC, RESTORE and ACCESS to HOME can address single family housing gaps. One time settlement money can be used for these existing programs as well as greater utilization of the Main Street and the Community Investment Fund.  Advocates identified a need for small scale projects and a rural area revitalization program with minimum project funding that can address small projects and not be encumbered with documentation necessary to secure and protect investments of larger sums

Advocates meet in Cooperstown November 18-19 at the Otesaga Hotel.  Join the discussion as we examine how funding and legislation can be used to improve housing and the economy of Rural New York. More information if you Email ruraladvocates at gmail.com; the meeting starts Tuesday at 10 am.

The TU and Politics on the Hudson report that there’s another $625 million coming from bank settlements for a total of over $5 billion in settlements. That means that the state will end the year with a  $4.8 billion surplus.”  The money came from three settlements: $300 million each from Bank of America and Standard Chartered banks as well as $25 million from Pricewaterhouse Coopers.

State Republicans will be conferencing on Monday and may begin to think about spending this one time windfall as well as staffing and committee assignments.

However the  Governor will be involved in these negotiations and has been talking about infrastructure upgrades.

Cuomo’s Division of Budget “expects that a formal plan for use of the projected financial settlement moneys, consistent with adherence with the 2 percent spending benchmark, will be proposed no later than the submission to the Legislature of the (2015-16) Executive Budget,” according to the budget update. Cuomo 2015-16 spending plan will be proposed in late January.