New York would pay municipalities for added homes, if funded

The state housing corporation would pay municipalities for eligible new homes. Eligible homes must add to the municipality's lawful housing total and receive an occupancy certificate or similar local approval on or after the article takes effect. They may include rentals, homes for sale, accessory dwelling units, and publicly assisted housing. Payments depend on lawmakers setting aside money for the fund. If claims exceed available money, the corporation may reduce payments and give priority to affordable, supportive, and public housing, and to places with severe housing shortages. The corporation may adjust payment amounts each year based on available money and regional housing need. Payments would cover homes receiving an occupancy certificate on or after January 1 following the date the act becomes law.

Municipalities could spend awards on any lawful local purpose. Cities, towns, and villages receiving an award could use it for local services, infrastructure, housing, or other lawful municipal purposes. Awards would not have to go directly to the housing project that earned them. The corporation would deny payment for units if it finds eligibility was artificially created through specified demolition, conversion, sham classifications, or failure to follow applicable fair housing, environmental, labor, or tenant protection laws. For replacement housing, payments would cover only the net increase in lawful homes unless the replacement offers greater affordability or public benefit, as determined by the corporation.

Municipalities seeking payments would report housing production, and the corporation would check their information. Cities, towns, and villages seeking payments would submit the yearly certification; the corporation would publish payment and housing figures and recommendations. Municipalities would report homes produced, their type and affordability, their location, homes removed, and local actions taken to support housing. A municipality that fails to submit required production data would be ineligible for payments until it submits the data. State-designated pro-housing communities would receive a 25 percent bonus on payments. The corporation would publish a report each year and deliver it to state leaders by December 31.