Res. No. 881
Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.3996/S.2523, in relation to establishing a jobs and housing pilot program to create jobs in the construction industry and address the housing crisis
By Council Members Brannan, Louis and Banks
Whereas, New York State is in the midst of a housing affordability crisis, and as reported by the New York State Comptroller’s office in 2022, approximately 39 percent of New York State residents are paying over 30 percent of their gross annual income on housing costs; and
Whereas, According to an online real estate search engine and blog, for March 2025, the median home asking price in NYC was $1.2 million, 7.5 percent higher than the previous year, and as of April 2025, the United States average interest rate for home mortgage loans was about 6.8 percent; and
Whereas, A home mortgage affordability analysis conducted by a national brokerage firm concluded a that a New York City household would need to earn an annual income of $197,734, place a 20% down payment, and pay a monthly mortgage of almost $5,000 a month to avoid being cost burdened for a home priced at $725,000, which is 40 percent less than the March 2025 NYC median home price, yet, according to the United States Census Bureau, between 2019 and 2023, the median household income of NYC was $79,713; and
Whereas, This discrepancy between household income and home cost is reflected in New York City’s low rate of homeownership, in which 4 of the city’s 5 counties, Bronx, Kings, New York, and Queens Counties, have homeownership rates lower than the state’s average of 55.4 percent; and
Whereas, According to the Fiscal Policy Institute, a nonpartisan nonprofit fiscal policy think tank, between 2020 and 2023, 36 percent of households that left New York State did so to find affordable housing, and households with young children were 80% more likely to leave New York City than households without young children; and
Whereas, In addition to addressing the housing supply, the state must also continue to develop well-paying employment opportunities for New Yorkers; and
Whereas, Between February 2024 and February 2025, the New York City labor market area, which includes Bronx, Kings, New York, Queens, and Richmond counties and part of the New York Metropolitan region, gained 83,700 new nonfarm jobs for a combined total of 4,803,700 private and government sector jobs; and
Whereas, Only 2.8 percent of the labor market area’s total jobs are in the natural resources, mining, and construction sector, and during this same 1 year period, it lost 6,100 natural resources, mining, and construction jobs; and
Whereas, Construction is typically a cyclical industry that is stabilized by large publicly funded projects to repair state and local infrastructure, and most importantly, construction jobs typically pay higher incomes than the city median income, and many of these jobs are available to individuals without college degrees through apprenticeship programs; and
Whereas, Approximately 80 percent of the city’s housing stock was built before 1974 and as the city’s residential infrastructure continues to age, deterioration of the housing stock could deepen the city’s housing crisis; and
Whereas, In the past, the state government has intervened in the housing crisis, and in 1954 New York State established the Mitchell-Lama program, which incentivized developers to build affordable housing through tax abatements and the use of federally subsidized urban renewal land; and
Whereas, A.3996, introduced by Assembly Member Harry Bronson and pending in the New York State Assembly, and S.2523, introduced by State Senator Jessica Ramos and pending in the New York State Senate, directs the New York State Division of Housing and Community Renewal (the Division) to use appropriated funds to establish the Jobs and Housing Pilot Program; and
Whereas, This bill requires the Division to work with necessary state and local agencies to develop a ranked list of state-owned land that can be used for the development of affordable housing; and
Whereas, This bill requires the Division to publish on its website a notice for funding and a request for applications for eligible projects; and
Whereas, Eligible projects include new affordable residential developments on state-owned land, land owned by an existing co-op, land owned by religious organizations, other privately owned land, or redevelopment of existing affordable housing co-ops; and
Whereas, The program defines applicant eligibility to include developers with a demonstrated history of workforce development, and eligible projects that are financed by a labor organization’s pension fund or comingled fund of pension fund investments with an appropriate track record; and
Whereas, The program also requires that the housing financed by the program be divided equally across four income levels, including 50 percent of area median income (AMI) or less, 80 percent of AMI or less, 120 percent of AMI or less, and 165 percent of AMI or less; and
Whereas, This bill authorizes the New York City Comptroller’s Office to review and certify program compliance for projects within New York City; and
Whereas, Policy that promotes the development of affordable housing and workforce development could work synergistically to increase the homeownership rate in NYC; now, therefore, be it
Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, A.3996/S.2523, in relation to establishing a jobs and housing pilot program to create jobs in the construction industry and address the housing crisis.
DJS
LS #19229
05/02/2025