Legislative Update January/February
Governor Hochul delivers State of the State Address – Focuses on housing
On January 10, Governor Kathy Hochul delivered her 2023 State of the State address providing an outline of the governor’s priorities for the coming year. Much of the focus was on housing initiatives, including a goal of creating 800,000 new homes over the next decade through new and expanded tax incentives, rezoning certain areas, and expanding eligibility for commercial buildings to convert spaces to residential development. The governor also announced support to require all new homes to be constructed all-electric by 2025 for smaller buildings and 2028 for larger buildings and prohibit the sale of any new fossil fuel heating equipment and appliances by 2030. Details on many of the governor’s proposals remain yet to be seen until the release of her Executive Budget proposal which is expected in the coming weeks.
NYSAR has prepared a summary (click here for summary) highlighting the governor’s proposals related to housing. The State of the State address will serve as a roadmap for state lawmakers as they begin to draft and negotiate the state budget, which is due by April 1, 2023. A full version of the governor’s State of the State book can be found here.
End-of-year 2022 Legislative Action: New flood and mold disclosure laws
On December 16, Governor Hochul signed into law a bill that will amend the Property Condition Disclosure Statement to add a question of home sellers regarding indoor mold history in the residence. The law will go into effect on Wednesday, June 14, 2023. View the sponsor’s memo and bill text here.
On December 23, Governor Hochul signed a bill into law that will require all residential leases to provide notice of flood history on the property and the current flood risk of the premises. The residential lease must also include a proscribed notice to tenants regarding the availability of flood insurance through FEMA. The law will go into effect on Wednesday, June 21, 2023. View the sponsor’s memo and bill text here.
On December 23, Governor Hochul vetoed a bill that sought to eliminate current state law that provides a property tax break to coop and condo owners by lowering their home’s assessment. In her veto message, Governor Hochul stated that many first-time homebuyers rely on the affordability of condos and coops, and approval of the bill could lead to fewer units of housing being built at a time when New York is facing a housing crisis. Read more here.
Governor Hochul releases report on redlining inquiry across the state
Gov. Kathy Hochul recently announced a new report from the Department of Financial Services (DFS) that illuminates continued racial disparities in mortgage lending practices on Long Island, in Rochester, and in Syracuse as part of an ongoing statewide inquiry into redlining. The announcement follows a previous DFS report that identified redlining and other forms of housing discrimination by mortgage lenders, particularly non-depository lenders, in majority-minority neighborhoods in Buffalo. This recent DFS inquiry did not find fair lending law violations, however, two mortgage lenders have agreed to reform lending practices and implement programs to ensure better access to historically underserved communities.
State Supreme Court strikes down City of Newburgh good cause eviction law
State Supreme Court Justice Sandra Sciortino struck down the City of Newburgh’s local good cause eviction law (Local Law 6), ruling that it conflicted with state property law. The lawsuit was brought against the city council by a group of local landlords. Judge Sciortino’s decision noted that while state law enables landlords to evict tenants who overstay their leases, Newburgh’s law “expands the rights of the tenant” by requiring landlords to do more to evict renters and clearly conflicts with landlord’s rights. The City of Newburgh could appeal the decision.
Albany Common Council approves mayor’s budget plan for 2023
The Albany Common Council has passed Mayor Kathy Sheehan’s budget for 2023.
Sheehan, a third-term Democrat, released her $217 million budget proposal in early October. The budget includes historic investments into sidewalk repair and road repairs. It also includes $100,000 for the city’s share of a proposed partnership between the city, the county, and a housing organization to fund a program that will provide legal assistance to tenants facing eviction.
