NY State Senate Bill 2025-S10503

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2026	referred to finance

2025-S10503 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Appropriations
Laws Affected:: Add Art 28 §§1240 - 1247, Priv Hous Fin L

2025-S10503 (ACTIVE) - Summary

Establishes the pro-housing communities incentive fund to provide incentive payments to municipalities based on the number of eligible new housing units produced within such municipality.

2025-S10503 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S10503

SPONSOR: BOTTCHER
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to estab-
lishing the pro-housing communities incentive fund; and making an appro-
priation therefor

 
PURPOSE::

To encourage municipalities across New York State to support and facili-
tate the creation of new housing by establishing a state-funded incen-
tive program that rewards local governments for producing net new hous-
ing units, including affordable, supportive, senior, and public housing.

 
SUMMARY OF PROVISIONS::

Section one of the bill adds a new Article 28 to the Private Housing
Finance Law establishing the "Pro-Housing Communities Incentive Fund,"
to be administered by the New York State Housing Trust Fund Corporation.

The bill defines "net new housing units" and "eligible housing units" to
include rental housing, homeownership housina,_ affordable housing,
supportive housing. senior housing, accessory dwelling units, mixed-use
developments with residential units and conversions from nonresidential
to residential use.

The legislation establishes incentive payments to municipalities based
on the number and type of housing units produced, including:

*$10.000 per net new housing unit;

*$15,000 per affordable housing unit serving households earning up to 80
percent of area median income;

*$20,000 per deeply affordable, supportive, public, or formerly homeless
housing unit; and

*$5,000 per accessory dwelling unit.

Funds awarded under the program may be used for a broad range of munici-
pal purposes, including infrastructure improvements, planning and zoning
functions, affordable housing preservation, code enforcement, public
safety, climate resilience, and property tax relief.

The bill establishes annual certification and reporting requirements for
participating municipalities and directs the corporation to verify hous-
ing production data.

The legislation also includes anti-displacement and anti-earning
protections to prevent municipalities from qualifying for payments
through demolition of occupied housina, conversion of Protected housina
stock, or other abusive practices.

Municipalities designated as "Pro-Housing Communities" by the State
would receive a 25 percent bonus on all incentive payments.

Section two appropriates $250 million to implement the program.
Section three provides that the act shall take effect immediately and
apply to housing units receiving certificates of occupancy on or after
the next January first following enactment

 
JUSTTFICATION:

New York State continues to face a severe housing shortage that has
driven up rents, home prices, and housing instability in communities
across the state. While the need for additional housing is widely recog-
nized, municipalities often face fiscal and other barriers to approving
and supporting new residential development. Local governments are
frequently required to absorb the impacts of growth on infrastructure,
public services, and municipal operations without receiving direct
financial support tied to housing production.

This legislation creates a meaningful incentive structure to encourage
municipalities to facilitate the development of new housing while ensur-
ing that local communities directly benefit from growth. By rewarding
municipalities for producing housing, particularly affordable, support-
ive, and deeply affordable housing, the bill aligns state housing goals
with local fiscal interests.

The bill also recognizes that municipalities require flexibility in how
incentive funds are used. Allowing local governments to invest in
infrastructure, planning capacity, public safety, environmental resili-
ence, and tax relief ensures that communities can responsibly accommo-
date growth while addressing local priorities.

Importantly, the legislation includes strong safeguards against
displacement and manipulation of the program by prohibiting incentives
for demolition of occupied housing without replacement or conversion of
protected affordable housing into market-rate units At a time when New
York urgently needs additional housing production at all income levels,
this legislation provides a collaborative, incentive-based framework to
encourage municipalities to become active partners in addressing the
state's housing crisis.

 
LEGISLATIVE HISTORY::

New bill.

 
FISCAL IMPLICATIONS::

The bill appropriates $250 million to the New York State Housing Trust
Fund Corporation for implementation of the program. Additional fiscal
implications to the state would depend on future appropriations and
housing production levels.

 
EFFECTIVE DATE::

This act shall take effect immediately and shall apply to housing units
receiving certificates of occupancy on or after January first next
succeeding the date on which it shall have become law.

2025-S10503 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10503
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. BOTTCHER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the private housing finance law, in relation  to  estab-
   lishing  the  pro-housing  communities  incentive  fund; and making an
   appropriation therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The private housing finance law is amended by adding a new
 article 28 to read as follows:
                                ARTICLE 28
                  PRO-HOUSING COMMUNITIES INCENTIVE FUND
 SECTION 1240. DEFINITIONS.
         1241. ESTABLISHMENT OF FUND.
         1242. INCENTIVE PAYMENTS.
         1243. PERMITTED USES OF FUNDS.
         1244. CERTIFICATION AND REPORTING.
         1245. ANTI-DISPLACEMENT AND ANTI-GAMING PROVISIONS.
         1246. BONUS FOR CERTIFIED PRO-HOUSING COMMUNITIES.
         1247. ANNUAL REPORT.
   § 1240. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   1. "CORPORATION" MEANS THE NEW YORK STATE HOUSING  TRUST  FUND  CORPO-
 RATION.
   2. "MUNICIPALITY" MEANS ANY CITY, TOWN, OR VILLAGE.
   3. "NET NEW HOUSING UNIT" MEANS A DWELLING UNIT THAT:
   (A)  RECEIVES  A  CERTIFICATE  OF  OCCUPANCY, TEMPORARY CERTIFICATE OF
 OCCUPANCY, OR EQUIVALENT LOCAL AUTHORIZATION ON OR AFTER  THE  EFFECTIVE
 DATE OF THIS ARTICLE;
   (B)  INCREASES  THE  TOTAL  NUMBER OF LAWFUL DWELLING UNITS WITHIN THE
 MUNICIPALITY; AND
   (C) DOES NOT MERELY REPLACE  A  DWELLING  UNIT  THAT  WAS  DEMOLISHED,
 CONVERTED,  OR  OTHERWISE  ELIMINATED,  EXCEPT AS OTHERWISE PROVIDED FOR
 DEEPLY AFFORDABLE, SUPPORTIVE, OR PUBLIC HOUSING REPLACEMENT.
   4. "ELIGIBLE HOUSING UNIT" MEANS A NET NEW HOUSING UNIT, INCLUDING BUT
 NOT LIMITED TO:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15840-01-6
 S. 10503                            2
 
   (A) RENTAL HOUSING;
   (B) HOMEOWNERSHIP HOUSING;
   (C) AFFORDABLE HOUSING;
   (D) SUPPORTIVE HOUSING;
   (E) SENIOR HOUSING;
   (F) ACCESSORY DWELLING UNITS;
   (G) CONVERSIONS FROM NONRESIDENTIAL TO RESIDENTIAL USE;
   (H) MIXED-USE DEVELOPMENT CONTAINING RESIDENTIAL UNITS; AND
   (I)  PUBLIC HOUSING, MITCHELL-LAMA HOUSING, OR OTHER PUBLICLY ASSISTED
 HOUSING.
   § 1241. ESTABLISHMENT OF FUND. THERE IS HEREBY  ESTABLISHED  THE  PRO-
 HOUSING  COMMUNITIES  INCENTIVE  FUND,  TO BE ADMINISTERED BY THE CORPO-
 RATION. SUBJECT TO  APPROPRIATION,  THE  FUND  SHALL  PROVIDE  INCENTIVE
 PAYMENTS TO MUNICIPALITIES BASED ON THE NUMBER OF ELIGIBLE NET NEW HOUS-
 ING UNITS PRODUCED WITHIN SUCH MUNICIPALITY.
   § 1242. INCENTIVE PAYMENTS. 1. FOR EACH ELIGIBLE NET NEW HOUSING UNIT,
 THE CORPORATION SHALL PROVIDE THE MUNICIPALITY WITH AN INCENTIVE PAYMENT
 OF:
   (A) TEN THOUSAND DOLLARS PER NET NEW HOUSING UNIT;
   (B)  FIFTEEN  THOUSAND  DOLLARS  PER  NET  NEW AFFORDABLE HOUSING UNIT
 AFFORDABLE TO HOUSEHOLDS EARNING UP TO EIGHTY  PERCENT  OF  AREA  MEDIAN
 INCOME;
   (C) TWENTY THOUSAND DOLLARS PER NET NEW DEEPLY AFFORDABLE, SUPPORTIVE,
 PUBLIC HOUSING, OR FORMERLY HOMELESS HOUSING UNIT;
   (D) FIVE THOUSAND DOLLARS PER NET NEW ACCESSORY DWELLING UNIT.
   2. THE CORPORATION MAY ADJUST SUCH AMOUNTS ANNUALLY BASED ON AVAILABLE
 APPROPRIATIONS AND REGIONAL HOUSING NEED.
   §  1243.  PERMITTED USES OF FUNDS. 1. FUNDS AWARDED UNDER THIS ARTICLE
 MAY BE USED BY A MUNICIPALITY FOR ANY LAWFUL MUNICIPAL PURPOSE,  INCLUD-
 ING BUT NOT LIMITED TO:
   (A)  SEWER,  WATER,  SCHOOL,  PARK,  STREET, TRANSIT, AND PUBLIC REALM
 INFRASTRUCTURE;
   (B) PLANNING, ZONING, ENVIRONMENTAL REVIEW,  AND  BUILDING  DEPARTMENT
 STAFFING;
   (C) AFFORDABLE HOUSING PRESERVATION OR PRODUCTION;
   (D) CODE ENFORCEMENT;
   (E) PUBLIC SAFETY AND EMERGENCY SERVICES;
   (F) CLIMATE RESILIENCE AND GREEN INFRASTRUCTURE;
   (G) PROPERTY TAX RELIEF; AND
   (H) COMMUNITY FACILITIES.
   2.  FUNDS  SHALL  NOT  BE REQUIRED TO BE SPENT DIRECTLY ON THE HOUSING
 DEVELOPMENT THAT GENERATED THE AWARD.
   3. IF ELIGIBLE CLAIMS EXCEED AVAILABLE APPROPRIATIONS, THE CORPORATION
 MAY  PRORATE  PAYMENTS,  WITH  PRIORITY  GIVEN  TO  AFFORDABLE  HOUSING,
 SUPPORTIVE  HOUSING,  PUBLIC HOUSING, AND MUNICIPALITIES IN REGIONS WITH
 SEVERE HOUSING SHORTAGES.
   § 1244. CERTIFICATION AND  REPORTING.  1.  EACH  MUNICIPALITY  SEEKING
 PAYMENT  SHALL SUBMIT AN ANNUAL CERTIFICATION TO THE CORPORATION IDENTI-
 FYING:
   (A) THE NUMBER OF ELIGIBLE NET NEW HOUSING UNITS PRODUCED;
   (B) THE TYPE AND AFFORDABILITY LEVEL OF SUCH UNITS;
   (C) THE LOCATION OF SUCH UNITS;
   (D) THE NUMBER OF DWELLING UNITS DEMOLISHED, CONVERTED, OR  ELIMINATED
 DURING THE SAME PERIOD; AND
   (E) ANY LOCAL ZONING OR PERMITTING ACTIONS TAKEN TO FACILITATE HOUSING
 PRODUCTION.
 S. 10503                            3
 
   2. THE CORPORATION SHALL VERIFY SUCH CERTIFICATIONS USING CERTIFICATES
 OF  OCCUPANCY,  BUILDING  PERMIT  DATA,  LOCAL ASSESSMENT ROLLS, AND ANY
 OTHER RELEVANT STATE OR LOCAL DATA.
   §  1245.  ANTI-DISPLACEMENT  AND ANTI-GAMING PROVISIONS. 1. NO PAYMENT
 SHALL BE MADE FOR A HOUSING UNIT IF THE CORPORATION DETERMINES THAT  THE
 MUNICIPALITY OR APPLICANT HAS ARTIFICIALLY CREATED ELIGIBILITY THROUGH:
   (A) DEMOLITION OF EXISTING OCCUPIED HOUSING WITHOUT REPLACEMENT;
   (B)  CONVERSION  OF  RENT-REGULATED, AFFORDABLE, SUPPORTIVE, MITCHELL-
 LAMA, PUBLIC, OR OTHER PROTECTED HOUSING INTO MARKET-RATE HOUSING;
   (C) TEMPORARY OR SHAM DWELLING UNIT CLASSIFICATIONS; OR
   (D) FAILURE TO COMPLY WITH  APPLICABLE  FAIR  HOUSING,  ENVIRONMENTAL,
 LABOR, OR TENANT PROTECTION LAWS.
   2.  WHERE NEW HOUSING REPLACES DEMOLISHED OR CONVERTED HOUSING, INCEN-
 TIVE PAYMENTS SHALL BE MADE ONLY FOR THE NET INCREASE IN LAWFUL DWELLING
 UNITS, EXCEPT WHERE THE REPLACEMENT HOUSING PROVIDES GREATER AFFORDABIL-
 ITY OR DEEPER PUBLIC BENEFIT AS DETERMINED BY THE CORPORATION.
   § 1246. BONUS FOR CERTIFIED PRO-HOUSING COMMUNITIES. 1. A MUNICIPALITY
 THAT HAS BEEN DESIGNATED BY THE STATE AS A PRO-HOUSING  COMMUNITY  SHALL
 RECEIVE A TWENTY-FIVE PERCENT BONUS ON ALL PAYMENTS UNDER THIS ARTICLE.
   2.  A  MUNICIPALITY  THAT  FAILS TO SUBMIT REQUIRED HOUSING PRODUCTION
 DATA SHALL BE INELIGIBLE FOR PAYMENTS UNTIL SUCH DATA IS SUBMITTED.
   § 1247. ANNUAL REPORT. 1. THE  CORPORATION  SHALL  PUBLISH  AN  ANNUAL
 REPORT INCLUDING:
   (A) THE PAYMENTS MADE TO EACH MUNICIPALITY;
   (B) THE NUMBER OF UNITS PRODUCED BY MUNICIPALITY;
   (C) THE NUMBER OF AFFORDABLE UNITS PRODUCED;
   (D) THE NUMBER OF UNITS DEMOLISHED OR LOST;
   (E) THE REGIONAL DISTRIBUTION OF AWARDS; AND
   (F) THE CORPORATION'S RECOMMENDATIONS FOR IMPROVING THE PROGRAM.
   2. THE REPORT SHALL BE DELIVERED TO THE GOVERNOR, THE TEMPORARY PRESI-
 DENT  OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF
 THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY BY  DECEMBER  THIRTY-
 FIRST OF EACH YEAR.
   §  2.  Appropriation.  The  sum  of  two hundred fifty million dollars
 ($250,000,000), or so much thereof as may be necessary, is hereby appro-
 priated to the New York State Housing Trust Fund Corporation out of  any
 moneys in the state treasury in the general fund not otherwise appropri-
 ated,  and  made  immediately available, for the purpose of carrying out
 the provisions of this act. Such moneys shall be payable  on  the  audit
 and  warrant of the comptroller on vouchers certified or approved by the
 commissioner of housing and community renewal in the  manner  prescribed
 by law.
   § 3. This act shall take effect immediately and shall apply to housing
 units  receiving  a  certificate  of occupancy on or after January first
 next succeeding the date on which it shall have become a law.

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Senate Bill S10503

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

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2025-S10503 (ACTIVE) - Details

2025-S10503 (ACTIVE) - Summary

2025-S10503 (ACTIVE) - Sponsor Memo

2025-S10503 (ACTIVE) - Bill Text download pdf

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Sponsored By

Erik Bottcher

Current Bill Status - In Senate Committee Finance Committee

Actions

2025-S10503 (ACTIVE) - Details

2025-S10503 (ACTIVE) - Summary

2025-S10503 (ACTIVE) - Sponsor Memo

2025-S10503 (ACTIVE) - Bill Text download pdf

Comments