DIVISION OF HOUSING AND
COMMUNITY RENEWAL

Agency Mission

The Division of Housing and Community Renewal (DHCR) supervises, maintains and develops decent, affordable housing for New York State residents. This is accomplished by providing construction and rehabilitation loans and grants, administering rent control, rent stabilization and rent subsidy programs, and supervising management of the State-assisted housing stock.

Year-to-Year Change

The Executive requests an All Funds appropriation of $223,936,000, a net increase of $3,622,776 or 1.64 percent from State Fiscal Year 1998-99. The State Operations appropriation of $61,526,000 is a decrease of $245,000 from SFY 1998-99. Aid to Localities appropriations total $94,710,000 a decrease of $632,224 from SFY 1998-99 funding levels. Capital Projects appropriations increased $4,500,000 or 7.12 percent over SFY 1998-99 funding levels. This increase can be attributed to the Executive's request of $4.5 million for Maintenance of Existing Facilities for final payments of negotiated settlements under the Housing Project Repair Fund.

Legislative Proposals

The Assembly provides additional capital and local assistance funding to DHCR as part of a comprehensive housing package to help rebuild and revitalize housing in New York State. As part of this package, the Assembly plan includes operating aid to Neighborhood Preservation Corporations (NPCs) by $700,000, and Rural Preservation Corporation (RPCs) by $300,000. In regard to the Neighborhood Preservation Program, the Assembly proposal authorizes the Commissioner of the Division of Housing and Community Renewal to enter into a contract with the Neighborhood Preservation Coalition to provide technical assistance and services to companies funded pursuant to Article XVI of the private housing finance law. This contract shall not exceed $100,000.

The Assembly restores $ 6,702,000 in Periodic Subsidies to assorted public housing authorities. This restoration will assist local public housing authorities in meeting operating expenses and prevent the shifting of more costs of public housing to local governments.

The Assembly also restores $225,000 in operating aid for services related to the Lead Poisoning Prevention Demonstration Program. This restoration will allow the State, through not-for-profit organizations, to continue to carry out educational and outreach programs on lead abatement.

The Assembly plan provides $600,000 for operating aid funding to the Public Housing Drug Elimination Program. These monies will enable the program to continue to serve both operating and capital needs. Areas demonstrating the most need shall be given priority when funds are being awarded by the Division.

In addition, the Assembly plan includes $5,000,000 to capitalize the Homeownership Initiative in the Housing Development Fund. The Housing Development Fund balance will seed a Homeownership Initiative Revolving Loan Fund that will be accessed by not-for-profits to provide moderate income homebuyers with downpayment and closing cost assistance, as well as rehabilitation project loans.

The Assembly proposal increases the commitment of the State to affordable housing development for low and moderate income families, the homeless, and the elderly by increasing housing capital appropriations by approximately $40 million in 1999-2000. These funds will enable the State to leverage more than $70 million in both private and public monies and create over 2,000 construction-related jobs. This additional spending includes the Homeless Housing Program appropriated in the Department of Family Assistance Office of Temporary and Disability Assistance Budget.

The Assembly plan eliminates the cap on Service Contract Obligation Revenue (SCOR) bonds, making all housing capital appropriations and reappropriations eligible for SCOR bond reimbursement.