STATE OF NEW YORK ________________________________________________________________________ 2523 2025-2026 Regular Sessions IN SENATE January 21, 2025 ___________ Introduced by Sens. RAMOS, COMRIE, HOYLMAN-SIGAL, PARKER, RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing finance law, in relation to estab- lishing a jobs and housing pilot program to create jobs in the construction industry and address the housing crisis The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "jobs and housing act". 3 § 2. Legislative intent. 1. The legislature finds and declares that 4 New York state is in the midst of a jobs and housing crisis. More than 5 half of renters statewide are rent-burdened, spending more than 30% of 6 their income on rent. Over 60,000 New Yorkers are homeless. Home owner- 7 ship has slipped out of reach for an entire generation, cracking the 8 foundation of the American Dream and threatening to deepen the racial 9 wealth gap. The backbone of New York state's existing supply of afforda- 10 ble housing is in jeopardy; new unfunded renewable energy mandates 11 threaten to impose extraordinary capital costs on Mitchell-Lama and 12 similar limited equity cooperatives built by labor unions that will push 13 them out of affordability. 14 2. The housing crisis has also become a labor crisis due to shortages 15 of workforce housing. Over 500,000 people left New York state in 2022, 16 driven out of the state by high housing costs. Working families and 17 talented professionals are leaving New York in search of a path to 18 homeownership, or at least housing they can afford. In New York city, 19 civil service positions that require residency, once highly sought-after 20 as a ticket to middle-class stability, have now become harder to fill. 21 New York state must dramatically expand its supply of affordable housing 22 to remain competitive in the global economy. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05639-02-5
S. 2523 2 1 3. The housing crisis is exacerbating a crisis of good jobs, which in 2 turn exacerbates the housing crisis. Median real household income has 3 declined by 7.2% in New York state since 2019. Workers are squeezed by 4 skyrocketing housing costs on the one hand, and stagnant real wages on 5 the other. Historically, union careers in the construction industry have 6 been a pathway to the middle class for thousands of New Yorkers, partic- 7 ularly immigrant workers, workers of color, and workers without college 8 degrees, but since 2019, the industry lost over 44,400 jobs due to the 9 pandemic. Public spending on residential housing construction is urgent- 10 ly needed to close the gap by creating good jobs for working people in 11 New York state, which will result in a virtuous cycle of increased 12 consumer spending to sustain economic growth. 13 4. The housing crisis threatens to deepen the racial wealth gap in New 14 York state. White households are more than twice as likely to own their 15 own homes than Black or Latino households in New York state. Decades of 16 racial discrimination through redlining, restrictive covenants, and most 17 recently, predatory lending have prevented Black and Latino families 18 from accessing the wealth-building engine of home ownership. This has 19 contributed to a massive racial wealth gap: in New York state, median 20 White household net worth is $276,900, while Black median household net 21 worth is $18,870. The housing crisis threatens to deepen this disparity 22 by pushing home ownership further out of reach for Black and Latino 23 households. 24 5. The current model of housing development is not working for working 25 people and threatens the economic vitality of our state. It is therefore 26 in the interests of the people of New York to pilot a new approach to 27 creating good jobs and affordable workforce housing. 28 § 3. The private housing finance law is amended by adding a new arti- 29 cle 31-A to read as follows: 30 ARTICLE 31-A 31 JOBS AND HOUSING ACT 32 Section 1283. Short title. 33 1284. Definitions. 34 1285. Jobs and housing pilot program. 35 1286. Housing rental and tenant eligibility. 36 § 1283. Short title. This article shall be known and may be cited as 37 the "jobs and housing pilot program". 38 § 1284. Definitions. For the purposes of this article: 39 1. "Division" shall mean the state division of housing and community 40 renewal. 41 2. "Minority-owned business enterprise" shall have the same meaning as 42 defined in section three hundred ten of the executive law. 43 3. "Women-owned business enterprise" shall have the same meaning as 44 defined in section three hundred ten of the executive law. 45 4. "Labor organization" shall have the same meaning as defined in 46 section seven hundred one of the labor law; provided, however, that for 47 the purposes of this article, the term "labor organization" shall also 48 include umbrella organizations and state, local and central bodies 49 comprised solely of such labor organizations. 50 5. "Union-affiliated nonprofit" shall mean an organization that has 51 been designated as having tax-exempt status by the federal or state 52 government and that (a) has an existing partnership with a labor organ- 53 ization, or (b) has a contractual agreement with a labor organization 54 for the development of housing. 55 6. "Affordable cooperative housing" shall mean housing developments 56 regulated under articles two, four, five and eleven of this chapter.
S. 2523 3 1 7. "Project labor agreement" shall have the same meaning as defined in 2 section two hundred twenty-two of the labor law. 3 8. "Building service employee" shall mean any person who is regularly 4 employed at, and performs work in connection with the care or mainte- 5 nance of, an eligible multiple dwelling, including, but not limited to a 6 watchman, guard, doorman, building cleaner, porter, handyman, janitor, 7 gardener, groundskeeper, elevator operator and starter, and window 8 cleaner; provided, however, that building service employee shall not 9 include persons regularly scheduled to work fewer than eight hours per 10 week. 11 § 1285. Jobs and housing pilot program. 1. Within amounts appropriated 12 or otherwise available therefor, the division shall develop and adminis- 13 ter a jobs and housing pilot program to develop or redevelop housing 14 that is affordable to individuals eligible for housing pursuant to this 15 article. The division is hereby authorized to take administrative 16 actions when necessary, including but not limited to hiring administra- 17 tors, to comply with the requirements within this article. 18 2. In coordination with necessary state agencies, the division shall 19 create a list of available state-owned land eligible for residential 20 housing development. Such list shall be created and available no later 21 than one hundred eighty days after the effective date of this article. 22 Such list shall include the location, zoning requirements, agency desig- 23 nation, and estimated value in regard to the current housing market of 24 such land. The division shall, in consultation with relevant local hous- 25 ing authorities, rank such list in accordance with the following 26 factors: (a) the feasibility of establishing a residential housing 27 development on such land; (b) the area median income, prioritizing low 28 income areas with a high need for affordable housing development; (c) 29 the number of residential units to be potentially built, prioritizing 30 large units; and (d) the cost to the state. Such list shall be utilized 31 by the division in the decision for development of new residential hous- 32 ing for the purposes of this article. 33 3. After creation of the list pursuant to subdivision two of this 34 section, the division shall, based on available funds, determine which 35 location or locations shall be developed for the program and enter into 36 an agreement pursuant to this article with an eligible applicant that 37 has submitted an application pursuant to subdivision five of this 38 section. 39 4. The division shall issue an initial notice of fund availability and 40 request for contractor applications within forty-five business days of 41 the effective date of this article. 42 5. The division shall post on its website the request for applications 43 pursuant to subdivision four of this section for eligible developments 44 to apply for funding to: 45 (a) develop new residential housing on state-owned land, land owned by 46 an existing cooperative, land owned by a religious institution, or other 47 privately-owned land which meets all of the criteria of this section; or 48 (b) redevelop affordable cooperative housing developments. 49 6. In order to qualify for the program, the applicant shall: 50 (a) meet the requirements of subdivision seven of this section; 51 (b) demonstrate a history of promoting workforce development through 52 the use of contractors that participate in apprenticeship programs 53 registered with the state or the federal department of labor and a 54 commitment to meeting local hiring goals; 55 (c) attest to responsibility for ensuring that all demolition, 56 construction, rehabilitation, renovation, retrofit or repair work is
S. 2523 4 1 subject to article eight of the labor law, including the applicable 2 prevailing wage pursuant to section two hundred twenty of the labor law. 3 As part of such attestation, the applicant shall agree to joint and 4 several responsibility for any penalties assessed under article eight of 5 the labor law that are against any contractor or subcontractor on the 6 applicant's development under this program. Where the applicant agrees 7 to enter into a project labor agreement with a bona fide building and 8 construction trades labor organization which has established itself as 9 the collective bargaining representative for all persons who will 10 perform work on such a project, article eight of the labor law shall not 11 apply; 12 (d) where the state maintains a proprietary interest in a development 13 that receives funding or land through the program, agree to enter into a 14 project labor agreement with a bona fide building and construction 15 trades labor organization which has established itself as the collective 16 bargaining representative for all persons who will perform work on such 17 a project; and 18 (e) attest to responsibility for ensuring that all building service 19 employees employed by the applicant for a project or redevelopment 20 subject to this article shall receive the applicable prevailing wage for 21 the duration of the benefit period, regardless of whether such benefits 22 provided pursuant to this section are revoked or terminated. As part of 23 such attestation, the applicant shall agree to joint and several respon- 24 sibility for any penalties assessed under article nine of the labor law 25 that are against any contractor or subcontractor on the applicant's 26 development under this program. 27 7. To be eligible for funding and access to land pursuant to the 28 program, proposed development projects shall meet the following crite- 29 ria: 30 (a) Projects shall be either: 31 (i) an affordable cooperative housing development in existing state 32 and local housing programs for affordable and workforce housing includ- 33 ing, but not limited to, Mitchell-Lama housing. Such affordable cooper- 34 ative housing developments shall be eligible for rehabilitation and 35 sustainability retrofit funds, with priority to existing developments 36 sponsored by a labor organization or an affiliate of a labor organiza- 37 tion; or 38 (ii) a new construction project to be built on state-owned land, land 39 owned by an existing cooperative, land owned by a religious institution, 40 or other privately-owned land which meets all of the criteria of this 41 section. 42 (b) Projects shall be financed by a labor organization's pension fund 43 or a commingled fund of pension fund investments with a demonstrated 44 track record of successful investment in both new construction and 45 substantial rehabilitation of affordable housing. 46 (c) The project's housing shall be affordable to individuals under the 47 requirements of section twelve hundred eighty-six of this article. 48 8. The division shall award projects to eligible applicants pursuant 49 to subdivisions six and seven of this section and shall prioritize 50 applicants that are minority- or women-owned business enterprises for 51 such projects. 52 9. (a) To certify compliance with eligibility requirements for 53 projects, the division shall designate the comptroller of the city of 54 New York as the fiscal officer for projects in the city of New York and 55 the commissioner of the department of labor as the fiscal officer for 56 projects outside the city of New York. The fiscal officer shall be party
S. 2523 5 1 to contracts that award funding for development and shall be designated 2 to certify by signature on all award contracts, and shall certify ongo- 3 ing compliance through an annual review, that project sponsors have 4 established contracts with investors, contractors, and subcontractors 5 that demonstrate adherence to eligibility requirements. Project spon- 6 sors, their contractors, and subcontractors, shall comply with and 7 submit all documentation to the fiscal officer requested for the 8 purposes of certifying compliance. The fiscal officer shall have the 9 power: 10 (i) to investigate or cause an investigation to be made to determine 11 the prevailing wages as determined in article eight of the labor law and 12 for building service employees, and in making such investigation, the 13 fiscal officer may utilize wage and fringe benefit data from various 14 sources, including, but not limited to, data and determinations of 15 federal, state or other governmental agencies; 16 (ii) to institute and conduct inspections at the site of the work or 17 elsewhere; 18 (iii) to examine the books, documents and records pertaining to the 19 wages paid to, and the hours of work performed by, employees subject to 20 article eight of the labor law and building service employees; 21 (iv) to hold hearings and, in connection therewith, to issue subpoe- 22 nas, the enforcement of which shall be regulated by the civil practice 23 law and rules, administer oaths and examine witnesses; 24 (v) to make a classification by craft, trade or other generally recog- 25 nized occupational category of the building service employees and to 26 determine whether such work has been performed by the building service 27 employees in such classification; and 28 (vi) to require the applicant to file with the fiscal officer a record 29 of the wages actually paid by such applicant to employees subject to 30 article eight of the labor law and the building service employees and of 31 their hours of work. 32 (b) For each violation of this article, the fiscal officer may require 33 the payment of: (i) back wages and fringe benefits; (ii) liquidated 34 damages up to three times the amount of the back wages and fringe bene- 35 fits for willful violations; and (iii) reasonable attorneys' fees. If 36 the fiscal officer finds that the applicant has failed to comply with 37 the provisions of this subdivision, the fiscal officer shall present 38 evidence of such non-compliance to the division. 39 § 1286. Housing rental and tenant eligibility. 1. Except for projects 40 subject to affordability requirements of existing affordable cooperative 41 housing regulations and laws, all new residential buildings constructed 42 pursuant to this article shall set aside: 43 (a) twenty-five percent of units for households earning below fifty 44 percent of the area median income, adjusted for family size, provided 45 that a minimum of ten percent of such units shall be affordable for 46 households earning below thirty percent of the area median income, 47 adjusted for family size; 48 (b) twenty-five percent of units for households earning below eighty 49 percent of the area median income, adjusted for family size; 50 (c) twenty-five percent of units for households earning below one 51 hundred twenty percent of the area median income, adjusted for family 52 size; and 53 (d) twenty-five percent of units for households earning below one 54 hundred sixty-five percent of the area median income, adjusted for fami- 55 ly size.
S. 2523 6 1 2. A property containing any affordable units shall be restricted 2 using a mechanism such as a declaration of restrictive covenants or a 3 regulatory agreement with a local or state agency that shall ensure that 4 the affordable units shall remain subject to affordable regulations for 5 the life of the building. Such covenants shall require that the unit be 6 the primary residence of the household selected to occupy the unit. Upon 7 approval, such declaration or regulatory agreement shall be recorded 8 against the property containing the affordable unit prior to the issu- 9 ance of a certificate of occupancy for the development. 10 3. For affordable homeownership units, the title to such units shall 11 be restricted so that in the event of any resale by the homeowner or any 12 successor homeowner, the resale price shall not exceed an amount afford- 13 able to a household at the specified percentage of the area median 14 income. 15 4. After the completion of any new residential housing development 16 pursuant to this article, the division shall set a maximum allowable 17 rent for each development which shall be thirty percent of the area 18 median income specified for the unit. 19 5. An affordable housing unit shall not be: 20 (a) rented to a corporation, partnership or other entity; or 21 (b) held off the market for a period longer than is reasonably neces- 22 sary to perform repairs needed to make such affordable housing unit 23 available for occupancy. 24 6. An affordable housing unit shall not be rented on a temporary, 25 transient or short-term basis. Every lease and renewal thereof for an 26 affordable housing unit shall be for a term of one or two years, at the 27 option of the tenant. 28 7. The division may establish by rule such requirements as the divi- 29 sion deems necessary or appropriate for: 30 (a) the marketing of affordable housing units, both upon initial occu- 31 pancy and upon any vacancy; 32 (b) monitoring compliance with the provisions of this subdivision; and 33 (c) the establishment of marketing bans for affordable housing units. 34 § 4. This act shall take effect immediately.