Habitat for Humanity of New York State (HFH-NYS) celebrates Governor Kathy Hochul’s leadership and commitment to advancing affordable home ownership for low- and middle-income families. Governor Hochul announced her fourth proposal for the 2025 State of the State, which includes multiple home affordability and accessibility initiatives, representing a robust effort to help struggling families combat the escalating costs of affordable housing in New York State.
The proposed inclusion of an affordable homebuyer tax incentive in the 2025-2026 Executive Budget is a significant step forward in ensuring that affordable housing becomes a reality for more New York families. Currently, 1 in 5 New York households spend half or more of their income on housing; this proposed incentive removes barriers and increases capacity for organizations like Habitat that are actively working to expand homeownership in the state.
“Governor Hochul’s various affordability and accessibility programs demonstrate her unwavering commitment to make home ownership accessible for hard working New Yorkers across the state,” said Michael Barrett, CEO of Habitat for Humanity of New York State. “We are incredibly grateful for Governor Hochul’s focus on solutions addressing inequities in housing policy and helping low- and moderate-income families achieve the dream of homeownership.”
An affordable homebuyer tax incentive will resolve long-standing challenges related to the assessment of properties built with assistance from governmental entities, nonprofits, land banks, and sold to low- and moderate-income homebuyers. Currently, these homes are often taxed at full-market value, despite restrictions on resale and marketability, creating an undue burden on low-income families. By instituting a tax incentive to better reflect the nature of these homes, this proposal would not only reduce barriers to homeownership, but also enhance Habitat’s ability to rehabilitate, repair, and build additional homes across the state.
The implementation of the Governor’s proposals would have far-reaching impacts:
• Empower families by providing lower property tax burdens which will make homeownership more attainable for families with limited financial resources, allowing them to build equity and stability;
• Expand Habitat for Humanity’s reach by enabling HFN-NYS and other affordable homeownership organizations to serve more families and deliver more affordable housing units throughout New York; and
• By increasing the number of properties on to the tax rolls and ensuring fair taxation, the legislation will generate economic benefits for municipalities and foster vibrant neighborhoods.
The legislation offers a pathway for local governments to “opt in”, ensuring control for municipalities while maintaining the bill’s broader goals.
Habitat for Humanity of New York State, in partnership with its local affiliates and volunteers, remains committed to creating and preserving affordable homeownership opportunities. The organization thanks Governor Hochul for recognizing the importance of this issue and taking decisive action to ensure that housing policies are equitable and effective.