In early February, the Hochul administration released its proposed FY2024 Budget Legislation, which included an ambitious “New York Housing Compact” to build 800,000 new homes in the state. A cornerstone of the compact is the proposed Transit Oriented Development Act of 2023 (TOD Act of 2023). The TOD Act of 2023 encourages concentrating high-density multifamily redevelopment within half a mile of an MTA train station.
The Housing Compact is no doubt influenced by New York’s shrinking workforce over the last decade due to the lack of affordable housing options. According to the Governor’s Executive Budget Briefing Book issued with the TOD Act of 2023, demand for housing far outpaces the supply in New York, which in turn, pushes rents and prices “out of reach” for a large portion of the state’s population. Young professionals in search of less expensive housing make up much of the demographic migrating out of state, particularly from the communities along MTA commuter rail lines with connections to New York City. See, e.g., “Hudson Valley Pattern for Progress, The Math Just Doesn’t Work: Why Young Professionals are Leaving the Hudson Valley,” (May 2019), available at https://www.pattern-for-progress.org/reports/. A critical mitigation measure proposed in the FY2024 Budget is to encourage multifamily development in these communities with a diverse range of housing options for individuals and families who are currently being priced out of the area.
