New York Assembly Bill A00799

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Establishes a housing project revolving loan program and housing project revolving loan fund to encourage the development of mixed income housing by providing zero-percent interest or low-interest loans.

Summary

This bill would create a new state housing finance program and revolving loan fund to support the development of mixed-income housing in New York. The program would be administered by the relevant state housing agency and would provide zero-percent or low-interest loans to residential housing developers building eligible projects, defined as mixed-income developments in which at least 20 percent of units are rented to households at or below 50 percent of area median income. Eligible developers could include for-profit, nonprofit, or public entities. The loans could be used for capital costs and structured as mezzanine debt, construction financing, or another form the agency deems appropriate. Developers receiving loans would be required to repay the full loan amount, plus any interest due, when the project is completed, and then secure permanent financing from another source for any remaining debt. Repayments would be recycled back into the new revolving loan fund, allowing the money to be reused for future projects. The bill also allows the program to be paired with other subsidies, but not with federal Low-Income Housing Tax Credits, and it preserves the ability of voucher holders to pay fair market rent where applicable.

Impact

The bill would amend the Private Housing Finance Law and the State Finance Law by adding a new housing project revolving loan program and a dedicated revolving loan fund in the joint custody of the state comptroller and the commissioner of taxation and finance. It would authorize the New York State Housing Finance Agency to make low-cost loans for eligible mixed-income housing projects and to allocate funds to other housing finance agencies as needed. The measure is intended to expand affordable housing production statewide by creating a reusable financing source for development costs.

Sentiment

Based on the bill text and available context, the measure appears to be generally supportive of affordable housing development and likely intended as a pro-housing financing tool. There are no recorded committee transcripts or votes in the provided material, so there is no documented opposition or formal debate to assess. The bill’s structure suggests a policy preference for leveraging public capital to stimulate mixed-income housing construction while keeping the program financially self-replenishing.

Contention

The main potential points of contention are likely to be the exclusion of federal Low-Income Housing Tax Credits, which may limit how developers can stack financing, and the requirement that loans be repaid upon project completion, which could affect project feasibility for some developers. Another possible issue is the agency’s discretion in selecting projects, setting interest rates, and structuring loans, which could raise questions about fairness, regional distribution, and implementation. No specific objections or supporters are identified in the available legislative history.