The idea of affordable housing starts with a need. Right now, the state of New York is in need. According to the National Low Income Housing Coalition, it’s estimated the Empire State has nearly a million extremely low-income renter households; but there’s only 36 affordable housing units for every 100 households.
When it comes to building affordable housing, in addition to construction and crunching the numbers, it’s also a waiting game. Every project is different with its own set of challenges.
“A seven-year process just to get from inception to a shovel in the ground,” said Jonathan Gertman, seniro vice president of development for the NRP Group.
Gertman says in places that are more proactive and easier to work with that timeframe can be cut nearly in half.
“On the one hand, you have to run the whole approval, design, cost-estimating process and then at the other hand, you have to run the financing gauntlet with HCR — Homes and Community Renewal — to both line up the ability to build and the readiness to build,” said Gertman.
This summer, the NRP Group held its grand opening for the Reserve at Saratoga Springs.
“The town was super supportive,” said Gertman. “We started construction in Oct. 2022. I think it was approximately a four-year process. Eighteen to 24 months with construction, and that’s six years from inception.”
In the past 10 years, Gertman said the company has built or has had 750 affordable units under construction in the state of New York.
“In New York, both at the city and state level, I am always keeping a close and wary eye on things that maybe with the best intentions add cost, time, and complication to housing,” said Gertman. “To make sure that when we say housing crisis, that we are treating it like a crisis and moving quickly, expeditiously without unnecessary burden to make that housing happen.”
As part of her five-year $25 billion housing plan, Gov. Kathy Hochul has made a big push to build or preserve affordable housing.
This summer, Hochul announced a billion will go towards nearly 3,000 affordable homes throughout the state.
The efforts are through the New York State Homes and Community Renewal Office.
“During the budget last year, we secured $50 million from the governor and the legislature so that we could put that money into more innovative opportunities,” said RuthAnne Visnauskas, commissioner and CEO of the Homes and Community Renewal Office. “So, we’re making $50 million available to local governments, land banks, to nonprofit partners who are interested in having these types of beautiful CrossMod homes in their communities.”
Last month, the HCR announced the launch of MOVE-IN NY. The initiative is a factory-built affordable home starter program aimed at making housing more affordable and cutting construction time.
“These houses can be produced in a fraction of the time, half the cost,” said Visnauskas. “And when it’s scaled, we want to be able to replicate this in other cities, suburbs and in other areas across the state.”
The three-bedrooms, two-bath homes carry a price tag of $250,000. They take six months to build and install and can be financed through a mortgage company.
For those who are searching for affordable housing, HCR recently updated its New York Housing Search website. It now includes the capability to apply to open affordable housing lotteries online.