HUDSON VALLEY – A panel of housing and legal experts participated in a virtual housing policy roundtable facilitated by Representative Sean Maloney’s (D, NY-18) office to discuss current challenges with affordable housing projects, specifically with regards to cost of hazardous contaminant abatements.
The roundtable, held Thursday afternoon, also focused on bringing attention to two relevant bills Maloney will be reintroducing: The REHABS (Removing Environmental Hazards and Building Safety) Act and the First Time Homeowners Savings Plan Act.
The REHABS Act, which was first introduced in June 2019, would create a grant program through the Department of Housing and Urban Development for organizations like Habitat for Humanity, Community Frameworks, the Housing Assistance Council and other related housing organizations to assist in funding costly abatements, namely asbestos and lead paint removal.
In the Hudson Valley, there are a large amount of old, existing homes that are ideal for affordable housing projects; however, they also have been built during a time where lead and asbestos were commonly used in construction. Additionally, these abatements are extremely costly to perform. This cost issue has been exacerbated by skyrocketing housing values in the state resulting from the COVID pandemic.
Executive Director for Newburgh Habitat for Humanity, Matthew Arbolino, said he has seen lead and asbestos abatements cost as high as $115,000.
The organization currently has a project property requiring this type of abatement and their latest estimate put the cost at approximately $40,000. Arbolino added that at the area’s median annual household income, a home costing $175,000 is the max such a family could afford, a price point where there are virtually no homes in the local market. Arbolino said the REHABS Act could make creating affordable, working-class housing less prohibitive for organizations like Habitat.
“Looking into the REHABS bill and the effect it could have on the economies across New York State and the Northeast, talking to many Habitat for Humanities and similar organizations – most of us are turning properties away because of the high costs,” said Arbolino. “This would actually expand our opportunity to develop more low-income, affordable, working-class housing. It could be a true game-changer for us,” he said.
Executive Director for Dutchess County Habitat for Humanity, Maureen Lashlee, agreed the REHABS Act could be a “game changer” for affordable housing projects in the region.
Lashlee estimated that there are around 300 abandoned properties in Newburgh alone that could be possible sites for affordable housing creation and this is reflective of small cities within Dutchess County as well. She said the sheer cost of purchasing these properties and abating them is causing Habitat and other organizations turning down acquisitions for projects.
“Any legislation that is going to increase the availability of housing stock is a game changer,” said Lashlee. “The environmental issues that surround the abandoned housing in most of our cities and even now in some of our suburbs is just so incredibly expensive to deal with that it forces us either to reduce the number of homes that we’re able to rehab and subsidize sale to our families, or it has us walking away from opportunities that could be housing,” she said.
Lashlee added that there are many instances where the cost of purchase exceeds the maximum amount for those homes to be eligible for subsidization.
In terms of addressing the rising costs of homes in the region, the First Time Homeowners Savings Plan Act will allow first-time homebuyers to borrow up to $25k from their IRA for home purchase without penalties or taxation.
Maloney’s office said they plan to reintroduce both bills within the next week.
