LeadingAge NY Participates in HCR’s Annual Action Plan Discussion

As a member of the New York State Homes and Community Renewal’s (HCR) National Affordable Housing Act Task Force and the Partnership Advisory Committee, LeadingAge NY participated in a meeting on July 24 regarding the HCR’s 2015 Annual Action Plan (AAP). HCR submits to AAP to the U.S. Department of Housing and Urban Development (HUD) in order to receive federal funding for certain affordable housing and community development programs.

The AAP for 2015 updates the 2011-2015 Consolidated Plan by describing the methods New York State will use to distribute Community Development Block Grant Program (CDBG), HOME, ESG and HOPWA funds in the 2015 calendar year. In addition, the AAP identifies the priorities to be addressed with these funds and the actions which the State expects to take to address these priorities.

Programs used by affordable housing developers in the AAP include the NYS CDBG and the HOME Investment Partnerships Program to provide gap financing in new construction.

An overview of specific aspects of the AAP were made by HCR staff David Muchnick (Office of Policy and Research); Alison Russell (Office of Policy and Research); Christian Leo (Office of Community Renewal) and Lisa Irizarry (Office of Policy and Research.)

The plan includes approximately $41 million for the CDBG program which would be level funded from last year’s amount and approximately $19 million for the HOME program; a decrease of 30 percent from last year's funding. Funding is contingent upon a Congressional approval.

LeadingAge NY addressed the panel on the following points:

Federal funding for the Section 202 program has been eliminated for senior housing development. The HOME and CDBG funds are critical for new construction and redevelopment of senior housing, thus we expressed concern about the reduction of HOME programs funds;
Funds will soon be awarded for the Medicaid Redesign Team (MRT) Senior Supportive Housing Program that will help pilot ways to provide support in affordable senior housing, with the aim of saving Medicaid dollars. We recommended that HCR monitor the progress of these programs as we anticipate they will provide significant return on investment;
Nine percent Low Income Housing Tax Credits (LIHTC) are important to assist in developing innovative housing with services programs that could save significant state Medicaid dollars. Such tax credits can support seniors to receive services in a low cost setting, rather than institutional care. Thus, HCR should develop a nine percent set-aside for senior housing; and
Ongoing operational costs and burdensome regulations can make operating a LIHTC program very difficult. Discussion is needed on how to develop a senior housing with support services model, including the roles of the owner/operator, syndicator, lender, developer, state agencies, federal agencies and elected officials.

LeadingAge NY will continue to explore ways to increase funding and advocate for reasonable regulations to develop and renovate affordable senior housing in New York State.

Contact: Ken Harris, kharris@leadingageny.org, 518-867-8835