Housing Boom

Yes to New NYC Homes, Climate Change Costs, DC Power Struggle

Good morning from Buffalo, New York. 

Last week, the New York City Council passed Mayor Eric Adam’s ambitious pro-housing zoning plan known as the “City of Yes for Housing Opportunity.” Adams was joined by Governor Kathy Hochul to celebrate. The $5 billion plan, including roughly $1 billion in state funding, aims to enact citywide zoning reforms enabling the creation of 80,000 new homes over the next 15 years. Housing has been a major priority for Hochul since becoming governor, but a lack of agreement with the Legislature as well as broad municipal objections to ceding local control, has largely stalled many of her initiatives on the issue. At the press conference, Hochul offered, “Our only shot at solving New York’s affordability crisis is by building more housing—and that’s why I’m committing $1 billion for projects that will make ‘City of Yes’ a reality.”

The proposal will roll back certain regulatory hurdles that have served as barriers to development, legalize small accessory dwelling units (ADU) for single and two-family homes, and permit higher density buildings to be constructed on transit and commercial corridors. Mayor Adams declared, “Today is a historic day in New York City, but more importantly, for working-class New Yorkers. We showed the nation that government can still be bold and brave by passing the most pro-housing piece of legislation in city history.” State Senator Jeremy Cooney, a Democrat from Rochester, was laudatory of Hochul and Adams for passing the housing plan and called on Hochul to enact a “State of Yes,” allowing Upstate communities to have access to similar development opportunities. Expect housing to remain a big issue in the upcoming legislative session. 

Until then, there is plenty of business from the last legislative session to take care of: Hochul has less than a month to decide on a number of high-profile bills. Among them is the Climate Change Super Fund Act, a bill that would establish a fund for climate resiliency projects by charging large fossil fuel companies doing business in the state $3 billion annually for a total of $75 billion over 25 years. Rep. Ritchie Torres (D-NY), who is actively exploring a primary challenge to Hochul, called on her to sign the measure saying, “It is time for the biggest polluters to take responsibility for their contributions to climate change and help fund the solutions. Together, we can work towards a more sustainable and equitable future for all.” Opponents of the bill have argued it will raise costs for consumers across the board and likely would not withstand legal challenges. The bill has not yet been delivered to Hochul, which would kick off the 10-day, except Sundays, window. 

The Rockefeller Institute of Government released their report on proposed changes to the State’s Foundation Aid formula for New York’s school districts, a report commissioned after Hochul’s plan to update the formula last year was thwarted by the Legislature. In last year’s budget negotiations, Hochul proposed ending the “hold-harmless” provision that ensures school districts do not receive less state funding from the previous year, regardless of changes in enrollment. At the time, Hochul said it “doesn't make sense to keep paying for empty seats in classrooms,” but ultimately settled on a one-year study of the issue, presumably setting up another proposal.

The report, led by Hochul’s former state Budget Director Bob Megna, suggested cutting the “hold harmless” provision for roughly half of the State’s school districts, but phasing that change in over a five-year period. Nonetheless, a Hochul spokesperson said this week, “As we craft the upcoming Executive Budget, the governor believes we should avoid proposals that would negatively impact school budgets, such as eliminating the hold-harmless provision of the Foundation Aid formula.” The policy change is further evidence that Hochul is seeking to insulate herself from politically divisive issues in the face of a soon-to-be hostile federal government and likely political challenges. State Sen. John Liu, who leads the Senate’s New York City Education Committee said, “It would probably be politically astute for the governor to take that kind of position in her Executive Budget. But the commission that she herself proposed is making those kinds of proposals.”

2024 Capitol Christmas Tree

In Washington, D.C., the House GOP’s razor-thin majority was finalized last week with Democrat Adam Gray officially defeating incumbent Republican Rep. John Duarte in California’s 13th Congressional District. That gives the GOP a 220-215 margin, but the resignation of Matt Gaetz (R-FL) which is soon to be followed by those of Elise Stefanik (R-NY) and Mike Walz (FL) (who are leaving to join the Trump Administration) means House Speaker Mike Johnson cannot afford to lose a single vote from the GOP on any legislation he brings to the floor. 

Given that tight majority, Speaker Mike Johnson will need help from Democrats from time to time. The Blue Dog Coalition, co-chaired by Marie Gluesenkamp Perez (D-Wash.) and Jared Golden (D-Maine), who both won tough reelection bids in conservative districts, could provide a lifeline to Johnson. The ten-member group has proven open to bipartisan compromises on issues like energy and tax policy, as well as immigration reform and national security. Another option is the bipartisan Problem Solvers Caucus, although the group has seen its influence diminish after former Speaker Kevin McCarthy was deposed. Republican Co-chair Brian Fitzpatrick (R-Pa.) was a loyal McCarthy lieutenant, while Democratic Co-chair Josh Gottenheimer (D-NJ) is busy running for Governor of New Jersey. Still, the group has proved adept at advancing bipartisan legislation in the past and should not be counted out. A final option is the New Democrat Coalition, a group of 100 or so moderate House Democrats, which has expressed an interest in working with their Republican colleagues. New Democrat Coalition Chair Rep. Brad Schneider (D-Ill.) offered, “We've identified ourselves as the can-do caucus, the ones who are willing to figure out a way to get things done, working with Democrats and Republicans trying to find common ground and build on ideas that will improve the lives of the American people.” 

Meanwhile, House Democrats are preparing for another two years in the minority, and a slate of younger, more media savvy lawmakers are launching bids to unseat senior members on key committees. Longtime Rep. Jerry Nadler (D-NY) announced he was dropping his bid to serve as the top Democrat on the powerful House Judiciary Committee, a position he has held since 2019. Nadler, 77, decided to step down after it became clear that Rep. Jamie Raskin (D-MD), 61, had the momentum to defeat him. Raskin has emerged as an effective messenger and counterbalance to the GOP members of the committee. In a letter to his colleagues, Nadler wrote, “As our country faces the return of Donald Trump, and the renewed threats to our democracy and our way of life that he represents, I am very confident that Jamie would ably lead the Judiciary Committee as we confront this growing danger.”

Rep. Alexandria Ocasio-Cortez (D-NY) is running against Rep. Gerry Connolly (D-VA) to be the ranking member of the House Oversight Committee, a position previously held by Raskin. AOC has not been shy about bucking Democratic leadership in the past, but as we reported months ago, she has lately been working within the system as well. Her allies in Congress believe she has a large enough bloc of support within the Steering and Policy Committee to win the job. AOC wrote, “Now, more than ever, we must focus on the Committee’s strong history of both holding administrations accountable and taking on the economic precarity and inequality that is challenging the American way of life.”

On the House Natural Resources Committee, Rep. Raúl Grijalva announced he will be stepping down as the top Democrat on the panel writing, “After much thought, I have decided that it is the right moment to pass the torch as top Democrat on the House Natural Resource Committee for the 119th Congress.” Rep. Jared Huffman (D-Calif.) is the only other member officially in the race, though Grijalva endorsed Rep. Melanie Stansbury (D-N.M.) for the position. The generational shakeup is part of a larger strategy, reportedly orchestrated by none other than 84-year old Nancy Pelosi, to elevate younger Democrats who can better communicate and push back on Republicans in today’s media environment. 

New York will be well-represented among Democratic leadership:

  • Rep. Adriano Espaillat (D-NY) will lead the Congressional Hispanic Caucus, an influential caucus with over forty members.

  • Rep. Yvette Clark, a Democrat representing Brooklyn, will lead the Congressional Black Caucus.

  • Rep. Grace Meng, a Democrat representing Queens, will chair the Congressional Asian Pacific American Caucus.

The assignments signal the increasing seniority and pull that New York’s lawmakers have in Washington outside of House Minority Leader Hakeem Jeffries (D-NY) and Senate Minority Leader Chuck Schumer (D-NY), both of whom were reelected to lead their respective conferences. 

All that is for 2025, but as in Albany, there’s plenty to do in D.C. before the end of the year! The short-term continuing resolution (CR) currently funding the federal government expires on December 20th, and lawmakers have settled on another temporary spending patch, kicking the full-year spending fight into the next Congress and a new presidential term. What remains unclear, though, is how long the CR will last and how much support Johnson will need from Democrats to get it passed. Multiple members of the far-right Freedom Caucus are opposed to any and all CRs, meaning Johnson will not be able to advance the bill with a simple majority through a House rule, and will, instead, fast-track the bill, a measure requiring a two-thirds majority. On the Senate side, Schumer and the Democratic majority will need to negotiate, which likely means allowing votes on Republican amendments in exchange for fast-tracking the bill to prevent any temporary funding lapse. Lawmakers will also need to decide on how much supplemental disaster aid is included in the package. Johnson has backed off the $100 billion requested from the White House, but has yet to propose a counter offer, only saying, “We want to take care of the needs of the American people.” Expect Johnson to release bill text for the CR as early as this week. 

Finally. . .

Brazil is known for much more than just their world-class soccer team, my wonderful mother-in-law, and excellent coffee.

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New to the NYS Legislature

Patricia Fahy, Senator-elect for the 46th Senate District, brings over a decade of legislative experience to her new role after previously representing the Capital Region in the State Assembly. Known for her dedication to job creation, environmental protection, and educational quality, Pat has sponsored over 200 bills, with more than 70 signed into law. Her legislative achievements include landmark measures such as the nation’s first Gun Industry Liability Law, the pioneering Right to Repair legislation, and the ambitious 30x30 conservation goal aimed at preserving 30% of New York’s land and water by 2030.

As Chair of the Assembly’s Higher Education Committee, Pat led efforts to expand higher education access and served on key committees, including Environmental Conservation, Codes, and Economic Development. Her contributions have been widely recognized; she has earned awards from organizations such as the New York State School Boards Association, the New York State Bar Association, and the Environmental Advocates of New York.

Before her legislative career, Pat worked as Associate Commissioner in the New York State Department of Labor, advocating for federal stimulus funds and job training programs. Her extensive background in public service includes leadership roles in Chicago and Washington, D.C., where she served in the Clinton Administration and the U.S. Department of Labor.

Pat holds a Master’s Degree in Public Administration from the University of Illinois at Chicago and a Bachelor’s in Political Science from Northern Illinois University. Residing in Albany with her husband, Wayne Bequette, and their two children, Pat is poised to leverage her experience and commitment to advance the priorities of District 46, which includes most of Albany County and parts of Schenectady and Montgomery counties.

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