The Albany County Legislature has passed a law that officially recognizes affordable housing as a public purpose. The measure, in tandem with another move by the governing body this week, will give the county greater capacity to build affordable units.
On Monday, the legislature unanimously passed Local Law G, 37-0.
Deputy Chairwoman Wanda Willingham, who sponsored the measure, said it will allow the county to put money toward addressing affordable housing.
“When you make something a public purpose, then you’re declaring that this is something that we must do something about. And it allows us to put money behind it and also establish how we’re going to do it, which is going to be our next piece to this. So there are two pieces to this law,” Willingham said.
She says state law requires the county to establish affordable housing as a public purpose before county funds can be made available to support housing development.
“Now we have a place to put it. It’s going to be channeled through Albany County Alliance, and we are also going to set up a committee that is going to decide how we distribute the funding,” Willingham said.
The law is now awaiting a signature from County Executive Dan McCoy. In a statement Friday, he said the newly passed legislation empowers the county “to explore creative solutions, attract private investment, and increase affordable housing options for those who need it most.”
In tandem with the law recognizing affordable housing as a public purpose, the legislature also passed another measure this week that will allow the county to begin funding new affordable housing development.
Local Law L, introduced by Legislature Chair Joanne Cunningham, creates a revolving loan fund to connect housing developers with financial, advisory or educational assistance.
A five-person committee housed within the Advance Albany County Alliance will oversee the fund.
Cunningham said the fund can be used to directly support affordable housing development within the county.
“This committee will be convened and recommended by members of the legislature, the chair’s office, as well as the county executive’s office. The committee will be comprised of individuals who have a background, expertise and experience in the financing, banking, construction, housing and economic development fields,” Cunningham said.
Initially, the fund will total $1.6 million, all of which, the chairwoman says, is coming from the county.
Cunningham explained how it will work. She said the committee will issue requests for proposals and review applications from developers before deciding who gets funding. To receive funding, developers will have to clearly state how their proposed projects will provide affordable housing.
Cunningham said approved applicants will receive loans that, when paid back, could be reinvested to fund future affordable development projects.
“The beauty of this kind of revolving loan fund is that it is not just a receptacle for county investment, as articulated in the local law language. It is also a receptacle for state dollars and private dollars,” Cunningham said.
The committee overseeing the fund will also provide a yearly report to the legislature reviewing its progress.
Local Law L will now go before the Law and Audit and Finance committees for review in December. It is expected to return to the full legislature for a final vote in February.
