Housing Action Fund

The Ulster County Housing Action Fund (HAF), proposed by County Executive Jen Metzger and approved by the Ulster County Legislature on August 15, will support equitable and sustainable community development through the construction, development, revitalization, and preservation of affordable, workforce, and supportive housing.

In exchange for investment from the fund, the HAF will require the creation of healthy, energy-efficient, and climate-responsible housing units that serve households making up to 80% of Ulster County Area Median Income (i.e., $81,300 for a 4-person household, $56,950 for a 1-person household), with an emphasis on housing that serves the county’s most vulnerable populations. The HAF will also encourage innovative housing solutions, such as supportive housing, adaptive reuse of existing buildings for housing, tiny home communities, and accessory dwelling units.

Why Do We Need a Housing Action Fund?

• Longer Stays in Emergency Housing: In 2021, the average length of stay for unhoused families in emergency housing was four months; today it is 18 months, due to the lack of permanent housing options.

• Increasing Rents, Stagnant Wages: Average rent for a two-bedroom apartment increased nearly 60% over the past 12 years (inflation-adjusted) while wages have remained stagnant for low- and moderate-income families.

• Rental Housing Cost Burden: Approximately 12% of owners and 29% of renters in Ulster County are “severely cost burdened,” spending more than half of their monthly income on housing. More than half of all renters are burdened or severely burdened, devoting more than 30% of their income to housing.

• Homeownership is Out of Reach: Housing sale prices rose 43% in four years to $350,000 in 2022, putting homeownership out of reach for more than half of Ulster County residents.

• Housing Availability: The county’s vacancy rate (vacant rental or for sale units) was approximately 2% in 2021, placing upward pressure on rent and home prices.

• Loss of Emergency Housing: Economic opportunities, cost of maintenance, and other factors have resulted in a loss of emergency housing beds for unhoused individuals and families, with limited replacements offered by the private sector.

• Workforce Needs: Business leaders increasingly point to the lack of housing and its cost as the main factors contributing to the difficulty of finding workers for their businesses.

How Does the Housing Action Fund Work?

• Administration: A Housing Policy and Oversight Committee (HPOC), comprised of affordable housing experts and professionals, would be appointed to oversee the administration of the fund.

• Funding: The HAF will be seeded with $15 million from the County’s current excess fund balance. The County Executive has also proposed dedicating 25% of occupancy tax revenues annually to ensure long-term resources for the fund.

• Funding Awards: On an annual basis, Ulster County would release a Notice of Funding Availability (NOFA) and request competitive proposals from affordable housing developers, nonprofit organizations, and individuals for housing projects that support the mission of the HAF.

• Project Types: The HAF would support a wide variety of housing and housing-related projects including affordable rental and for-sale projects, non-traditional housing projects, emergency housing, accessory dwelling units, infrastructure projects needed for affordable housing projects, and small grants for projects to spark innovation in the housing sector. Projects would be required to use non-fossil fuel systems and appliances to help meet the County’s climate goals.

• Affordability: All projects that receive HAF funding would be required to remain affordable (rent or sell units to households making 80% of Area Median Income or less) for a minimum of 50 years.

Who else has done this?

The housing fund model has been successfully implemented throughout the country and New York State. Dutchess, Westchester, and Tompkins County all have implemented versions of a housing trust fund. The Tompkins County Community Housing Development Fund has been in operation since 2009, providing approximately $6.8 million dollars to support the development of 875 affordable housing units with most units being placed in a community land trust.