2023 NYS Budget Highlights
New York State’s 2023 budget was approved on Saturday, April 9, totaling $220 billion. While we are still gathering the details included in the budget, there are some highlights relating to preservation that we wanted to call out.
New York State Rehabilitation Tax Credit Programs
The New York State Rehabilitation Tax Credit Programs (residential/income producing) are currently authorized until December 31, 2024. As that date draws closer, those who want to utilize the credits will wonder if they will be available when they are ready to proceed with their projects. In response, the League worked with our colleagues to request the reauthorization of the programs through December 31, 2029. We were pleased to see that the budget proposal from the NYS Assembly included a recommendation to extend the programs through December 31, 2031, but that proposal did not make into the final budget agreement. We will need to make a concerted push for inclusion in the 2024 budget to ensure the continuation of these programs.
Environmental Protection Fund (EPF)
In November, the League and our colleagues advocated for increasing the EPF to $500 million in the 2023 budget. While the final budget didn’t reach our requested amount, we are happy to report that funding for the EPF increased considerably to $400 million. Until now, the EPF was capped at $300 million by statute although for a number of years it did not reach that level. The EPF provides capital funding to protect the environment and to restore historic sites. Funds related to preservation are managed by the Office of Parks, Recreation & Historic Preservation (OPRHP). The amount of the EPF earmarked for historic preservation grants is determined internally but we are hopeful that with the overall increase in the fund, we will see increased grant opportunities for preservation.
Clean Water, Clean Air, and Green Jobs Environmental Bond Act
The budget established a proposed $4.2 billion bond act that will require approval in November by New York voters. This is a significant increase in the value of the Bond Act, which was first proposed in 2019 at $3 billion but was delayed due to Covid-19. Although $400 million is earmarked for “Green Building Projects,” this act does not contain any funds directed specifically to historic preservation and is entirely focused on making “environmental improvements that preserve, enhance, and restore NY’s natural resources and reduce the impact of climate change by funding capital projects.”
Limit on Size of Residential Development
Governor Hochul’s proposed Executive Budget included a plan to lift the decades-old statewide limit on the allowable size of new residential development. The Governor’s proposal would have lifted the current limit on residential floor area ratio (FAR) which stands at 12. This would have effectively allowed New York City in particular to permit residential construction of any size. The League’s colleagues in New York City worked successfully to keep this proposal from being included in the final budget.
Operations Budgets
The approved budget for NYSOPRHP has been significantly increased to $463 million. Within the agency, historic preservation received a 21% budget increase predominately to fund staff positions to respond to an overwhelming workload. The majority of the overall increase for OPRHP was $250M for Capital Projects. Previously this was $120M, so this represents a wonderful and needed increase.
The budget included a $140 million commitment for the New York State Council on the Art’s (NYSCA) arts and cultural projects, including $50 million for capital projects. NYSCA is an important source for historic preservation funding through their Capital Projects grants and the Preservation League-administered Preserve New York and Technical Assistance Grant programs.
The League will be sure to share updates as further details of the budget emerge.