Ulster has followed in the footsteps of its neighbors Dutchess and Orange with the creation of a county housing trust fund. The county legislature passed a resolution on August 15 seeding the Ulster County Housing Action Fund (HAF) with $15 million from the county’s projected $90-million accumulated surplus.
Legislator Abe Uchitelle, chair of the Health, Human Service and Housing Committee, sponsored the resolution in the legislature. Uchitelle had first introduced a resolution to address housing justice through the dedication of $20 million in county funds in September 2022.
“We’ve had a housing crisis for years,” said Uchitelle, “and I think a lot of us have been searching for ways to create additional units of affordable housing. That’s been what everything comes down to.”
County executive Jen Metzger proposed the housing action fund in February. Uchitelle embraced Metzger’s improved version, sponsoring it on behalf of the executive.
“She gave a very, very clear indication that this would be something that she supports,” said Uchitelle, “and her team put together a plan that really took the underlying philosophy of dedicating money to emergency housing and they made it a very well fleshed-out policy. They did an incredible amount of work, and they made it real.”
Uchitelle felt strongly about being the sponsor of the legislation. “I wanted to do everything I could to preserve the integrity of this plan and to preserve its efficacy,” he explained
Figures provided in the resolution assert that Ulster County residents earning an average wage would have to work 67 hours per week to afford the County’s Fair Market Rent as set by HUD. While the median income of renters in Ulster County declined one percent between 2010 and 2018, median rent increased by 16 percent;
Housing sale prices rose 43 percent in four years to a median county price of $350,000 in 2022, putting home ownership out of the reach for more than half of Ulster County residents. Sale prices are going to take a jump again this year.
The HAF will support the construction, development, and redevelopment of housing that residents can afford, It will prioritize the county’s most vulnerable populations, including unhoused individuals and families and households making 80 percent or less of Ulster County Area Median Income (AMI).
A five-member housing policy and oversight committee will be formed. Two members will be chosen by Metzger, one by legislature chair Tracey Bartels, one by majority leader Jonathan Heppner, and one by minority leader Ken Ronk. Members of the legislature or the county executive staff will not be eligible to serve. Term lengths will be staggered so that not everyone will be replaced at the same time when terms expire. The county planning department will provide administration, support and recording services as requested.
Encouraging affordable housing
“What we’ve seen over the last few years,” said Uchitelle, “is we’ve seen efforts to chip away at the housing crisis that are presented by the executive branch and approved by the legislature. But we never really know what other opportunities are out there.”
The creation of the HAF comes after Metzger signed a local law in June designating affordable housing as an Ulster County public purpose, creating a stronger legal foundation on which to justify financial support for new affordable housing opportunities.
Uchitelle is enthusiastic. He sees a notice of funding availability as a way of encouraging housing projects throughout the county. “It’s a new way of creating housing in the sense that there’s a Notice of Funding available that will be publicly announced,” he said, “and it will hopefully spur applications from the private sector, from individuals, and from non-profits that want to create affordable housing.”
The county executive’s office anticipates the first notice of funding availability will be released in early 2024, with up to three million dollars available to winning proposals through the year. There are guidelines for what types of units can be created and the amount of county funding available on a per-unit basis.
Uchitelle goes down the complex list of scoring criteria, including affordability by income levels, site selection, water conservation, and accessibility. “And then here we get to some of the interesting stuff like social equity and community engagement, scoring criteria that can cause one project to excel over another project, and innovation and demonstration of best practices.”
The resolution is very specific in regard to how the fund will be accounted for. A fiscal report must be presented to the legislature and executive no later than March of each year.
Making it a reality
The awards of funding from the HAF will be appropriated only by a majority vote of the legislature
Metzger intends that a quarter of the additional revenues from June’s increase in the county hotel occupancy tax from two to four percent will be allocated to the HAF.
“That is what the county executive has proposed,” confirmed Uchitelle, “and I intend to help make that a reality. I agree with that. I think the longevity of this is very, very important. And I think that is a great example of the type of use for occupancy-tax revenues.”
“Through much of my childhood, my family struggled economically and had to move constantly,” said Metzger, “and this is the experience of too many families living in Ulster County today. We have a moral obligation and a fiscal responsibility to act. The Housing Action Fund will catalyze the development of the housing we need and that people can afford, and is the most direct solution to addressing the housing crisis. I look forward to seeing the diverse range of projects that will materialize as a result of this initiative.”