The $15 million Ulster County Housing Action Fund, approved by the county legislature last August in response to a growing housing crisis, has begun accepting applications and will remain open until May 10 at 3 p.m. Up to $3 million of the fund could be allocated for projects this year.
The effort will provide gap funding for affordable housing projects throughout the county and incentivize the continued production of these units for years to come.
“Ulster County is at the forefront of a nationwide housing crisis. In addition to the limited availability of apartments and houses, nearly a quarter of Ulster County renters are considered house insecure, as well as almost a fifth of homeowners,” said county legislature Deputy Majority Leader, Abe Uchitelle, who sponsored the fund before it was passed last summer.
New Paltz is just one of many communities across the country that has seen a spike in housing costs and a subsequent increase in housing insecure individuals. According to a New Paltz housing snapshot done by the non-profit Hudson Valley Pattern for Progress in 2020, the median gross rent rose in New Paltz by $155 from 2010 to 2018, while the Ulster County average rose by just $12.
The snapshot also found that 28.5% of New Paltz renters are “severely cost-burdened” and 57.5% are “living in severely cost-burdened and unaffordable housing,” painting a grim reality of the crisis’ prevalence in the community.
The housing action fund will prioritize projects that will keep housing permanently affordable, and other recipients will have to keep their projects affordable for at least 50 years. While the maximum grant amount varies on the type of project, estimates from the Ulster County government provide up to $50,000 for rental units up to 60% of the area’s median income and the highest being $60,000 per unit for emergency and supportive housing projects.
Besides emergency and supportive projects, other project types that will be considered for the first year of the fund include affordable rental projects, homeownership projects, housing-related infrastructure, housing catalyst fund projects and preservation for affordable housing.
New Paltz Affordable Housing Chair Terry Dolan is optimistic that some of the funds can become available to New Paltz projects.
“There’s two apartment complexes that have received approval, and they’ll have a total of about 15 additional affordable units within those projects. If they’re eligible [for the grant] that would be great, so I’m hopeful there will be an impact on people here in the village,” he said.
“I think it’ll perhaps spur some new development, or at least nudge along some developments that have already been approved and make them happen even faster, which would be great,” Dolan added.
The Ulster County Planning Department will be hosting a virtual webinar on March 19 at 6 p.m. to provide details about the fund and application process. Those interested can register through the link provided on the Ulster County government website.