The head of the state department of Homes and Community Renewal on Thursday said the budget should not supplement support for federal low-income housing programs in preparation for less aid from Washington as President Donald Trump's administration plans to slash national spending.

New York lawmakers have said the budget must fund state-sponsored housing vouchers that Gov. Kathy Hochul did not include in her spending plan that would help low-income families avoid homelessness. But Homes and Community Renewal Commissioner & CEO RuthAnne Visnauskas said instead, lawmakers, Hochul and the state attorney general must hold the state's congressional leaders accountable for programs funded for decades.

"It is absolutely an obligation of the federal government to fund the Section 8 program the way they have since 1978, so we don't want to let them off the hook for that," Visnauskas told Spectrum News 1. 

It's unclear how much, or when, Trump's administration will curb federal spending, but Visnauskas said possible cuts to large federal housing programs like Housing Choice Voucher Program Section 8 or Community Development Block Grant would be detrimental to low-income New Yorkers who rely on the aid.

The Legislature should not step in, the commissioner argued, and focus on fighting to keep that money in tact.

"We absolutely need them to fight to make sure that they understand that those resources really benefit New Yorkers and that the federal government can't just cut them," she said.

Lawmakers examined housing at a budget hearing in Albany on Thursday, which often serves as the single largest expense for New Yorkers and has a profound impact on the state's affordability.

Hochul's budget doubles down on her plan to construct new units to address the state's housing shortage — building on existing programs and creating others.

The governor wants to spend $500 million over the next two years to repurpose state sites to create 15,000 new units, and create a new tax incentive to boost homeownership for low- and middle-income families that buy a home built by a nonprofit like Habitat for Humanity.

"The idea is to give localities a way to assess those houses a little differently so the property taxes are more in line with the purchase prices," Visnauskas said.

Visnauskas said localities will decide to opt in, which will determine how many New Yorkers would benefit from the lower property tax incentive.

"I think, how many people benefit depends on how many localities agree to adopt it," she said.

Meanwhile, a panel of affordable housing advocates told lawmakers they support Hochul's plan to create the state's first revolving loan fund to lower the cost of construction projects and spur mixed-income rentals outside New York City.

Jolie Milstein, president and CEO of the state Association for Affordable Housing, said the budget should include an additional $1 billion to provide new housing and incentives across the state — matching Hochul's spending proposal to commit $1 billion to fulfill zoning reforms and the City of Yes for Housing Opportunity affordable housing plan for the five boroughs.

"The governor was very generous and committed a billion dollars to the City of Yes, which is wonderful," Milstein said Thursday. "But I do believe that we need a 'State of Yes.' We need a billion dollars statewide not just for parity, but really because there are a lot of needs outside the five boroughs that can't be neglected."

The association proposes an extra $1 billion to expand the state's Low-Income Housing Tax credit and a $150 million relief fund to preserve at-risk units, and projects that suffered losses from the COVID pandemic, like backpay of rent.

"These buildings are short cash flow and that means that they are delaying maintenance, they're laying off staff," Milsteain said. "They're not able to put units back online to become vacant because there's no funds to renovate them."

The association also wants funding for a study to identify the solutions to build more units in the city and across upstate.

"We can't come up with the same solution sets that work in a very dense urban place," Milstein added.

President Donald Trump said he plans to impose tariffs on Canada and Mexico starting Tuesday, in addition to doubling the 10% universal tariff charged on imports from China.

Visnauskas said if the tariffs take effect, it could significantly increase the cost of lumber and make it more difficult to build new housing in the state. 

"They're not here yet, so I think we have to wait and see," Visnauskas said. "But for sure, if they get (implemented), for a president that wants to get more housing built, that is not the way to do it and so we're going to continue to fight against that as well."

The governor's five-year housing plan is past the halfway mark, Visnauskas said, and has created or preserved over 55,000 affordable housing units of its expected 100,000 units to date.

Hochul announced more than $100 million for new construction projects through the state's Pro-Housing Communities program, which prioritizes grants for localities committed to housing growth.

Visnauskas said funding has started to be awarded to 277 certified municipalities across the state, and most projects remain in their preplanning stages. The program is one of Hochul's long-term housing strategies that will continue to be funded in the budget, the commissioner said.