According to the proposal, the cost of the program would equal approximately 3% of Tennessee's annual state budget. It could be funded by the state's recurring surplus estimated at $1.5 billion to $2.5 billion per year. Mitchell asserted that Tennessee has the fiscal capacity to support the initiative without cutting existing services or raising taxes. The money is there. The question is priority, he said.
The new law, sponsored by Assembly Member Tony Simone and state Sen. Brad Hoylman-Sigal from Manhattan, would allow city officials to pass local property tax relief for Chelsea's Penn South residents. It also builds on the governor's recent budget, which automatically cuts taxes 50% for the nearly 100,000 New York City Mitchell-Lama households by providing a deeper shelter rent tax benefit. The governor made the affordability move for Mitchell-Lama residents in part because the buildings were built in 1955 and need maintenance and updates.