The Hochul administration has quietly put the brakes on a multimillion-dollar fund designed to help underprivileged people open cannabis stores, instead creating a predatory and potentially draining state fund. It is said that
last month, bomb report Officials with the Department of State Dormitory Services (DASNY), which oversees the funding program, are working with private equity firms to jack up costs from potential store owners with state-backed high-interest loans, the city said. They had a financial agreement in place.
State Sen. Liz Krueger (D-Manhattan), who supported New York’s marijuana legalization in 2021, told the Post on Monday that the dormitory board would open cannabis stores through a $200 million social equity cannabis investment fund. announced that it would no longer issue loans for this purpose.
“It certainly seems predatory,” Krueger said of the program’s funding structure.
“DASNY is no longer conducting these transactions at this time,” she added.
Allegations of a funding debacle are expected to be at the center of Hochul’s ally Robert Rodriguez testifying before state senators on Tuesday before his takeover of the dormitory authority is approved.
“There will definitely be questions,” state Sen. Gustavo Rivera (D-Bronx) told the Post.
A blistering report from the city comes after the state struck a deal with a private equity fund to contribute $50 million to a $200 million fund aimed at providing funding to those who need it most to open cannabis stores. It showed that. The $50 million was loaned at an interest rate of 15%.
According to a city report, loans for store renovations are issued from the fund, and the amounts can be more than three times what contractors actually need to do the work, with interest rates as high as 10%. Beyond.
“I want to know how he’s going to handle it,” Rivera said of Rodriguez ahead of Tuesday’s hearing.
State Sen. Jermie Cooney (D-Monroe) added, “We want to get a better understanding of what our current obligations are.”
Cooney said he is optimistic that DASNY’s new leadership will be a positive addition to its role in the cannabis equity program.
“I hope we can have a very frank conversation,” he said.
The state Senate is expected to vote and likely approve Rodriguez’s nomination this week.
