S T A T E   O F   N E W   Y O R K
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                                  2744

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced by M. of A. O'DONNELL, GLICK, BROOK-KRASNY -- Multi-Sponsored
  by  --  M.  of  A.    GOTTFRIED, JOHN -- read once and referred to the
  Committee on Housing

AN ACT to amend the private housing finance law and  the  state  finance
  law,  in  relation  to  dedicating  Mitchell-Lama  buyout  revenues to
  affordable housing

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Legislative findings and intent. Mitchell-Lama housing was
built in the 1950's as a response to the housing crisis after World  War
II.  This  housing  created new vibrant communities that attracted busi-
nesses, schools, day care centers and stimulated economic activity  that
has  allowed  New  York  city to thrive. Without programs like Mitchell-
Lama, New York City would only be inhabitable for the very rich  or  the
very  poor. Mitchell-Lama housing allows people of all economic means to
live together in decent, affordable housing.  This  community  is  being
threatened  by  the  specter  of  buy-outs. Applying buy-out revenues to
provide more affordable housing will preserve and promote the well being
of our state's communities.
  S 2. The private housing finance  law  is  amended  by  adding  a  new
section 36-b to read as follows:
  S  36-B.  BUYOUT  REVENUES  TO  BE  DEDICATED  TO  AFFORDABLE HOUSING.
NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, ANY REVENUES  DERIVED
BY  THE  STATE FROM A BUYOUT OF A STATE-AIDED PROJECT SHALL BE DEPOSITED
TO THE CREDIT OF THE MITCHELL-LAMA BUYOUT AFFORDABLE HOUSING FUND ESTAB-
LISHED PURSUANT TO SECTION NINETY-TWO-FF OF THE STATE  FINANCE  LAW  AND
USED  FOR  THE  PURPOSES OF PROVIDING AFFORDABLE HOUSING TO PROJECTS AND
PERSONS THAT MEET THE ELIGIBILITY CRITERIA PROVIDED FOR IN THIS  ARTICLE
AND  NO OTHER. ANY REVENUES DERIVED BY A MUNICIPALITY FROM THE BUYOUT OF
A MUNICIPALLY-AIDED PROJECT SHALL BE DEPOSITED TO  A  SPECIAL  MUNICIPAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03690-01-9

              

A. 2744                             2

FUND  CONSISTING  SOLELY  OF  SUCH REVENUES AND SHALL BE USED SOLELY FOR
AFFORDABLE HOUSING PURPOSES.
  S 3. The state finance law is amended by adding a new section 92-ff to
read as follows:
  S  92-FF.  MITCHELL-LAMA  BUYOUT  AFFORDABLE HOUSING FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN  AS  THE  "MITC-
HELL-LAMA BUYOUT AFFORDABLE HOUSING FUND".
  2.  THE  MITCHELL-LAMA BUYOUT AFFORDABLE HOUSING FUND SHALL BE CLASSI-
FIED BY THE COMPTROLLER WITHIN THE CAPITAL PROJECT FUND TYPE  AND  SHALL
CONSIST  OF  ALL  MONEYS COLLECTED THEREFOR OR CREDITED, APPROPRIATED OR
TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW OR ANY
OTHER MONEYS MADE AVAILABLE FOR THE PURPOSES OF THE FUND.
  3. MONEYS OF THE FUND MAY BE INVESTED BY  THE  STATE  COMPTROLLER  AND
INCOME FROM SUCH INVESTMENTS SHALL BE CREDITED TO SUCH FUND.
  4.  MONEYS  OF  THE  FUND SHALL BE APPROPRIATED BY THE LEGISLATURE AND
PAID OUT PURSUANT TO THE  TERMS  OF  SUCH  APPROPRIATION  AND  ONLY  FOR
AFFORDABLE  HOUSING PURPOSES AS SPECIFIED IN SECTION THIRTY-SIX-B OF THE
PRIVATE HOUSING FINANCE LAW.
  S 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.