senate Bill S6554

Signed by Governor

Provides that up to ten percent of project cost for affordable home ownership development contracts may be used for particular operating costs

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 27 / Feb / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 05 / Mar / 2012
    • 1ST REPORT CAL.273
  • 06 / Mar / 2012
    • 2ND REPORT CAL.
  • 07 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 21 / Mar / 2012
    • PASSED SENATE
  • 21 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Mar / 2012
    • REFERRED TO WAYS AND MEANS
  • 07 / May / 2012
    • SUBSTITUTED FOR A7833
  • 07 / May / 2012
    • ORDERED TO THIRD READING CAL.514
  • 07 / May / 2012
    • PASSED ASSEMBLY
  • 07 / May / 2012
    • RETURNED TO SENATE
  • 21 / May / 2012
    • DELIVERED TO GOVERNOR
  • 31 / May / 2012
    • SIGNED CHAP.64

Summary

Provides that up to ten percent of project cost for affordable home ownership development contracts may be used for particular operating costs.

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Bill Details

See Assembly Version of this Bill:
A7833
Versions:
S6554
Legislative Cycle:
2011-2012
Law Section:
Private Housing Finance Law
Laws Affected:
Amd ยง1112, Priv Hous Fin L
Versions Introduced in Previous Legislative Cycles:
2009-2010: A3031, A3031
2007-2008: A1025, A1025

Sponsor Memo

BILL NUMBER:S6554

TITLE OF BILL:

An act to amend the private housing finance law, in relation to
affordable home ownership development contracts

PURPOSE:

This bill would allow for the payment of administrative funds to
not-for-profit grantees. Additionally, the bill would broaden the pool
of eligible projects to be assisted under the Affordable Home
Ownership Development Program.

SUMMARY OF PROVISIONS:

This bill would: allow for grants to cover up to 100% of
rehabilitation project costs if no acquisition is needed; allow for
grants to cover up to 60% of rehabilitation project costs if an
acquisition is taking place; and allow 10% of monies to be used for
administrative costs associated with the development of affordable
one-to-four family homes.

JUSTIFICATION:

This legislation would assist in program administration and operation,
allowing the program to more effectively be carried out.
Additionally, the program would be expanded to allow for larger grants
for rehabilitation projects. This will provide more incentive for the
rehabilitation of distressed and underutilized housing, which will
create more affordable housing in an efficient manner.

LEGISLATIVE HISTORY:

This is a new bill for 2012 in the Senate.
A.3013 of 2010/2011: Passed Assembly
A.1025 of 2007/2008: Passed Assembly
A.11712 of 2006: Passed Assembly

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6554

                            I N  S E N A T E

                            February 27, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN ACT to amend the private housing finance law, in relation to afforda-
  ble home ownership development contracts

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

  Section 1. Subdivision 1  of  section  1112  of  the  private  housing
finance  law,  as amended by chapter 333 of the laws of 2004, is amended
to read as follows:
  1. Within the limit of  funds  available  in  the  affordable  housing
development  account, the corporation is hereby authorized to enter into
contracts with eligible applicants to provide grants which  such  appli-
cants  shall  use  to  finance  affordable  home  ownership  development
programs subject to the terms and conditions of this article. Any grants
received by a municipality hereunder shall not be deemed to be municipal
funds.  Grantees shall utilize funds provided pursuant to  this  article
solely  as  payments,  grants and loans to owners to reduce the costs of
new construction, rehabilitation or home  improvement  or  the  cost  of
acquisition,  but  only  where such acquisition is part of an affordable
home ownership development program or project to construct or  rehabili-
tate homes, or as otherwise authorized by law. Such financial assistance
may  be  in  the form of loans, participation in loans including but not
limited to participation in loans  originated  or  financed  by  lending
institutions as defined in section forty-two of this chapter, private or
public  employee pension funds or the state of New York mortgage agency,
or grants, on such terms and conditions as the grantee with the approval
of the corporation shall determine,  provided  that  no  such  payments,
grants  and  loans  shall  exceed the lesser of (i) sixty percent of the
project cost FOR PROJECTS INVOLVING ACQUISITION OR ONE  HUNDRED  PERCENT
OF  REHABILITATION PROGRAMS WITHOUT AN ACQUISITION COMPONENT or (ii) the
following per dwelling unit limitations (A) thirty-five thousand dollars
for projects except as provided in [clause] ITEM (B) of this [item (ii)]
CLAUSE or (B) forty thousand dollars  for  a  high  cost  project  or  a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11705-01-1

S. 6554                             2

project which will receive a loan from the federal farmers home adminis-
tration.  UP  TO  TEN PERCENT OF THE PROGRAM OR PROJECT COST MAY BE USED
FOR GRANTEE OPERATING EXPENSES INCLUDING EXPENSES RELATED TO THE  ORGAN-
IZATION  OPERATING SUPPORT AND ADMINISTRATION OF THE CONTRACT. Among the
criteria the corporation shall consider in determining whether a project
is a high cost project are: average cost of construction  in  the  area,
location of the project, and the impact of the additional funding on the
affordability  of the project for the occupants of such project. No more
than fifty percent of the total amount  appropriated  pursuant  to  this
article  in  any  fiscal year shall be allocated to homes located within
any single municipality.
  S 2. This act shall take effect immediately.

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