S T A T E   O F   N E W   Y O R K
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                                  2816

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2013
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Housing

AN  ACT in relation to enacting the housing New York program act for the
  twenty-first century and to amend the private housing finance law,  in
  relation to the housing New York corporation

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

  Section 1. The housing New  York  program  act  for  the  twenty-first
century is hereby enacted to read as follows:

        HOUSING NEW YORK PROGRAM ACT FOR THE TWENTY-FIRST CENTURY

Section 1. Short title.
        2. Legislative findings and purpose.
        3. Definitions.
        4. Housing New York program for the twenty-first century.
        5. Minimization of displacement.
        6. Affordability.
        7. Rent regulation.
        8. Standards and criteria.
        9. Allocation of program funds.
        10. Income determinations.
        11. Maintenance of effort.
        12. Contracts.
        13. Reports.
        14. Act not to supersede other requirements.
        15. Severability.
  Section  1.  Short  title. This act shall be known and may be cited as
the "housing New York program act for the twenty-first century".
  S 2. Legislative findings and purpose. It is hereby found and declared
that there exists in the city of New York a seriously inadequate  supply

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00759-01-3
              

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of safe, sanitary and affordable dwelling accommodations for persons and
families  for  whom the ordinary operations of private enterprise cannot
provide such accommodations as provided herein and that such shortage is
progressively more severe to the degree that the incomes of such persons
are lower; that there exists in such city a significant number of one to
two  unit  and multiple dwellings which are deteriorated or vacant; that
the existence of such conditions creates a serious threat to the health,
safety, welfare, comfort and security of the people  of  the  state  and
further  depletes  the  supply of safe, sanitary and affordable dwelling
accommodations; and  that  substantial  commitments  of  funds  will  be
required to alleviate the present shortage of safe, sanitary and afford-
able  dwelling accommodations for persons and families of low and moder-
ate income.
  The legislature further finds that: (1) in order to assure that funds,
which are now or may in the future become available from public  sources
for  the  provision  of  dwelling  accommodations,  are  used to benefit
persons of low and moderate income, who face the most  serious  shortage
of  safe,  sanitary  and affordable housing; (2) in order to assure that
such funds are otherwise used in the most beneficial manner; and (3)  in
order  to  provide  new funds for such purposes through the Battery Park
city authority and the subsidiary corporation of the New York city hous-
ing development corporation pursuant to this act, the housing  New  York
program  act  for  the twenty-first century should be established by the
legislature.
  S 3. Definitions. As used in this  act,  unless  a  different  meaning
clearly appears from the context:
  1.  "City"  shall  mean (a) the city of New York, (b) its agencies and
instrumentalities (other than the housing New York corporation), and (c)
except for the purposes of section twelve of this act, the New York city
housing development corporation;
  2. "Housing New York corporation" shall  mean  the  subsidiary  corpo-
ration  of  the New York city housing development corporation created by
section 654-c of the private housing finance law;
  3. "Housing New York program for the twenty-first century" shall  mean
the  housing  New  York program for the twenty-first century established
pursuant to section four of this act;
  4. "Housing program funds" shall mean those moneys described in subdi-
vision one of section four of this act;
  5. "Dwelling accommodations" shall mean one or more residential dwell-
ing units, which are located in buildings  or  structures  eligible  for
assistance  under  the  programs and activities set forth in subdivision
two of section four of this act;
  6. "Median income for the area in which  dwelling  accommodations  are
located"  shall  mean  median  income  calculated in accordance with the
regulations of the United States department of housing and urban  devel-
opment governing eligibility for occupancy as a lower income family by a
family  of  four in the metropolitan statistical area which includes the
city of New York for purposes of section  eight  of  the  United  States
housing  act of nineteen hundred thirty-seven, as such act is amended to
the date of enactment of this act;
  7. "Minority-owned business enterprise" shall mean a  business  enter-
prise,  including a sole proprietorship, partnership or corporation that
is: (a) at least fifty-one percent owned by one or more  minority  group
members;  (b)  an  enterprise  in which such minority ownership is real,
substantial and continuing; (c) an enterprise  in  which  such  minority
ownership  has  and exercises the authority to control independently the

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day-to-day business decisions of the enterprise; and (d)  an  enterprise
authorized  to  do  business  in  this state and independently owned and
operated;
  8.  "Minority  group  member"  shall  mean  a United States citizen or
permanent resident alien who is and can demonstrate membership in one of
the following groups: (a) Black persons having origins  in  any  of  the
Black  African  racial  groups;  (b) Hispanic persons of Mexican, Puerto
Rican, Dominican, Cuban, Central or South American of either  Indian  or
Hispanic  origin,  regardless  of  race;  (c) Native American or Alaskan
native persons having origins in any of the original  peoples  of  North
America;  and  (d)  Asian and Pacific Islander persons having origins in
any of the Far East countries, South East Asia, the Indian  subcontinent
or the Pacific Islands; and
  9.  "Utilization  plan" shall mean a plan prepared by a contractor and
submitted in connection with a proposed state contract. The  utilization
plan  shall  identify  certified  minority-owned or women-owned business
enterprises, if known, that have committed to perform work in connection
with the proposed state contract as well as  any  such  enterprises,  if
known,  which  the  contractor  intends  to  use  in connection with the
contractor's performance of the proposed state contract. The plan  shall
specifically  contain  a list, including the name, address and telephone
number, of each certified enterprise with which the  contractor  intends
to subcontract.
  S  4. Housing New York program for the twenty-first century.  1. There
is hereby established a program to be known as  the  "housing  New  York
program  for the twenty-first century" pursuant to which the city of New
York, its agencies and instrumentalities (other  than  the  housing  New
York  corporation) and the New York city housing development corporation
shall acquire, rehabilitate, construct, enlarge,  improve  and  renovate
dwelling  accommodations  and  provide  assistance in order to have such
activities performed, subject to the terms and conditions of  this  act.
Such  program shall be financed with the total amount of funds which are
made available from the following sources during the twenty year  period
commencing  July first, next succeeding the date on which this act shall
have taken effect:
  (a) moneys provided to the city by the housing  New  York  corporation
pursuant to section 654-c of the private housing finance law; and
  (b)  moneys  committed to the housing New York program for the twenty-
first century by the city.
  2. Housing program funds shall only be utilized in programs and activ-
ities of the city for the provision of dwelling accommodations, and  the
real  and  personal  property  acquired,  owned,  constructed, equipped,
improved, enlarged, rehabilitated or renovated to provide such  accommo-
dations  and incidental and appurtenant commercial, social, recreational
or communal facilities, which programs and activities may include  those
under  articles 8, 8-A, 11 and 15 of the private housing finance law and
those programs and activities designed to:
  (a) preserve, repair, renovate, upgrade, improve, modernize, rehabili-
tate or otherwise prolong the useful life of dwelling accommodations;
  (b) construct dwelling accommodations and undertake  site  preparation
related thereto;
  (c)  restore  abandoned,  vacant  or  occupied city or privately-owned
dwelling accommodations to habitable condition;
  (d) assist in the  acquisition  of  buildings  which  contain  or  are
expected to contain dwelling accommodations;

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  (e)  facilitate  the disposition of city-owned buildings which contain
or are expected to contain dwelling accommodations; and
  (f)  provide  infrastructure improvements related to and undertaken as
part of programs  and  activities  for  owner-occupied  buildings  which
contain  no  more  than four dwelling accommodations; provided, however,
that no more than ten percent of the amount  of  housing  program  funds
shall be utilized for the purposes of this paragraph.
  The  city  is  hereby  authorized to carry out, by loans or otherwise,
programs and activities designed to achieve the  purposes  described  in
paragraphs  (a)  through (f) of this subdivision, all in accordance with
any applicable provisions of law.
  3. All expenditures by the city of  housing  program  funds  shall  be
appropriated by the city council of the city of New York.
  S  5.  Minimization  of displacement. Within nine months following the
effective date of this act, the city  shall  issue  and  promulgate,  in
accordance  with  the New York city charter, rules and regulations which
describe the procedures pursuant  to  which  the  city  shall  meet  the
following goals:
  1.  The  city  shall  use its best efforts to ensure that programs and
activities carried out pursuant to the housing New York program for  the
twenty-first  century are structured so as to minimize the likelihood of
any involuntary physical or economic displacement of tenants and  owners
who  reside  in  dwelling  accommodations  which are the subject of such
programs and activities other than temporarily, as a  direct  result  of
rehabilitation  work  which  is  performed  in  such tenant's or owner's
building or dwelling accommodations, in which  case  suitable  temporary
relocation arrangements shall be provided.
  2.  In  assembling  sites  for  new  construction  projects which will
utilize housing program  funds,  and  undertaking  any  demolition  work
necessary  to  prepare such sites, the city shall avoid the displacement
of any existing tenants and owners of structurally sound dwelling accom-
modations to the greatest extent feasible and in addition, give a prior-
ity in occupying the project constructed with housing program  funds  to
any tenant or owner so displaced, if they are income eligible to do so.
  3.  The  city  shall  keep  a record of all tenants and owners who are
involuntarily physically displaced  by  virtue  of  rehabilitation  work
carried  out with housing program funds or work necessary to prepare new
construction sites which utilize housing program funds and take  reason-
able  steps to determine the number of tenants economically displaced by
virtue of such work.
  Nothing contained in  this  section  shall  be  deemed  to  make  less
restrictive  any inconsistent requirement of state or local law or regu-
lation which provides protections against  involuntary  displacement  of
occupants of housing accommodations.
  S 6. Affordability. In structuring programs and activities pursuant to
the  housing  New  York  program  for the twenty-first century, the city
shall take reasonable  steps  to  assure  that  dwelling  accommodations
assisted by housing program funds remain affordable to the income groups
occupying  such  accommodations for a substantially long period of time,
such periods to be determined by the city  in  accordance  with  section
eight of this act.
  S  7. Rent regulation. Notwithstanding the provisions of, or any regu-
lation promulgated pursuant to, the rent stabilization law  of  nineteen
hundred  sixty-nine  or  the emergency tenant protection act of nineteen
seventy-four, in the case of a  dwelling  accommodation  in  a  multiple
dwelling  operated  as  rental  property,  which  benefits  from housing

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program  funds,  if:  (1)  such  dwelling  accommodation  at  the   time
construction  or  rehabilitation  work  carried out with housing program
funds is completed, is not subject to  the  rent  stabilization  law  of
nineteen  hundred  sixty-nine,  the  emergency  tenant protection act of
nineteen seventy-four, the local emergency housing rent control  act  or
local  law  enacted  pursuant  thereto,  or  regulation by the city such
dwelling accommodation shall be made subject to the  rent  stabilization
law of nineteen hundred sixty-nine by the provisions of this section for
a  period which shall be determined by the city and thereafter until the
first vacancy which occurs in such dwelling accommodation, or  (2)  such
dwelling  accommodation  is  subject  to  any of the laws, acts or regu-
lations described in  subdivision  one  of  this  section  at  the  time
construction  or  rehabilitation  work  carried out with housing program
funds is completed, such dwelling accommodation  shall  continue  to  be
subject  to  such  laws,  acts or regulations to the same extent, in the
same manner and for the same period of  time  provided  in  any  statute
which  provides coverage for such housing accommodation under such laws,
acts or regulations and shall not be affected by the provisions of  this
section  for  the duration of such coverage, provided, however, that the
city may provide that upon the termination of coverage of  such  housing
accommodations  under  any of the laws, acts or regulations described in
subdivision one of this section such  housing  accommodations  shall  be
subject to the rent stabilization law of nineteen hundred sixty-nine for
a  period which shall be determined by the city and thereafter until the
first vacancy which occurs in such housing accommodation. The provisions
of this act shall not be deemed to provide rent regulation  pursuant  to
the rent stabilization law of nineteen hundred sixty-nine for any period
of time subsequent to the expiration or termination of such law.
  S  8.  Standards  and criteria. 1. In determining how long a period of
time the city will seek to retain dwelling accommodations as  affordable
to  the  income  groups  occupying them, pursuant to section six of this
act, and, where applicable, how long a  period  of  time  such  dwelling
accommodations  shall  be subject to the rent stabilization law of nine-
teen hundred sixty-nine, pursuant to section seven of this act, the city
shall be bound by any minimum period required by any federal,  state  or
local  law,  and shall also take into consideration the term of any loan
provided to benefit the housing accommodation through  such  program  or
activity.  The  city  may  also consider the cost and useful life of the
works or improvements provided for the dwelling accommodation, the  city
program   or  activity  through  which  the  dwelling  accommodation  is
assisted, the category of income  of  the  occupants  of  such  dwelling
accommodation and the area or areas in which such dwelling accommodation
is  located. The city shall issue and promulgate, in accordance with the
New York city charter, rules and regulations which outline the  criteria
and procedures it shall use to meet the requirements of this section.
  2.  Notwithstanding the provisions of subdivision one of this section,
in the event housing program funds are provided to  the  New  York  city
housing development corporation in connection with any loan made by such
corporation  pursuant  to subdivision 23-c of section 654 of the private
housing finance law to finance the  construction  of  dwelling  accommo-
dations:  (a)  the  period of time such dwelling accommodations shall be
subject to the rent stabilization law  of  nineteen  hundred  sixty-nine
shall  be  a  minimum  of fifteen years, or such longer period as may be
provided in any law other than this act, and thereafter each such dwell-
ing accommodation shall remain subject  to  such  law  until  the  first
vacancy  which occurs in such accommodation subsequent to the expiration

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of such period; and (b) with regard to newly constructed dwelling accom-
modations financed by such corporation which  are  intended  to  benefit
persons  and  families whose incomes do not exceed eighty percent of the
median  income  for  the  area in which such dwelling accommodations are
located, for a period of fifteen years persons  and  families  who  move
into such dwelling accommodations shall have incomes which do not exceed
eighty  percent  of  such median income and such dwelling accommodations
shall remain affordable to such persons and families for a minimum peri-
od of fifteen years.
  S 9. Allocation of program funds. At least forty percent of the  funds
committed  to  the housing New York program for the twenty-first century
shall be utilized to supply  dwelling  accommodations  for  persons  and
families  whose  incomes  do not exceed fifty-five percent of the median
income for the area in which such dwelling  accommodations  are  located
and  in  addition, no more than twenty-five percent of such funds may be
utilized to supply dwelling  accommodations  for  persons  and  families
whose  incomes  exceed  ninety  percent of such median income, but in no
event shall any housing program funds be utilized  to  provide  dwelling
accommodations  for  persons and families whose incomes are greater than
one hundred seventy-five percent of the median income for  the  area  in
which  such  dwelling  accommodations are located. In addition, the city
shall use its best efforts to achieve by the  end  of  each  consecutive
five-year  period  during  which the housing New York program remains in
effect beginning with a five-year period  commencing  July  first,  next
succeeding the date on which this act shall have taken effect, the allo-
cation  of  housing program funds described in the preceding sentence of
this section.
  S 10. Income determinations. In determining which  income  groups  are
being  served  by housing program funds for the purposes of section nine
of this act, the city shall  utilize  and  may  rely  on  the  following
certifications, assumptions and calculations:
  1. In the case of vacant dwelling accommodations assisted with housing
program  funds or dwelling accommodations newly constructed with housing
program funds, the city shall  require  that  the  owners  thereof:  (a)
certify  that  each intended occupant has submitted an income affidavit,
in a form prescribed by the city, (b) certify the category of income  in
which  the occupant belongs, and (c) continue to certify compliance with
respect to the income eligibility of new tenants or purchasers  for  the
period  of  affordability  established  for  such dwelling accommodation
pursuant to section eight of this act. The city shall periodically audit
selected certifications provided pursuant to this section  to  determine
the accuracy of the representations contained therein.
  2.  In the case of other dwelling accommodations assisted with housing
program funds: (a) occupied dwelling accommodations owned by  the  city,
dwelling  accommodations  occupied  by  persons and families transferred
from emergency shelters for the  homeless  and  dwelling  accommodations
occupied  by  persons  and  families  eligible  for  or receiving public
assistance as shall be deemed to be occupied  by  persons  and  families
whose incomes do not exceed fifty-five percent of median income; and (b)
occupied dwelling accommodations not owned by the city and located in an
area  eligible  for  mortgage  insurance  provided by the rehabilitation
mortgage insurance corporation which have annual rent levels  after  the
completion  of  rehabilitation work carried out pursuant to this act, of
less than thirty percent of ninety percent of  median  income  shall  be
deemed  to  be  occupied  by  persons  and families whose incomes are in

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excess of fifty-five percent of median income and equal to or less  than
ninety percent of median income.
  3.  In  the case where (a) an entire building or structure is assisted
under the housing New York program for  the  twenty-first  century;  (b)
such  building  or  structure  contains  more than one dwelling accommo-
dation; and (c) the categories of income of the occupants of such build-
ing or structure are not uniform throughout, the  city  shall  determine
the amount of housing program funds which benefit each particular dwell-
ing accommodation by dividing the amount of such funds provided to bene-
fit  the  building  or  structure  by the number of rental rooms in such
building or structure and multiplying the quotient derived therefrom  by
the number of rental rooms for each particular dwelling accommodation.
  S  11.  Maintenance  of  effort.  The  city  shall not use any housing
program funds to substitute for  locally  funded  operating  or  capital
expenditures  which the city would have allocated to programs to provide
dwelling accommodations through its  normal  budgetary  process  in  the
absence  of  the  housing New York program for the twenty-first century.
All housing program funds shall be utilized  by  the  city  to  increase
locally  funded  operating  or  capital expenditures to provide dwelling
accommodations to a level which is greater than the  level  which  would
have existed if housing program funds had not been available. Nothing in
this  section  shall  require  the  city  to  allocate funds for housing
purposes if in the city's judgment  such  allocation  would  require  an
increase in taxation or reduction in other city services.
  S  12.  Contracts.  In  connection  with  development and construction
contracts for dwelling accommodations funded with housing program funds,
minority-owned and women-owned business enterprises and  minority  group
members  and women shall be given the opportunity for meaningful partic-
ipation.  The city shall establish measures  and  procedures  to  secure
meaningful  participation  by  minority-owned  and  women-owned business
enterprises on contracts for dwelling accommodations funded with housing
program funds, including requiring submission of a utilization  plan  by
the  contractor.  Such  measures  and  procedures shall also promote the
employment of minority group members and women on such contracts.    The
provisions  of  this section shall not be construed to limit the ability
of any minority-owned or women-owned business enterprise to bid  on  any
contract.  In order to implement the requirements and objectives of this
section in connection with such dwellings accommodations, the city shall
be responsible for monitoring compliance  with  the  provisions  hereof,
providing  advice on the availability of competitive qualified minority-
owned and women-owned business enterprises to perform contracts proposed
to be awarded, and making  recommendations  to  improve  the  access  of
minority-owned  and women-owned business enterprises to these contracts.
On or before April first, two years after  this  act  shall  have  taken
effect,  and  on or before the end of each three month period thereafter
during which housing program funds are expended by the  city,  the  city
shall  prepare  and  make available to the public a report detailing the
measures and procedures established by the city in accordance with  this
section,  the  dollar value of all contracts awarded to such enterprises
and employees and the number of such  enterprises  and  employees  which
benefit from such contracts.
  S  13. Reports. On or before January thirty-first, next succeeding the
date on which this act shall have taken effect and on or before  January
thirty-first  of  every  calendar  year  thereafter during which housing
program funds are expended by the city, the city shall submit  a  report
to  the  governor, the temporary president of the senate, the speaker of

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the assembly, the minority leader of the senate and the minority  leader
of the assembly. Such report shall:
  1.  Describe the housing New York program for the twenty-first century
activities carried out during the prior calendar year  and  the  housing
New  York program for the twenty-first century activities which the city
plans to carry out during the upcoming calendar year.  Such report shall
include, but not be limited to:
  (a) (i) a description of the specific rehabilitation and  construction
work undertaken and anticipated to be undertaken pursuant to the program
including  the  addresses  of  all buildings assisted, and for each such
building: the type of rehabilitation or construction work performed, the
status of such work as of the date the report is prepared, the eligibil-
ity and program criteria  utilized  therefor  and  the  city  agency  or
instrumentality  responsible  for the administration and disbursement of
housing program funds; and (ii) for the previous  year,  the  number  of
units  and  the  amount  of funds utilized to provide such units in each
such building or structure which are occupied by each of the  categories
of income described in paragraph (d) of this subdivision and the methods
and  calculations  used pursuant to section ten of this act to determine
such categories of income;
  (b) a breakdown of the amount of program funds obligated and disbursed
and anticipated to be obligated and disbursed to add new  units  to  the
city's  housing  stock,  either  by  substantial  rehabilitation  or new
construction and the number of units  so  added  or  anticipated  to  be
added,  and  the  amount  obligated  and disbursed and anticipated to be
obligated and disbursed to rehabilitate existing occupied units and  the
number of such units;
  (c) the source and amount of total funds available for the housing New
York  program  for the twenty-first century and the amount of such funds
obligated and disbursed and anticipated to be  obligated  and  disbursed
during the previous calendar year and the upcoming calendar year;
  (d)  the number of units, and the amount of housing program funds used
to assist those units, and, as a subcategory, the number  of  units  and
the  amount  of  housing  program funds used to assist those units which
funds have been received by the city from the housing  New  York  corpo-
ration pursuant to section 654-c of the private housing finance law, for
units  which  have  been  and are expected to be occupied by persons and
families whose incomes do not exceed fifty-five percent  of  the  median
income, for persons and families whose incomes exceed fifty-five percent
but  do  not  exceed ninety percent of median income and for persons and
families whose incomes exceed ninety  percent  but  do  not  exceed  one
hundred seventy-five percent of median income and the methods and calcu-
lations  which  the city has used pursuant to section ten of this act in
determining that these units have been or are expected to be occupied by
such persons; and
  (e) a description of how the city has fulfilled  the  requirements  of
section  eleven  of this act. Such description shall include, but not be
limited to:
  (i) a statement of the aggregate amount of  locally  funded  operating
and  capital expenditures the city utilized to provide dwelling accommo-
dations, including, but not limited to, housing  program  funds,  during
the  previous  and  present  city  fiscal  years and the sources of such
funds;
  (ii) the aggregate amount, or an estimate of  such  amount,  whichever
the  case  may  be, of locally funded operating and capital expenditures
which were or would have been  utilized  to  provide  dwelling  accommo-

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dations in the previous and present fiscal years in the absence of hous-
ing  program  funds and the percentage change in such amount between the
previous and present fiscal year; and
  (iii) in the event the aggregate amount of locally funded expenditures
on  housing  (exclusive  of  housing  program funds) appropriated in the
expense and capital budgets as adopted in accordance with the charter of
the city of New York is less than the aggregate amount of locally funded
expenditures on housing (exclusive of housing program  funds)  appropri-
ated  in  the  expense and capital budgets as adopted in accordance with
the charter of the city of New York for the previous  fiscal  year,  the
report shall set forth the reasons for such decline;
  (f)  a  listing,  pursuant to the requirements of section five of this
act, of all those cases where tenants and owners have been involuntarily
displaced from their homes by virtue of rehabilitation work carried  out
with  housing  program  funds, or demolition work undertaken in order to
construct buildings with housing program funds, and a statement, in each
case as to why such displacement was necessary; and
  (g) a summary, prepared on an annual basis of the  reports  which  the
city  is  required  to  make available to the public pursuant to section
twelve of this act.
  2. Such report shall also include  the  percentage  of  total  housing
program funds which have been utilized, up to the date of preparation of
the  report,  to provide dwelling accommodations to persons and families
in each of the categories of income described in paragraph (d) of subdi-
vision one of this section and, if such  percentages  differ  from  that
required  by  section  nine  of  this act, a description of how the city
plans to meet the requirements of such section.
  3. On or before July first, two years after this act shall have  taken
effect, and on or before the termination of each three year period ther-
eafter  during which housing program funds are expended by the city, the
city shall submit, to the  governor,  the  temporary  president  of  the
senate,  the  speaker of the assembly, the minority leader of the senate
and the minority leader of the assembly a projected  plan  for  how  the
total amount of housing program funds will be spent over the life of the
housing  New  York program for the twenty-first century. Such plan shall
include, but not be limited to, all of the information,  to  the  extent
known, required by this section.
  S  14.  Act  not  to supersede other requirements. Nothing in this act
shall be deemed to make less restrictive any inconsistent requirement of
state law or regulation relating to the financing, construction or reno-
vation of dwelling accommodations assisted with housing program funds.
  S 15. Severability. If any clause, sentence,  paragraph,  section,  or
part  of  this act shall be adjudged by any court of competent jurisdic-
tion to be invalid such judgment shall not affect, impair, or invalidate
the remainder thereof, but shall be confined in  its  operation  to  the
clause,  sentence,  paragraph, section or part thereof directly involved
in the controversy in which such judgment shall have been rendered.
  S 2. Paragraph (a) of subdivision 1, subdivisions 2 and  3,  paragraph
(c) of subdivision 12 and subdivision 14 of section 654-c of the private
housing  finance  law,  as  added by chapter 32 of the laws of 1986, are
amended to read as follows:
  (a) "Housing New York program" shall mean the housing New York program
established pursuant to section four of the housing New York program act
AND THE "HOUSING NEW YORK PROGRAM FOR THE  TWENTY-FIRST  CENTURY"  SHALL
MEAN  THE  HOUSING  NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY ESTAB-

A. 2816                            10

LISHED PURSUANT TO SECTION FOUR OF THE HOUSING NEW YORK PROGRAM ACT  FOR
THE TWENTY-FIRST CENTURY.
  2.  There  is hereby established a public benefit corporation known as
the "housing New York corporation" as a subsidiary  corporation  of  the
corporation  solely for the purpose of borrowing money and granting such
moneys to  the  city  for  the  purposes  and  in  accordance  with  the
provisions  of  the  housing  New  York program AND THE HOUSING NEW YORK
PROGRAM FOR THE TWENTY-FIRST CENTURY.
  3. It is hereby found and declared that the legislature,  pursuant  to
the  housing  New  York program act AND THE HOUSING NEW YORK PROGRAM ACT
FOR THE TWENTY-FIRST CENTURY, has established [a] THE housing  New  York
program  AND  THE  HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY
under which the city will cause the  acquisition,  construction,  equip-
ping,  improving,  rehabilitation  and  renovation  of dwelling accommo-
dations within the city of New York for persons and  families  for  whom
the  ordinary operations of private enterprise cannot supply such accom-
modations; that such [program is] PROGRAMS ARE  necessary  in  order  to
increase  the  presently inadequate supply of dwelling accommodations in
such city for such persons  and  families;  that  such  [program  shall]
PROGRAMS  require a substantial commitment of funds from public sources;
and that the need for  such  moneys  necessitates  that  the  subsidiary
corporation  created  by  this section be granted the powers and be made
subject to the requirements of this section. The  legislature  therefore
finds  that such subsidiary corporation, subject to the terms and condi-
tions specified herein, should be given the power to  borrow  funds  and
grant  such moneys to the city of New York, and any agency or instrumen-
tality thereof (other than such subsidiary corporation)  or  the  corpo-
ration  for  use  by such entity in the housing New York program AND THE
HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY; that the  financ-
ing of residential housing facilities in accordance with the housing New
York  program  AND  THE  HOUSING  NEW  YORK PROGRAM FOR THE TWENTY-FIRST
CENTURY is a public  purpose  for  which  moneys  may  be  granted,  and
exemptions from taxation on the income of bonds or notes of such subsid-
iary corporation and on such subsidiary corporation's income and proper-
ty  granted, as specified herein; and that the powers and duties of such
subsidiary corporation as recited in  this  section  are  necessary  and
proper  for achieving the ends herein recited. Therefore such subsidiary
corporation is hereby authorized and empowered:
  (a) to borrow money by issuing bonds and notes for the purposes of (i)
granting  such  moneys  to  the  city  to   finance   the   acquisition,
construction,  equipping,  improvement,  enlargement, rehabilitation and
renovation of residential housing facilities for  the  purposes  and  in
accordance  with  the provisions of the housing New York program AND THE
HOUSING NEW YORK PROGRAM FOR THE TWENTY-FIRST CENTURY and (ii) refunding
any bonds or notes of such subsidiary  corporation  issued  pursuant  to
this section;
  (b)  to  grant  moneys  to  the  city for the purpose of financing the
acquisition, construction, equipping, improvement, enlargement, rehabil-
itation  and  renovation  of  residential  housing  facilities  for  the
purposes  and  in accordance with the provisions of the housing New York
program AND THE HOUSING NEW YORK PROGRAM FOR  THE  TWENTY-FIRST  CENTURY
and  to  enter  into  any agreement specifying terms and conditions with
respect thereto;
  (c) subject to the provisions of any contract with the holders of  any
of  its bonds or notes, to pledge any revenues or assets of such subsid-
iary corporation, including, but not limited to, any excess revenues  of

A. 2816                            11

the  Battery  Park city authority as shall be payable to such subsidiary
corporation pursuant to an  agreement  between  the  Battery  Park  city
authority and such subsidiary corporation as such subsidiary corporation
shall  deem necessary, to secure any bonds or notes issued or any agree-
ments entered into pursuant to this section;
  (d) to procure insurance, letters of credit or other  credit  enhance-
ments with respect to its bonds or notes issued pursuant to this section
and to pay the premiums and fees therefor;
  (e)  to  adopt,  amend or rescind rules and regulations appropriate to
carry out its corporate purposes and to establish such requirements  and
enter  into  such  agreements to achieve the objectives of this section;
and
  (f) to exercise any and all other powers authorized  by  this  section
and not inconsistent with the provisions of this section.
  (c)  the  city  shall  use  the  moneys granted to it pursuant to this
section to finance residential housing facilities in accordance with the
provisions of the housing New York program  AND  THE  HOUSING  NEW  YORK
PROGRAM FOR THE TWENTY-FIRST CENTURY and shall comply with the terms and
conditions  of  the  housing  New York program act, THE HOUSING NEW YORK
PROGRAM ACT FOR THE TWENTY-FIRST CENTURY and this section; and
  14. For the  purposes  of  financing  the  acquisition,  construction,
equipping,  improvement,  enlargement,  rehabilitation and renovation of
residential housing facilities pursuant to this section, such subsidiary
corporation may borrow money by issuing bonds or notes in  an  aggregate
principal amount not exceeding [four] EIGHT hundred million dollars plus
a principal amount of bonds or notes issued (i) to fund any related debt
service reserve fund, (ii) to provide capitalized interest, and (iii) to
provide  fees  and  other  charges and expenses, including underwriters'
discount, related to the issuance of such bonds or notes and the mainte-
nance of such reserves, all as  determined  by  such  subsidiary  corpo-
ration,  excluding  bonds or notes issued to refund outstanding bonds or
notes issued pursuant to this  section.  Any  bonds  or  notes  of  such
subsidiary  corporation  shall  not be or be deemed to be obligations of
the corporation or subject to or included in  any  authorization  of  or
limitation on indebtedness of the corporation.
  In  computing the total principal amount of bonds or notes that may at
any time be issued for any purpose under this section, the amount of the
outstanding bonds or notes that constitutes interest  under  the  United
States  Internal Revenue Code of nineteen hundred fifty-four, as amended
to the effective date of this section, shall be excluded.
  S 3. This act shall take effect immediately.