S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5793
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 15, 2017
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- 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".
   § 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.
              

                                                            LBD09720-01-7

 A. 5793                             2
 
 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.
   § 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

 A. 5793                             3
 
 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.
   §  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;

 A. 5793                             4
 
   (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.
   §  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.
   § 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.
   §  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

 A. 5793                             5
 
 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.
   §  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

 A. 5793                             6
 
 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.
   § 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.
   § 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

 A. 5793                             7
 
 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.
   §  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.
   §  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.
   §  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

 A. 5793                             8
 
 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-

 A. 5793                             9
 
 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.
   §  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.
   § 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.
   § 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. 5793                            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. 5793                            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.
   § 3. This act shall take effect immediately.