S T A T E O F N E W Y O R K
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S. 2771--B A. 6329--B
2009-2010 Regular Sessions
S E N A T E - A S S E M B L Y
March 2, 2009
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IN SENATE -- Introduced by Sens. BRESLIN, ESPADA -- read twice and
ordered printed, and when printed to be committed to the Committee on
Housing, Construction and Community Development -- reported favorably
from said committee and committed to the Committee on Finance --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. CANESTRARI, McENENY -- read once
and referred to the Committee on Housing -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- reported and referred to the Committee on Ways and Means --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT authorizing a certain housing authority to sell or lease all or
part of a certain housing project
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and declaration. The legislature finds
and declares that the state has a vital interest in the continued
viability of public housing. It is necessary to ensure that public hous-
ing continues to serve low-income individuals and families who would
otherwise face homelessness or be forced into unsafe or unsanitary hous-
ing. Public housing functions as a safety net for persons most in need
of safe, decent and affordable housing. The legislature further finds
that the Albany Housing Authority has made, and continues to make, a
concerted effort to provide public housing to individuals and families
in need. A certain project owned by the Albany Housing Authority has
suffered deterioration over time, and this authority does not have
sufficient resources to address this deterioration. An infusion of
private capital is necessary to ensure the continued success and long-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09728-06-9
S. 2771--B 2 A. 6329--B
term viability of the project. This legislature therefore finds and
declares that enactment of this legislation would enable redevelopment
and rehabilitation of that certain project owned by the Albany Housing
Authority, and the continued operation of that project for persons and
families of low-income.
S 2. Upon approval by the commissioner of housing and community
renewal and the common council of the city of Albany, county of Albany,
the Albany Housing Authority is hereby authorized to sell or lease all
or part of the project commonly known as "Ezra Prentice Homes", located
in the city of Albany, county of Albany, upon such terms and conditions
and in such manner as the Albany Housing Authority may deem appropriate
and in compliance with the provisions of this act. The commissioner of
the division of housing and community renewal shall not grant such
approval unless he or she makes a finding that such sale or lease will
enable the project to be redeveloped and operated in such manner as to
provide decent, safe and sanitary housing within the financial reach of
persons and families of low-income. There shall be no requirement for a
finding by the commissioner of housing and community renewal that: (a)
federal assistance will be available to the project upon the sale or
lease thereof; or (b) the provision has been made to pay or otherwise
assure payment or retirement of all bonds, notes and other obligations
heretofore issued to finance the project or a portion thereof, provided
that the sale or lease of the project is part of a comprehensive plan of
rehabilitation and/or restructuring which includes the provision of
housing for persons and families of low-income.
S 3. (a) All laws, rules, and regulations applicable to federal public
housing projects shall continue to apply to all units except those that
are governed by the laws, rules, and regulations applicable to section 8
rental voucher program including but not limited to all procedural and
substantive due process requirements, restrictions on evictions except
for just cause, the right to automatic renewals, and the right to mean-
ingful input in matters concerning tenants. The owner and the Albany
Housing Authority shall be jointly and severally obligated to provide
and protect the rights set forth herein.
(b) One hundred percent of all units shall be made available to
tenants (including tenants in occupancy) with household incomes of sixty
percent or less of area median income. Up to five percent of the units
of the project may be rented to households participating in the federal
section 8 rental voucher program.
(c) The first units that become available for occupancy after the sale
or lease shall be made available to tenants of the project. Thereafter,
no less than forty percent of new tenants will have household incomes of
thirty percent or less of area median income. Units for which a portion
of the rent is paid pursuant to section 8 of the United States Housing
Act of 1937 may be counted to satisfy the aforementioned set aside for
extremely low income tenants.
(d) All tenants who resided in the housing project prior to the sale
or lease shall be offered their current apartments or comparable accom-
modations provided that such tenant paid portion of rent, including
utilities, shall in no event exceed thirty percent of a household's
adjusted gross income.
(e) All units occupied by persons of low income shall be physically
integrated with all other units in the project. They shall share common
means of access, services and amenities equally with all other units and
shall in no way be physically or otherwise set apart from all other
units in the project.
S. 2771--B 3 A. 6329--B
(f) All prospective public housing tenants shall be selected from a
waiting list which shall be maintained by the Albany Housing Authority
in compliance with the federal public housing law and all applicable
rules and regulations. The authority and owner shall screen tenants and
jointly have final approval over tenant selection all in accordance with
aforementioned laws, rules and regulations. All prospective public hous-
ing tenants shall be taken from the waiting list in the order in which
they applied for the size appropriate unit, subject however to prefer-
ences and priorities provided for in the public housing law and all
applicable rules and regulations.
(g) Except for tenants in occupancy as of the date of sale or lease,
all units shall be occupied by persons or families whose income does not
exceed sixty percent of area median income at a rent, including utili-
ties, not to exceed thirty percent of the household's adjusted gross
income.
(h) The entity that controls the operation of the project or acts as
the managing member or general partner following transfer of the project
shall be a not-for-profit entity wholly owned by the Albany Housing
Authority and shall be established under article 11 of the private hous-
ing finance law, provided, however, that the directors, members or other
governing body of such entity shall be composed of the chairperson of
the authority and the duly appointed and elected commissioners of such
authority.
(i) If the managing member or general partner violates any of the
governing laws or covenants imposed on the project resulting in an
adverse effect on the investment partner, the investment partner may
remove the managing member or general partner installed pursuant to
subdivision (h) of this section and install a new managing member or
general partner not subject to the limitations of such subdivision (h).
(j) The provisions of this section may be enforced by any party
aggrieved by a violation of such provisions.
(k) The Albany Housing Authority, or a new managing member or general
partner installed pursuant to subdivision (i) of this section shall
provide the commissioner of the division of housing and community
renewal, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate, the minority leader of the
assembly, the chair of the senate housing, construction, and community
development committee, and the chair of the assembly housing committee
copies of the annual project activity report or any substantially simi-
lar annual report or any substantially similar annual report that it is
required to submit to the department of housing and urban development
that is related to the "Ezra Prentice Homes" project.
(l) In any case where there is an allocation of federal low income
housing tax credits in connection with a sale or lease of a project the
fee payable to the developer shall not exceed twelve percent of the
total development cost provided, however that the fee payable to the
developer may be increased to the maximum percentage permitted under
regulations promulgated by the division of housing and community renewal
if the developer assumes additional financial risk. Such increase shall
not be granted (i) for risk the developer is customarily required to
assume or guarantees which the developer is customarily required to
provide by industry practice; (ii) for any risks or guarantees which
parties other than the developer would ultimately bear; or (iii) if the
cost of such risks or guarantees would be paid from governmental grants,
loans, subsidies or other governmental funds. The foregoing limitation
S. 2771--B 4 A. 6329--B
shall not apply to any portion of the developer fee paid to the housing
authority.
(m) The provisions of this section shall be applicable to the "Ezra
Prentice Homes" project commencing on the closing date of the sale or
lease of the project for a period of forty years and shall be binding on
all owners and operators of the project for such period.
S 4. State subsidies available to the project referred to in section
two of this act in connection with the bonds, notes or other obligations
heretofore issued to finance the cost thereof may, subject to annual
appropriation and upon compliance with the provisions of this act,
continue to be used to pay the debt service on such bonds, notes or
other obligations, subject to such terms and conditions as the commis-
sioner of housing and community renewal may deem appropriate.
S 5. This act shall take effect immediately, provided, however, that
the provisions of section four of this act shall apply to any debt
service payments which become due after such date.