S T A T E O F N E W Y O R K
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8932--A
2009-2010 Regular Sessions
I N A S S E M B L Y
June 16, 2009
___________
Introduced by M. of A. HOYT, FIELDS, ZEBROWSKI -- read once and referred
to the Committee on Local Governments -- recommitted to the Committee
on Local Governments in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT in relation to the continuation of planning and zoning approvals
and permits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The legislature finds and declares that:
a. There exists a state of national recession, which has drastically
affected various segments of the New York economy, but none as severely
as the state's banking, real estate and construction sectors, with
significant unemployment among construction trades, which has resulted
in a real estate finance emergency in New York state.
b. The real estate finance sector of the economy is under severe
stress due to the sub-prime mortgage problem and the resultant widening
mortgage finance crisis. The extreme tightening of lending standards for
home buyers and other real estate borrowers has reduced access to the
capital markets.
c. As a result of the crisis in the real estate finance sector of the
economy, residential and commercial real estate developers and home-
builders, have experienced an industry-wide decline, including reduced
demand, cancelled orders, declining sales and rentals, price reductions,
increased inventory, fewer participants in real estate markets, layoffs,
and scaled back growth plans. Moreover, unemployment in the construction
industry is at record levels.
d. The process of obtaining planning board and zoning board approvals
for subdivisions, site plans, special use permits and variances is time
consuming and expensive, both for private applicants and government
bodies.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14374-05-0
A. 8932--A 2
e. The process of obtaining the myriad other government approvals,
required to commence residential or commercial development, such as
wetlands, stormwater and on-site wastewater disposal permits, highway
access permits, and numerous waivers and variances, also can be time
consuming and expensive.
f. The construction industry and related trades are sustaining severe
economic losses, and the lapsing of government development approvals
would, if not addressed, exacerbate those losses. At a time when shovel
ready construction projects are at a premium, the loss of zoning, plan-
ning and other development related approvals or permits because of time
limits, or other conditions imposed by statute, local law, ordinance or
regulation will exacerbate this real estate finance emergency.
g. Financial institutions that lent money to property owners, build-
ers, and developers are experiencing erosion of collateral and depreci-
ation of their assets as permits and approvals expire, and the extension
of these permits and approvals is necessary to maintain the value of
collateral and the solvency of financial institutions throughout the
state.
h. Due to the current inability of builders and their purchasers or
lessees to obtain financing, under existing economic conditions, zoning,
planning and other development related approvals or permits are expiring
or lapsing and, as these approvals and permits lapse, lenders must reap-
praise and thereafter substantially lower real estate valuations estab-
lished in conjunction with approved projects, thereby requiring the
reclassification of numerous loans which, in turn, affects the stability
of the banking system and reduces the funds available for future lend-
ing, thus creating more severe restrictions on credit and leading to a
vicious cycle of default.
i. As a result of the real estate finance emergency and the continued
expiration of approvals and permits which were granted by state and
local governments, it is possible that thousands of government actions
will lapse because of the passage of time, or the inability to meet
conditions tied to the commencement of the project.
j. Obtaining an extension of an approval or permit pursuant to exist-
ing statutory or regulatory provisions may be impossible because of time
limitations or conditions imposed under state statutes, local laws or
regulations and even if renewable it can be both costly in terms of time
and financial resources. Moreover, those projects that do survive will
come at the expense of delayed construction jobs and delayed tax reven-
ues to municipalities.
k. It is the purpose of this act to enact a law requiring certain
local governments to preserve project approvals for development due to
the real estate finance emergency, by extending the term of these
approvals and permits for a period of time, thereby preventing a waste
of public and private resources.
S 2. a. In the event that a permit or approval applying to the devel-
opment of real estate, and in existence on June 30, 2009, expires or
lapses on or after June 30, 2009 and before June 30, 2011, based on time
limitations or other conditions imposed in such permit or approval, the
period of validity of such permit or approval shall be extended, based
on the real estate finance emergency, until June 30, 2011.
b. The provisions of this section shall apply to all real estate
development permits and approvals issued pursuant to the authority of
state or local law on or prior to June 30, 2009, and in existence on
that date, and shall apply notwithstanding any provision of law to the
contrary.
A. 8932--A 3
c. The provisions of this section shall not be construed to shorten
the duration of any permit or approval issued on or before June 30,
2009, nor shall they limit the granting of any extensions that may be
provided for other than pursuant to the provisions of this section.
d. The provisions of this section shall not apply to any city having a
population in excess of one million people.
e. As used in this section, the term "authority of state or local law"
means authority conferred pursuant to any general, special or local law,
rule or regulation, charter, ordinance or administrative code pertaining
to the planning or zoning of housing accommodations, commercial facili-
ties and incidental facilities, including but not limited to subdivision
approvals, variance approvals, special use permits, site plan approvals,
county planning board approvals and county health department approvals.
S 3. This act shall take effect immediately.