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

                                  3031

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2009
                               ___________

Introduced  by  M. of A. CHRISTENSEN, V. LOPEZ -- read once and referred
  to the Committee on Housing

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

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

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05504-01-9
              

A. 3031                             2

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