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

                                  3872

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2009
                               ___________

Introduced  by  M.  of  A.  WALKER,  SALADINO, ALFANO, BARRA, McDONOUGH,
  McKEVITT, RAIA, LAVINE -- Multi-Sponsored by -- M. of A. CONTE, THIELE
  -- read once and referred to the Committee on Housing

AN ACT to amend the private housing finance law and  the  state  finance
  law,  in  relation  to  establishing  the "Long Island next generation
  first-time homebuyer grant program"; making an appropriation therefor;
  and providing for the repeal of such provisions upon expiration there-
  of

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

  Section  1.  This  act  shall  be  known and may be cited as the "Long
Island next generation first-time homebuyer grant program".
  S 2. The private housing finance law is amended by adding a new  arti-
cle 19-A to read as follows:
                              ARTICLE XIX-A
     LONG ISLAND NEXT GENERATION FIRST-TIME HOMEBUYER GRANT PROGRAM
SECTION 1115. LEGISLATIVE FINDINGS AND STATEMENT OF POLICY.
        1116. DEFINITIONS.
        1117. LONG  ISLAND  NEXT  GENERATION  FIRST-TIME HOMEBUYER GRANT
                PROGRAM ESTABLISHED; REGULATIONS.
        1118. LOCAL FIRST-TIME HOMEBUYER PROGRAM; ADVISORY BOARD.
  S 1115. LEGISLATIVE FINDINGS AND STATEMENT OF POLICY. THE  LEGISLATURE
HEREBY  FINDS  THAT  IT IS THE PUBLIC POLICY OF THE STATE OF NEW YORK TO
FOSTER THE GOAL OF HOME OWNERSHIP IN AREAS OF THE STATE,  SUCH  AS  LONG
ISLAND,  WHERE  THERE IS A SHORTAGE OF AFFORDABLE HOUSING FOR FIRST-TIME
HOMEBUYERS. IT IS FURTHER FOUND BY THIS  LEGISLATURE  THAT  LONG  ISLAND
MUNICIPALITIES ARE INTERESTED IN PRESERVING EXISTING SINGLE FAMILY HOMES
AND  ENCOURAGING  FIRST-TIME  HOMEBUYERS  FOR  A VARIETY OF REASONS. FOR
EXAMPLE, LOCAL EMPLOYERS HAVE DIFFICULTY HIRING AND RETAINING  EMPLOYEES
BECAUSE  OF  HOUSING  COSTS  AND AVAILABILITY. LOCAL VOLUNTEER EMERGENCY
SERVICES AGENCIES EXPERIENCE DIFFICULTY IN  RECRUITMENT  AND  RETENTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01631-01-9
              

A. 3872                             2

EXTENDED  FAMILIES  ARE STRAINED BECAUSE THE CHILDREN OF LONG TIME RESI-
DENTS ARE FORCED TO LEAVE THE AREA AND THEIR FAMILIES BECAUSE  THEY  CAN
NOT AFFORD TO STAY IN THE AREA. TRAFFIC CONGESTION IS EXACERBATED BY THE
IMPORTATION OF LABOR FROM AREAS WITH LOWER HOUSING COSTS. THE DEMAND FOR
HIGH-END  HOUSING  ON  LONG ISLAND HAS LEFT A SHORT SUPPLY OF MODERATELY
PRICED HOUSING OPPORTUNITIES  FOR  FIRST-TIME  HOMEBUYERS,  PARTICULARLY
YOUNG FAMILIES SEEKING TO STAY OR MOVE ONTO LONG ISLAND.  DEMAND FOR NEW
CONSTRUCTION  IS  USING  UP THE EXISTING OPEN SPACE WHICH IS AN ASSET TO
THE QUALITY OF LIFE ON LONG ISLAND. IT IS THE  PURPOSE  OF  THIS  LEGIS-
LATION  TO  PROVIDE  THE MUNICIPALITIES OF LONG ISLAND THE AUTHORITY AND
RESOURCES NEEDED TO PROVIDE AFFORDABLE HOUSING OPPORTUNITIES FOR  ELIGI-
BLE  FIRST-TIME  HOMEBUYERS WITH A PREFERENCE FOR RESIDENTS AND CHILDREN
OF RESIDENTS.
  SPECIFICALLY, THIS ARTICLE ESTABLISHES A GRANT PROGRAM UNDER THE REGU-
LATION OF THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL AND  AUTHOR-
IZES  LONG  ISLAND  MUNICIPALITIES,  UPON  THE  APPROVAL  OF THEIR LOCAL
GOVERNING BODY, TO ESTABLISH FIRST-TIME HOMEBUYER HOUSING  PROGRAMS  FOR
THE  PURPOSE OF PURCHASING PROPERTIES FOR RE-SALE TO FIRST-TIME HOMEBUY-
ERS AT A SUBSIDIZED  PRICE.  SUCH  PROPERTIES  WOULD  BE  PURCHASED  AND
MANAGED  ON BEHALF OF THE MUNICIPALITIES PURSUANT TO LAW AND REGULATION.
A STATE FUND IS ESTABLISHED FROM AN INITIAL APPROPRIATION, THE FIRST  OF
FOUR  CONSECUTIVE  YEARLY  APPROPRIATIONS,  WHICH  MUNICIPALITIES  COULD
ACCESS FOR THE PURPOSE OF PROVIDING MODERATELY PRICED  HOUSING  OPPORTU-
NITIES FOR ELIGIBLE FIRST-TIME HOMEBUYERS IN THE LONG ISLAND REGION.
  S  1116. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "PROGRAM" MEANS THE "LONG ISLAND NEXT GENERATION  FIRST-TIME  HOME-
BUYER GRANT PROGRAM" ESTABLISHED PURSUANT TO THIS ARTICLE.
  2.  "FUND" MEANS THE "LONG ISLAND NEXT GENERATION FIRST-TIME HOMEBUYER
GRANT FUND" ESTABLISHED IN SECTION NINETY-NINE-Q OF  THE  STATE  FINANCE
LAW.
  3.  "BOARD"  MEANS  THE ADVISORY BOARD OF A LOCAL FIRST-TIME HOMEBUYER
PROGRAM ESTABLISHED BY A MUNICIPALITY.
  4. "HOME" MEANS A SINGLE FAMILY HOME WHICH MEETS THE  REQUIREMENTS  OF
THE PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
  5.  "ELIGIBLE  BUYER" MEANS A BUYER WHO MEETS THE INCOME AND RESIDENCY
ELIGIBILITY REQUIREMENTS FOR PURCHASE OF A HOME PURSUANT TO  THIS  ARTI-
CLE.
  6.  "LOCAL  PROGRAM"  MEANS A FIRST-TIME HOMEBUYER PROGRAM ESTABLISHED
THROUGH LOCAL LEGISLATION PURSUANT TO THIS ARTICLE.
  S 1117. LONG ISLAND NEXT GENERATION FIRST-TIME HOMEBUYER GRANT PROGRAM
ESTABLISHED; REGULATIONS. 1. THERE SHALL BE ESTABLISHED IN THE  DIVISION
OF  HOUSING  AND COMMUNITY RENEWAL ESTABLISHED PURSUANT TO ARTICLE THIR-
TEEN OF THE EXECUTIVE LAW, THE "LONG ISLAND NEXT  GENERATION  FIRST-TIME
HOMEBUYER GRANT PROGRAM".
  2.  WITHIN THE LIMIT OF FUNDS AVAILABLE IN THE LONG ISLAND NEXT GENER-
ATION  FIRST-TIME  HOMEBUYER   GRANT   FUND   ESTABLISHED   IN   SECTION
NINETY-NINE-Q  OF  THE STATE FINANCE LAW, THE COMMISSIONER IS AUTHORIZED
TO PROVIDE GRANTS TO LONG  ISLAND  MUNICIPALITIES  FOR  THE  PURPOSE  OF
PURCHASING  HOMES  FOR  RESALE TO ELIGIBLE FIRST-TIME HOMEBUYERS IN SUCH
MUNICIPALITIES THROUGH LOCAL FIRST-TIME HOMEBUYER  PROGRAMS  ESTABLISHED
PURSUANT  TO SECTION ELEVEN HUNDRED EIGHTEEN OF THIS ARTICLE. ANY GRANTS
RECEIVED BY A MUNICIPALITY PURSUANT TO SUCH PROGRAM SHALL NOT BE  DEEMED
TO BE MUNICIPAL FUNDS. GRANTEES SHALL UTILIZE GRANT FUNDS SOLELY FOR THE
PURCHASE, AT FAIR MARKET VALUE, OF HOMES WITHIN THE MUNICIPAL BOUNDARIES

A. 3872                             3

FOR  RESALE TO AN ELIGIBLE BUYER SUBJECT TO THE PROVISIONS OF THIS ARTI-
CLE.
  3. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO PROMULGATE RULES AND
REGULATIONS  AND  TO  DETERMINE  STANDARDS FOR THE IMPLEMENTATION OF THE
GRANT PROGRAM ESTABLISHED IN THIS SECTION AND LOCAL FIRST-TIME HOMEBUYER
PROGRAMS ESTABLISHED BY LOCAL LAW PURSUANT  TO  SECTION  ELEVEN  HUNDRED
EIGHTEEN  OF  THIS  ARTICLE.  SUCH  REGULATIONS  MAY INCLUDE, BUT NOT BE
LIMITED TO:
  (A) ASSURANCE THAT HOMES FOR PURCHASE, WITH THE ADDITION OF ANY  LOCAL
SUBSIDY,  WILL  BE AVAILABLE AND AFFORDABLE TO ELIGIBLE BUYERS, AND SUCH
ELIGIBLE BUYERS WILL MAINTAIN AND IMPROVE SUCH HOME DURING THE  TERM  OF
THEIR OWNERSHIP, SUCH TERM NOT TO EXCEED FIVE YEARS;
  (B)  ELIGIBILITY  REQUIREMENTS  FOR  BUYERS INCLUDING A MAXIMUM ANNUAL
HOUSEHOLD INCOME FOR PURCHASERS NOT EXCEEDING ONE HUNDRED TWENTY PERCENT
OF THE ESTIMATED MEDIAN ANNUAL HOUSEHOLD INCOME FOR A HOUSEHOLD OF THEIR
SIZE IN THE MUNICIPALITY; BUYERS MUST NOT OWN OTHER PROPERTY, MUST  HAVE
LIVED  IN  THE  MUNICIPALITY  WHERE THE HOME IS LOCATED FOR THE PREVIOUS
FIVE YEARS, MUST BE AT LEAST TWENTY-ONE YEARS OF AGE, MUST  BE  ABLE  TO
QUALIFY  FOR A MORTGAGE, AND ANY OTHER QUALIFICATIONS DEEMED APPROPRIATE
BY THE COMMISSIONER;
  (C) THE EXTENT TO WHICH  GRANTS  PURSUANT  TO  THIS  ARTICLE  WILL  BE
SUPPLEMENTED BY PRIVATE OR OTHER PUBLIC INVESTMENT;
  (D)  A  REQUIREMENT  THAT  ELIGIBLE  BUYERS WILL OCCUPY HOMES AS THEIR
PRINCIPAL PLACE OF RESIDENCE AND A PROCESS BY WHICH PURCHASE  PRICE  AND
EQUITY  WILL BE RECAPTURED BY THE MUNICIPALITY IF THE HOMEBUYER DOES NOT
OCCUPY THE HOME AS THE PRINCIPAL PLACE OF RESIDENCE UNDER THE TERMS  AND
CONDITIONS OF A FORMULA ESTABLISHED OR APPROVED BY THE COMMISSIONER;
  (E)  A  PROCESS  BY  WHICH HOMES WILL BE SOLD BACK TO THE MUNICIPALITY
AFTER THE CONCLUSION OF THE AGREED UPON TERM OF OWNERSHIP;
  (F) CRITERIA FOR EVALUATING APPLICATIONS FROM MUNICIPALITIES,  INCLUD-
ING A DETERMINATION THAT THE GRANT WILL NOT SUBSTITUTE FOR PRIVATE FUNDS
WHICH WOULD BE OTHERWISE AVAILABLE TO THE PROGRAM;
  (G) PERIODIC REVIEW BY THE COMMISSIONER OF LOCAL HOMEBUYER PROGRAMS;
  (H)  CRITERIA  FOR  HOME  SIZE  AND OCCUPANCY INCLUDING NO BASEMENT OR
CELLAR MAY BE OCCUPIED AS A LIVING OR SLEEPING QUARTERS,  NO  MORE  THAN
TWO  PERSONS  IN  A  BEDROOM,  MINIMUM HABITABLE SPACE OF TWELVE HUNDRED
SQUARE FEET AND A MAXIMUM OF FIFTEEN HUNDRED SQUARE FEET, AND ANY  OTHER
CRITERIA DEEMED APPROPRIATE BY THE COMMISSIONER.
  S  1118.  LOCAL  FIRST-TIME  HOMEBUYER PROGRAM; ADVISORY BOARD. 1. THE
GOVERNING BODY OF ANY MUNICIPALITY  ON  LONG  ISLAND  IS  AUTHORIZED  TO
ESTABLISH  BY  LOCAL  LAW OR LAWS A NEXT GENERATION FIRST-TIME HOMEBUYER
HOUSING PROGRAM, PURSUANT TO THE PROVISIONS OF THIS  ARTICLE  AND  REGU-
LATIONS  OF  THE  COMMISSIONER  FOR  THE PURPOSE OF PURCHASING HOMES FOR
RESALE TO ELIGIBLE  FIRST-TIME  HOMEBUYERS.  SUCH  LOCAL  PROGRAM  SHALL
INCLUDE A FUND TO INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
SOURCE, ANY GRANTS RECEIVED BY THE MUNICIPALITY FROM THE NEXT GENERATION
FIRST-TIME HOMEBUYER GRANT FUND PURSUANT TO SECTION NINETY-NINE-Q OF THE
STATE  FINANCE LAW, AND ANY PROCEEDS FROM RESALE OF PROPERTIES PURCHASED
THROUGH THE PROGRAM. INTEREST ACCRUED BY MONIES DEPOSITED INTO THE  FUND
SHALL  BE  CREDITED TO THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO
THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT.  THE  LOCAL  LAW  OR  LAWS
ESTABLISHING  THE FIRST-TIME HOMEBUYER PROGRAM AND FUND SHALL BE SUBJECT
TO A MANDATORY REFERENDUM.  SAID LOCAL LAW OR  LAWS  SHALL  ONLY  BECOME
EFFECTIVE  UPON  THE  ADOPTION OF SAID REFERENDUM BY THE ELECTORS OF THE
TOWN.

A. 3872                             4

  2. ADVISORY BOARD ESTABLISHED. THE GOVERNING BODY OF ANY  MUNICIPALITY
ON  LONG ISLAND WHICH HAS ESTABLISHED A NEXT GENERATION FIRST-TIME HOME-
BUYER PROGRAM AND FUND PURSUANT TO THIS SECTION SHALL CREATE AN ADVISORY
BOARD TO REVIEW AND MAKE RECOMMENDATIONS  REGARDING  THE  MUNICIPALITY'S
FIRST-TIME  HOMEBUYER  HOUSING  PROGRAM. SUCH BOARD SHALL CONSIST OF NOT
LESS THAN SEVEN NOR MORE THAN FIFTEEN LEGAL  RESIDENTS  OF  THE  MUNICI-
PALITY  WHO  SHALL  SERVE  WITHOUT  COMPENSATION. NO MEMBER OF THE LOCAL
LEGISLATIVE BODY SHALL SERVE ON THE BOARD. THE BOARD SHALL  INCLUDE  ONE
REPRESENTATIVE  FROM  EACH  OF  THE  BUILDING  INDUSTRY, THE REAL ESTATE
INDUSTRY AND THE BANKING INDUSTRY, AND THREE  REPRESENTATIVES  OF  LOCAL
HOUSING ADVOCACY OR HUMAN SERVICES ORGANIZATIONS. THE BOARD SHALL ACT IN
AN ADVISORY CAPACITY TO THE MUNICIPALITY.
  S  3. The state finance law is amended by adding a new section 99-q to
read as follows:
  S 99-Q. LONG ISLAND NEXT GENERATION FIRST-TIME HOMEBUYER  GRANT  FUND.
1.  THERE  IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP-
TROLLER AND THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL A  SPECIAL
FUND TO BE KNOWN AS THE "LONG ISLAND NEXT GENERATION FIRST-TIME HOMEBUY-
ER GRANT FUND".
  2. SUCH FUND SHALL CONSIST OF ALL MONEYS CREDITED OR TRANSFERRED THER-
ETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  3.  MONEYS  OF THE FUND, LESS ANY ADMINISTRATIVE EXPENSES OF THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL RELATED TO THE PROGRAM AND FOLLOW-
ING APPROPRIATION BY THE LEGISLATURE, MAY  BE  EXPENDED  FOR  GRANTS  TO
MUNICIPALITIES  PURSUANT  TO  ARTICLE  NINETEEN-A OF THE PRIVATE HOUSING
FINANCE LAW AND FOR ADMINISTRATIVE EXPENSES OF ADVISORY BOARDS FOR LOCAL
FIRST-TIME HOMEBUYER PROGRAMS. MONEYS SHALL BE PAID OUT OF THE  FUND  ON
THE  AUDIT AND WARRANT OF THE STATE COMPTROLLER ON VOUCHERS CERTIFIED OR
APPROVED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL.
  S 4. The sum of two hundred fifty million dollars  ($250,000,000),  or
so much thereof as may be necessary, is hereby appropriated to the divi-
sion  of  housing out of any moneys in the state treasury in the general
fund to the credit of the local assistance account, not otherwise appro-
priated, and made immediately available, for the purpose of carrying out
the provisions of this act. Such moneys shall be payable  on  the  audit
and  warrant of the comptroller on vouchers certified or approved by the
commissioner of housing and community renewal in the  manner  prescribed
by law.
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, and shall  expire  and
be deemed repealed 10 years after such date.