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

                                  4071

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2009
                               ___________

Introduced  by M. of A. THIELE, ALESSI -- Multi-Sponsored by -- M. of A.
  SALADINO -- read once and referred to the Committee on Housing

AN ACT to amend the private housing finance law, in relation to creating
  the "Peconic Bay region workforce housing opportunity act"

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

  Section  1. This act may be cited as the "Peconic Bay region workforce
housing opportunity act".
  S 2. Legislative findings.  The legislature hereby finds that critical
to the future of the Peconic Bay region is the need to protect community
stability by providing for  an  adequate  supply  of  workforce  housing
opportunities  for all segments of the Peconic Bay community. One of the
great paradoxes of the Peconic Bay regional economy is that  the  number
of  housing units in the Peconic Bay region has increased from 38,000 in
1960 to more than 85,000 today.   Yet, the  availability  of  affordable
housing opportunities for moderate income and working class residents is
in critically short supply.
  The  adverse  impacts  from this shortage of housing opportunities are
critical. For  example,  local  employers  have  difficulty  hiring  and
retaining  employees  because  of  housing costs and availability. Local
volunteer emergency services agencies experience difficulty in  recruit-
ment  and  retention.  Long time residents are forced to leave the area.
Traffic congestion is exacerbated by the importation of labor from areas
with lower housing costs. Other land  uses  such  as  motels  are  being
converted  to  emergency  and  permanent  housing.  Finally, the lack of
affordable housing is resulting in residents being  forced  to  live  in
substandard, illegal conditions.
  Unique  demographics  and  economics  in the Peconic Bay region, and a
lack of affordable dwelling units, are creating this  housing  shortage.
The combination of the Peconic Bay region's attractiveness, proximity to
the  dense population of the New York metropolitan region, and proximity

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
A                                                          LBD03942-01-9
              

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to that region's extraordinary wealth, makes the Peconic  Bay  region  a
prime location for seasonal and luxury homes.
  While this combination of extraordinary attractiveness, population and
wealth has created a strong local economy for the Peconic Bay region, it
has  resulted in housing problems for local families. In the Peconic Bay
region, 37% of all housing units are seasonal.  The  population  of  the
region  increases  from  125,000  to more than 320,000 during the summer
season.
  In summary, the demand of land  for  luxury  and  seasonal  homes  and
seasonal  rentals  has  left a short supply of housing opportunities for
moderate income and working  class  local  residents.  The  Peconic  Bay
region  needs  a balanced housing policy where there exists a variety of
housing types and opportunities across the region's economic spectrum.
  It is the purpose of this legislation, to give the towns of the Pecon-
ic Bay region the authority and resources needed to establish  community
housing opportunities. This legislation would permit each town to estab-
lish  a dedicated community housing opportunity fund to increase housing
opportunities in the region.
  Specifically, towns would be permitted to provide loans to those resi-
dents and families below the median income level of  the  town  who  are
first  time home buyers. Said loans would be up to $200,000. Such a loan
would permit more residents and families to access the existing  housing
market.  Said loan would be repaid upon any future sale of the dwelling.
The repayment amount would be equal to an amount in  proportion  to  the
resale price as the original proportion of the loan to the original sale
price.
  This  program  would  provide  funding  to  increase workforce housing
opportunities. It would also permit families under the program to  enjoy
a  proportional  benefit  in the equity of their new home. Finally, upon
resale, the town's proportional interest would be returned to  the  fund
to finance future workforce housing opportunities.
  Said fund would be financed by a combination of state and local funds,
including  a fee on new residential construction over 3,000 square feet.
The fund and fee enacted by local law would be subject  to  a  mandatory
referendum.
  S  3. The private housing finance law is amended by adding a new arti-
cle 23 to read as follows:
                              ARTICLE XXIII
          PECONIC BAY REGION WORKFORCE HOUSING OPPORTUNITY ACT
SECTION 1160. DEFINITIONS.
        1161. FUND AUTHORIZED.
        1162. PURPOSES OF THE FUND.
        1163. WORKFORCE HOUSING IMPACT FEE.
        1164. MANDATORY REFERENDUM.
        1165. SEVERABILITY CLAUSE.
  S 1160. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS  AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "PECONIC  BAY  REGION" MEANS THE TOWNS OF EAST HAMPTON, RIVERHEAD,
SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD.
  2. "WORKFORCE HOUSING" SHALL BE DEFINED AS HOUSING FOR HOUSEHOLDS WITH
INCOMES AT OR BELOW ONE HUNDRED PERCENT OF THE MEDIAN  INCOME  FOR  EACH
TOWN WITHIN THE PECONIC BAY REGION.
  3.  "FUND"  MEANS  THE  WORKFORCE  HOUSING OPPORTUNITY FUND AUTHORIZED
PURSUANT TO THIS ARTICLE.
  S 1161. FUND AUTHORIZED. THE TOWN BOARD OF ANY TOWN IN THE PECONIC BAY
REGION IS AUTHORIZED TO ESTABLISH  BY  LOCAL  LAW  A  COMMUNITY  HOUSING

A. 4071                             3

OPPORTUNITY  FUND,  PURSUANT TO THE PROVISIONS OF THIS SECTION. DEPOSITS
INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
SOURCE, INCLUDING BUT NOT LIMITED TO:
  1.  ALL  REVENUES  FROM THE WORKFORCE HOUSING IMPACT FEE AUTHORIZED BY
SECTION ELEVEN HUNDRED SIXTY-THREE OF THIS ARTICLE;
  2. GENERAL FUND BALANCES OR SURPLUSES;
  3. FUNDS RECEIVED BY THE  TOWN  FROM  THE  APPORTIONMENT  OF  MORTGAGE
RECORDING  TAXES  RECEIVED FROM THE COUNTY PURSUANT TO ARTICLE ELEVEN OF
THE TAX LAW;
  4. FUNDS RECEIVED BY THE TOWN FROM THE SALE OF DEVELOPMENT RIGHTS FROM
A CENTRAL BANK;
  5. THE REPAYMENT OF ANY LOANS ISSUED FROM PROCEEDS OF THE FUND;
  6. ANY GIFTS OF INTERESTS IN LAND OR FUNDS; AND
  7. ANY STATE OR FEDERAL GRANTS RECEIVED  BY  THE  TOWN  FOR  PROVIDING
AFFORDABLE HOMES.
  INTEREST  ACCRUED  BY MONIES DEPOSITED INTO THE FUND SHALL BE CREDITED
TO THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO THE FUND BE  TRANS-
FERRED  TO ANY OTHER ACCOUNT. NOTHING CONTAINED IN THIS SECTION SHALL BE
CONSTRUED TO PREVENT THE FINANCING IN WHOLE OR IN PART, PURSUANT TO  THE
LOCAL  FINANCE LAW, OF ANY PURPOSE  AUTHORIZED PURSUANT TO THIS SECTION.
MONIES FROM THE FUND MAY BE UTILIZED  TO  REPAY  INDEBTEDNESS  OR  OBLI-
GATIONS  INCURRED  PURSUANT  TO  THE  LOCAL  FINANCE LAW CONSISTENT WITH
EFFECTUATING THE PURPOSES OF THIS SECTION.
  S 1162. PURPOSES OF THE FUND. 1. THE PROCEEDS OF THE FUND  ESTABLISHED
PURSUANT  TO  SECTION  ELEVEN HUNDRED SIXTY-ONE OF THIS ARTICLE SHALL BE
UTILIZED (A) FOR THE PROVISION OF LOANS TO  ELIGIBLE  RESIDENTS  OF  THE
TOWN FOR THE PURCHASE OF A FIRST HOME PURSUANT TO THE PROVISIONS OF THIS
SECTION,  (B)  THE  ACQUISITION OF COVENANTS, RESTRICTIONS, OR EASEMENTS
LIMITING EXISTING HOMES FOR WORKFORCE HOUSING, AND (C) THE PROVISION  OF
HOUSING  COUNSELING  SERVICES  BY  NOT-FOR-PROFIT  CORPORATIONS  WHO ARE
AUTHORIZED BY THE U.S. DEPARTMENT OF HOUSING AND  URBAN  DEVELOPMENT  TO
PROVIDE SUCH SERVICES.
  2.  A  TOWN MAY MAKE A LOAN TO A RESIDENT OF THE TOWN FOR THE PURCHASE
OF A FIRST HOME FOR THE PURPOSE OF WORKFORCE HOUSING.  SAID  LOAN  SHALL
NOT  EXCEED  TWO  HUNDRED  THOUSAND DOLLARS PER HOME. SAID LOAN SHALL BE
REPAYABLE TO THE TOWN UPON THE RE-SALE OF THE HOME. THE REPAYMENT TO THE
TOWN SHALL BE AN AMOUNT EQUAL TO THE PROPORTION  OF  THE  ORIGINAL  LOAN
FROM THE TOWN TO THE ORIGINAL PURCHASE PRICE TO THE RESALE PRICE.
  3. ALL REVENUES RECEIVED BY THE TOWN FROM THE REPAYMENT OF LOANS SHALL
BE DEPOSITED IN THE FUND.
  S  1163.  WORKFORCE HOUSING IMPACT FEE. EACH TOWN IS HEREBY AUTHORIZED
TO IMPOSE, COLLECT, AND DISBURSE, AS SET FORTH IN THIS SECTION, A FEE ON
ALL NEW RESIDENTIAL CONSTRUCTION. SAID FEE SHALL BE IMPOSED ON NEW RESI-
DENTIAL CONSTRUCTION WHERE THE TOTAL FLOOR  AREA  OF  SAID  CONSTRUCTION
EXCEEDS  THREE  THOUSAND  SQUARE FEET. SAID FEE SHALL BE SET BY THE TOWN
BOARD, BUT SHALL NOT EXCEED EIGHT DOLLARS PER SQUARE FOOT IN  EXCESS  OF
THREE  THOUSAND SQUARE FEET. SAID FEE SHALL BE PAID UPON THE ISSUANCE OF
A BUILDING PERMIT BY THE TOWN. THE PROCEEDS OF SAID FEE SHALL BE  DEPOS-
ITED  IN  THE  COMMUNITY  HOUSING  OPPORTUNITY  FUND CREATED BY THE TOWN
PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-ONE OF THIS ARTICLE.    HOUSING
CONSTRUCTION  WHICH  IS  RESTRICTED TO WORKFORCE HOUSING SHALL BE EXEMPT
FROM THIS FEE.
  S 1164. MANDATORY REFERENDUM. THE LOCAL LAW OR LAWS  ESTABLISHING  THE
WORKFORCE HOUSING OPPORTUNITY FUND AND AUTHORIZING THE WORKFORCE HOUSING
IMPACT FEE SHALL BE SUBJECT TO A MANDATORY REFERENDUM. SAID LOCAL LAW OR

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LAWS SHALL ONLY BECOME EFFECTIVE UPON THE ADOPTION OF SAID REFERENDUM BY
THE ELECTORS OF THE TOWN.
  S  1165.  SEVERABILITY  CLAUSE.  IF  ANY  PROVISION OF THIS ARTICLE OR
APPLICATION THEREOF SHALL FOR ANY REASON BE ADJUDGED  BY  ANY  COURT  OF
COMPETENT  JURISDICTION  TO  BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT,
IMPAIR, OR INVALIDATE THE REMAINDER OF THE ACT, BUT SHALL BE CONFINED IN
ITS OPERATION TO THE PROVISION THEREOF DIRECTLY INVOLVED IN THE  CONTRO-
VERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN RENDERED.
  S 4. This act shall take effect immediately.