S T A T E   O F   N E W   Y O R K
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                                  5746

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 19, 2009
                               ___________

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

AN ACT to amend the private housing finance law, in relation  to  neigh-
  borhood and rural preservation contracts

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

  Section 1. Subdivision 5 of section 902 of the private housing finance
law, as amended by chapter 668 of the laws of 1985, is amended  to  read
as follows:
  5.   "Neighborhood  preservation  activities"  shall  mean  activities
engaged in by a neighborhood preservation company within [a] ONE OR MORE
geographically defined neighborhood OR NEIGHBORHOODS of  a  municipality
OR MUNICIPALITIES designed (a) to construct, maintain, preserve, repair,
renovate, upgrade, improve, modernize, rehabilitate or otherwise prolong
the useful life and to manage and coordinate the rehabilitation of resi-
dential  dwelling  accommodations  within such neighborhood OR NEIGHBOR-
HOODS, to restore abandoned and  vacant  as  well  as  occupied  housing
accommodations  to habitable condition; to demolish structurally unsound
or unsafe or otherwise unsightly or unhealthy structures which no longer
serve or can economically be made to serve a useful  purpose  consistent
with  stabilizing  or improving a neighborhood OR NEIGHBORHOODS; to seal
and maintain vacant but structurally sound structures which are  capable
of  being  rehabilitated at a future time and used for housing purposes;
to acquire, where appropriate, buildings which contain housing  accommo-
dations;  to  facilitate the disposition of buildings containing housing
accommodations to individual occupants thereof or to cooperative  groups
whose  members  shall  be occupants thereof; to assist owners, occupants
and tenants of housing accommodations  to  obtain  improvements  in  the
physical conditions thereof and in the maintenance and management there-
of; and to manage housing accommodations as agents for the owners there-
of  or  administrators  or receivers appointed or designated pursuant to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08974-01-9
              

A. 5746                             2

any law of the state; and (b) to accomplish similar  purposes  and  meet
similar  needs  with respect to retail and service establishments within
such neighborhoods when carried out in connection with and incidental to
a program of housing related activities.
  S  2.  Subdivisions  2,  3 and 4 of section 903 of the private housing
finance law, subdivision 2 as amended by chapter  668  of  the  laws  of
1985,  subdivision  3 as added by chapter 852 of the laws of 1977, para-
graph (h) of subdivision 3 as amended by chapter 347 of the laws of 1980
and subdivision 4 as amended by section 1 of part II of  chapter  59  of
the laws of 2008, are amended to read as follows:
  2.  Prior to entering into a contract with a neighborhood preservation
company, the commissioner shall have made a finding that  the  neighbor-
hood  OR  NEIGHBORHOODS  in  which  the  activities  are  proposed to be
conducted [contains] CONTAIN a significant amount  of  deteriorating  or
substandard  housing  which is not being adequately repaired, renovated,
upgraded, modernized or rehabilitated under existing programs so  as  to
provide sound housing at costs which the residents of such neighborhoods
can afford; that the neighborhood preservation company which proposes to
contract  with  the commissioner is a bona fide organization which shall
have been in existence either as a corporation or as an  unincorporated,
organized  group  and  performing  significant neighborhood preservation
activities for at least  one  full  year  prior  to  entering  into  any
contract  with the commissioner and which shall have demonstrated by its
immediate past and  current  activities  that  it  has  the  ability  to
preserve,  repair,  maintain,  renovate, rehabilitate, manage or operate
housing accommodations or to engage in other  neighborhood  preservation
activities  in such neighborhood OR NEIGHBORHOODS; that the neighborhood
preservation activities which  are  to  be  performed  pursuant  to  the
proposed  contract  are needed by the neighborhood OR NEIGHBORHOODS; and
that the neighborhood preservation company possesses or will acquire  or
gain access to the requisite staff, office facilities within such neigh-
borhood  OR  NEIGHBORHOODS,  equipment  and  expertise  to  enable it to
perform the activities which it proposes to undertake pursuant  to  such
contract;  provided,  however, that it shall not be a bar to the commis-
sioner's contracting with a neighborhood preservation company  that  one
or more organizations, whether pursuant to contract with the commission-
er or not, are conducting neighborhood preservation activities wholly or
partially within the same neighborhood OR NEIGHBORHOODS.
  3. In determining to enter into a contract with a neighborhood preser-
vation company pursuant to this article, the commissioner shall investi-
gate,  to the extent which [he] THE COMMISSIONER shall deem necessary or
appropriate, and determine;
  (a) that the geographic boundaries proposed by the applicant for  such
a  contract  define [a] ONE OR MORE recognized or established [neighbor-
hood] NEIGHBORHOODS or [area] AREAS within  [the  municipality]  ONE  OR
MORE MUNICIPALITIES;
  (b)  that  the  demographic and other relevant data pertaining to such
neighborhood OR NEIGHBORHOODS indicate  that  the  neighborhood  has  OR
NEIGHBORHOODS  HAVE  sustained physical deterioration, decay, neglect or
disinvestment, that a substantial proportion of  the  residential  popu-
lation  that  the  neighborhood  preservation company proposes to assist
through its activities is of low income and that such neighborhood is OR
NEIGHBORHOODS ARE in need of active intervention to effect  [its]  THEIR
preservation, stabilization or improvement;
  (c)  that  the activities proposed to be conducted by the neighborhood
preservation company are reasonably calculated to have a positive effect

A. 5746                             3

on the preservation, stabilization or improvement of the neighborhood OR
NEIGHBORHOODS;
  (d)  that  the neighborhood preservation company's officers, directors
and members are fairly representative of the residents and other legiti-
mate interests of the neighborhood  OR  NEIGHBORHOODS,  that  they  will
carry out such a contract in a responsible manner and that a majority of
the  directors of the neighborhood preservation company are residents of
the neighborhood OR NEIGHBORHOODS;
  [(f)] (E) that the fees received or proposed to  be  received  by  the
neighborhood  preservation company from the management of housing accom-
modations are fair and reasonable;
  [(g)] (F) that the plan submitted  by  the  neighborhood  preservation
company  demonstrates  that  such  company will, to the extent possible,
give priority when hiring new employees to residents of the neighborhood
OR NEIGHBORHOODS who are either unemployed or not fully employed;
  [(h)] (G) that the neighborhood preservation company  has  a  plan  to
facilitate,  to  the  maximum  extent  feasible,  the disposition of any
buildings containing housing accommodations  owned  by  the  company  to
individual  occupants  thereof  or  to  cooperative groups whose members
shall be occupants thereof; and
  [(i)] (H) that the interests of occupants of any buildings  containing
housing  accommodations  owned  by the neighborhood preservation company
are adequately represented.
  4. Contracts entered into [hereunder] PURSUANT TO  THIS  SECTION  with
neighborhood  preservation  companies  shall  be  limited in duration to
periods of  one  year,  but  may  thereafter  be  renewed,  extended  or
succeeded  by  new  contracts from year to year in the discretion of the
commissioner; they shall be limited in amount to the sum of one  hundred
thousand  dollars  in  a  single  year  and  to the aggregate sum of two
million one hundred four thousand five  hundred  dollars  for  a  single
neighborhood  preservation  company,  provided that in any year in which
the aggregate sum of three hundred  thousand  dollars  shall  have  been
reached  and  all  succeeding years, the annual contract amount shall be
subject to a limit of ninety-seven thousand  five  hundred  dollars  per
year; they shall define with particularity the neighborhood OR NEIGHBOR-
HOODS or portion OR PORTIONS thereof within which the neighborhood pres-
ervation activities shall be performed; they shall specify the nature of
the  neighborhood  preservation  activities  which  shall  be  performed
including the approximate  number  of  buildings,  residential  dwelling
units  and  local  retail  and  service  establishments  which  shall be
affected; they shall locate and describe, with as much particularity  as
is  reasonably possible, the buildings with respect to which such activ-
ities shall be performed during the contract term; and they shall speci-
fy the number of persons,  salaries  or  rates  of  compensation  and  a
description  of duties of those who shall be engaged by the neighborhood
preservation company to perform the activities embraced by the  contract
together with a schedule of other anticipated expenses.
  S  3.  Section  903  of  the private housing finance law is amended by
adding a new subdivision 4-a to read as follows:
  4-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, TWO OR MORE NEIGHBOR-
HOOD PRESERVATION COMPANIES CURRENTLY UNDER CONTRACT  WITH  THE  COMMIS-
SIONER  MAY VOLUNTARILY MERGE OR CONSOLIDATE INTO ONE NEIGHBORHOOD PRES-
ERVATION  COMPANY  FOR  THE  PURPOSES  OF  THIS  ARTICLE.   NEIGHBORHOOD
PRESERVATION  COMPANIES  WHICH  INTEND  TO MERGE OR CONSOLIDATE INTO ONE
NEIGHBORHOOD PRESERVATION COMPANY FOR  THE  PURPOSES  OF  THIS  ARTICLE,
SHALL  SUBMIT A PLAN FOR SUCH MERGER OR CONSOLIDATION TO THE COMMISSION-

A. 5746                             4

ER. SUCH PLAN SHALL SPECIFY HOW THE COMPANIES WILL MERGE OR CONSOLIDATE,
INCLUDING A STATEMENT OF HOW THE MERGED  OR  CONSOLIDATED  COMPANY  WILL
CONTINUE  PROVIDING  SERVICES  TO  THE SERVICE AREAS PRESENTLY SERVED BY
SAID  COMPANIES.  UPON THE COMMISSIONER'S WRITTEN APPROVAL OF SAID PLAN,
THE COMPANIES MAY MERGE OR CONSOLIDATE AND THE COMMISSIONER  MAY  THERE-
AFTER ENTER INTO A CONTRACT WITH THE MERGED OR CONSOLIDATED NEIGHBORHOOD
PRESERVATION  COMPANY FOR AN INCREASED AWARD AMOUNT AS SET FORTH HEREIN;
THE MERGED OR CONSOLIDATED NEIGHBORHOOD PRESERVATION COMPANY SHALL  ALSO
BE  AUTHORIZED TO SERVE THE SERVICE AREA OR AREAS FORMERLY SERVED BY THE
COMPANIES AFFECTED. IF TWO NEIGHBORHOOD PRESERVATION COMPANIES MERGE  OR
CONSOLIDATE  PURSUANT  TO THIS SUBDIVISION, THE CONTRACT WITH THE MERGED
OR CONSOLIDATED COMPANY SHALL BE IN AN AMOUNT NOT TO EXCEED ONE  HUNDRED
THIRTY  THOUSAND  DOLLARS  PER  YEAR,  PROVIDED  THAT THE AMOUNT OF SUCH
CONTRACT SHALL NOT BE LESS THAN THE SUM OF THE CONTRACT AMOUNTS FOR SUCH
COMPANIES IN THE PREVIOUS CONTRACT YEAR.  IF THREE NEIGHBORHOOD  PRESER-
VATION  COMPANIES MERGE OR CONSOLIDATE PURSUANT TO THIS SUBDIVISION, THE
CONTRACT WITH THE MERGED OR CONSOLIDATED COMPANY SHALL BE IN  AN  AMOUNT
NOT  TO  EXCEED  ONE  HUNDRED  NINETY-FIVE  THOUSAND  DOLLARS  PER YEAR,
PROVIDED THAT THE AMOUNT OF SUCH CONTRACT SHALL NOT BE LESS THAN THE SUM
OF THE CONTRACT AMOUNTS FOR SUCH  COMPANIES  IN  THE  PREVIOUS  CONTRACT
YEAR.  NEIGHBORHOOD  PRESERVATION COMPANIES WHICH HAVE MERGED OR CONSOL-
IDATED PURSUANT TO THIS SUBDIVISION SHALL BE REIMBURSED BY THE  DIVISION
FOR  LEGAL,  TECHNICAL  OR  ANY  OTHER COST INCIDENTAL TO SUCH MERGER OR
CONSOLIDATION IN AN AMOUNT NOT TO EXCEED TWENTY THOUSAND DOLLARS.    THE
COMMISSIONER  SHALL ISSUE AND PROMULGATE RULES AND REGULATIONS REGARDING
THE PROCESS OF MERGER OR CONSOLIDATION AS DESCRIBED IN THIS SUBDIVISION.
  S 4. Section 1003 of the private housing finance  law  is  amended  by
adding a new subdivision 4-a to read as follows:
  4-A.    NOTWITHSTANDING ANY OTHER PROVISION OF LAW, TWO OR MORE CORPO-
RATIONS CURRENTLY UNDER CONTRACT WITH THE COMMISSIONER  MAY  VOLUNTARILY
MERGE OR CONSOLIDATE INTO ONE CORPORATION FOR THE PURPOSES OF THIS ARTI-
CLE.   CORPORATIONS WHICH INTEND TO MERGE OR CONSOLIDATE INTO ONE CORPO-
RATION FOR THE PURPOSES OF THIS ARTICLE, SHALL SUBMIT A  PLAN  FOR  SUCH
MERGER OR CONSOLIDATION TO THE COMMISSIONER. SUCH PLAN SHALL SPECIFY HOW
THE CORPORATIONS WILL MERGE OR CONSOLIDATE, INCLUDING A STATEMENT OF HOW
THE  MERGED OR CONSOLIDATED CORPORATION WILL CONTINUE PROVIDING SERVICES
TO THE SERVICE AREAS PRESENTLY SERVED BY  SAID  CORPORATIONS.  UPON  THE
COMMISSIONER'S WRITTEN APPROVAL OF SAID PLAN, THE CORPORATIONS MAY MERGE
OR  CONSOLIDATE  AND  THE  COMMISSIONER  MAY THEREAFTER BE AUTHORIZED TO
ENTER INTO A CONTRACT WITH THE MERGED OR CONSOLIDATED CORPORATION FOR AN
INCREASED AWARD AMOUNT AS SET FORTH HEREIN; THE MERGED  OR  CONSOLIDATED
CORPORATION  SHALL ALSO BE AUTHORIZED TO SERVE THE SERVICE AREA OR AREAS
FORMERLY SERVED BY THE CORPORATIONS AFFECTED. IF TWO CORPORATIONS  MERGE
OR  CONSOLIDATE  PURSUANT  TO  THIS  SUBDIVISION,  THE CONTRACT WITH THE
MERGED OR CONSOLIDATED CORPORATION SHALL BE IN AN AMOUNT NOT  TO  EXCEED
ONE  HUNDRED  THIRTY  THOUSAND  DOLLARS  PER YEAR. IF THREE CORPORATIONS
MERGE OR CONSOLIDATE PURSUANT TO THIS SUBDIVISION, THE CONTRACT WITH THE
MERGED OR CONSOLIDATED CORPORATION SHALL BE IN AN AMOUNT NOT  TO  EXCEED
ONE  HUNDRED  NINETY-FIVE  THOUSAND  DOLLARS PER YEAR, PROVIDED THAT THE
AMOUNT OF SUCH CONTRACT SHALL NOT BE LESS THAN THE SUM OF  THE  CONTRACT
AMOUNTS  FOR  SUCH  CORPORATIONS  IN  THE PREVIOUS CONTRACT YEAR. CORPO-
RATIONS WHICH HAVE MERGED OR CONSOLIDATED PURSUANT TO  THIS  SUBDIVISION
SHALL  BE  REIMBURSED  BY THE DIVISION FOR LEGAL, TECHNICAL OR ANY OTHER
COST INCIDENTAL TO SUCH MERGER OR CONSOLIDATION  IN  AN  AMOUNT  NOT  TO
EXCEED TWENTY THOUSAND DOLLARS. THE COMMISSIONER SHALL ISSUE AND PROMUL-

A. 5746                             5

GATE  RULES  AND  REGULATIONS REGARDING THE PROCESS OF MERGER OR CONSOL-
IDATION AS DESCRIBED IN THIS SUBDIVISION.
  S 5. This act shall take effect on the one hundred twentieth day after
it  shall  have  become a law. Effective immediately any rules and regu-
lations necessary for the timely  implementation  of  this  act  on  its
effective date shall be promulgated on or before such date.