S T A T E   O F   N E W   Y O R K
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                                  8838

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2009
                               ___________

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

AN  ACT  to  amend the private housing finance law, in relation to loans
  for state-aided limited-profit housing companies

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

  Section  1. The private housing finance law is amended by adding a new
section 22-b to read as follows:
  S 22-B.  LOANS FOR STATE-AIDED LIMITED-PROFIT  HOUSING  COMPANIES.  1.
NOTWITHSTANDING  ANY  PROVISION  OF  THIS  ARTICLE  TO THE CONTRARY, THE
COMMISSIONER MAY FOR A PERIOD OF ONE YEAR FROM  THE  EFFECTIVE  DATE  OF
THIS  ACT APPROVE A LOAN AND ENCUMBRANCE IN EXCESS OF THE ACTUAL PROJECT
COST OF A STATE-AIDED PROJECT COMPRISING MORE THAN FIVE THOUSAND  RENTAL
UNITS,  PROVIDED  THAT:  (A)  THE  RENTS  PAID BY THE TENANTS MAY NOT BE
INCREASED TO PAY FOR ANY CONSEQUENT INCREASE IN INDEBTEDNESS THAT IS NOT
ATTRIBUTABLE TO PROJECT COST; (B) THE COMPANY ENTERS INTO  AN  AGREEMENT
TO  CONTINUE  TO  REMAIN SUBJECT TO THE PROVISIONS OF THIS ARTICLE FOR A
PERIOD OF NO LESS THAN AN ADDITIONAL THIRTY YEARS FROM ISSUANCE  OF  THE
LOAN  AND ENCUMBRANCE; AND (C) THE GREATER OF TWENTY-FIVE PERCENT OF THE
AMOUNT OF SUCH LOAN WHICH EXCEEDS SUCH  ACTUAL  PROJECT  COST  OR  FORTY
MILLION  DOLLARS OF THE PROCEEDS OF SUCH LOAN MUST BE DEDICATED TO CAPI-
TAL IMPROVEMENTS TO EXISTING STRUCTURES AND FACILITIES.
  2. ANY COMPANY THAT ENTERS INTO A LOAN PURSUANT TO SUBDIVISION ONE  OF
THIS  SECTION SHALL CREATE A PLAN WITHIN ONE YEAR OF THE APPROVAL OF THE
LOAN. THE PLAN SHALL INCLUDE DETAILS OF ALL  CAPITAL  IMPROVEMENTS  THAT
WILL  OCCUR  AS  A  RESULT  OF THE LOAN. SUCH COMPANY SHALL OBLIGATE THE
FUNDS DEDICATED TO THE CAPITAL IMPROVEMENTS WITHIN THREE  YEARS  OF  THE
APPROVAL OF THE LOAN. SUCH COMPANY SHALL SUBMIT A COPY OF THE PLAN WITH-
IN  ONE  YEAR  OF THE APPROVAL OF THE LOAN AND WITHIN THREE YEARS OF THE
APPROVAL OF THE LOAN, A REPORT THAT DETAILS THE USE OF THE LOAN FUNDS TO
THE GOVERNOR, THE COMMISSIONER OF THE DIVISION OF HOUSING AND  COMMUNITY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14306-02-9
              

A. 8838                             2

RENEWAL,  THE  TEMPORARY  PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE
ASSEMBLY, THE MINORITY LEADER OF THE SENATE, THE MINORITY LEADER OF  THE
ASSEMBLY,  THE  CHAIR  OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE
ASSEMBLY  WAYS  AND  MEANS  COMMITTEE,  THE CHAIR OF THE SENATE HOUSING,
CONSTRUCTION, AND COMMUNITY DEVELOPMENT COMMITTEE, AND THE CHAIR OF  THE
ASSEMBLY HOUSING COMMITTEE.
  3.  SUCH  COMPANY SHALL PARTICIPATE IN BIMONTHLY MEETINGS WITH ELECTED
OFFICIALS AND THE MEMBERS OF THE  PROJECT'S  RESIDENTS'  ASSOCIATION  OR
OTHER TENANT ORGANIZATION THAT REPRESENTS THE MAJORITY OF TENANTS IN THE
PROJECT IN ORDER TO HEAR ANY ADVICE OR COMMENTS ON THE IMPLEMENTATION OF
THE  PLAN.  THE MEETINGS SHALL OCCUR ON A REGULAR BASIS UNTIL ALL OF THE
MONEY SET-ASIDE FOR CAPITAL IMPROVEMENTS  IN  SUBDIVISION  ONE  OF  THIS
SECTION  HAS BEEN SPENT.
  S 2. This act shall take effect immediately.