Senate Bill S3787

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

                                  3787

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 1, 2009
                               ___________

Introduced  by  Sens.  ESPADA,  AUBERTINE, VALESKY -- (at request of the
  Division of Housing & Community Renewal) --  read  twice  and  ordered
  printed, and when printed to be committed to the Committee on Housing,
  Construction and Community Development

AN  ACT  to amend the private housing finance law, in relation to estab-
  lishing the New York main street program

  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
article 26 to read as follows:
                              ARTICLE XXVI
                      NEW YORK MAIN STREET PROGRAM
SECTION 1220. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        1221. DEFINITIONS.
        1222. MAIN STREET CONTRACTS.
  S 1220. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
HEREBY FINDS AND DECLARES THAT THERE EXISTS IN NEW YORK STATE A  SERIOUS
NEED  FOR  FINANCIAL  AND  TECHNICAL  RESOURCES TO HELP COMMUNITIES WITH
THEIR EFFORTS TO PRESERVE AND REVITALIZE MAIN STREET AND DOWNTOWN  BUSI-
NESS DISTRICTS WHICH INCLUDE COMMERCIAL AND RESIDENTIAL USES. THE LEGIS-
LATURE  THEREFORE  FINDS THAT A PROGRAM SHOULD BE ESTABLISHED TO PROVIDE
FINANCIAL ASSISTANCE TO STIMULATE  REINVESTMENT  IN  PROPERTIES  LOCATED
WITHIN   MAIN   STREET,  MIXED-USE  COMMERCIAL,  AND  DOWNTOWN  BUSINESS
DISTRICTS IN URBAN, SMALL TOWN, AND RURAL AREAS BY  PRESERVING  EXISTING
HOUSING UNITS, FOSTERING THE DEVELOPMENT OF NEW HOUSING UNITS, UPGRADING
COMMERCIAL  AND  RETAIL  AREAS, AND BY CREATING INNOVATIVE APPROACHES TO
NEIGHBORHOOD AND COMMUNITY REVITALIZATION, INCLUDING THE IMPROVEMENT  OF
CULTURAL, CIVIC AND COMMUNITY FACILITIES.
  S 1221. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION ESTAB-
LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
  2. "ELIGIBLE APPLICANT" SHALL MEAN A UNIT OF LOCAL GOVERNMENT OR  NOT-
FOR-PROFIT  CORPORATION  IN  EXISTENCE FOR A PERIOD OF ONE OR MORE YEARS
PRIOR TO APPLICATION, WHICH IS, OR WILL BE AT THE TIME OF AWARD,  INCOR-

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09533-03-9

S. 3787                             2

PORATED  UNDER  THE  NOT-FOR-PROFIT CORPORATION LAW AND HAS BEEN ENGAGED
PRIMARILY IN COMMUNITY DEVELOPMENT ACTIVITIES.
  3.  "ELIGIBLE  AREA"  SHALL  MEAN  AN  AREA:  (I) THAT HAS EXPERIENCED
SUSTAINED PHYSICAL DETERIORATION, DECAY, NEGLECT, OR DISINVESTMENT; (II)
HAS A NUMBER OF SUBSTANDARD BUILDINGS OR VACANT RESIDENTIAL  OR  COMMER-
CIAL  UNITS; AND (III) IN WHICH MORE THAN FIFTY PERCENT OF THE RESIDENTS
ARE PERSONS OF LOW INCOME, OR WHICH IS DESIGNATED BY A STATE OR  FEDERAL
AGENCY TO BE ELIGIBLE FOR A COMMUNITY OR ECONOMIC DEVELOPMENT PROGRAM.
  4.  "MAIN  STREET  PROGRAM"  OR  "PROGRAM" SHALL MEAN A PROPOSAL BY AN
ELIGIBLE APPLICANT FOR A SPECIFIC WORK OR SERIES OF WORKS FOR THE  REVI-
TALIZATION  AND  IMPROVEMENT  OF  AN ELIGIBLE AREA THROUGH THE CREATION,
PRESERVATION OR IMPROVEMENT OF RESIDENTIAL HOUSING UNITS; LOCAL  COMMER-
CIAL FACILITIES; PUBLIC FACILITIES OR OTHER ASPECTS OF THE AREA ENVIRON-
MENT.  NOT LESS THAN EIGHTY PERCENT OF THE TOTAL AMOUNT AWARDED PURSUANT
TO THIS ARTICLE IN ANY FISCAL YEAR SHALL BE  ALLOCATED  TO  MAIN  STREET
PROGRAMS THAT INCLUDE THE CREATION, PRESERVATION OR IMPROVEMENT OF RESI-
DENTIAL HOUSING UNITS AS AN OBJECTIVE.
  5. "PERSONS OF LOW INCOME" SHALL MEAN THOSE PERSONS AND FAMILIES WHOSE
INCOMES DO NOT EXCEED NINETY PERCENT OF THE MEDIAN INCOME FOR THE METRO-
POLITAN STATISTICAL AREA IN WHICH A PROJECT IS LOCATED.
  S  1222. MAIN STREET CONTRACTS. 1. WITHIN THE LIMIT OF FUNDS AVAILABLE
IN THE MAIN STREET PROGRAM, THE  CORPORATION  IS  HEREBY  AUTHORIZED  TO
ENTER  INTO  CONTRACTS  WITH  ELIGIBLE  APPLICANTS  TO PROVIDE FINANCIAL
ASSISTANCE FOR THE ACTUAL COSTS OF A MAIN STREET PROGRAM. THE  FINANCIAL
ASSISTANCE  SHALL BE EITHER IN THE FORM OF PAYMENTS, GRANTS OR LOANS, AS
THE CORPORATION SHALL DETERMINE. NO MORE THAN FIFTY PERCENT OF THE TOTAL
AMOUNT AWARDED PURSUANT TO THIS ARTICLE IN  ANY  FISCAL  YEAR  SHALL  BE
ALLOCATED  TO  MAIN  STREET  PROGRAMS  LOCATED WITHIN ANY SINGLE MUNICI-
PALITY.
  2. THE TOTAL PAYMENT PURSUANT TO ANY ONE  CONTRACT  SHALL  NOT  EXCEED
FIVE  HUNDRED  THOUSAND  DOLLARS  AND  THE  CONTRACT  SHALL  PROVIDE FOR
COMPLETION OF THE PROGRAM WITHIN A REASONABLE PERIOD, AS SPECIFIED THER-
EIN WHICH SHALL NOT IN ANY EVENT EXCEED TWO YEARS FROM ITS COMMENCEMENT.
UPON REQUEST, THE CORPORATION MAY EXTEND THE TERM OF THE CONTRACT FOR UP
TO AN ADDITIONAL TWO YEAR PERIOD FOR GOOD CAUSE SHOWN  BY  THE  ELIGIBLE
APPLICANT.
  3. THE CORPORATION MAY AUTHORIZE THE ELIGIBLE APPLICANT TO SPEND UP TO
SEVEN  AND ONE-HALF PERCENT OF THE CONTRACT AMOUNT FOR APPROVED PLANNING
AND ADMINISTRATIVE COSTS OF CARRYING OUT A PROGRAM.
  4. THE CORPORATION SHALL REQUIRE  THAT,  IN  ORDER  TO  RECEIVE  FUNDS
PURSUANT  TO  THIS  ARTICLE,  THE  ELIGIBLE APPLICANT MUST SUBMIT A PLAN
WHICH SHALL INCLUDE BUT NOT BE LIMITED TO PROGRAM FEASIBILITY,  LEVERAG-
ING  OF OTHER RESOURCES, IMPACT ON THE COMMUNITY, AFFIRMATIVE ACTION AND
MINORITY BUSINESS PARTICIPATION.
  5. IF THE ELIGIBLE APPLICANT  IS  A  NOT-FOR-PROFIT  CORPORATION,  ITS
OFFICERS,  DIRECTORS AND MEMBERS MUST BE REPRESENTATIVE OF THE RESIDENTS
AND OTHER LEGITIMATE INTERESTS OF THE COMMUNITY.
  6. THE OWNER OF A PROPERTY IMPROVED WITH FUNDS  MADE  AVAILABLE  UNDER
THIS  ARTICLE  MUST  AGREE  FOR A MINIMUM OF FIVE YEARS TO: MAINTAIN THE
PROPERTY IN GOOD OPERATING ORDER AND CONDITION; TO  MAKE  AVAILABLE  AND
MAINTAIN  THE  AFFORDABILITY  OF RESIDENTIAL HOUSING UNITS TO PERSONS OF
LOW INCOME; AND TO OBTAIN THE CONSENT OF THE CORPORATION PRIOR TO MAKING
ALTERATIONS TO THE PROPERTY OR CHANGING ITS USE.
  S 2. This act shall take effect immediately.