Senate Bill S3914

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

                                  3914

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 6, 2009
                               ___________

Introduced  by  Sen.  ESPADA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, the real property tax law and
  the tax law, in relation to authorizing the creation of housing oppor-
  tunity zones in certain counties, cities, towns  and  villages  within
  the state

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

  Section 1. The general municipal law is amended by adding a new  arti-
cle 19-AA to read as follows:
                               ARTICLE 19-AA
              NEW YORK STATE HOUSING OPPORTUNITY ZONES ACT
SECTION 981. SHORT TITLE.
        982. LEGISLATIVE FINDINGS AND DECLARATION.
        983. DEFINITIONS.
        984. CRITERIA  FOR  APPROVAL  OF HOUSING OPPORTUNITY ZONE DESIG-
               NATION PLANS.
        985. RESPONSIBILITIES OF THE COMMISSIONER.
        986. APPLICATION FOR HOUSING OPPORTUNITY ZONE DESIGNATION.
        987. HOUSING OPPORTUNITY ZONE DESIGNATION PLANS.
        988. LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR.
        989. SPECIAL PROVISIONS.
  S 981. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "NEW YORK STATE HOUSING OPPORTUNITY ZONES ACT".
  S  982.  LEGISLATIVE  FINDINGS AND DECLARATION. IT IS HEREBY FOUND AND
DECLARED THAT MANY AREAS WITHIN THE STATE ARE CHARACTERIZED BY OR ARE IN
DANGER OF BEING CHARACTERIZED BY A SEVERE SHORTAGE OF SAFE,  DECENT  AND
AFFORDABLE HOUSING, DILAPIDATED AND ABANDONED RESIDENTIAL STRUCTURES AND
SHRINKING  TAX  BASES,  WHICH NEEDS ARE NOT CURRENTLY BEING ADDRESSED BY
THE FREE MARKET.   MOREOVER, IT IS FOUND THAT  THE  LACK  OF  AFFORDABLE
HOUSING  IN  THESE  AREAS THREATENS EMPLOYMENT GROWTH PROSPECTS AND THAT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08701-01-9
              

S. 3914                             2

WITHOUT ADEQUATE PROVISION OF HOUSING THESE REGIONS OF THE STATE MAY NOT
RETAIN SKILLED LABOR AND SUSTAIN THE GROWTH IN EMPLOYMENT AND OUTPUT  OF
WHICH  THEY  ARE CAPABLE. WE FURTHER FIND THAT STATE RESOURCES ALONE ARE
INSUFFICIENT  TO MEET THE GROWING NEED FOR AFFORDABLE HOUSING WITHIN THE
STATE AND THAT A COMBINATION OF STATE AND LOCAL  INCENTIVES  MAY  FOSTER
PRIVATE  INVOLVEMENT  IN  MEETING  THE  AFFORDABLE  HOUSING NEEDS OF THE
STATE. THEREFORE, TO ENCOURAGE SUCH PRIVATE PARTICIPATION AND INVESTMENT
IN THE CONSTRUCTION,  CONVERSION  AND/OR  REHABILITATION  OF  AFFORDABLE
HOUSING,  WE  HEREBY  ESTABLISH  THE  HOUSING  OPPORTUNITY  ZONES  PILOT
PROGRAM.
  S 983. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  (A) "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF HOUSING AND COMMUNI-
TY RENEWAL.
  (B) "APPLICANT" SHALL MEAN THE COUNTY, CITY, TOWN OR  VILLAGE  SUBMIT-
TING  AN  APPLICATION IN THE MANNER AUTHORIZED BY LOCAL LAW FOR APPROVAL
OF A HOUSING OPPORTUNITY ZONE DESIGNATION PLAN.
  (C) "HOUSING OPPORTUNITY ZONE" SHALL MEAN AN  AREA  WITHIN  THE  STATE
THAT  HAS BEEN DESIGNATED AS A HOUSING OPPORTUNITY ZONE PURSUANT TO THIS
ARTICLE.
  (D) "HOUSING OPPORTUNITY ZONE DESIGNATION  PLAN"  SHALL  MEAN  A  PLAN
SUBMITTED  BY  AN APPLICANT WHICH DEFINES THE BOUNDARIES OF THE ZONE AND
SETS FORTH THE BENEFITS AND INCENTIVES TO BE  APPLIED  WITHIN  THE  ZONE
PURSUANT TO THIS ARTICLE, INCLUDING ANY MODIFICATIONS TO LOCAL ZONING.
  (E) "REHABILITATION" SHALL MEAN ALL WORK NECESSARY TO BRING A RESIDEN-
TIAL  PROPERTY  INTO COMPLIANCE WITH ALL APPLICABLE LAWS AND REGULATIONS
INCLUDING BUT NOT LIMITED TO THE INSTALLATION, REPLACEMENT OR REPAIR  OF
HEATING, PLUMBING, ELECTRICAL AND RELATED SYSTEMS AND THE ELIMINATION OF
ALL  HAZARDOUS  VIOLATIONS IN THE STRUCTURE IN ACCORDANCE WITH STATE AND
LOCAL LAWS, REGULATIONS OF STATE AND LOCAL AGENCIES AND STANDARDS AS MAY
BE PROMULGATED BY THE  COMMISSIONER.  REHABILITATION  MAY  ALSO  INCLUDE
RECONSTRUCTION OR WORK TO IMPROVE THE HABITABILITY OR PROLONG THE USEFUL
LIFE  OF  THE  RESIDENTIAL PROPERTY, CONSISTENT WITH STANDARDS AS MAY BE
PROMULGATED BY THE COMMISSIONER.
  (F) "CONVERSION" SHALL MEAN ALL WORK NECESSARY TO CONVERT NON-RESIDEN-
TIAL PROPERTY TO RESIDENTIAL PROPERTY.
  (G) "CONSTRUCTION, CONVERSION OR REHABILITATION OF RESIDENTIAL  UNITS"
SHALL  MEAN,  FOR  THE  PURPOSES  OF THIS ARTICLE, THE NEW CONSTRUCTION,
CONVERSION OR REHABILITATION OF RESIDENTIAL HOUSING UNITS, OF  WHICH  AT
LEAST  ONE-THIRD  ARE  AFFORDABLE  HOUSING UNITS. NO RESIDENTIAL HOUSING
SHALL BE ELIGIBLE FOR THE BENEFITS DESCRIBED HEREIN AS ACCRUING  TO  THE
CONSTRUCTION,  CONVERSION  OR  REHABILITATION  OF RESIDENTIAL UNITS IN A
HOUSING OPPORTUNITY ZONE UNLESS SUCH RESIDENTIAL HOUSING IS COMPOSED  OF
AT LEAST ONE-THIRD AFFORDABLE HOUSING UNITS AS DEFINED HEREIN.
  (H)  "AFFORDABLE  HOUSING  UNITS" SHALL MEAN, FOR THE PURPOSES OF THIS
ARTICLE, THOSE SPECIFIC UNITS TO BE CONSTRUCTED, CONVERTED OR  REHABILI-
TATED  PURSUANT  TO  A PLAN APPROVED BY THE COMMISSIONER, TO INSURE THAT
THOSE UNITS REMAIN AFFORDABLE FOR AT LEAST THE TERM  OF  ANY  ASSISTANCE
PROVIDED  HEREIN  TO  PERSONS  AND  FAMILIES  WHOSE INCOME DO NOT EXCEED
EIGHTY PERCENT OF THE MEDIAN INCOME  FOR  THE  METROPOLITAN  STATISTICAL
AREA IN WHICH THE ZONE IS LOCATED OR, IF THE ZONE IS OUTSIDE A METROPOL-
ITAN STATISTICAL AREA, THE COUNTY IN WHICH THE ZONE IS LOCATED.
  (I)  "CHIEF EXECUTIVE" SHALL MEAN (I) A COUNTY EXECUTIVE OR MANAGER OF
A COUNTY; (II) IN A COUNTY NOT HAVING A COUNTY EXECUTIVE OR MANAGER, THE
CHAIRPERSON OR OTHER PRESIDING OFFICER OF THE COUNTY  LEGISLATIVE  BODY;
(III) A MAYOR OF A CITY OR VILLAGE, EXCEPT WHERE A CITY OR VILLAGE HAS A

S. 3914                             3

MANAGER,  IT  SHALL MEAN SUCH A MANAGER; OR (IV) A SUPERVISOR OF A TOWN,
EXCEPT WHERE A TOWN HAS A MANAGER, IT SHALL MEAN SUCH MANAGER.
  (J)  "LOCAL  HOUSING  OPPORTUNITY  ZONE  ADMINISTRATOR" SHALL MEAN THE
ENTITY OR PERSON DESIGNATED BY THE APPLICANT  THAT  IS  RESPONSIBLE  FOR
MONITORING,  EVALUATING  AND  COORDINATING  ALL HOUSING OPPORTUNITY ZONE
BENEFITS AND COMPLYING WITH ALL FILING, REPORTING,  RECERTIFICATION  AND
OTHER REQUIREMENTS ON BEHALF OF THE APPLICANT AS SET FORTH IN THIS ARTI-
CLE OR IN RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER.
  S  984.  CRITERIA FOR APPROVAL OF HOUSING OPPORTUNITY ZONE DESIGNATION
PLANS. TO BE ELIGIBLE FOR APPROVAL BY THE COMMISSIONER, A PROPOSED HOUS-
ING OPPORTUNITY ZONE DESIGNATION PLAN MUST DESIGNATE A ZONE WHICH ENCOM-
PASSES AN AREA WHICH IS CHARACTERIZED BY A SHORTAGE OF AFFORDABLE  HOUS-
ING  AND WHICH CORRESPONDS TO RECOGNIZED OR ESTABLISHED NEIGHBORHOODS OR
AREAS DEFINED BY GEOGRAPHIC BOUNDARIES WITHIN A COUNTY,  CITY,  TOWN  OR
VILLAGE  AND  DOES  NOT  EXCEED  NINE SQUARE MILES; AND MEETS SUCH OTHER
REQUIREMENTS AS MAY BE ESTABLISHED IN RULES AND REGULATIONS  PROMULGATED
BY  THE  COMMISSIONER AFTER CONSULTATION WITH THE DIRECTOR OF THE BUDGET
AND COMMISSIONER OF TAXATION AND FINANCE, INCLUDING BUT NOT LIMITED TO:
  (A) A COMPREHENSIVE DEMONSTRATION OF A SHORTAGE OF AFFORDABLE  HOUSING
AND THE REASONS THEREFOR AS EVIDENCED BY EMPLOYMENT DECLINE, INCREASE IN
UNEMPLOYMENT  AND  PUBLIC  ASSISTANCE  RECIPIENTS, DECLINE IN PER CAPITA
INCOME, THE EXTENT OF  DETERIORATED  RESIDENTIAL  PROPERTIES,  OR  OTHER
FACTORS;
  (B)  A  DEMONSTRATION  OF  THE MANNER IN WHICH THE HOUSING OPPORTUNITY
ZONE DESIGNATION PLAN ENUNCIATES THE NEEDS OF THE ZONE  AND  SETS  FORTH
SHORT-TERM AND LONG-TERM PROPOSALS TO ADDRESS THEM;
  (C)  A  DEMONSTRATION  OF THE MANNER IN WHICH PROGRESS IN IMPLEMENTING
THE HOUSING OPPORTUNITY ZONE DESIGNATION PLAN WILL BE  REGULARLY  EVALU-
ATED ON THE LOCAL LEVEL AND HOW INFORMATION ESSENTIAL FOR PERIODIC EVAL-
UATIONS WILL BE COMPILED; AND
  (D)  A  DEMONSTRATION  OF  SUBSTANTIAL  LONG-TERM AND SHORT-TERM LOCAL
PUBLIC AND PRIVATE COMMITMENTS TO MEETING THE HOUSING NEEDS  OF  LOW-IN-
COME AND MEDIAN-INCOME PERSONS IN THE AREA.
  S 985. RESPONSIBILITIES OF THE COMMISSIONER. THE COMMISSIONER SHALL:
  (A) AFTER CONSULTATION WITH THE DIRECTOR OF THE BUDGET AND THE COMMIS-
SIONER OF TAXATION AND FINANCE, PROMULGATE RULES AND REGULATIONS GOVERN-
ING:  (I)  THE  CRITERIA  FOR APPROVAL OF A PROPOSED HOUSING OPPORTUNITY
ZONE DESIGNATION PLAN AS SET FORTH IN SECTION NINE  HUNDRED  EIGHTY-FOUR
OF  THIS  ARTICLE, (II) THE APPLICATION PROCESS, AND (III) OTHER MATTERS
AS MAY BE APPROPRIATE, INCLUDING PROGRAM EVALUATION AND ASSESSMENT;
  (B) RECEIVE AND REVIEW PROPOSED HOUSING OPPORTUNITY  ZONE  DESIGNATION
PLANS  AND  REVISIONS THERETO; SUCH REVIEW SHALL INCLUDE A DETERMINATION
OF WHETHER THE PLAN IS CONSISTENT WITH THE INTENT AND  PURPOSE  OF  THIS
ARTICLE  AND  ANY  APPLICABLE FEDERAL, STATE, OR LOCAL LAW. IN REVIEWING
PROPOSED HOUSING OPPORTUNITY ZONE DESIGNATION  PLANS,  THE  COMMISSIONER
SHALL  CONSIDER  THE  LEVEL  OF  LOCAL  PARTICIPATION INCLUDING, BUT NOT
LIMITED TO, LOCAL TAX AND OTHER INCENTIVES AND THE  PROVISION  OF  LOCAL
SERVICES;
  (C)  APPROVE  NOT  MORE THAN FIVE HOUSING OPPORTUNITY ZONE DESIGNATION
PLANS;
  (D) COORDINATE WITH THE COMMISSIONER OF ECONOMIC DEVELOPMENT  AND  THE
NEIGHBORHOOD  BASED  INITIATIVES  OVERSIGHT  COMMITTEE, APPROVAL OF SUCH
DESIGNATION PLANS FOR HOUSING OPPORTUNITY ZONES WHICH  ARE  ALSO  DESIG-
NATED  EMPIRE  ZONES  PURSUANT  TO ARTICLE EIGHTEEN-B OF THIS CHAPTER OR
NEIGHBORHOOD BASED ALLIANCES PURSUANT TO ARTICLE NINETEEN-L OF THE EXEC-
UTIVE LAW;

S. 3914                             4

  (E) REVIEW REPORTS ON PERFORMANCE OBJECTIVES PROGRESS AS PART  OF  THE
PLAN  REVIEW  AND  RECERTIFICATION PROCESS SET FORTH IN THIS ARTICLE AND
PERIODICALLY SUBMIT A REPORT TO THE LEGISLATURE, THE FIRST REPORT  BEING
DUE THREE YEARS AND SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE;
  (F)  TERMINATE  HOUSING  OPPORTUNITY ZONES WHICH FAIL TO RECERTIFY, AS
SET FORTH IN THIS ARTICLE, A CONTINUING NEED FOR SUCH DESIGNATION.
  S 986. APPLICATION FOR HOUSING OPPORTUNITY ZONE DESIGNATION.    (A)  A
COUNTY  (OTHER  THAN  A  COUNTY  LOCATED  WITHIN  A CITY), CITY, TOWN OR
VILLAGE MAY ADOPT A LOCAL LAW AUTHORIZING SUCH MUNICIPAL CORPORATION  TO
PREPARE AND SUBMIT AN APPLICATION TO THE COMMISSIONER FOR DESIGNATION OF
AN  AREA THEREIN AS A HOUSING OPPORTUNITY ZONE; AND THE ADOPTION OF SUCH
A LOCAL LAW BY THE MUNICIPAL CORPORATION WITHIN WHICH THE PROPOSED HOUS-
ING OPPORTUNITY ZONE IS TO BE LOCATED SHALL BE  A  PREREQUISITE  TO  THE
SUBMISSION  OF AN APPLICATION FOR SUCH DESIGNATION. SUCH LOCAL LAW SHALL
ALSO DESIGNATE THE BOUNDARIES OF SUCH AREA, PROVIDED, HOWEVER, THAT:
  (I) A TOWN SHALL NOT BE AUTHORIZED AND EMPOWERED TO APPLY  FOR  DESIG-
NATION  OF AN AREA AS A HOUSING OPPORTUNITY ZONE WHICH IS LOCATED WHOLLY
OR PARTLY WITHIN A VILLAGE UNLESS SUCH ACTION IS  CONCURRED  IN  BY  THE
GOVERNING  BODY  OF SUCH VILLAGE, AND THAT A COUNTY SHALL NOT BE AUTHOR-
IZED AND EMPOWERED TO APPLY FOR DESIGNATION OF  AN  AREA  AS  A  HOUSING
OPPORTUNITY  ZONE  UNLESS  SUCH  ACTION IS CONCURRED IN BY THE GOVERNING
BODY OF EACH CITY, TOWN OR VILLAGE IN WHICH SUCH ZONE IS LOCATED; AND
  (II) NO APPLICATION FOR DESIGNATION OF AN AREA AS A  HOUSING  OPPORTU-
NITY  ZONE  PURSUANT TO THIS ARTICLE SHALL BE ACCEPTED UNLESS THE APPLI-
CANT DEMONSTRATES THAT IT HAS, TO THE MAXIMUM EXTENT FEASIBLE, SOLICITED
AND CONSIDERED THE VIEWS OF RESIDENTS OF THE PROPOSED ZONE, THE VIEWS OF
STATE AND LOCAL OFFICIALS ELECTED TO REPRESENT SUCH  RESIDENTS  AND  THE
LOCAL PRIVATE ORGANIZATIONS REPRESENTING SUCH RESIDENTS.
  (B) EACH APPLICATION SHALL:
  (I)  BE  PREPARED  IN  A MANNER AND FORM PRESCRIBED BY RULES AND REGU-
LATIONS PROMULGATED BY THE COMMISSIONER;  THE  CHIEF  EXECUTIVE  OF  THE
APPLICANT  SHALL  ENSURE THAT THE INFORMATION CONTAINED IN SUCH APPLICA-
TION, TO THE MAXIMUM EXTENT POSSIBLE, IS ACCURATE AND COMPLETE;
  (II) INCLUDE  EVIDENCE  OF  THE  ADOPTION  OF  LOCAL  LAW  AUTHORIZING
SUBMISSION  OF  A HOUSING OPPORTUNITY ZONE DESIGNATION PLAN BY THE LOCAL
GOVERNING BODY OF THE AREA IN WHICH THE HOUSING OPPORTUNITY ZONE  IS  TO
BE LOCATED;
  (III) IDENTIFY A LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR WHO WILL
BE  RESPONSIBLE  FOR  COMPLYING  WITH  THE FILING, REPORTING AND CERTIF-
ICATION REQUIREMENTS SET FORTH IN THIS ARTICLE AND RULES AND REGULATIONS
WHICH MAY BE PROMULGATED BY THE COMMISSIONER;
  (IV) INCLUDE A MAP OF THE AREA COMPRISING THE PROPOSED HOUSING  OPPOR-
TUNITY  ZONE,  SHOWING  EXISTING  STREETS,  HIGHWAYS, WATERWAYS, NATURAL
BOUNDARIES AND OTHER PHYSICAL FEATURES;
  (V) INCLUDE EVIDENCE THAT THE APPLICANT HAS,  TO  THE  MAXIMUM  EXTENT
FEASIBLE,  SOLICITED  AND  CONSIDERED  THE VIEWS OF THE RESIDENTS OF THE
PROPOSED HOUSING OPPORTUNITY ZONE AND THE LOCAL GOVERNMENTAL AND PRIVATE
ORGANIZATIONS REPRESENTING SUCH RESIDENTS INCLUDING, BUT NOT LIMITED TO,
CONDUCTING AT LEAST ONE PUBLIC HEARING; AND
  (VI) SPECIFY GOALS AND OBJECTIVES, BOTH SHORT TERM AND LONG TERM,  FOR
ADDRESSING THE AFFORDABLE HOUSING NEEDS OF THE PROPOSED ZONE.
  S  987. HOUSING OPPORTUNITY ZONE DESIGNATION PLANS. A HOUSING OPPORTU-
NITY ZONE DESIGNATION PLAN SHALL BE FILED  WITH  THE  COMMISSIONER,  AND
SHALL DEMONSTRATE THE METHODS BY WHICH THE APPLICANT INTENDS TO MEET THE
AFFORDABLE  HOUSING  NEEDS  OF  THE  AREA  IN WHICH THE PROPOSED HOUSING

S. 3914                             5

OPPORTUNITY ZONE IS LOCATED AND SHALL INCLUDE, BUT SHALL NOT BE  LIMITED
TO:
  (A)  A  DEMONSTRATION  OF COMPLIANCE WITH ALL APPLICABLE PROVISIONS OF
TITLE VIII OF THE CIVIL RIGHTS ACT OF 1968, AS AMENDED, THE  REGULATIONS
ISSUED  THEREUNDER,  AND  STATE  ANTI-DISCRIMINATION STATUTES, AND SHALL
AFFIRMATIVELY FURTHER FAIR HOUSING;
  (B) IDENTIFICATION OF FINANCIAL AND OTHER  COMMITMENTS  THE  APPLICANT
WILL  MAKE  TO  THE  ZONE INCLUDING, BUT NOT LIMITED TO, (I) A STATEMENT
IDENTIFYING THOSE LOCAL TAX AND OTHER INCENTIVES PROPOSED TO BE  OFFERED
WITHIN THE ZONE, (II) A DESCRIPTION OF A PROCEDURE TO EXPEDITE THE ISSU-
ANCE  OF ANY REQUIRED LOCAL PERMITS OR LICENSES, AND (III) A DESCRIPTION
OF OTHER ACTIVITIES TO BE UNDERTAKEN  BY  MUNICIPAL  AGENCIES,  BUSINESS
ENTITIES,  NOT-FOR-PROFIT CORPORATIONS, COMMUNITY-BASED ORGANIZATIONS OR
ANY OTHER PERSONS, WHICH ARE DESIGNED TO  PROMOTE  THE  AVAILABILITY  OF
AFFORDABLE HOUSING IN THE PROPOSED ZONE;
  (C)  IDENTIFIED LOCAL INCENTIVES REFERENCED IN SUBDIVISION (B) OF THIS
SECTION WHICH MAY INCLUDE, BUT ARE NOT LIMITED TO:
  (I) ZONING MODIFICATIONS. A HOUSING OPPORTUNITY ZONE DESIGNATION  PLAN
MAY  INCLUDE MODIFICATIONS TO LOCAL ZONING WITHIN THE BOUNDARIES OF SUCH
HOUSING OPPORTUNITY ZONE, WHICH MODIFICATIONS  MAY  RELATE  TO  DENSITY,
SETBACKS AND OTHER PROVISIONS OF THE LOCAL ZONING ORDINANCE WHICH MAY BE
BARRIERS  TO  THE CONSTRUCTION, CONVERSION OR REHABILITATION OF RESIDEN-
TIAL UNITS PURSUANT TO THIS ARTICLE. ANY ZONING MODIFICATIONS  CONTAINED
IN  A  PROPOSED  HOUSING  OPPORTUNITY  ZONE DESIGNATION PLAN MUST BE SET
FORTH IN THE SAME MANNER AND DETAIL AS WOULD A LOCAL  ZONING  ORDINANCE.
SUCH  ZONING MODIFICATION SHALL APPLY ONLY FOR THE CONSTRUCTION, CONVER-
SION OR REHABILITATION OF RESIDENTIAL  UNITS  IN  CONFORMANCE  WITH  THE
STANDARDS SET FORTH IN THIS ARTICLE. A PROPOSED HOUSING OPPORTUNITY ZONE
DESIGNATION  PLAN CONTAINING A ZONING MODIFICATION SHALL NOT BE APPROVED
BY THE COMMISSIONER  UNLESS  THE  PROPOSED  DESIGNATION  PLAN  HAS  BEEN
APPROVED BY ALL LOCAL GOVERNMENTS WHICH PROMULGATED THE ZONING ORDINANCE
OR ORDINANCES AFFECTED BY SUCH MODIFICATION.
  THE  APPLICANT SHALL BE RESPONSIBLE FOR THE PREPARATION OF AN ENVIRON-
MENTAL IMPACT STATEMENT IF REQUIRED BY LAW.  NOTWITHSTANDING  ANY  OTHER
PROVISION  OF  LAW,  MUNICIPALITIES  APPLYING  FOR APPROVAL OF A HOUSING
OPPORTUNITY ZONE DESIGNATION PLAN ARE ELIGIBLE  FOR  ADVANCES  FROM  THE
HOUSING  DEVELOPMENT  FUND  CREATED  PURSUANT  TO  ARTICLE ELEVEN OF THE
PRIVATE HOUSING FINANCE LAW; SUCH ADVANCES MAY BE  USED  TO  DEFRAY  THE
COST OF PREPARING AN ENVIRONMENTAL IMPACT STATEMENT;
  (II)  PROPERTY TAX RELIEF. A HOUSING OPPORTUNITY ZONE DESIGNATION PLAN
MAY PROVIDE THAT ALL CONSTRUCTION, CONVERSION OR REHABILITATION OF RESI-
DENTIAL UNITS WITHIN A HOUSING OPPORTUNITY ZONE COMPLETED SUBSEQUENT  TO
THE APPROVAL OF A HOUSING OPPORTUNITY ZONE DESIGNATION PLAN MAY BE ENTI-
TLED TO AN EXEMPTION FROM PROPERTY TAXES AS PROVIDED FOR IN SECTION FOUR
HUNDRED  EIGHTY-FIVE-N  OF THE REAL PROPERTY TAX LAW FOR AS LONG AS SUCH
RESIDENTIAL HOUSING IS COMPOSED OF AT LEAST ONE-THIRD AFFORDABLE HOUSING
UNITS AS THAT TERM IS DEFINED IN THIS ARTICLE;
  (III) WAIVER OF PERMIT FEES. A HOUSING  OPPORTUNITY  ZONE  DESIGNATION
PLAN  MAY PROVIDE THAT ALL PERMIT FEES REQUIRED BY THE APPLICANT FOR ANY
PHASE OF THE CONSTRUCTION, CONVERSION OR REHABILITATION  OF  RESIDENTIAL
UNITS  AS  DEFINED  IN  THIS  ARTICLE, WITHIN A HOUSING OPPORTUNITY ZONE
SHALL BE WAIVED IN TOTAL BY THE APPLICANT;
  (IV) WATER AND SEWER TAX EXEMPTION. WHERE WATER AND/OR  SEWER  ASSESS-
MENTS  ARE  COLLECTED BY AN APPLICANT APPLYING FOR APPROVAL OF A HOUSING
OPPORTUNITY ZONE DESIGNATION PLAN, A  HOUSING  OPPORTUNITY  ZONE  DESIG-
NATION PLAN MAY PROVIDE THAT WATER AND/OR SEWER ASSESSMENTS UPON AFFORD-

S. 3914                             6

ABLE  HOUSING UNITS BE REDUCED IN AN AMOUNT TO BE SPECIFIED IN THE HOUS-
ING OPPORTUNITY ZONE DESIGNATION PLAN  SO  LONG  AS  SUCH  UNITS  REMAIN
AFFORDABLE;
  (D)  A  STATEMENT  INDICATING HOW HOUSING OPPORTUNITY ZONE DESIGNATION
WOULD ASSIST IN THE AVAILABILITY OF AFFORDABLE HOUSING IN  THE  AREA  IN
WHICH THE ZONE IS PROPOSED TO BE LOCATED;
  (E) A DESCRIPTION OF PROPOSALS FOR HOUSING CONSTRUCTION, CONVERSION OR
REHABILITATION  OF RESIDENTIAL UNITS AND INFRASTRUCTURE IMPROVEMENTS AND
INVESTMENTS AND A TIMETABLE FOR THEIR COMPLETION;
  (F) A STATEMENT OF THE REASONS WHY THE PARTICULAR  GEOGRAPHIC  CONFIG-
URATION OF THE ZONE WAS SELECTED.
  S  988. LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR. UPON APPROVAL OF
THE PLAN, THE DESIGNATED LOCAL HOUSING  OPPORTUNITY  ZONE  ADMINISTRATOR
SHALL BE RESPONSIBLE FOR COMPLYING WITH ALL FILING, REPORTING, AND OTHER
REQUIREMENTS  ON BEHALF OF THE APPLICANT AS SET FORTH IN THIS ARTICLE OR
RULES AND REGULATIONS AS PROMULGATED BY THE COMMISSIONER INCLUDING,  BUT
NOT LIMITED TO:
  (A)  FILING  NOTICE OF APPROVAL OF THE HOUSING OPPORTUNITY ZONE DESIG-
NATION PLAN OR, REVISIONS OR TERMINATION OF SUCH DESIGNATION  PLAN  WITH
THE DEPARTMENT OF TAXATION AND FINANCE, THE SECRETARY OF STATE, WITH THE
COUNTY,  CITY,  TOWN,  OR  VILLAGE,  RESPECTIVELY,  IN WHICH THE HOUSING
OPPORTUNITY ZONE IS LOCATED, WITH THE STATE BOARD  OF  EQUALIZATION  AND
ASSESSMENT  AND  WITH OTHER STATE AND LOCAL ENTITIES; PROVIDED, HOWEVER,
THAT SUCH NOTICE SHALL SPECIFY THE DATE SUCH ACTION WAS TAKEN AND  SHALL
CONTAIN  A  DESCRIPTION  SUFFICIENT  TO IDENTIFY THE HOUSING OPPORTUNITY
ZONE, INCLUDING THE NAMES OF ABUTTING STREETS, ROADS,  HIGHWAYS,  BODIES
OF WATER, OR OTHER IDENTIFYING PHYSICAL FEATURES;
  (B)  SUBMITTING  TO  THE COMMISSIONER AN ANNUAL REPORT ON THE PROGRESS
AND RESULTS OF THE PLAN, WITH COPIES TO  THE  DEPARTMENT  OF  AUDIT  AND
CONTROL,  DEPARTMENT  OF  TAXATION  AND  FINANCE AND THE DIRECTOR OF THE
BUDGET; AND
  (C) EVERY THREE YEARS, RECERTIFYING TO THE COMMISSIONER  THAT  A  NEED
FOR THE PLAN CONTINUES TO EXIST. IF THE APPLICANT DOES NOT RECERTIFY THE
NEED FOR THE PLAN, THE ZONE AND THE BENEFITS ASSOCIATED THEREWITH MAY BE
TERMINATED  BY  THE COMMISSIONER. TERMINATION OF A ZONE SHALL NOT AFFECT
ANY AGREEMENT ENTERED INTO NOR BENEFIT OR INCENTIVE PREVIOUSLY ALLOCATED
WITHIN THE ZONE.
  S 989. SPECIAL PROVISIONS. (A)  EACH  APPLICANT  SHALL  USE  ITS  BEST
EFFORTS TO ENSURE THAT ANY CONSTRUCTION, CONVERSION OR REHABILITATION OF
RESIDENTIAL  UNITS  IS  CARRIED  OUT IN SUCH A MANNER AS TO MINIMIZE THE
LIKELIHOOD OF ANY  INVOLUNTARY  PHYSICAL  OR  ECONOMIC  DISPLACEMENT  OF
TENANTS AND OWNERS.
  (B)  APPLICATIONS  FOR  FUNDING TO ANY HOUSING PROGRAM ADMINISTERED BY
THE STATE OF NEW YORK, A PUBLIC BENEFIT CORPORATION OR A  LOCAL  GOVERN-
MENT  SHALL  BE  GIVEN  A  PREFERENCE  IN  SELECTION  IF THE APPLICATION
PROPOSES THE CONSTRUCTION, CONVERSION OR REHABILITATION  OF  RESIDENTIAL
UNITS ELIGIBLE FOR BENEFITS PURSUANT TO THIS ARTICLE.
  S  2.  The  real  property  tax law is amended by adding a new section
485-n to read as follows:
  S 485-N. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION OF CERTAIN  RESI-
DENTIAL  PROPERTY  LOCATED  WITHIN  A  HOUSING OPPORTUNITY ZONE. 1. REAL
PROPERTY LOCATED WITHIN A HOUSING OPPORTUNITY ZONE WHICH HAS BEEN CERTI-
FIED  BY  THE  HOUSING  OPPORTUNITY  ZONE  ADMINISTRATOR  AS   A   NEWLY
CONSTRUCTED, CONVERTED OR REHABILITATED RESIDENTIAL UNIT, AND IN COMPLI-
ANCE WITH AN APPROVED HOUSING OPPORTUNITY ZONE DESIGNATION PLAN PURSUANT
TO ARTICLE NINETEEN-AA OF THE GENERAL MUNICIPAL LAW, SHALL BE EXEMPT, IN

S. 3914                             7

WHOLE  OR  IN PART, FROM TAXATION, SPECIAL AD VALOREM LEVIES AND SPECIAL
ASSESSMENTS LEVIED BY OR ON BEHALF OF ANY MUNICIPAL CORPORATION IN WHICH
REAL PROPERTY IS LOCATED, PROVIDED THAT  THE  GOVERNING  BOARD  OF  SUCH
MUNICIPAL  CORPORATION  ADOPTS  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION
PROVIDING THEREFOR.
  SUCH TAX EXEMPTION SHALL APPLY  FOR  THE  PERIOD  AND  TO  THE  EXTENT
PROVIDED IN SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.
  2.  NO  SUCH EXEMPTION SHALL BE GRANTED UNLESS: (A) A COPY OF AN OFFI-
CIAL NOTICE THAT THE HOUSING OPPORTUNITY ZONE DESIGNATION PLAN HAS  BEEN
APPROVED  PURSUANT  TO  ARTICLE NINETEEN-AA OF THE GENERAL MUNICIPAL LAW
HAS BEEN FILED BY THE LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR  WITH
THE CLERK OF THE ASSESSING UNIT AND WITH THE STATE BOARD OF EQUALIZATION
AND ASSESSMENT ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE;
  (B)  THE  CONSTRUCTION,  CONVERSION  OR  REHABILITATION OF RESIDENTIAL
UNITS COMMENCED ON OR AFTER THE DATE THAT THE HOUSING  OPPORTUNITY  ZONE
DESIGNATION PLAN WAS APPROVED;
  (C)  THE LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR CERTIFIES TO THE
ASSESSOR THAT THE REAL PROPERTY IS ELIGIBLE  FOR  BENEFITS  PURSUANT  TO
SUCH HOUSING OPPORTUNITY ZONE DESIGNATION PLAN; AND
  (D)  THE  REAL PROPERTY IS USED SOLELY FOR RESIDENTIAL PURPOSES DURING
THE PERIOD SUCH EXEMPTION IS GRANTED.
  3. SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF  YEARS  PROVIDED
FOR  IN  THE  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION AUTHORIZING THE TAX
EXEMPTION, AND THE HOUSING  OPPORTUNITY  ZONE  DESIGNATION  PLAN,  WHICH
PERIOD  SHALL  NOT  EXCEED  TEN YEARS. SUCH REAL PROPERTY SHALL BE IMME-
DIATELY SUBJECT TO TAXATION IF THE ASSESSOR  RECEIVES  NOTICE  FROM  THE
LOCAL HOUSING OPPORTUNITY ZONE ADMINISTRATOR THAT THE AFFORDABLE HOUSING
UNITS,  AS  DEFINED IN ARTICLE NINETEEN-AA OF THE GENERAL MUNICIPAL LAW,
ARE NOT IN CONFORMITY WITH THE PLAN PROPOSED BY THE  LOCALITY  IN  WHICH
THEY  ARE LOCATED AND APPROVED BY THE COMMISSIONER OF HOUSING AND COMMU-
NITY RENEWAL TO INSURE THEIR AFFORDABILITY.
  4.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED  BY  THE  STATE  BOARD.  SUCH
APPLICATION  SHALL  BE FILED WITH THE ASSESSOR OF THE COUNTY, CITY, TOWN
OR VILLAGE HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE
THE APPROPRIATE TAXABLE STATUS  DATE  OF  SUCH  COUNTY,  CITY,  TOWN  OR
VILLAGE  AND  WITHIN  ONE  YEAR  FROM  THE  DATE  OF  COMPLETION OF SUCH
CONSTRUCTION, CONVERSION OR REHABILITATION OF RESIDENTIAL UNITS.
  S 3. Section 490 of the real property tax law, as amended  by  chapter
87 of the laws of 2001, is amended to read as follows:
  S  490.  Exemption  from special ad valorem levies and special assess-
ments.  Real property exempt from taxation pursuant to  subdivision  two
of  section  four hundred, subdivision one of section four hundred four,
subdivision one of section  four  hundred  six,  sections  four  hundred
eight,  four  hundred  ten, four hundred ten-a, four hundred ten-b, four
hundred eighteen, four hundred twenty-a,  four  hundred  twenty-b,  four
hundred  twenty-two, four hundred twenty-six, four hundred twenty-seven,
four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
four hundred thirty-four, four hundred thirty-six, four hundred  thirty-
eight,  four  hundred fifty, four hundred fifty-two, four hundred fifty-
four, four hundred fifty-six,  four  hundred  sixty-four,  four  hundred
seventy-two,  four  hundred seventy-four [and], four hundred eighty-five
AND FOUR HUNDRED EIGHTY-FIVE-N of this [chapter] ARTICLE shall  also  be
exempt  from  special  ad valorem levies and special assessments against
real property located outside cities and villages for a special improve-
ment or service or a special district improvement or service and special

S. 3914                             8

ad valorem levies and special assessments imposed by a  county  improve-
ment district or district corporation except (1) those levied to pay for
the  costs,  including interest and incidental and preliminary costs, of
the acquisition, installation, construction, reconstruction and enlarge-
ment  of  or additions to the following improvements, including original
equipment, furnishings, machinery or  apparatus,  and  the  replacements
thereof:  water  supply  and distribution systems; sewer systems (either
sanitary or surface drainage or both, including purification,  treatment
or  disposal  plants or buildings); waterways and drainage improvements;
street, highway, road and  parkway  improvements  (including  sidewalks,
curbs, gutters, drainage, landscaping, grading or improving the right of
way)  and  (2) special assessments payable in installments on an indebt-
edness including interest  contracted  prior  to  July  first,  nineteen
hundred  fifty-three,  pursuant  to section two hundred forty-two of the
town law or pursuant to any other comparable provision of law.
  S 4. Section 252-a of the tax law is amended by adding a new  subdivi-
sion 3 to read as follows:
  3.  (A)  THE  FOLLOWING  MORTGAGES SHALL BE EXEMPT FROM ANY TAX OR FEE
IMPOSED UNDER THIS ARTICLE: ANY  MORTGAGE  OF  REAL  PROPERTY  GIVEN  TO
SECURE  AN  OBLIGATION  INCURRED  BY  THE MORTGAGOR TO ACQUIRE SUCH REAL
PROPERTY,  PROVIDED  THAT  (I)  SUCH  REAL  PROPERTY  IS   IMPROVED   BY
CONSTRUCTION,  CONVERSION  OR  REHABILITATION  OF  RESIDENTIAL UNITS, AS
THOSE TERMS ARE DEFINED IN ARTICLE NINETEEN-AA OF THE GENERAL  MUNICIPAL
LAW, AND LOCATED IN A HOUSING OPPORTUNITY ZONE DESIGNATION PLAN APPROVED
BY  THE  COMMISSIONER  OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO SUCH
ARTICLE, AND (II) SUCH REAL PROPERTY CONTINUES TO BE ELIGIBLE FOR  BENE-
FITS UNDER SUCH ARTICLE.
  (B) PROVIDED, HOWEVER, THAT IN EACH CASE WHERE AN EXEMPTION IS CLAIMED
UNDER THIS SUBDIVISION, SUCH EXEMPTION SHALL NOT APPLY UNLESS THE PERSON
CLAIMING  THE  EXEMPTION  PROVIDES DOCUMENTATION IN A FORMAT APPROVED BY
THE COMMISSIONER SUFFICIENT TO ENABLE A RECORDING OFFICER  TO  DETERMINE
AFFIRMATIVELY  WHETHER  THE  MORTGAGE BEING PRESENTED FOR RECORDING IS A
MORTGAGE OF REAL PROPERTY WHICH SATISFIES THE REQUIREMENTS SET FORTH  IN
THIS  SUBDIVISION.  SUCH  DOCUMENTATION  MAY  TAKE THE FORM OF A CERTIF-
ICATION FROM THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL  OR  SUCH
COMMISSIONER'S DELEGATE.
  S  5.  Subdivision  (b)  of  section 1201 of the tax law is amended by
adding a new paragraph (xiii) to read as follows:
  (XIII) THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY  THIS  SUBDIVISION
MAY  PROVIDE THAT THE CONVEYANCES EXEMPT PURSUANT TO PARAGRAPH ELEVEN OF
SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THIS  CHAPTER  SHALL
BE EXEMPT FROM THE TAX AUTHORIZED BY THIS SUBDIVISION.
  S 6. Subdivision b of section 1203 of the tax law, as amended by chap-
ter 345 of the laws of 1984, is amended to read as follows:
  b.  Notwithstanding  any  provision  of law to the contrary, the local
governing body of the city of Yonkers, by the adoption  of  local  laws,
ordinances  or  resolutions  may  impose  in such city the tax otherwise
authorized under subdivision (b) of section twelve hundred one  OF  THIS
PART,  at a rate not to exceed three per centum, such taxes to be admin-
istered and collected in the manner provided for in subpart  A  of  part
III  of  this  article.  Such  local  law,  ordinance, or resolution may
provide that any transfer of property owned and occupied as a  residence
by one or more persons, each of whom is sixty-five years of age or over,
shall  be  exempt from such tax. SUCH LOCAL LAW, ORDINANCE OR RESOLUTION
ALSO MAY PROVIDE THAT THE CONVEYANCES EXEMPT PURSUANT TO PARAGRAPH ELEV-

S. 3914                             9

EN OF SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED FIVE OF  THIS  CHAPTER
SHALL BE EXEMPT FROM THE TAX AUTHORIZED BY THIS SUBDIVISION.
  S  7.  Section 1205 of the tax law is amended by adding a new subdivi-
sion (c) to read as follows:
  (C) THE LOCAL LAW, ORDINANCE OR RESOLUTION IMPOSING THE TAX AUTHORIZED
BY THIS SECTION MAY PROVIDE THAT  THE  CONVEYANCES  EXEMPT  PURSUANT  TO
PARAGRAPH  ELEVEN OF SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED FIVE OF
THIS CHAPTER SHALL BE EXEMPT FROM THE TAX AUTHORIZED BY THIS SECTION.
  S 8. Subdivision (b) of section 1405 of the  tax  law  is  amended  by
adding a new paragraph 11 to read as follows:
  11.  CONVEYANCES  OF  RESIDENTIAL  HOUSING PROVIDED THAT (I) SUCH REAL
PROPERTY IS IMPROVED BY CONSTRUCTION, CONVERSION  OR  REHABILITATION  OF
RESIDENTIAL  UNITS, AS THOSE TERMS ARE DEFINED IN ARTICLE NINETEEN-AA OF
THE GENERAL MUNICIPAL LAW, AND LOCATED IN  A  HOUSING  OPPORTUNITY  ZONE
DESIGNATION  PLAN  APPROVED BY THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL PURSUANT TO SUCH ARTICLE, (II) SUCH REAL PROPERTY  CONTINUES  TO
BE  ELIGIBLE  FOR  BENEFITS  UNDER  SUCH ARTICLE, AND (III) IN EACH CASE
WHERE AN EXEMPTION IS CLAIMED UNDER  THIS  SUBDIVISION,  SUCH  EXEMPTION
SHALL  NOT  APPLY  UNLESS  THE  PERSON  CLAIMING  THE EXEMPTION PROVIDES
DOCUMENTATION IN A FORMAT APPROVED BY  THE  COMMISSIONER  SUFFICIENT  TO
ENABLE  A RECORDING OFFICER TO DETERMINE AFFIRMATIVELY WHETHER THE MORT-
GAGE BEING PRESENTED FOR RECORDING IS A MORTGAGE OF REAL PROPERTY  WHICH
SATISFIES  THE REQUIREMENTS SET FORTH IN THIS SUBDIVISION. SUCH DOCUMEN-
TATION MAY TAKE THE FORM OF A CERTIFICATION  FROM  THE  COMMISSIONER  OF
HOUSING AND COMMUNITY RENEWAL OR SUCH COMMISSIONER'S DELEGATE.
  S  9.  Section 1428 of the tax law is amended by adding a new subdivi-
sion 3 to read as follows:
  3. THE LOCAL LAW IMPOSING THE  TAX  AUTHORIZED  BY  THIS  ARTICLE  MAY
PROVIDE  THAT  THE  CONVEYANCES  EXEMPT  PURSUANT TO PARAGRAPH ELEVEN OF
SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THIS  CHAPTER  SHALL
BE EXEMPT FROM THE TAX.
  S 10. This act shall take effect immediately.