S T A T E   O F   N E W   Y O R K
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                                  5877

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 15, 2009
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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
              

S. 5877                             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.