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

                                  6017

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 19, 2009
                               ___________

Introduced  by  Sen. 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 Rules

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09533-06-9

              

S. 6017                             2

  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-
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 AREA MEDIAN INCOME FOR THE
COUNTY IN WHICH A PROJECT IS LOCATED AS CALCULATED BY THE UNITED  STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
  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 PROVIDE TECHNICAL ASSISTANCE AND TRAINING TO
ELIGIBLE APPLICANTS TO HELP COMMUNITIES WITH THEIR EFFORTS  TO  PRESERVE
AND  REVITALIZE  MAIN  STREET AND DOWNTOWN BUSINESS DISTRICTS CONSISTENT
WITH THE LEGISLATIVE FINDINGS AND PURPOSE OF THIS ARTICLE.
  5. 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.
  6. 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.

S. 6017                             3

  7. 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.