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.
