TITLE OF BILL:
to amend chapter 199 of the laws of 2008 amending the private housing
finance law relating to the low income housing trust fund program, in
relation to the application and effective date of such chapter
PURPOSE OF BILL:
This bill would eliminate the sunset provision for Private Housing
Finance Law (PHFL) §§ 1101(4),(5),(6),(9) and (11), and 1102(1),
which expand eligibility for the Low Income Housing Trust Fund program.
SUMMARY OF PROVISIONS:
Section 1 of the bill would delete section 4 of chapter 199 of the
laws of 2008, as amended by section 1 of chapter 140 of the laws
of 2010, which requires that the Housing Trust Fund Corporation submit
an annual report to the Legislature.
Section 2 of the bill would delete section 5 of chapter 199 of the laws
of 2008, as amended by section 2 of chapter 140 the laws of 2010,
that provided for the sunset of amendments made in 2008 to the PHFL.
Section 3 of the bill would provide for an immediate effective date.
Chapter 199 of the laws of 2008 amended the above-referenced sections
of the PHFL to expand eligibility for the low income housing trust
fund program, thereby allowing additional projects to receive program
funding. Section five of chapter 199 provided that those amendments
would sunset on July 1, 2010. Chapter 140 of the laws of 2010 extended
chapter 199's sunset provision, so that the Housing Trust Fund
Corporation is currently authorized to continue the program's
expanded eligibility through July 1, 2011. Section 4 of chapter 199,
as amended by section 1 of chapter 140 of the laws of 2010, required
the Housing Trust Fund Corporation to submit an annual report to the
PRIOR LEGISLATIVE HISTORY:
The sunset provision was previously extended in section 5 of chapter
199 of the laws of 2008, and section 2 of chapter 140 of the laws
STATEMENT IN SUPPORT:
In order to address a continuing shortage of decent affordable housing
in the State, PHFL §§ 1101 and 1102 were amended in 2008 to expand
eligibility for additional projects to receive funding under the low
income housing trust fund program.
The amendments permit a residential property to be eligible for
funding if the rehabilitation of the property would preserve
affordable housing serving a population
whose housing needs would justify replacement of that housing. In
addition, funding eligibility for non-residential property was
expanded to include underutilized properties.
These amendments also increased the maximum award to $125,000 per
unit, increased the percentage that may be used for project
acquisition to 50% and authorized a limited amount of funds to cover
the cost of community service facilities.
Using these more flexible standards, from July 7, 2008 through May 14,
2010, the Low Income Housing Trust Fund program awarded $91,347,004 in
total grants throughout the State, financing the construction or
rehabilitation 2,231 units. These standards should be made permanent,
since they have provided the program with greater flexibility in
order to address the increasingly complex and diverse affordable
housing needs of the state's communities.
This bill would eliminate the section 5 sunset provision for sections
one, two and four of chapter 199 of the laws of 2008, as amended by
chapter 140 of the laws of 2010, because as noted above, the 2008
amended program requirements have resulted in a successful program
capable of providing for the housing needs of low-income residents as
envisioned under the Act. The increased funding limits and program
enhancements have not had a deleterious effect on the program and
thus they should be made permanent and the annual reporting
requirement eliminated as unnecessary.
This bill has no budget implications.
This bill would become effective immediately.