Senate Bill S5258

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

                                  5258

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN ACT to amend the private housing finance law, in relation to payments
  by neighborhood preservation companies and not-for-profit corporations
  for  housing preservation and community renewal, for compelling public
  purposes

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

  Section  1.  Section 902 of the private housing finance law is amended
by adding a new subdivision 7 to read as follows:
  7. "COMPELLING PUBLIC PURPOSE" SHALL MEAN: (A) THE MERGER  OR  CONSOL-
IDATION  OF  TWO  OR  MORE NEIGHBORHOOD PRESERVATION COMPANIES WHERE THE
MERGED OR NEWLY CREATED NEIGHBORHOOD  PRESERVATION  COMPANY  ENGAGES  IN
NEIGHBORHOOD  PRESERVATION ACTIVITIES IN A GEOGRAPHICALLY DEFINED NEIGH-
BORHOOD WHICH INCLUDES EACH OF THE  PREEXISTING  GEOGRAPHICALLY  DEFINED
NEIGHBORHOODS  OF  THE MERGED OR CONSOLIDATED COMPANIES, AND SUCH ACTION
RESULTS IN MORE EFFICIENT AND COST EFFECTIVE DELIVERY  OF  SERVICES;  OR
(B) THE PERFORMANCE OF NEIGHBORHOOD PRESERVATION ACTIVITIES BY AN EXIST-
ING NEIGHBORHOOD PRESERVATION COMPANY TO UNDERSERVED AREAS LYING OUTSIDE
OF SAID COMPANY'S PREEXISTING DESIGNATED NEIGHBORHOOD AREA.
  S  2. Subdivision 4 of section 903 of the private housing finance law,
as amended by section 1 of part FF of chapter 57 of the laws of 2009, is
amended and a new subdivision 9 is added to read as follows:
  4. Contracts entered into  hereunder  with  neighborhood  preservation
companies  shall  be limited in duration to periods of one year, but may
thereafter be renewed, extended or succeeded by new contracts from  year
to  year in the discretion of the commissioner; they shall be limited in
amount to the sum of one hundred thousand  dollars  in  a  single  year,
provided  that  in  any year in which the aggregate sum of three hundred
thousand dollars shall have been reached and all succeeding  years,  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11420-01-1
              

S. 5258                             2

annual contract amount shall be subject to a limit of ninety-seven thou-
sand five hundred dollars per year; they shall define with particularity
the  neighborhood or portion thereof within which the neighborhood pres-
ervation activities shall be performed; they shall specify the nature of
the  neighborhood  preservation  activities  which  shall  be  performed
including the approximate  number  of  buildings,  residential  dwelling
units  and  local  retail  and  service  establishments  which  shall be
affected; they shall locate and describe, with as much particularity  as
is  reasonably possible, the buildings with respect to which such activ-
ities shall be performed during the contract term; and they shall speci-
fy the number of persons,  salaries  or  rates  of  compensation  and  a
description  of duties of those who shall be engaged by the neighborhood
preservation company to perform the activities embraced by the  contract
together  with  a schedule of other anticipated expenses. ANY FUNDS PAID
BY THE DIVISION TO A NEIGHBORHOOD PRESERVATION COMPANY FOR THE PROVISION
OF NEIGHBORHOOD PRESERVATION ACTIVITIES BASED UPON A  COMPELLING  PUBLIC
PURPOSE  SHALL  NOT  BE COUNTED AGAINST THE FUNDING CAPS CREATED BY THIS
SUBDIVISION.
  9. (A) THE DIVISION SHALL PROMULGATE RULES AND  REGULATIONS  NECESSARY
TO  ESTABLISH  A  PROCEDURE WHICH PROVIDES THE NEIGHBORHOOD PRESERVATION
COMPANIES WITH THE ABILITY TO SEEK AN AMENDMENT  OF  THEIR  CONTRACT  TO
ENGAGE  IN  NEIGHBORHOOD PRESERVATION ACTIVITIES FOR A COMPELLING PUBLIC
PURPOSE.
  (B) THE DIVISION MAY AUTHORIZE THE PERFORMANCE OF NEIGHBORHOOD PRESER-
VATION ACTIVITIES FOR A COMPELLING PUBLIC PURPOSE AS PART OF A NEIGHBOR-
HOOD PRESERVATION COMPANY'S CONTRACT RENEWAL OR EXTENSION PROCESS PURSU-
ANT TO THIS SECTION.
  S 3. Section 1002 of the private housing finance  law  is  amended  by
adding a new subdivision 7 to read as follows:
  7.  "COMPELLING  PUBLIC PURPOSE" SHALL MEAN: (A) THE MERGER OR CONSOL-
IDATION OF TWO OR MORE RURAL PRESERVATION COMPANIES WHERE THE MERGED  OR
NEWLY CREATED RURAL PRESERVATION COMPANY ENGAGES IN HOUSING PRESERVATION
AND  COMMUNITY RENEWAL ACTIVITIES IN A REGION WHICH INCLUDES EACH OF THE
PREEXISTING REGIONS OF THE MERGED OR CONSOLIDATED  COMPANIES,  AND  SUCH
ACTION  RESULTS  IN  MORE  EFFICIENT  AND  COST  EFFECTIVE  DELIVERY  OF
SERVICES; OR (B) THE PERFORMANCE OF HOUSING PRESERVATION  AND  COMMUNITY
RENEWAL  ACTIVITIES  BY AN EXISTING RURAL PRESERVATION COMPANY TO UNDER-
SERVED AREAS LYING OUTSIDE OF SAID COMPANY'S PREEXISTING REGION.
  S 4. Subdivision 4 of section 1003 of the private housing finance law,
as amended by section 2 of part FF of chapter 57 of the laws of 2009, is
amended and a new subdivision 9 is added to read as follows:
  4. Contracts pursuant to this section shall be for a period of no more
than one year, but may be renewed or extended from  year  to  year,  and
shall  provide  for  payment by the division of no more than one hundred
thousand dollars per year, provided that in any year in which the aggre-
gate sum of three hundred thousand dollars shall have been  reached  and
all  succeeding  years, the annual contract amount shall be subject to a
limit of ninety-seven thousand five hundred dollars per year; they shall
define with particularity the region or portion thereof within which the
housing  preservation  and  community  renewal   activities   shall   be
performed; they shall specify the nature of the housing preservation and
community  renewal  activities  which  shall  be performed including the
approximate number of buildings, residential dwelling  units  and  local
retail  and  service  establishments which shall be affected; they shall
locate and describe, with as much particularity as is reasonably  possi-
ble,  the  buildings  with  respect  to  which  such activities shall be

S. 5258                             3

performed during the contract term; and they shall specify the number of
persons, salaries or rates of compensation and a description  of  duties
of  those  who shall be engaged by the corporation to perform the activ-
ities  embraced by the contract together with a schedule of other antic-
ipated expenses.  ANY FUNDS PAID BY THE DIVISION TO A RURAL PRESERVATION
COMPANY FOR THE PROVISION OF HOUSING PRESERVATION AND COMMUNITY  RENEWAL
ACTIVITIES  BASED  UPON A COMPELLING PUBLIC PURPOSE SHALL NOT BE COUNTED
AGAINST THE FUNDING CAPS CREATED BY THIS SUBDIVISION.
  9. (A) THE DIVISION SHALL PROMULGATE RULES AND  REGULATIONS  NECESSARY
TO ESTABLISH A PROCEDURE WHICH PROVIDES THE RURAL PRESERVATION COMPANIES
WITH  THE  ABILITY  TO  SEEK AN AMENDMENT OF THEIR CONTRACT TO ENGAGE IN
HOUSING PRESERVATION AND COMMUNITY RENEWAL ACTIVITIES FOR  A  COMPELLING
PUBLIC PURPOSE.
  (B) THE DIVISION MAY AUTHORIZE THE PERFORMANCE OF HOUSING PRESERVATION
AND COMMUNITY RENEWAL ACTIVITIES FOR A COMPELLING PUBLIC PURPOSE AS PART
OF  A RURAL PRESERVATION COMPANY'S CONTRACT RENEWAL OR EXTENSION PROCESS
PURSUANT TO THIS SECTION.
  S 5. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided that,  effective  immediately,  the
division  of housing and community renewal is authorized and directed to
promulgate  any  rules  and  regulations  necessary  to  implement   the
provisions of this act on its effective date on or before such date.