S T A T E   O F   N E W   Y O R K
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                                 6287--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 20, 2015
                               ___________

Introduced by M. of A. THIELE -- Multi-Sponsored by -- M. of A. SALADINO
  --  read  once  and  referred to the Committee on Housing -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the private housing finance law, in relation to creating
  the "Peconic Bay region workforce housing opportunity act"

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

  Section  1. This act may be cited as the "Peconic Bay region workforce
housing opportunity act".
  S 2. Legislative findings.  The legislature hereby finds that critical
to the future of the Peconic Bay region is the need to protect community
stability by providing for  an  adequate  supply  of  workforce  housing
opportunities for all segments of the Peconic Bay community.
  The  adverse  impacts from the lack of housing opportunities are crit-
ical. For example, local employers have difficulty hiring and  retaining
employees  because  of  housing  costs and availability. Local volunteer
emergency services agencies experience  difficulty  in  recruitment  and
retention.  Long  time  residents  are forced to leave the area. Traffic
congestion is exacerbated by the importation of labor  from  areas  with
lower housing costs.  Finally, the lack of affordable housing is result-
ing  in  residents  being  forced to live in substandard, illegal condi-
tions.
  Unique demographics and economics in the Peconic  Bay  region,  and  a
lack  of  affordable dwelling units, are creating this housing shortage.
The combination of the Peconic Bay region's attractiveness, proximity to
the dense population of the New York metropolitan region, and  proximity
to  that  region's  extraordinary wealth, makes the Peconic Bay region a
prime location for seasonal and luxury homes.
  While this combination of extraordinary attractiveness, population and
wealth has created a strong local economy for the Peconic Bay region, it

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09980-02-5
              

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has resulted in housing problems for local families. In the Peconic  Bay
region, 37% of all housing units are seasonal.
  In  summary,  the  demand  of  land  for luxury and seasonal homes and
seasonal rentals has left a short supply of  housing  opportunities  for
moderate  income  and  working  class  local  residents. The Peconic Bay
region needs a balanced housing policy where there exists a  variety  of
housing types and opportunities across the region's economic spectrum.
  It is the purpose of this legislation, to give the towns of the Pecon-
ic  Bay region the authority and resources needed to establish community
housing opportunities. This legislation would permit each town to estab-
lish a dedicated community housing opportunity fund to increase  housing
opportunities in the region.
  Specifically, towns would be permitted to provide loans to those resi-
dents  and  families  below  the median income level of the town who are
first time home buyers. Said loans would be up to $250,000. Such a  loan
would  permit more residents and families to access the existing housing
market. Said loan would be repaid upon any future sale of the  dwelling.
The  repayment  amount  would be equal to an amount in proportion to the
resale price as the original proportion of the loan to the original sale
price.
  This program would  provide  funding  to  increase  workforce  housing
opportunities.  It would also permit families under the program to enjoy
a proportional benefit in the equity of their new  home.  Finally,  upon
resale,  the  town's proportional interest would be returned to the fund
to finance future workforce housing opportunities.
  Said fund would be financed by a combination of state and local funds,
including a fee on new residential construction over 3,000 square  feet.
The  fund  and  fee enacted by local law would be subject to a mandatory
referendum.
  S 3. The private housing finance law is amended by adding a new  arti-
cle 23 to read as follows:
                              ARTICLE XXIII
          PECONIC BAY REGION WORKFORCE HOUSING OPPORTUNITY ACT
SECTION 1160. DEFINITIONS.
        1161. FUND AUTHORIZED.
        1162. PURPOSES OF THE FUND.
        1163. WORKFORCE HOUSING IMPACT FEE.
        1164. MANDATORY REFERENDUM.
        1165. SEVERABILITY CLAUSE.
  S  1160. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "PECONIC BAY REGION" MEANS THE TOWNS OF  EAST  HAMPTON,  RIVERHEAD,
SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD.
  2.  "WORKFORCE  HOUSING"  MEANS  A  PRIMARY RESIDENTIAL PROPERTY FOR A
HOUSEHOLD WITH AN INCOME THAT DOES NOT EXCEED ONE HUNDRED PERCENT OF THE
INCOME LIMITS WHERE THE PURCHASE PRICE OF THE PRIMARY RESIDENTIAL  PROP-
ERTY  DOES  NOT  EXCEED ONE HUNDRED TWENTY PERCENT OF THE PURCHASE PRICE
LIMITS. THE INCOME LIMITS AND PURCHASE PRICE LIMITS SHALL BE  AS  ESTAB-
LISHED  BY  THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST RATE LOAN
PROGRAM IN NON-TARGET CATEGORIES FOR SUFFOLK COUNTY  IN  EFFECT  ON  THE
CONTRACT DATE FOR THE SALE OF SUCH PROPERTY.
  3.  "FUND"  MEANS  THE  WORKFORCE  HOUSING OPPORTUNITY FUND AUTHORIZED
PURSUANT TO THIS ARTICLE.
  4. "FIRST HOME" MEANS A PERSON WHO HAS NOT OWNED A PRIMARY RESIDENTIAL
PROPERTY AND IS NOT MARRIED TO A PERSON  WHO  HAS  OWNED  A  RESIDENTIAL
PROPERTY  DURING  THE  THREE-YEAR PERIOD PRIOR TO HIS OR HER PURCHASE OF

A. 6287--A                          3

THE PRIMARY RESIDENTIAL PROPERTY, AND WHO DOES NOT  OWN  A  VACATION  OR
INVESTMENT HOME.
  5.  "PRIMARY  RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
TOWNHOUSE, OR CONDOMINIUM.
  S 1161. FUND AUTHORIZED. THE TOWN BOARD OF ANY TOWN IN THE PECONIC BAY
REGION IS AUTHORIZED TO ESTABLISH  BY  LOCAL  LAW  A  COMMUNITY  HOUSING
OPPORTUNITY  FUND,  PURSUANT TO THE PROVISIONS OF THIS SECTION. DEPOSITS
INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
SOURCE, INCLUDING BUT NOT LIMITED TO:
  1. ALL REVENUES FROM THE WORKFORCE HOUSING IMPACT  FEE  AUTHORIZED  BY
SECTION ELEVEN HUNDRED SIXTY-THREE OF THIS ARTICLE;
  2. GENERAL FUND BALANCES OR SURPLUSES;
  3.  FUNDS  RECEIVED  BY  THE  TOWN  FROM THE APPORTIONMENT OF MORTGAGE
RECORDING TAXES RECEIVED FROM THE COUNTY PURSUANT TO ARTICLE  ELEVEN  OF
THE TAX LAW;
  4. FUNDS RECEIVED BY THE TOWN FROM THE SALE OF DEVELOPMENT RIGHTS FROM
A CENTRAL BANK;
  5. THE REPAYMENT OF ANY LOANS ISSUED FROM PROCEEDS OF THE FUND;
  6. ANY GIFTS OF INTERESTS IN LAND OR FUNDS; AND
  7.  ANY  STATE  OR  FEDERAL  GRANTS RECEIVED BY THE TOWN FOR PROVIDING
AFFORDABLE HOMES.
  INTEREST ACCRUED BY MONIES DEPOSITED INTO THE FUND SHALL  BE  CREDITED
TO  THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO THE FUND BE TRANS-
FERRED TO ANY OTHER ACCOUNT. NOTHING CONTAINED IN THIS SECTION SHALL  BE
CONSTRUED  TO PREVENT THE FINANCING IN WHOLE OR IN PART, PURSUANT TO THE
LOCAL FINANCE LAW, OF ANY PURPOSE  AUTHORIZED PURSUANT TO THIS  SECTION.
MONIES  FROM  THE  FUND  MAY  BE UTILIZED TO REPAY INDEBTEDNESS OR OBLI-
GATIONS INCURRED PURSUANT TO  THE  LOCAL  FINANCE  LAW  CONSISTENT  WITH
EFFECTUATING THE PURPOSES OF THIS SECTION.
  S  1162. PURPOSES OF THE FUND. 1. THE PROCEEDS OF THE FUND ESTABLISHED
PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-ONE OF THIS  ARTICLE  SHALL  BE
UTILIZED  (A)  FOR  THE  PROVISION OF LOANS TO ELIGIBLE RESIDENTS OF THE
TOWN FOR THE PURCHASE OF A FIRST HOME PURSUANT TO THE PROVISIONS OF THIS
SECTION, (B) THE ACQUISITION OF COVENANTS,  RESTRICTIONS,  OR  EASEMENTS
LIMITING  EXISTING HOMES FOR WORKFORCE HOUSING, AND (C) THE PROVISION OF
HOUSING COUNSELING  SERVICES  BY  NOT-FOR-PROFIT  CORPORATIONS  WHO  ARE
AUTHORIZED  BY  THE  U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO
PROVIDE SUCH SERVICES.
  2. A TOWN MAY MAKE A LOAN TO A RESIDENT OF THE TOWN FOR  THE  PURCHASE
OF  A  FIRST  HOME FOR THE PURPOSE OF WORKFORCE HOUSING. SAID LOAN SHALL
NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER HOME. SAID LOAN  SHALL
BE  REPAYABLE TO THE TOWN UPON THE RE-SALE OF THE HOME. THE REPAYMENT TO
THE TOWN SHALL BE AN AMOUNT EQUAL TO THE PROPORTION OF THE ORIGINAL LOAN
FROM THE TOWN TO THE ORIGINAL PURCHASE PRICE TO THE RESALE PRICE.
  3. ALL REVENUES RECEIVED BY THE TOWN FROM THE REPAYMENT OF LOANS SHALL
BE DEPOSITED IN THE FUND.
  S 1163. WORKFORCE HOUSING IMPACT FEE. EACH TOWN IS  HEREBY  AUTHORIZED
TO IMPOSE, COLLECT, AND DISBURSE, AS SET FORTH IN THIS SECTION, A FEE ON
ALL NEW RESIDENTIAL CONSTRUCTION. SAID FEE SHALL BE IMPOSED ON NEW RESI-
DENTIAL  CONSTRUCTION  WHERE  THE  TOTAL FLOOR AREA OF SAID CONSTRUCTION
EXCEEDS THREE THOUSAND SQUARE FEET. SAID FEE SHALL BE SET  BY  THE  TOWN
BOARD,  BUT  SHALL  NOT  EXCEED TEN DOLLARS PER SQUARE FOOT IN EXCESS OF
THREE THOUSAND SQUARE FEET. SAID FEE SHALL BE PAID UPON THE ISSUANCE  OF
A  BUILDING PERMIT BY THE TOWN. THE PROCEEDS OF SAID FEE SHALL BE DEPOS-
ITED IN THE COMMUNITY HOUSING  OPPORTUNITY  FUND  CREATED  BY  THE  TOWN
PURSUANT  TO  SECTION ELEVEN HUNDRED SIXTY-ONE OF THIS ARTICLE.  HOUSING

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CONSTRUCTION WHICH IS RESTRICTED TO WORKFORCE HOUSING  SHALL  BE  EXEMPT
FROM THIS FEE.
  S  1164.  MANDATORY REFERENDUM. THE LOCAL LAW OR LAWS ESTABLISHING THE
WORKFORCE HOUSING OPPORTUNITY FUND AND AUTHORIZING THE WORKFORCE HOUSING
IMPACT FEE SHALL BE SUBJECT TO A MANDATORY REFERENDUM. SAID LOCAL LAW OR
LAWS SHALL ONLY BECOME EFFECTIVE UPON THE ADOPTION OF SAID REFERENDUM BY
THE ELECTORS OF THE TOWN.
  S 1165. SEVERABILITY CLAUSE. IF  ANY  PROVISION  OF  THIS  ARTICLE  OR
APPLICATION  THEREOF  SHALL  FOR  ANY REASON BE ADJUDGED BY ANY COURT OF
COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT  SHALL  NOT  AFFECT,
IMPAIR, OR INVALIDATE THE REMAINDER OF THE ACT, BUT SHALL BE CONFINED IN
ITS  OPERATION TO THE PROVISION THEREOF DIRECTLY INVOLVED IN THE CONTRO-
VERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN RENDERED.
  S 4. This act shall take effect immediately.