S T A T E   O F   N E W   Y O R K
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                                  8696

                          I N  A S S E M B L Y

                            January 12, 2016
                               ___________

Introduced  by  M.  of  A. SANTABARBARA -- read once and referred to the
  Committee on Housing

AN ACT to amend the private housing finance law, in relation to afforda-
  ble housing for persons with disabilities and  those  having  attained
  the age of sixty-two

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

  Section 1. Subdivision 7  of  section  45-b  of  the  private  housing
finance law is amended by adding a new paragraph (i) to read as follows:
  (I) ESTABLISH A DISABLED AND ELDERLY ACCESSORY APARTMENT LOAN PROGRAM,
LOANS ISSUED FOR WHICH PURPOSE SHALL BE SUBJECT TO THE FOLLOWING PARAME-
TERS:
  (I)  PROCEEDS OF LOANS SHALL BE USED TO CONSTRUCT AN ADDITIONAL DWELL-
ING UNIT OF UP TO TWO BEDROOMS WITHIN A STRUCTURE, OR TO IMPROVE,  RENO-
VATE,  OR  REHABILITATE  NOT  MORE  THAN  ONE DWELLING UNIT OF UP TO TWO
BEDROOMS LOCATED IN A STRUCTURE THAT, AT THE TIME OF THE  LOAN  APPLICA-
TION,  CONTAINS A TOTAL OF NOT MORE THAN TWO DWELLING UNITS; EACH DWELL-
ING UNIT MAY NOT BE LESS THAN FOUR HUNDRED FIFTY SQUARE  FEET  OF  GROSS
LIVING AREA;
  (II)  AT  LEAST  ONE  DWELLING  UNIT  WITHIN  THE  STRUCTURE  SHALL BE
OWNER-OCCUPIED, AND, FOLLOWING COMPLETION OF THE PROJECT, AT  LEAST  ONE
DWELLING UNIT WITHIN THE STRUCTURE SHALL BE OCCUPIED BY A HOUSEHOLD THAT
INCLUDES  ONE PERSON WITH A DISABILITY OR ONE PERSON HAVING ATTAINED THE
AGE OF SIXTY-TWO, EITHER OF WHOM MAY BE RELATED TO THE BORROWER;
  (III) LOANS SHALL BE LIMITED TO THE  LESS  OF  FIFTY  PERCENT  OF  THE
FINANCING OF THE TOTAL DEVELOPMENT COSTS OR FIFTY THOUSAND DOLLARS;
  (IV)  LOANS SHALL NOT BE ISSUED UNLESS A CONTRACT OR AGREEMENT FOR THE
USE OF THE PROPERTY FOR THE PURPOSES OF SUCH HOUSING  PROVIDES  FOR  THE
RECORDING  OF  A  RESTRICTION IN THE REGISTRY OF DEEDS MAINTAINED BY THE
CLERK OF THE COUNTY IN WHICH THE AFFECTED REAL PROPERTY IS LOCATED,  FOR
THE BENEFIT OF SAID CORPORATION, RUNNING WITH THE LAND, THAT THE LAND BE
USED FOR THE PURPOSE OF PROVIDING ALTERNATIVE FORMS OF RENTAL AND OWNER-
SHIP  HOUSING. SUCH PROPERTY SHALL NOT BE RELEASED FROM SUCH RESTRICTION
UNTIL THE BALANCE OF THE PRINCIPAL AND INTEREST FOR ANY SUCH LOAN  SHALL

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

                                                           LBD13418-01-5

A. 8696                             2

BE  REPAID  IN  FULL  OR  UNTIL  A  MORTGAGE  FORECLOSURE  DEED SHALL BE
RECORDED;
  (V)  LOANS SHALL BE ISSUED FOR A TERM OF UP TO THIRTY YEARS WHICH TIME
REPAYMENT MAY BE DEFERRED BY THE LOAN ISSUING AUTHORITY.   AT  MATURITY,
THE  CORPORATION MAY EXTEND A LOAN FOR AN ADDITIONAL PERIOD OF UP TO TEN
YEARS. THEREAFTER, AS LONG AS THE HOUSING CONTINUES TO COMPLY  WITH  THE
REQUIREMENTS SET FORTH IN THE LOAN DOCUMENTS, ADDITIONAL TEN-YEAR EXTEN-
SIONS MAY BE APPROVED.
  (VI)  INTEREST  RATES  FOR LOANS SHALL BE FIXED AT A RATE TO BE DETER-
MINED BY THE DIRECTOR OF HOUSING AND COMMUNITY DEVELOPMENT, IN CONSULTA-
TION WITH THE STATE TREASURER;
  (VII) EXPENDITURES FROM THIS PARAGRAPH  SHALL  NOT  BE  MADE  FOR  THE
PURPOSE  OF REFINANCING OUTSTANDING MORTGAGE LOANS FOR HOUSING IN EXIST-
ENCE PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH;
  (VIII) THE CORPORATION SHALL TAKE  DUE  CONSIDERATION  OF  A  BALANCED
GEOGRAPHIC  PLAN FOR SUCH ALTERNATIVE FORMS OF HOUSING WHEN ISSUING SUCH
LOANS;
  (IX) AT LEAST ONE HALF  OF  THE  BENEFICIARIES  OF  THE  LOAN  PROGRAM
CREATED  BY  THIS  PARAGRAPH  SHALL BE PERSONS WHOSE INCOME IS LESS THAN
EIGHTY PERCENT OF THE AREA-WIDE MEDIAN INCOME AS DETERMINED FROM TIME TO
TIME BY THE UNITED STATES DEPARTMENT OF HOUSING AND  URBAN  DEVELOPMENT;
AND
  (X)  THE  CORPORATION  SHALL  PROMULGATE RULES AND REGULATIONS FOR THE
IMPLEMENTATION OF THE LOAN PROGRAM CREATED BY THIS PARAGRAPH.
  S 2. This act shall take effect immediately.