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.