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

                                 6954--A

                            I N  S E N A T E

                              March 9, 2016
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  reported favorably from said committee and
  committed to the Committee on Finance --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the private housing finance  law,  in  relation  to  the
  mobile and manufactured home replacement program

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

  Section 1. The private housing finance law is amended by adding a  new
article 28 to read as follows:
                             ARTICLE XXVIII
            MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
SECTION 1240. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        1241. DEFINITIONS.
        1242. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS.
  S 1240. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
HEREBY  FINDS AND DECLARES THAT THERE EXISTS IN NEW YORK STATE A SERIOUS
NEED TO ELIMINATE OLDER, DILAPIDATED MOBILE AND MANUFACTURED  HOMES  AND
REPLACE  THEM  WITH NEW MANUFACTURED, MODULAR OR SITE-BUILT HOMES. OLDER
MOBILE OR MANUFACTURED HOME UNITS  WITH  RUSTED,  LEAKING  METAL  ROOFS,
METAL-FRAMED  WINDOWS  WITH  INTERIOR TAKE-OUT STORMS, AND METAL SIDING,
ARE THOSE THAT MOST NEED REPLACEMENT. NO MATTER THE AMOUNT OF  REHABILI-
TATION  INVESTMENT, THE END RESULT IS UNSATISFACTORY IN TERMS OF LONGEV-
ITY, ENERGY EFFICIENCY  AND  AFFORDABILITY.  THE  LEGISLATURE  THEREFORE
FINDS  THAT THE STATE SHOULD ESTABLISH A PROGRAM TO FUND THE REPLACEMENT
OF MOBILE OR MANUFACTURED HOMES WITH NEW AFFORDABLE AND ENERGY EFFICIENT
MANUFACTURED, MODULAR OR SITE-BUILT HOMES.
  S 1241. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE  THE  FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION ESTAB-
LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14637-04-6
              

S. 6954--A                          2

  2. "DILAPIDATED" SHALL MEAN A HOUSING UNIT THAT DOES NOT PROVIDE  SAFE
AND ADEQUATE SHELTER, AND IN ITS PRESENT CONDITION ENDANGERS THE HEALTH,
SAFETY  OR  WELL-BEING  OF THE OCCUPANTS. SUCH A HOUSING UNIT SHALL HAVE
ONE OR MORE CRITICAL DEFECTS, OR A COMBINATION OF  INTERMEDIATE  DEFECTS
IN  SUFFICIENT  NUMBER  OR  EXTENT  TO  REQUIRE  CONSIDERABLE  REPAIR OR
REBUILDING. SUCH DEFECTS MAY INVOLVE ORIGINAL CONSTRUCTION, OR THEY  MAY
RESULT  FROM  CONTINUED NEGLECT OR LACK OF REPAIR OR FROM SERIOUS DAMAGE
TO THE STRUCTURE.
  3. "ELIGIBLE APPLICANT" SHALL MEAN A UNIT OF  LOCAL  GOVERNMENT  OR  A
NOT-FOR-PROFIT  CORPORATION  IN  EXISTENCE  FOR  A PERIOD OF ONE OR MORE
YEARS PRIOR TO APPLICATION, WHICH IS, OR WILL BE AT THE TIME  OF  AWARD,
INCORPORATED  UNDER  THE NOT-FOR-PROFIT CORPORATION LAW AND HAS SUBSTAN-
TIAL EXPERIENCE IN AFFORDABLE HOUSING.
  4. "ELIGIBLE PROPERTY" SHALL MEAN A MOBILE OR MANUFACTURED  HOME  THAT
IS  THE  PRIMARY  RESIDENCE OF A HOMEOWNER WITH A TOTAL HOUSEHOLD INCOME
THAT DOES NOT EXCEED EIGHTY PERCENT OF AREA MEDIAN INCOME FOR THE COUNTY
IN WHICH A PROJECT IS LOCATED AS CALCULATED BY THE UNITED STATES DEPART-
MENT OF HOUSING AND URBAN DEVELOPMENT.
  5. "MANUFACTURED HOME" SHALL HAVE THE SAME MEANING AS IS SET FORTH FOR
SUCH TERM IN SUBDIVISION SEVEN OF SECTION SIX HUNDRED ONE OF THE  EXECU-
TIVE LAW.
  6.  "MOBILE  AND  MANUFACTURED  HOME REPLACEMENT PROGRAM" OR "PROGRAM"
SHALL MEAN A PROPOSAL BY AN ELIGIBLE APPLICANT FOR THE REPLACEMENT OF  A
DILAPIDATED MOBILE OR MANUFACTURED HOME WITH A NEW MANUFACTURED, MODULAR
OR SITE-BUILT HOME. ALL REPLACEMENT HOMES SHALL BE ENERGY STAR RATED FOR
ENERGY EFFICIENCY.
  7. "MODULAR HOME" SHALL HAVE THE SAME MEANING AS IS SET FORTH FOR SUCH
TERM  IN  PARAGRAPH  THIRTY-THREE  OF  SUBDIVISION (B) OF SECTION ELEVEN
HUNDRED ONE OF THE TAX LAW.
  8. "SITE-BUILT HOME" SHALL MEAN A STRUCTURE BUILT ON-SITE USING BUILD-
ING MATERIALS DELIVERED TO THE SITE, EVEN IF SOME OF SUCH MATERIALS WERE
MANUFACTURED, PRODUCED OR ASSEMBLED OFF-SITE SUCH AS, BY WAY OF  EXAMPLE
AND NOT BY WAY OF LIMITATION, CONCRETE BLOCKS, WINDOWS, DOOR UNITS, WALL
OR ROOF PANELS, TRUSSES AND DORMERS.
  S 1242. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS. 1. GRANTS.
WITHIN  THE LIMIT OF FUNDS AVAILABLE IN THE MOBILE AND MANUFACTURED HOME
REPLACEMENT PROGRAM, THE CORPORATION IS HEREBY AUTHORIZED TO ENTER  INTO
CONTRACTS  WITH  ELIGIBLE  APPLICANTS  TO PROVIDE GRANTS, WHICH SHALL BE
USED TO ESTABLISH PROGRAMS TO PROVIDE ASSISTANCE  TO  ELIGIBLE  PROPERTY
OWNERS TO REPLACE DILAPIDATED MOBILE OR MANUFACTURED HOMES IN THE STATE.
  2.  PROGRAM CRITERIA. THE CORPORATION SHALL DEVELOP PROCEDURES, CRITE-
RIA AND REQUIREMENTS RELATED TO THE APPLICATION AND  AWARD  OF  PROJECTS
PURSUANT  TO  THIS  SECTION  WHICH  SHALL INCLUDE:   ELIGIBILITY, MARKET
DEMAND, FEASIBILITY AND  FUNDING  CRITERIA;  THE  FUNDING  DETERMINATION
PROCESS;  SUPERVISION  AND EVALUATION OF CONTRACTING APPLICANTS; REPORT-
ING, BUDGETING AND RECORD-KEEPING REQUIREMENTS; PROVISIONS FOR MODIFICA-
TION AND TERMINATION OF CONTRACTS; AND SUCH OTHER MATTERS NOT INCONSIST-
ENT WITH THE PURPOSES AND PROVISIONS OF THIS ARTICLE AS THE  CORPORATION
SHALL DEEM NECESSARY OR APPROPRIATE.
  3. CONTRACT LIMITATIONS. THE TOTAL CONTRACT PURSUANT TO ANY ONE ELIGI-
BLE  APPLICANT IN A SPECIFIED REGION SHALL NOT EXCEED FIVE HUNDRED THOU-
SAND DOLLARS AND THE  CONTRACT  SHALL  PROVIDE  FOR  COMPLETION  OF  THE
PROGRAM  WITHIN  A  REASONABLE PERIOD, AS SPECIFIED THEREIN, WHICH SHALL
NOT IN ANY EVENT EXCEED FOUR YEARS FROM  COMMENCEMENT  OF  THE  PROGRAM.
UPON REQUEST, THE CORPORATION MAY EXTEND THE TERM OF THE CONTRACT FOR UP

S. 6954--A                          3

TO  AN  ADDITIONAL  ONE YEAR PERIOD FOR GOOD CAUSE SHOWN BY THE ELIGIBLE
APPLICANT.
  4.  PLANNING AND ADMINISTRATIVE COSTS. THE CORPORATION SHALL AUTHORIZE
THE ELIGIBLE APPLICANT TO  SPEND  SEVEN  AND  ONE-HALF  PERCENT  OF  THE
CONTRACT  AMOUNT  FOR APPROVED PLANNING AND ADMINISTRATIVE COSTS ASSOCI-
ATED WITH ADMINISTERING THE PROGRAM.
  5. THE CORPORATION SHALL REQUIRE THAT, IN ORDER  TO  RECEIVE  A  GRANT
PURSUANT  TO  THIS  ARTICLE,  THE  ELIGIBLE PROPERTY OWNER SHALL HAVE NO
LIENS ON THE LAND AFTER CLOSING  THE  GRANT  OTHER  THAN  THE  NEW  HOME
FINANCING AND CURRENTLY EXISTING MORTGAGE OR MORTGAGES, AND ALL PROPERTY
TAXES AND INSURANCES MUST BE CURRENT.
  6.  ASSISTANCE. FINANCIAL ASSISTANCE TO ELIGIBLE PROPERTY OWNERS SHALL
BE ONE HUNDRED PERCENT GRANTS IN THE  FORM  OF  DEFERRED  PAYMENT  LOANS
(DPL). A TEN YEAR DECLINING BALANCE LIEN IN THE FORM OF A NOTE AND MORT-
GAGE,  DULY  FILED  AT  THE  COUNTY CLERK'S OFFICE, WILL BE UTILIZED FOR
REPLACEMENT PROJECTS. NO INTEREST OR PAYMENTS WILL BE  REQUIRED  ON  THE
DPL  UNLESS  THE  PROPERTY  IS SOLD OR TRANSFERRED BEFORE THE REGULATORY
TERM EXPIRES. IN SUCH CASES FUNDS WILL BE RECAPTURED FROM  THE  PROCEEDS
OF  THE  SALE  OF  THE  HOME,  ON  A  DECLINING BALANCE BASIS, UNLESS AN
INCOME-ELIGIBLE  IMMEDIATE  FAMILY  MEMBER  ACCEPTS  OWNERSHIP  OF,  AND
RESIDES  IN THE NEW REPLACEMENT HOME FOR THE REMAINDER OF THE REGULATORY
TERM.  IN ADDITION THE MOBILE AND MANUFACTURED HOME REPLACEMENT  PROGRAM
ESTABLISHED  BY  THIS  ARTICLE  SHALL:  (A) PROVIDE FUNDS FOR RELOCATION
ASSISTANCE TO HOMEOWNERS WHO ARE UNABLE TO VOLUNTARILY  RELOCATE  DURING
THE DEMOLITION AND CONSTRUCTION PHASES OF THE PROJECT; (B) PROVIDE FUND-
ING  FOR THE COSTS OF DEMOLISHING AND DISPOSING OF THE DILAPIDATED HOME;
AND (C) COMPLEMENT AND BE  IN  ADDITION  TO  ANY  EXISTING  MOBILE  HOME
REPLACEMENT  ESTABLISHED  UNDER THE NEW YORK STATE HOME PROGRAM PURSUANT
TO SECTION ELEVEN HUNDRED SEVENTY-TWO OF THIS CHAPTER, OR ANY  SUCCESSOR
THERETO, AND FUNDED WITH FEDERAL FUNDS.
  7.  HOMEOWNERSHIP  TRAINING. THE ELIGIBLE PROPERTY OWNER MUST AGREE TO
ATTEND AN APPROVED HOMEOWNERSHIP  TRAINING  PROGRAM  FOR  POST-PURCHASE,
CREDIT/BUDGET,  AND  HOME MAINTENANCE COUNSELING AS PART OF THE APPLICA-
TION PROCESS.
  8. FUNDING CRITERIA. THE TOTAL  PAYMENT  PURSUANT  TO  ANY  ONE  GRANT
CONTRACT  SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS AND THE CONTRACT
SHALL PROVIDE FOR COMPLETION OF THE PROGRAM WITHIN A REASONABLE  PERIOD,
AS SPECIFIED THEREIN, NOT TO EXCEED FOUR YEARS.
  9.  FUNDING  AND ANNUAL REPORT. THE CORPORATION IN ITS SOLE DISCRETION
SHALL AUTHORIZE ALL FUNDING DECISIONS AND MAKE ALL AWARD  ANNOUNCEMENTS.
THE  CORPORATION  SHALL, ON OR BEFORE DECEMBER THIRTY-FIRST IN EACH YEAR
SUBMIT A REPORT TO THE LEGISLATURE ON THE IMPLEMENTATION OF  THIS  ARTI-
CLE.  SUCH  REPORT  SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH AWARD
MADE TO A GRANTEE UNDER THIS  ARTICLE:  A  DESCRIPTION  OF  SUCH  AWARD;
CONTRACT  AMOUNT AND CUMULATIVE TOTAL; AND SUCH OTHER INFORMATION AS THE
CORPORATION DEEMS PERTINENT.
  S 2. This act shall take effect immediately.