Assembly Bill A11220

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11220
 
                           I N  A S S E M B L Y
 
                               June 15, 2018
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Cymbrowitz)
   -- (at request of the New York State Homes and Community  Renewal)  --
   read once and referred to the Committee on Housing
 
 AN  ACT  to  amend  the  private housing finance law, in relation to the
   powers of the New York state housing finance agency  and  the  housing
   trust  fund  corporation; and repealing certain provisions of such law
   relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 49 of the private housing finance law is REPEALED.
   § 2. Section 51 of the private housing finance law is REPEALED.
   § 3. Subdivision 1 of section 1102 of the private housing finance law,
 as  amended  by  chapter  199 of the laws of 2008, is amended to read as
 follows:
   1. Within the limit of funds  available  in  the  housing  trust  fund
 account,  the  corporation  is hereby authorized to enter into contracts
 with eligible applicants for the furnishing by such applicants of  hous-
 ing  for  persons  of  low income. Each such contract shall provide that
 eligible applicants rehabilitate or construct one or  more  projects  or
 convert  one  or  more  nonresidential  properties.  Such  contracts may
 provide for payments, grants or loans by the corporation for the  activ-
 ities  to  be  carried out by the eligible applicant under the contract.
 Such contracts shall provide that a private  developer  make  an  equity
 investment  of  the  greater  of (i) two and one-half percent of project
 costs or (ii) five percent of project costs less grants which are to  be
 applied to such costs. The foregoing shall not preclude a private devel-
 oper  from  making  a greater equity investment. Any payments, grants or
 loans made by the corporation outstanding at the time of resale shall be
 subject to repayment in whole or in part upon resale  after  termination
 of  the regulatory period and as otherwise provided therein. Such repay-
 ment provisions may survive the  end  of  the  regulatory  period.  Such
 contracts  may provide that eligible applicants shall either (a) perform
 activities specified under the contract themselves or (b) act as  admin-
 istrators  of  a  program  under  which  projects  are  rehabilitated or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14337-01-8

 A. 11220                            2
 
 constructed or nonresidential properties are converted by other eligible
 applicants or (c) perform both such functions. In the case of a  munici-
 pality  acting  as an administrator, funds provided to such municipality
 hereunder  shall  not  be deemed to be municipal funds.  The corporation
 shall refer any request for payments, grants or loans  from  persons  of
 low  income  to  eligible  applicants  in the area in which such persons
 reside. Loans may be in the form of participation in loans including but
 not limited to participation in loans originated or financed by  lending
 institutions  as defined in section forty-two of this chapter, the state
 of New York mortgage agency,  the  New  York  city  housing  development
 corporation,  the  New  York  state housing finance agency or private or
 public employee pension funds. Notwithstanding any  other  provision  of
 law,  payments,  grants  and  loans  may be deposited by the corporation
 directly with a lending institution at or before  the  time  of  initial
 loan  closing pursuant to an escrow agreement satisfactory to the corpo-
 ration. Payments, grants and loans shall be on such terms and conditions
 as the corporation, or the eligible applicant with the approval  of  the
 corporation,  as  the case may be, shall determine. Payments, grants and
 loans shall be used to pay for the actual and necessary cost of acquisi-
 tion, construction, rehabilitation or conversion, provided that not more
 than fifty percent of such payments, grants and loans received  for  the
 rehabilitation,  construction or conversion of a project may be used for
 the cost of the project's acquisition and not more than ten  percent  of
 such  payments,  grants  and  loans  may be used for the rehabilitation,
 construction or conversion of community service facilities and, provided
 further, that payments, grants or loans shall not be used  for  (i)  the
 administrative  costs  of  an  eligible  applicant  except  as otherwise
 authorized by law, (ii)  the  cost  of  the  acquisition,  construction,
 conversion  or  rehabilitation of residential units which, subsequent to
 such acquisition, construction, conversion or rehabilitation, are to  be
 occupied by persons other than persons of low income, and (iii) the cost
 of  the acquisition, construction, conversion or rehabilitation of units
 which, subsequent to such acquisition, construction, conversion or reha-
 bilitation, are occupied or to be occupied for  other  than  residential
 purposes, except for community service facilities as described above. No
 such  payments,  grants  or  loans  shall exceed a total of [one hundred
 twenty-five] ONE HUNDRED  SEVENTY-FIVE  thousand  dollars  per  dwelling
 unit.  Among  the criteria the corporation shall consider in determining
 whether to provide additional funds are: average cost of construction in
 the area, location of the project and the impact of the additional fund-
 ing on the affordability of  the  project  for  the  occupants  of  such
 project.  The  length  of any loan provided under this article shall not
 exceed [thirty] FIFTY years. No more than fifty  percent  of  the  total
 amount  originally  appropriated  pursuant to this article in any fiscal
 year shall be allocated to projects located within  any  single  munici-
 pality.  Of the amount originally appropriated to the corporation in any
 fiscal year, no more than thirty-three and one-third  percent  shall  be
 allocated  to private developers for projects within a city with a popu-
 lation of one million or more. Of the amount originally appropriated  to
 the  corporation  in any fiscal year, no more than thirty-three and one-
 third percent shall be allocated to private developers for  projects  in
 the area outside cities with a population of one million or more.
   § 4. This act shall take effect immediately.