S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    220
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  M.  of  A.  SANTABARBARA,  ABINANTI, SEPULVEDA, SKOUFIS,
   JENNE, CAHILL, MOSLEY, MONTESANO, ORTIZ, COOK, TITONE,  WALTER,  BENE-
   DETTO, BLAKE, RICHARDSON, STECK, STIRPE, M. G. MILLER, LENTOL, DAVILA,
   PALMESANO,  BARRETT,  RAMOS, WEPRIN, JAFFEE, HUNTER -- Multi-Sponsored
   by -- M. of A.   ABBATE, ENGLEBRIGHT, RAIA, TITUS  --  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 DWELL-
 ING 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD05255-01-7

 A. 220                              2
 
   (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
 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.
   § 2. This act shall take effect immediately.