S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8427
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 17, 2019
                                ___________
 
 Introduced  by  M. of A. CYMBROWITZ -- (at request of the New York State
   Homes and Community Renewal) -- read once and referred to the  Commit-
   tee on Housing
 
 AN ACT to amend the private housing finance law, in relation to loans by
   the housing trust fund corporation
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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
 constructed or nonresidential properties are converted by other eligible

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

                                                            LBD09319-01-9

 A. 8427                             2
 
 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 twen-
 ty-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 funding 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  years,  EXCEPT  IN
 INSTANCES  WHERE  A  LENGTHIER LOAN PERIOD IS NECESSARY TO PROVIDE FOR A
 LOAN TERM THAT IS CO-TERMINUS WITH THE TERMS OF OTHER FINANCING OR REGU-
 LATORY AGENCIES PARTICIPATING IN THE PROJECT. 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
 municipality.  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  population of one million or more. Of the amount originally appropri-
 ated 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.
   § 2. This act shall take effect immediately.