BILL NUMBER: S6412

SPONSOR: KAVANAGH
 
TITLE OF BILL:  An act to amend the public housing law, in relation to
the powers of the division of housing and community renewal

 
PURPOSE OF THE BILL:

This bill would amend the Public Housing Law to allow the Division of
Housing and Community Renewal (DHCR), the Housing Finance Agency, and
Housing Trust Fund Corporation and its subsidiaries (collectively "HCR")
to impose penalties and other remedies necessary to correct violations
of laws, regulations, or directives by housing providers that receive
financing or other benefits from HCR. This bill is necessary to ensure
compliance with the various requirements of affordable housing programs,
thereby, providing programmatic efficiencies and best use of HCR's
spending.

 
SUMMARY OF PROVISIONS:

The bill amends Section 14 of the Public Housing Law by adding a new
              

subdivision 8, as follows:

Section 1 provides that the Division of Housing and Community Renewal,
the Housing Finance Agency and the Housing Trust Fund Corporation and
its subsidiaries, are authorized to:

  A. Issue and impose orders, directives, and assess actual and pecuni-
     ary penalties, or other remedies necessary to ensure compliance and
     penalize noncompliance with law, regulation, directive, or agree-
     ment;
  B. Establish the procedure for the implementation of the requirements
     of the amendment; and
  C. Promulgate regulations and rules necessary to effectuate this
     amendment. The regulations and rules promulgated shall be operable
     to all housing providers, housing projects, or other entities that
     receive financing from HCR.

Section 2 provides for an immediate effective date.

 
JUSTIFICATION:

It is in the state's interest to ensure that the affordable housing
providers that receive financing from HCR comply the law and regulatory
agreements. The legislature created, as did the various housing agen-
cies, a variety of funding mechanisms and programs to provide affordable
housing, as well as remedies for failure to provide what is required by
law, regulation or directive. In light of the various funding incentives
and affordable housing schemes, the programs and laws must in some ways
differ. However, both the state and housing developers will benefit from
a more standard and unified approach, where possible, to procure similar
laws and procedures for noncompliance. In addition, the bill's require-
ments that the program remedies would be created by regulation or other
procedures, has the benefit that recipients and potential recipient of
HCR financing will be able to comment and interact during the process.

The passage of the bill will assist compliance efforts by allowing HCR
to issue orders, directive and impose actual and pecuniary penalties for
violations committed by affordable housing providers. Additionally,
codifying this power means that housing providers will comply with their
legal obligations to tenants if they receive financing from HCR. This
protects tenants and stabilizes the relation ship between the housing
provider and tenants, creating stronger and safer communities. The bill
is necessary in facilitating HCR's ability to provide and preserve
affordable housing across the state.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

There is no anticipated budget impact on this proposed legislation. In
fact, this bill will help maintain and provide funds for the state.

 
EFFECTIVE DATE:
Immediate