NY State Senate Bill S5257C

Current Bill Status - Passed Senate & Assembly

Introduced
In Committee
On Floor Calendar
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Actions

view actions (17)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 09, 2021	returned to senate passed assembly ordered to third reading rules cal.721 substituted for a6593b delivered to assembly passed senate
Jun 10, 2021	referred to codes
Jun 08, 2021	ordered to third reading cal.1642 committee discharged and committed to rules
Jun 06, 2021	print number 5257c
Jun 06, 2021	amend (t) and recommit to finance
May 25, 2021	print number 5257b
May 25, 2021	amend and recommit to finance
May 18, 2021	print number 5257a
May 18, 2021	amend (t) and recommit to finance reported and committed to finance
Mar 01, 2021	referred to housing, construction and community development

Votes

view votes

Jun 9, 2021 - floor Vote

S5257C

floor

Aye

Nay

Absent

Excused

Abstained

Jun 8, 2021 - Rules committee Vote

S5257C

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

May 18, 2021 - Housing, Construction and Community Development committee Vote

S5257

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show committee vote details

Committee Vote: May 18, 2021

aye (8)

nay (2)

aye wr (1)

Martucci

Bill Amendments

Original

C (Active)

Original

C (Active)

Co-Sponsors

S5257 - Details

See Assembly Version of this Bill:: A6593
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 31 §§1280 - 1282, Priv Hous Fin L

S5257 - Summary

Enacts the "Housing Our Neighbors with Dignity act" in order to provide a mechanism for the state to finance the acquisition of distressed hotels and commercial office properties by the appropriate nonprofit organizations for the purpose of maintaining or increasing affordable housing.

S5257 - Sponsor Memo

 
BILL NUMBER: S5257

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the private housing finance law and the state finance
law, in relation to enacting the "housing our neighbors with dignity
act"

 
PURPOSE:

To provide affordable permanent housing that meets standards established
to ensure safety, habitability, quality, and access to supportive
services as appropriate, for low-income households and people experienc-
ing homeless through the state's purchase and conversion of distressed
hotels and commercial properties in cities with a population of one
million or more.

 
SUMMARY OF PROVISIONS:

Section one titles the act.

Section two amends the private housing finance law by adding a new arti-
cle 31 which details the legislative findings and purposes, definitions,
and Housing our Neighbors with Dignity Program. The program will provide
a mechanism for the state to purchase, acquire, restore, and hold
distressed commercial real estate for the purposes of maintaining or
increasing affordable housing in New York City for two years following
the effective date of the act. These properties will then be sold or
otherwise transferred to entities that will use such property to guaran-
tee affordable, habitable, and environmentally sustainable housing to
asset-limited, low-income individuals and families. At least 50% of the
converted properties will be set aside for those experiencing homeless.
Affordable housing at these properties will be limited to those house-
holds with income at or below 50% of the area median income for the
county in which the property is located. Tenants of the affordable hous-
ing units will have full tenancy rights, and will have rent obligations
set at no more than 30% of their income.

Section three amends the state finance law by adding a new section 99-ii
which establishes a distressed property conversion fund which will be
used to finance the Housing our Neighbors with Dignity Program.

Section four sets the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

New York State faces an ongoing financial and public health crisis
related to housing. Currently, the number of homeless single adults in
New York City is 132% higher than it was ten years ago and has hit a
record 20,000 people in shelters as of October 2020. Additionally, New
York City has an unmet need for sub-50% AMI housing. Even prior to the
pandemic, as many as 580,000 New Yorkers are either rent burdened, over-
crowded, or living in long-term shelters according to the City Comp-
troller.


At the same time, the pandemic has hit New York's hotel industry hard;
in fact, as many as 25,000 rooms, or 20% of New York's total, may not
reopen. As a result, more than 25,000 hotel employees have been out of
work for more than six months. Moreover, according to CBRE Hotels
Research, US lodging demand is "forecast to increase by a compound annu-
al growth rate of 14.1% over the next four years, recovering to 2019
levels by Q3 2023."

This bill puts New York on a pathway to social housing with permanent
affordability. The state would also not be alone in implementing this
kind of solution. California has already taken steps to establish a
policy, known as the "HomeKey" program, to convert distressed hotels to
permanent housing utilizing federal funds.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
LOCAL FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

S5257 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5257
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend the private housing finance law and the state finance
   law, in relation to enacting the "housing our neighbors  with  dignity
   act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "housing our neighbors with dignity act".
   §  2. The private housing finance law is amended by adding a new arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   § 1280. LEGISLATIVE FINDINGS AND  PURPOSE.  THE  STATE  OF  NEW  YORK,
 THROUGH  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL, IS EMPOWERED TO
 PURCHASE AND CONVERT DISTRESSED HOTELS  AND  COMMERCIAL  PROPERTIES,  IN
 CITIES  WITH  A POPULATION OF ONE MILLION OR MORE, FOR USE AS AFFORDABLE
 PERMANENT HOUSING THAT MEETS STANDARDS  ESTABLISHED  TO  ENSURE  SAFETY,
 HABITABILITY, QUALITY, AND ACCESS TO SUPPORTIVE SERVICES AS APPROPRIATE,
 TO  BE  MADE  AVAILABLE TO LOW-INCOME HOUSEHOLDS AND PEOPLE EXPERIENCING
 HOMELESSNESS IMMEDIATELY PRIOR TO ENTERING SUCH HOUSING.  THESE  PROPER-
 TIES  WILL  BE  MANAGED  BY  APPROPRIATE NONPROFIT ORGANIZATIONS, EITHER
 THROUGH TRANSFER OF OWNERSHIP OR LONG-TERM NET LEASE  BY  THE  NEW  YORK
 GOVERNMENTAL ENTITY THAT ACQUIRED THE PROPERTY.
   THE ACQUIRED PROPERTIES MAY BE CONVERTED INTO HOUSING MODELS AS DEEMED
 NECESSARY  BY  THE  STATE  OR  APPROPRIATE  NONPROFIT  AUTHORITY FOR THE
 PURPOSES  OF  CREATING  SUPPORTIVE  AND/OR  AFFORDABLE  HOUSING   UNITS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09863-03-1

 S. 5257                             2
 
 PROVIDED  THAT  THE  HOUSING  REMAINS  AFFORDABLE AS DEFINED BY THE TERM
 AFFORDABLE HOUSING INCLUDED IN THIS ARTICLE.
   §  1281.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "APPROPRIATE NONPROFIT ORGANIZATION" SHALL MEAN A NONPROFIT  ORGAN-
 IZATION THAT:
   (A) HAS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I)  THE  PROVISION  OF HOUSING THAT IS AFFORDABLE TO LOW-INCOME FAMI-
 LIES; OR
   (II) THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR  FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION.
   2.  "AFFORDABLE  HOUSING"  SHALL  MEAN HOUSING THAT IS AFFORDABLE TO A
 LOW-INCOME HOUSEHOLD WITH INCOME AT OR BELOW FIFTY PERCENT OF  THE  AREA
 MEDIAN  INCOME FOR THE COUNTY IN WHICH THE PROPERTY IS LOCATED AS CALCU-
 LATED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
   3. "DISTRESSED" SHALL MEAN AN ASSET THAT IS:
   (A) LISTED FOR SALE; AND
   (B) IN A FINANCIALLY  DISTRESSING  CONDITION,  AS  DETERMINED  BY  THE
 STATE.
   4. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING  IN  SHELTERS,  TRANSITIONAL  HOUSING,  AND OTHER TYPES OF EMERGENCY
 HOUSING.
   5. "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE  RENT  STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN SEVENTY-FOUR, ALL AS IN
 EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO  THOU-
 SAND  TWENTY-ONE  THAT  ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   §  1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1. ESTABLISHMENT.
 THE COMMISSIONER, IN CONJUNCTION WITH THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL, SHALL DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 (HEREINAFTER REFERRED TO AS "THE PROGRAM"), WHICH SHALL PROVIDE A  MECH-
 ANISM  FOR THE STATE TO PURCHASE, ACQUIRE AND HOLD DISTRESSED COMMERCIAL
 REAL ESTATE AND OTHER COMMERCIAL PROPERTIES FOR THE PURPOSE OF MAINTAIN-
 ING OR INCREASING AFFORDABLE HOUSING IN CITIES WITH A POPULATION OF  ONE
 MILLION  OR  MORE.   SUCH PROGRAM SHALL ACTIVELY ACQUIRE SUCH PROPERTIES
 FOR TWO YEARS FOLLOWING THE EFFECTIVE DATE OF  THIS  ARTICLE;  PROVIDED,
 HOWEVER,  THAT  ALL  AFFORDABLE HOUSING PROPERTIES PRODUCED THROUGH THIS
 PROGRAM SHALL REMAIN PERMANENTLY AFFORDABLE, PURSUANT TO THIS ARTICLE.
   2. PURPOSE. THE PURPOSE OF THE  HOUSING  OUR  NEIGHBORS  WITH  DIGNITY
 PROGRAM SHALL BE TO:
   (A) ACQUIRE DISTRESSED COMMERCIAL REAL ESTATE PROPERTY FOR THE PURPOSE
 OF STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B)  CONVERT AND REHABILITATE THE PHYSICAL CONDITION OF ACQUIRED PROP-
 ERTY IN ORDER TO ENHANCE THE VALUE AND CONDITION OF  SUCH  PROPERTY  FOR
 FUTURE OCCUPANTS, FOR THE ENVIRONMENTAL SUSTAINABILITY OF SUCH PROPERTY,
 AND FOR THE ECONOMIC AND SOCIAL CONDITIONS OF THE SURROUNDING COMMUNITY;
   (C) SELL OR OTHERWISE TRANSFER ACQUIRED PROPERTY TO ENTITIES THAT WILL
 USE SUCH PROPERTY TO GUARANTEE AFFORDABLE, HABITABLE AND ENVIRONMENTALLY
 SUSTAINABLE  HOUSING  TO ASSET-LIMITED, LOW-INCOME INDIVIDUALS AND FAMI-
 LIES;
   (D) FINANCE THE TRANSFER OF ACQUIRED PROPERTY TO SUCH ENTITIES; AND

 S. 5257                             3
 
   (E)  PROVIDE  AN  APPROPRIATE  AND  EXPEDIENT  MANNER  FOR  OWNERS  OF
 DISTRESSED PROPERTIES TO TRANSFER OWNERSHIP OR LONG-TERM NET LEASE.
   3.  POWERS.  (A)  THE STATE MAY PURCHASE, ACQUIRE, AND HOLD DISTRESSED
 HOTEL REAL ESTATE ASSETS, AND MAY TAKE SUCH ACTIONS AS MAY BE  NECESSARY
 TO IDENTIFY SUCH DISTRESSED REAL ESTATE AND OTHER COMMERCIAL PROPERTIES,
 AND  ACQUIRE SUCH PROPERTIES, FOR THE PURPOSE OF MAINTAINING OR INCREAS-
 ING THE STOCK OF AFFORDABLE, STABLE, QUALITY HOUSING IN  CITIES  WITH  A
 POPULATION OF ONE MILLION OR MORE.
   (B) HOTEL REAL ESTATE ASSETS SHALL ONLY INCLUDE HOTELS WITH FEWER THAN
 ONE  HUNDRED  FIFTY  UNITS,  AND  THOSE  THAT ARE LOCATED IN ANY BOROUGH
 OUTSIDE OF MANHATTAN, OR WITHIN MANHATTAN EXCLUDING THE  FOLLOWING  AREA
 IN THE BOROUGH OF MANHATTAN: BEGINNING AT THE INTERSECTION OF THE UNITED
 STATES PIERHEAD LINE IN THE HUDSON RIVER AND THE CENTER LINE OF CHAMBERS
 STREET,  EXTENDED, THENCE EASTERLY TO THE CENTER LINE OF CHAMBERS STREET
 AND CONTINUING ALONG THE CENTER LINE OF CHAMBERS STREET  TO  THE  CENTER
 LINE  OF CENTRE STREET, THENCE SOUTHERLY ALONG THE CENTER LINE OF CENTRE
 STREET TO THE CENTER LINE OF THE BROOKLYN BRIDGE TO THE INTERSECTION  OF
 THE  BROOKLYN  BRIDGE  AND  THE  UNITED STATES PIERHEAD LINE IN THE EAST
 RIVER, THENCE NORTHERLY ALONG THE UNITED STATES  PIERHEAD  LINE  IN  THE
 EAST RIVER TO THE INTERSECTION OF THE UNITED STATES PIERHEAD LINE IN THE
 EAST  RIVER  AND  THE  CENTER LINE OF ONE HUNDRED TENTH STREET EXTENDED,
 THENCE WESTERLY TO THE CENTER LINE  OF  ONE  HUNDRED  TENTH  STREET  AND
 CONTINUING  ALONG  THE  CENTER  LINE  OF ONE HUNDRED TENTH STREET TO ITS
 WESTERLY TERMINUS, THENCE WESTERLY TO THE  INTERSECTION  OF  THE  CENTER
 LINE OF ONE HUNDRED TENTH STREET EXTENDED AND THE UNITED STATES PIERHEAD
 LINE IN THE HUDSON RIVER, THENCE SOUTHERLY ALONG THE UNITED STATES PIER-
 HEAD LINE IN THE HUDSON RIVER TO THE POINT OF BEGINNING.
   4.  CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY, SAFETY AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.  TENANTS
 SHALL PAY NO MORE THAN THIRTY PERCENT OF THEIR INCOME TOWARD RENT. ADDI-
 TIONAL OPERATING EXPENSES SHALL BE MET THROUGH ANY COMBINATION OF SUBSI-
 DIES, VOUCHERS, COMMERCIAL RENTS, OR OTHER SOURCES OF  INCOME  AVAILABLE
 TO  THE  HOUSING  PROVIDER  UNDER  THE  MODEL  THE NON-PROFIT CHOOSES TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN  THIS  ARTICLE.
 AT  LEAST  FIFTY  PERCENT OF ALL CONVERTED PROPERTIES SHALL BE SET ASIDE
 FOR INDIVIDUALS AND FAMILIES WHO WERE  EXPERIENCING  HOMELESSNESS  IMME-
 DIATELY PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.
   5.  RESTRICTIONS.  THE  STATE SHALL NOT, IN ANY CASE, SELL OR TRANSFER
 PROPERTY UNLESS THE STATE HAS:
   (A) TAKEN ALL ACTIONS NECESSARY TO BRING THE PROPERTY INTO  COMPLIANCE
 WITH  APPLICABLE  BUILDING,  SAFETY,  HEALTH  AND HABITABILITY CODES AND
 REQUIREMENTS; OR
   (B) ENTERED INTO SUCH AGREEMENTS WITH THE PURCHASER OR  TRANSFEREE  TO
 ENSURE  THAT ANY ACTIONS NECESSARY TO BRING THE PROPERTY INTO COMPLIANCE
 WITH APPLICABLE BUILDING, SAFETY,  HEALTH  AND  HABITABILITY  CODES  AND
 REQUIREMENTS WILL BE TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6.  TENANT  PROTECTIONS.  TENANTS  RESIDING IN PROPERTIES CONVERTED TO
 AFFORDABLE HOUSING PURSUANT TO THIS  SECTION  SHALL  HAVE  FULL  TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION  AS  DEFINED  IN THIS ARTICLE.   TENANCY IN SUCH AFFORDABLE HOUSING
 SHALL NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR  ORIENTATION,
 GENDER  IDENTITY  OR  EXPRESSION,  CONVICTION  OR  ARREST RECORD, CREDIT
 HISTORY, OR IMMIGRATION STATUS.
   § 3. The state finance law is amended by adding a new section 99-ii to
 read as follows:

 S. 5257                             4
 
   § 99-II. DISTRESSED PROPERTY  CONVERSION  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF THE COMMISSIONER OF HOUSING AND
 COMMUNITY RENEWAL AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE
 "DISTRESSED PROPERTY CONVERSION FUND".
   2.  THE  DISTRESSED PROPERTY CONVERSION FUND SHALL CONSIST OF MONETARY
 GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE FOR THE PURPOSES OF  THE
 FUND,  AND  ALL  OTHER  MONEYS  CREDITED OR TRANSFERRED THERETO FROM ANY
 OTHER FUND OR SOURCE. MONEYS OF SUCH FUND  SHALL  BE  EXPENDED  ONLY  TO
 CARRY  OUT  THE  PROVISIONS  OF  THE  HOUSING OUR NEIGHBORS WITH DIGNITY
 PROGRAM PURSUANT TO ARTICLE THIRTY-ONE OF THE  PRIVATE  HOUSING  FINANCE
 LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE FROM SOLICITING AND
 RECEIVING  GRANTS,  GIFTS  OR BEQUESTS FOR THE PURPOSES OF SUCH FUND AND
 DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONEYS IN SUCH FUND SHALL BE KEPT SEPARATE FROM AND  SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR
 THE COMMISSIONER OF TAXATION AND FINANCE. ANY MONEYS  OF  THE  FUND  NOT
 REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN
 CONSULTATION  WITH  THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMP-
 TROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE,  OR  IN  OBLI-
 GATIONS THE PRINCIPAL AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED
 STATES  OR  BY  THE  STATE.  ANY INCOME EARNED BY THE INVESTMENT OF SUCH
 MONEYS SHALL BE ADDED TO AND BECOME A PART OF AND SHALL BE USED FOR  THE
 PURPOSES OF SUCH FUND.
   §  4.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

Co-Sponsors

S5257A - Details

See Assembly Version of this Bill:: A6593
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 31 §§1280 - 1282, Priv Hous Fin L

S5257A - Summary

S5257A - Sponsor Memo

 
BILL NUMBER: S5257A

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the private housing finance law, the state finance law
and the multiple dwelling law, in relation to enacting the "housing our
neighbors with dignity act"

 
PURPOSE:

To provide affordable permanent housing that meets standards established
to ensure safety, habitability, quality, and access to supportive
services as appropriate, for low- and moderate-income households and
people experiencing homeless through the state's purchase or financing
of purchase, holding, and conversion of distressed hotels and commercial
office properties.

 
SUMMARY OF PROVISIONS:

Section one titles the act.

Section two amends the private housing finance law by adding a new arti-
cle 31 which details the legislative findings and purposes, definitions,
and Housing our Neighbors with Dignity Program. The program will provide
a mechanism for the state to purchase or finance the purchase, acquire,
restore, and hold distressed hotels and commercial office real estate
for the purposes of maintaining or increasing permanently affordable
housing in New York State. These properties will then be owned, oper-
ated, and managed by appropriate nonprofit organizations. Appropriate
nonprofit organizations will be designated via a vetting process devel-
oped by DHCR. At least 50% of the converted properties will be set aside
for those experiencing homeless. Requirements for what each unit must
contain is also outlined. Affordable housing will be achieved by ensur-
ing that the new housing achieves income averaging at or below 50% of
AMI, with residents' eligibility capped at a maximum of 80% AMI at the
start of their lease. In the case of a hotel property at which the prop-
erty owner of such property is a signatory to a collective bargaining
agreement, the property owner must certify prior to the state initiating
the purchase, acquisition, or holding that the collective bargaining
representative has mutually agreed with the property owner to take such
action. Tenants of the affordable housing units will have full tenancy
rights, will have rent stabilization in localities that have adopted or
opted into the rent stabilization law, and will have rent obligations
set at no more than 30% of their income.

Section three amends section 301 of the multiple dwelling law to add a
new subdivision 7 which provides that any certificate by the department
authorizing occupancy of a dwelling as a Class B hotel shall also
authorize occupancy of units in such dwelling for permanent residence
purposes notwithstanding any provision of this chapter or of any state
law, local law, ordinance, resolution or regulation that would otherwise
prohibit such occupancy, require a change or alteration to the dwelling,
or require a new or amended certificate provided that such occupancy for
permanent residence purposes shall be subject to the approval of the
local housing agency in its discretion; a portion of such dwelling shall
be located within four hundred feet of a district that under the local
zoning regulations or ordinances permits residential uses and such
dwelling shall not be located in an industrial business zone established
pursuant to chapter six-D of title twenty-two of the administrative code
of the city of New York; and such dwelling shall meet the conditions in
paragraph b of this subdivision. It also outlines circumstances under
which occupancy of units in a dwelling shall not be authorized under the
provisions of paragraph a of the subdivi sion unless such units are
purchased, acquired, or financed.

Section four amends the state finance law by adding a new section 99-ii
which establishes a social housing conversion fund which will be used to
finance the Housing our Neighbors with Dignity Program.

Section five sets the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

New York State faces an ongoing financial and public health crisis
related to housing. Currently, the number of homeless single adults in
New York City is 132% higher than it was ten years ago and has hit a
record 20,000 people in shelters as of October 2020. Additionally, even
prior to the pandemic, as many as 580,000 New Yorkers are either rent
burdened, overcrowded, or living in long-term shelters according to the
City Comptroller.

At the same time, the pandemic has hit New York's hotel industry hard;
in fact, as many as 25,000 rooms, or 20% of New York's total, may not
reopen. As a result, more than 25,000 hotel employees have been out of
work for more than six months. Moreover, according to CBRE Hotels
Research, US lodging demand is "forecast to increase by a compound annu-
al growth rate of 14.1% over the next four years, recovering to 2019
levels by Q3 2023."

This bill puts New York on a pathway to social housing with permanent
affordability. The state would also not be alone in implementing this
kind of solution. California has already taken steps to establish a
policy, known as the "HomeKey" program, to convert distressed hotels to
permanent housing utilizing federal funds.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
LOCAL FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

S5257A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5257--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced  by  Sens. GIANARIS, KAVANAGH, MYRIE, RIVERA, SALAZAR -- 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 committee
 
 AN  ACT  to amend the private housing finance law, the state finance law
   and the multiple dwelling law, in relation to  enacting  the  "housing
   our neighbors with dignity act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "housing our neighbors with dignity act".
   §  2. The private housing finance law is amended by adding a new arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   § 1280. LEGISLATIVE FINDINGS AND  PURPOSE.  THE  STATE  OF  NEW  YORK,
 THROUGH  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL, IS EMPOWERED TO
 PURCHASE, ACQUIRE, HOLD AND/OR CONVERT OR FINANCE THE PURCHASE, ACQUISI-
 TION, HOLDING AND/OR CONVERSION  OF  DISTRESSED  HOTELS  AND  COMMERCIAL
 OFFICE  PROPERTIES  FOR  USE  AS AFFORDABLE PERMANENT HOUSING THAT MEETS
 STANDARDS ESTABLISHED  TO  ENSURE  SAFETY,  HABITABILITY,  QUALITY,  AND
 ACCESS  TO  SUPPORTIVE  SERVICES AS APPROPRIATE, TO BE MADE AVAILABLE TO
 LOW-INCOME HOUSEHOLDS AND PEOPLE EXPERIENCING  HOMELESSNESS  IMMEDIATELY
 PRIOR  TO  ENTERING SUCH HOUSING. THESE PROPERTIES SHALL BE OWNED, OPER-
 ATED AND MANAGED BY APPROPRIATE NONPROFIT ORGANIZATIONS, EITHER  THROUGH
 TRANSFER  OF  OWNERSHIP  OR  LONG-TERM NET LEASE BY THE NEW YORK GOVERN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09863-04-1

 S. 5257--A                          2
 
 MENTAL ENTITY THAT ACQUIRED THE PROPERTY, OR THROUGH THE USE OF  GOVERN-
 MENT AGENCY FUNDING TO ACQUIRE THE PROPERTY.
   THE ACQUIRED PROPERTIES SHALL BE CONVERTED INTO PERMANENTLY AFFORDABLE
 HOUSING MODELED AS FINANCIALLY AND OPERATIONALLY DEEMED NECESSARY BY THE
 STATE OR APPROPRIATE NONPROFIT ORGANIZATION FOR THE PURPOSES OF CREATING
 SUPPORTIVE  AND/OR  PERMANENTLY  AFFORDABLE HOUSING UNITS; PROVIDED THAT
 THE HOUSING SHALL REMAIN AFFORDABLE AS DEFINED BY  THE  TERM  AFFORDABLE
 HOUSING INCLUDED IN THIS ARTICLE.
   §  1281.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "APPROPRIATE NONPROFIT ORGANIZATION" SHALL MEAN A BONA FIDE NONPRO-
 FIT ORGANIZATION THAT:
   (A) HAS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I) THE PROVISION OF HOUSING THAT IS AFFORDABLE  TO  LOW-INCOME  FAMI-
 LIES; OR
   (II)  THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION, BY A VETTING PROCESS DEVELOPED  BY  THE  DIVISION  OF
 HOUSING AND COMMUNITY RENEWAL.
   2.  "AFFORDABLE  HOUSING" SHALL MEAN HOUSING THAT IS AFFORDABLE TO LOW
 AND MODERATE-INCOME HOUSEHOLDS,  SUCH  THAT  THE  NEW  HOUSING  ACHIEVES
 INCOME  AVERAGING  AT  OR BELOW FIFTY PERCENT OF THE AREA MEDIAN INCOME,
 WITH RESIDENTS' ELIGIBILITY CAPPED AT A MAXIMUM OF EIGHTY PERCENT OF THE
 AREA MEDIAN  INCOME AT THE START OF THEIR LEASE. APPLICANTS SHALL NOT BE
 REJECTED FROM ELIGIBILITY BASED ON CREDIT HISTORIES OR CREDIT SCORES.
   3. "DISTRESSED" SHALL MEAN AN ASSET THAT IS FINANCIALLY DISTRESSED  OR
 FOR  SALE,  AS DETERMINED BY THE COMMISSIONER OF THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL.
   4. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING IN SHELTERS, TRANSITIONAL HOUSING, PUBLIC SPACES, AND OTHER TYPES OF
 EMERGENCY HOUSING.
   5. "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE  RENT  STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN SEVENTY-FOUR, ALL AS IN
 EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO  THOU-
 SAND  TWENTY-ONE  THAT  ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   §  1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1. ESTABLISHMENT.
 THE COMMISSIONER, IN CONJUNCTION WITH THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL, SHALL DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 (HEREINAFTER REFERRED TO AS "THE PROGRAM"), WHICH SHALL PROVIDE A  MECH-
 ANISM  FOR  THE  STATE  TO  PURCHASE, ACQUIRE AND HOLD DISTRESSED HOTELS
 AND/OR COMMERCIAL OFFICE PROPERTIES  OR  FINANCE  APPROPRIATE  NONPROFIT
 ORGANIZATIONS  TO ACQUIRE SUCH PROPERTIES FOR THE PURPOSE OF MAINTAINING
 OR INCREASING AFFORDABLE HOUSING.  SUCH PROGRAM SHALL  ACTIVELY  ACQUIRE
 SUCH  PROPERTIES FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE; PROVIDED,
 HOWEVER, THAT ALL AFFORDABLE HOUSING PROPERTIES  PRODUCED  THROUGH  THIS
 PROGRAM  SHALL  REMAIN PERMANENTLY AFFORDABLE, PURSUANT TO THIS ARTICLE.
 PERMANENT AFFORDABILITY RESTRICTIONS REQUIRE AT LEAST ONE OF THE FOLLOW-
 ING: (A) A NINETY-NINE-YEAR RENEWABLE LAND LEASE BETWEEN THE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL OR OTHER GOVERNMENT AGENCY AND THE NONPRO-
 FIT MANAGER WITH A REGULATORY  AGREEMENT  IN  PLACE,  WHERE  SUCH  LEASE
 INCLUDES   AUTOMATIC   REVERTER   LANGUAGE   FOR   REGULATORY  AGREEMENT
 VIOLATIONS, INCLUDING BUT NOT LIMITED TO FAILURE  TO  MEET  THE  MINIMUM

 S. 5257--A                          3
 
 OBLIGATIONS   SET   FORTH  IN  THIS  ARTICLE;  (B)  OTHER  AFFORDABILITY
 RESTRICTIONS IN LAND LEASES OR OTHER RECORDED DOCUMENTS NOT SPECIFICALLY
 LISTED IN THIS SUBDIVISION, SO LONG  AS  THE  DIVISION  OF  HOUSING  AND
 COMMUNITY  RENEWAL  OR  OTHER  GOVERNMENT  AGENCY  DETERMINES  THAT SUCH
 RESTRICTIONS ARE ENFORCEABLE AND LIKELY TO BE  ENFORCED,  INCLUDING  BUT
 NOT  LIMITED  TO  A REGULATORY AGREEMENT WITH A LOCAL HOUSING AGENCY; OR
 (C) A COMMUNITY LAND TRUST LEASE, WHICH IS A NINETY-NINE-YEAR  RENEWABLE
 LAND LEASE WITH AFFORDABILITY AND OWNER-OCCUPANCY RESTRICTIONS.
   2.  PURPOSE.  THE  PURPOSE  OF  THE HOUSING OUR NEIGHBORS WITH DIGNITY
 PROGRAM SHALL BE TO:
   (A) ACQUIRE OR FINANCE APPROPRIATE NONPROFIT ORGANIZATIONS TO  ACQUIRE
 DISTRESSED HOTELS AND/OR COMMERCIAL OFFICE PROPERTIES FOR THE PURPOSE OF
 STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B)  CONVERT  AND REHABILITATE OR FINANCE APPROPRIATE NONPROFIT ORGAN-
 IZATIONS TO CONVERT AND REHABILITATE THE PHYSICAL CONDITION OF  ACQUIRED
 PROPERTY  IN  ORDER TO ENHANCE THE CONDITION OF SUCH PROPERTY FOR FUTURE
 OCCUPANTS;
   (C) TRANSFER ACQUIRED PROPERTY TO APPROPRIATE NONPROFIT  ORGANIZATIONS
 THAT  WILL  OPERATE  AND  MANAGE  SUCH PROPERTY TO GUARANTEE AFFORDABLE,
 HABITABLE AND ENVIRONMENTALLY SUSTAINABLE HOUSING TO  FORMERLY  HOMELESS
 ASSET-LIMITED, OR LOW AND MODERATE-INCOME INDIVIDUALS AND FAMILIES;
   (D)  FINANCE  THE TRANSFER OF ACQUIRED PROPERTY TO SUCH ORGANIZATIONS;
 AND
   (E) PROVIDE AN APPROPRIATE AND EXPEDIENT MANNER  FOR  OWNERS  OF  SUCH
 DISTRESSED  PROPERTIES  TO TRANSFER OWNERSHIP TO THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL, ANY OTHER GOVERNMENT AGENCY, OR TO AN APPROPRIATE
 NONPROFIT ORGANIZATION.
   3. POWERS. THE STATE MAY PURCHASE, ACQUIRE, AND HOLD OR FINANCE APPRO-
 PRIATE NONPROFIT ORGANIZATIONS TO PURCHASE, ACQUIRE AND HOLD  DISTRESSED
 HOTEL  AND/OR COMMERCIAL OFFICE PROPERTIES IN ANY PART OF THE STATE, AND
 MAY TAKE SUCH ACTIONS AS MAY BE NECESSARY TO IDENTIFY AND  ACQUIRE  SUCH
 DISTRESSED  PROPERTIES, FOR THE PURPOSE OF MAINTAINING OR INCREASING THE
 STOCK OF AFFORDABLE, STABLE, QUALITY HOUSING; PROVIDED THAT IN THE  CASE
 OF  A  HOTEL  PROPERTY AT WHICH THE PROPERTY OWNER OF SUCH PROPERTY IS A
 SIGNATORY TO A COLLECTIVE BARGAINING AGREEMENT, THE PROPERTY OWNER  MUST
 CERTIFY  PRIOR  TO  THE  STATE  INITIATING THE PURCHASE, ACQUISITION, OR
 HOLDING THAT  THE  COLLECTIVE  BARGAINING  REPRESENTATIVE  HAS  MUTUALLY
 AGREED WITH THE PROPERTY OWNER TO TAKE SUCH ACTION.
   4.  CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY, SAFETY AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.  TENANTS
 SHALL PAY NO MORE THAN THIRTY PERCENT OF THEIR INCOME TOWARD RENT. ADDI-
 TIONAL OPERATING EXPENSES SHALL BE MET THROUGH ANY COMBINATION OF SUBSI-
 DIES, VOUCHERS, COMMERCIAL RENTS, OR OTHER SOURCES OF  INCOME  AVAILABLE
 TO  THE  HOUSING  PROVIDER  UNDER  THE  MODEL  THE NON-PROFIT CHOOSES TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN THIS ARTICLE IN
 LOCALITIES THAT HAVE ADOPTED OR OPTED IN TO THE RENT STABILIZATION  LAW.
 AT  LEAST  FIFTY  PERCENT OF ALL CONVERTED PROPERTIES SHALL BE SET ASIDE
 FOR INDIVIDUALS AND FAMILIES WHO WERE  EXPERIENCING  HOMELESSNESS  IMME-
 DIATELY  PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.  EACH UNIT
 MUST CONTAIN, AT A MINIMUM, A LIVING/SLEEPING  SPACE,  PRIVATE  BATHROOM
 WITH BATH AND/OR SHOWER, AND EITHER A FULL KITCHEN OR A KITCHENETTE WITH
 AT  LEAST  A  24-INCH  REFRIGERATOR,  SINK,  COOKTOP, MICROWAVE OVEN AND
 OUTLETS FOR COUNTERTOP APPLIANCES.
   5. RESTRICTIONS. THE STATE SHALL NOT, IN ANY CASE,  SELL  OR  TRANSFER
 PROPERTY UNLESS THE STATE HAS:

 S. 5257--A                          4

   (A)  TAKEN ALL ACTIONS NECESSARY TO BRING THE PROPERTY INTO COMPLIANCE
 WITH APPLICABLE BUILDING, SAFETY,  HEALTH  AND  HABITABILITY  CODES  AND
 REQUIREMENTS; OR
   (B)  ENTERED  INTO SUCH AGREEMENTS WITH THE PURCHASER OR TRANSFEREE TO
 ENSURE THAT ANY ACTIONS NECESSARY TO BRING THE PROPERTY INTO  COMPLIANCE
 WITH  APPLICABLE  BUILDING,  SAFETY,  HEALTH  AND HABITABILITY CODES AND
 REQUIREMENTS WILL BE TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6. TENANT PROTECTIONS. TENANTS RESIDING  IN  PROPERTIES  CONVERTED  TO
 AFFORDABLE  HOUSING  PURSUANT  TO  THIS  SECTION SHALL HAVE FULL TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION AS DEFINED IN THIS ARTICLE.   TENANCY IN  SUCH  AFFORDABLE  HOUSING
 SHALL  NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR ORIENTATION,
 GENDER IDENTITY OR  EXPRESSION,  CONVICTION  OR  ARREST  RECORD,  CREDIT
 HISTORY, OR IMMIGRATION STATUS.
   §  3.  Section 301 of the multiple dwelling law is amended by adding a
 new subdivision 7 to read as follows:
   7. A. ANY CERTIFICATE BY THE DEPARTMENT  AUTHORIZING  OCCUPANCY  OF  A
 DWELLING  AS  A CLASS B HOTEL SHALL ALSO AUTHORIZE OCCUPANCY OF UNITS IN
 SUCH DWELLING  FOR  PERMANENT  RESIDENCE  PURPOSES  NOTWITHSTANDING  ANY
 PROVISION  OF  THIS  CHAPTER  OR OF ANY STATE LAW, LOCAL LAW, ORDINANCE,
 RESOLUTION OR REGULATION THAT WOULD OTHERWISE PROHIBIT  SUCH  OCCUPANCY,
 REQUIRE  A  CHANGE  OR  ALTERATION  TO THE DWELLING, OR REQUIRE A NEW OR
 AMENDED CERTIFICATE, PROVIDED THAT: (I)  SUCH  OCCUPANCY  FOR  PERMANENT
 RESIDENCE PURPOSES SHALL BE SUBJECT TO THE APPROVAL OF THE LOCAL HOUSING
 AGENCY  IN  ITS  DISCRETION;  (II)  A  PORTION OF SUCH DWELLING SHALL BE
 LOCATED WITHIN FOUR HUNDRED FEET OF A  DISTRICT  THAT  UNDER  THE  LOCAL
 ZONING  REGULATIONS  OR  ORDINANCES  PERMITS  RESIDENTIAL  USES AND SUCH
 DWELLING SHALL NOT BE LOCATED IN AN INDUSTRIAL BUSINESS ZONE ESTABLISHED
 PURSUANT TO CHAPTER SIX-D OF TITLE TWENTY-TWO OF THE ADMINISTRATIVE CODE
 OF THE CITY OF NEW YORK; AND (III) SUCH DWELLING SHALL MEET  THE  CONDI-
 TIONS  IN PARAGRAPH B OF THIS SUBDIVISION. ALTERATIONS TO THE CONFIGURA-
 TION OF ANY SUCH UNITS SHALL BE PERMITTED  AND  SHALL  COMPLY  WITH  ANY
 APPLICABLE  REQUIREMENTS  OF ANY STATE LAW, LOCAL LAW, ORDINANCE, RESOL-
 UTION OR REGULATION RELATING TO CLASS B HOTELS. IF OCCUPANCY FOR  PERMA-
 NENT  RESIDENCE  PURPOSES  IS  AUTHORIZED  UNDER  THE PROVISIONS OF THIS
 SUBDIVISION WITHIN A DISTRICT WHERE  THE  LOCAL  ZONING  REGULATIONS  OR
 ORDINANCES  WOULD NOT OTHERWISE PERMIT SUCH USE, THE RESIDENTIAL TENANTS
 SHALL BE NOTIFIED OF THE DISTRICT'S ZONING.
   B. OCCUPANCY OF UNITS IN A DWELLING SHALL NOT BE AUTHORIZED UNDER  THE
 PROVISIONS  OF  PARAGRAPH  A  OF  THIS SUBDIVISION UNLESS SUCH UNITS ARE
 PURCHASED, ACQUIRED, OR FINANCED: (I) BY THE STATE PURSUANT  TO  AND  IN
 COMPLIANCE  WITH  THE  PROVISIONS  OF  ARTICLE THIRTY-ONE OF THE PRIVATE
 HOUSING FINANCE LAW; OR (II) BY A LOCAL HOUSING AGENCY, FOR THE  PURPOSE
 OF  CREATING  SUPPORTIVE  AND/OR AFFORDABLE HOUSING TO BE OPERATED BY AN
 APPROPRIATE NONPROFIT ORGANIZATION PURSUANT TO A REGULATORY AGREEMENT OR
 CONTRACT WITH SUCH LOCAL AGENCY  FOR  LOW-INCOME  HOUSEHOLDS  OR  PEOPLE
 EXPERIENCING  HOMELESSNESS  IMMEDIATELY  PRIOR TO ENTERING SUCH HOUSING,
 WHERE TENANTS SHALL PAY NO MORE THAN  THIRTY  PERCENT  OF  THEIR  INCOME
 TOWARD  RENT  AND ALL UNITS ARE RENT STABILIZED AND SUBJECT TO PERMANENT
 AFFORDABILITY RESTRICTIONS. FOR PURPOSES OF THIS PARAGRAPH, "APPROPRIATE
 NONPROFIT ORGANIZATION," "AFFORDABLE HOUSING,"  "EXPERIENCING  HOMELESS-
 NESS,"  "RENT  STABILIZED,"  AND  "PERMANENT AFFORDABILITY RESTRICTIONS"
 SHALL HAVE THE SAME MEANING AS DEFINED  IN  ARTICLE  THIRTY-ONE  OF  THE
 PRIVATE HOUSING FINANCE LAW.
   § 4. The state finance law is amended by adding a new section 99-nn to
 read as follows:

 S. 5257--A                          5
 
   §  99-NN.  SOCIAL  HOUSING  CONVERSION FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE  "SOCIAL
 HOUSING CONVERSION FUND".
   2.  THE  SOCIAL  HOUSING  CONVERSION  FUND  SHALL  CONSIST OF MONETARY
 GRANTS, GIFTS, BEQUESTS OR LOAN AUTHORITY RECEIVED BY THE STATE FOR  THE
 PURPOSES OF THE FUND, AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THER-
 ETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH FUND SHALL BE EXPENDED
 ONLY  TO  CARRY  OUT  THE  PROVISIONS  OF THE HOUSING OUR NEIGHBORS WITH
 DIGNITY PROGRAM PURSUANT TO ARTICLE THIRTY-ONE OF  THE  PRIVATE  HOUSING
 FINANCE LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE FROM SOLIC-
 ITING  AND  RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF SUCH
 FUND AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONEYS IN SUCH FUND SHALL BE KEPT SEPARATE FROM AND  SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR
 THE COMMISSIONER OF TAXATION AND FINANCE. ANY MONEYS  OF  THE  FUND  NOT
 REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN
 CONSULTATION  WITH  THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMP-
 TROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE,  OR  IN  OBLI-
 GATIONS THE PRINCIPAL AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED
 STATES  OR  BY  THE  STATE.  ANY INCOME EARNED BY THE INVESTMENT OF SUCH
 MONEYS SHALL BE ADDED TO AND BECOME A PART OF AND SHALL BE USED FOR  THE
 PURPOSES OF SUCH FUND.
   §  5.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

Co-Sponsors

S5257B - Details

See Assembly Version of this Bill:: A6593
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 31 §§1280 - 1282, Priv Hous Fin L

S5257B - Summary

S5257B - Sponsor Memo

 
BILL NUMBER: S5257B

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the private housing finance law, the state finance law
and the multiple dwelling law, in relation to enacting the "housing our
neighbors with dignity act"

 
PURPOSE:

To provide affordable permanent housing that meets standards established
to ensure safety, habitability, quality, and access to supportive
services as appropriate, for low- and moderate-income households and
people experiencing homeless through the state's purchase or financing
of purchase, holding, and conversion of distressed hotels and commercial
office properties.

 
SUMMARY OF PROVISIONS:

Section one titles the act.

Section two amends the private housing finance law by adding a new arti-
cle 31 which details the legislative findings and purposes, definitions,
and Housing our Neighbors with Dignity Program. The program will provide
a mechanism for the state to purchase or finance the purchase, acquire,
restore, and hold distressed hotels and commercial office real estate
for the purposes of maintaining or increasing permanently affordable
housing in New York State. These properties will then be owned, oper-
ated, and managed by appropriate nonprofit organizations. Appropriate
nonprofit organizations will be designated via a vetting process devel-
oped by DHCR. At least 50% of the converted properties will be set aside
for those experiencing homeless. Requirements for what each unit must
contain is also outlined. Affordable housing will be achieved by ensur-
ing that the new housing achieves income averaging at or below 50% of
AMI, with residents' eligibility capped at a maximum of 80% AMI at the
start of their lease. In addition, in the case of a property at which
any hotel workers are represented by a collective bargaining represen-
tative, prior to the proposed acquisition, the collective bargaining
representative shall be notified in writing of the proposed acquisition,
and the property owner shall certify prior to the state initiating the
acquisition that the collective bargaining representative has mutually
agreed in a separate writing with the property owner to take the specif-
ic acquisition described in the written notice. Tenants of the afforda-
ble housing units will have full tenancy rights, will have rent stabili-
zation in localities that have adopted or opted into the rent
stabilization law, and will have rent obligations set at no more than
30% of their income.

Section three amends section 301 of the multiple dwelling law to add a
new subdivision 7 which provides that any certificate by the department
authorizing occupancy of a dwelling as a Class B hotel shall also
authorize occupancy of units in such dwelling for permanent residence
purposes notwithstanding any provision of this chapter or of any state
law, local law, ordinance, resolution or regulation that would otherwise
prohibit such occupancy, require a change or alteration to the dwelling,
or require a new or amended certificate provided that such occupancy for
permanent residence purposes shall be subject to the approval of the
local housing agency in its discretion; a portion of such dwelling shall
be located within four hundred feet of a district that under the local
zoning regulations or ordinances permits residential uses and such
dwelling shall not be located in an industrial business zone established
pursuant to chapter six-D of title twenty-two of the administrative code
of the city of New York; and such dwelling shall meet the conditions in
paragraph b of this subdivision. It also outlines circumstances under
which occupancy of units in a dwelling shall not be authorized under the
provisions of paragraph a of the subdivision unless such units are
purchased, acquired, or financed.

Section four amends the state finance law by adding a new section 99-ii
which establishes a social housing conversion fund which will be used to
finance the Housing our Neighbors with Dignity Program.

Section five sets forth a non-severability clause. Section six sets the
effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

New York State faces an ongoing financial and public health crisis
related to housing. Currently, the number of homeless single adults in
New York City is 132% higher than it was ten years ago and has hit a
record 20,000 people in shelters as of October 2020. Additionally, even
prior to the pandemic, as many as 580,000 New Yorkers are either rent
burdened, overcrowded, or living in long-term shelters according to the
City Comptroller.

At the same time, the pandemic has hit New York's hotel industry hard;
in fact, as many as 25,000 rooms, or 20% of New York's total, may not
reopen. As a result, more than 25,000 hotel employees have been out of
work for more than six months. Moreover, according to CBRE Hotels
Research, US lodging demand is "forecast to increase by a compound annu-
al growth rate of 14.1% over the next four years, recovering to 2019
levels by Q3 2023."

This bill puts New York on a pathway to social housing with permanent
affordability. The state would also not be alone in implementing this
kind of solution. California has already taken steps to establish a
policy, known as the "HomeKey" program, to convert distressed hotels to
permanent housing utilizing federal funds.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
LOCAL FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

S5257B - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5257--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced by Sens. GIANARIS, BRISPORT, KAVANAGH, MYRIE, RIVERA, SALAZAR
   -- 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 committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to amend the private housing finance law, the state finance law
   and the multiple dwelling law, in relation to  enacting  the  "housing
   our neighbors with dignity act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "housing our neighbors with dignity act".
   §  2. The private housing finance law is amended by adding a new arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   § 1280. LEGISLATIVE FINDINGS AND  PURPOSE.  THE  STATE  OF  NEW  YORK,
 THROUGH  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL, IS EMPOWERED TO
 PURCHASE, ACQUIRE, HOLD AND/OR CONVERT OR FINANCE THE PURCHASE, ACQUISI-
 TION, HOLDING AND/OR CONVERSION  OF  DISTRESSED  HOTELS  AND  COMMERCIAL
 OFFICE  PROPERTIES  FOR  USE  AS AFFORDABLE PERMANENT HOUSING THAT MEETS
 STANDARDS ESTABLISHED  TO  ENSURE  SAFETY,  HABITABILITY,  QUALITY,  AND
 ACCESS  TO  SUPPORTIVE  SERVICES AS APPROPRIATE, TO BE MADE AVAILABLE TO
 LOW-INCOME HOUSEHOLDS AND PEOPLE EXPERIENCING  HOMELESSNESS  IMMEDIATELY
 PRIOR  TO  ENTERING SUCH HOUSING. THESE PROPERTIES SHALL BE OWNED, OPER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09863-06-1

 S. 5257--B                          2
 
 ATED AND MANAGED BY APPROPRIATE NONPROFIT ORGANIZATIONS, EITHER  THROUGH
 TRANSFER  OF  OWNERSHIP  OR  LONG-TERM NET LEASE BY THE NEW YORK GOVERN-
 MENTAL ENTITY THAT ACQUIRED THE PROPERTY, OR THROUGH THE USE OF  GOVERN-
 MENT AGENCY FUNDING TO ACQUIRE THE PROPERTY.
   THE ACQUIRED PROPERTIES SHALL BE CONVERTED INTO PERMANENTLY AFFORDABLE
 HOUSING MODELED AS FINANCIALLY AND OPERATIONALLY DEEMED NECESSARY BY THE
 STATE OR APPROPRIATE NONPROFIT ORGANIZATION FOR THE PURPOSES OF CREATING
 SUPPORTIVE  AND/OR  PERMANENTLY  AFFORDABLE HOUSING UNITS; PROVIDED THAT
 THE HOUSING SHALL REMAIN AFFORDABLE AS DEFINED BY  THE  TERM  AFFORDABLE
 HOUSING INCLUDED IN THIS ARTICLE.
   §  1281.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "APPROPRIATE NONPROFIT ORGANIZATION" SHALL MEAN A BONA FIDE NONPRO-
 FIT ORGANIZATION THAT:
   (A) HAS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I) THE PROVISION OF HOUSING THAT IS AFFORDABLE  TO  LOW-INCOME  FAMI-
 LIES; OR
   (II)  THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION, BY A VETTING PROCESS DEVELOPED  BY  THE  DIVISION  OF
 HOUSING AND COMMUNITY RENEWAL.
   2.  "AFFORDABLE  HOUSING" SHALL MEAN HOUSING THAT IS AFFORDABLE TO LOW
 AND MODERATE-INCOME HOUSEHOLDS,  SUCH  THAT  THE  NEW  HOUSING  ACHIEVES
 INCOME  AVERAGING  AT  OR BELOW FIFTY PERCENT OF THE AREA MEDIAN INCOME,
 WITH RESIDENTS' ELIGIBILITY CAPPED AT A MAXIMUM OF EIGHTY PERCENT OF THE
 AREA MEDIAN  INCOME AT THE START OF THEIR LEASE. APPLICANTS SHALL NOT BE
 REJECTED FROM ELIGIBILITY BASED ON CREDIT HISTORIES OR CREDIT SCORES.
   3. "DISTRESSED" SHALL MEAN AN ASSET THAT IS FINANCIALLY DISTRESSED  OR
 FOR  SALE,  AS DETERMINED BY THE COMMISSIONER OF THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL.
   4. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING IN SHELTERS, TRANSITIONAL HOUSING, PUBLIC SPACES, AND OTHER TYPES OF
 EMERGENCY HOUSING.
   5. "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE  RENT  STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN SEVENTY-FOUR, ALL AS IN
 EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO  THOU-
 SAND  TWENTY-ONE  THAT  ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   §  1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1. ESTABLISHMENT.
 THE COMMISSIONER, IN CONJUNCTION WITH THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL, SHALL DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 (HEREINAFTER REFERRED TO AS "THE PROGRAM"), WHICH SHALL PROVIDE A  MECH-
 ANISM  FOR  THE  STATE  TO  PURCHASE, ACQUIRE AND HOLD DISTRESSED HOTELS
 AND/OR COMMERCIAL OFFICE PROPERTIES  OR  FINANCE  APPROPRIATE  NONPROFIT
 ORGANIZATIONS  TO ACQUIRE SUCH PROPERTIES FOR THE PURPOSE OF MAINTAINING
 OR INCREASING AFFORDABLE HOUSING.  SUCH PROGRAM SHALL  ACTIVELY  ACQUIRE
 SUCH  PROPERTIES FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE; PROVIDED,
 HOWEVER, THAT ALL AFFORDABLE HOUSING PROPERTIES  PRODUCED  THROUGH  THIS
 PROGRAM  SHALL  REMAIN PERMANENTLY AFFORDABLE, PURSUANT TO THIS ARTICLE.
 PERMANENT AFFORDABILITY RESTRICTIONS REQUIRE AT LEAST ONE OF THE FOLLOW-
 ING: (A) A NINETY-NINE-YEAR RENEWABLE LAND LEASE BETWEEN THE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL OR OTHER GOVERNMENT AGENCY AND THE NONPRO-
 FIT MANAGER WITH A REGULATORY  AGREEMENT  IN  PLACE,  WHERE  SUCH  LEASE

 S. 5257--B                          3
 
 INCLUDES   AUTOMATIC   REVERTER   LANGUAGE   FOR   REGULATORY  AGREEMENT
 VIOLATIONS, INCLUDING BUT NOT LIMITED TO FAILURE  TO  MEET  THE  MINIMUM
 OBLIGATIONS   SET   FORTH  IN  THIS  ARTICLE;  (B)  OTHER  AFFORDABILITY
 RESTRICTIONS IN LAND LEASES OR OTHER RECORDED DOCUMENTS NOT SPECIFICALLY
 LISTED  IN  THIS  SUBDIVISION,  SO  LONG  AS THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL  OR  OTHER  GOVERNMENT  AGENCY  DETERMINES  THAT  SUCH
 RESTRICTIONS  ARE  ENFORCEABLE  AND LIKELY TO BE ENFORCED, INCLUDING BUT
 NOT LIMITED TO A REGULATORY AGREEMENT WITH A LOCAL  HOUSING  AGENCY;  OR
 (C)  A COMMUNITY LAND TRUST LEASE, WHICH IS A NINETY-NINE-YEAR RENEWABLE
 LAND LEASE WITH AFFORDABILITY AND OWNER-OCCUPANCY RESTRICTIONS.
   2. PURPOSE. THE PURPOSE OF THE  HOUSING  OUR  NEIGHBORS  WITH  DIGNITY
 PROGRAM SHALL BE TO:
   (A)  ACQUIRE OR FINANCE APPROPRIATE NONPROFIT ORGANIZATIONS TO ACQUIRE
 DISTRESSED HOTELS AND/OR COMMERCIAL OFFICE PROPERTIES FOR THE PURPOSE OF
 STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B) CONVERT AND REHABILITATE OR FINANCE APPROPRIATE  NONPROFIT  ORGAN-
 IZATIONS  TO CONVERT AND REHABILITATE THE PHYSICAL CONDITION OF ACQUIRED
 PROPERTY IN ORDER TO ENHANCE THE CONDITION OF SUCH PROPERTY  FOR  FUTURE
 OCCUPANTS;
   (C)  TRANSFER ACQUIRED PROPERTY TO APPROPRIATE NONPROFIT ORGANIZATIONS
 THAT WILL OPERATE AND MANAGE  SUCH  PROPERTY  TO  GUARANTEE  AFFORDABLE,
 HABITABLE  AND  ENVIRONMENTALLY SUSTAINABLE HOUSING TO FORMERLY HOMELESS
 ASSET-LIMITED, OR LOW AND MODERATE-INCOME INDIVIDUALS AND FAMILIES;
   (D) FINANCE THE TRANSFER OF ACQUIRED PROPERTY TO  SUCH  ORGANIZATIONS;
 AND
   (E)  PROVIDE  AN  APPROPRIATE  AND EXPEDIENT MANNER FOR OWNERS OF SUCH
 DISTRESSED PROPERTIES TO TRANSFER OWNERSHIP TO THE DIVISION  OF  HOUSING
 AND COMMUNITY RENEWAL, ANY OTHER GOVERNMENT AGENCY, OR TO AN APPROPRIATE
 NONPROFIT ORGANIZATION.
   3. POWERS. THE STATE MAY PURCHASE, ACQUIRE, AND HOLD OR FINANCE APPRO-
 PRIATE  NONPROFIT ORGANIZATIONS TO PURCHASE, ACQUIRE AND HOLD DISTRESSED
 HOTEL AND/OR COMMERCIAL OFFICE PROPERTIES IN ANY PART OF THE STATE,  AND
 MAY  TAKE  SUCH ACTIONS AS MAY BE NECESSARY TO IDENTIFY AND ACQUIRE SUCH
 DISTRESSED PROPERTIES, FOR THE PURPOSE OF MAINTAINING OR INCREASING  THE
 STOCK  OF  AFFORDABLE, STABLE, QUALITY HOUSING, AND SUCH ACTION SHALL BE
 DEFINED AS AN ACQUISITION FOR PURPOSES  OF  THIS  SUBDIVISION;  PROVIDED
 THAT  IN  THE  CASE OF A PROPERTY AT WHICH ANY HOTEL WORKERS ARE REPRES-
 ENTED BY A COLLECTIVE BARGAINING REPRESENTATIVE, PRIOR TO  THE  PROPOSED
 ACQUISITION,  THE COLLECTIVE BARGAINING REPRESENTATIVE SHALL BE NOTIFIED
 IN WRITING OF THE PROPOSED ACQUISITION, AND  THE  PROPERTY  OWNER  SHALL
 CERTIFY  PRIOR TO THE STATE INITIATING SUCH ACQUISITION THAT THE COLLEC-
 TIVE BARGAINING REPRESENTATIVE HAS MUTUALLY AGREED IN A SEPARATE WRITING
 WITH THE PROPERTY OWNER TO TAKE THE SPECIFIC  ACQUISITION  DESCRIBED  IN
 THE WRITTEN NOTICE.
   4.  CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY, SAFETY AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.  TENANTS
 SHALL PAY NO MORE THAN THIRTY PERCENT OF THEIR INCOME TOWARD RENT. ADDI-
 TIONAL OPERATING EXPENSES SHALL BE MET THROUGH ANY COMBINATION OF SUBSI-
 DIES, VOUCHERS, COMMERCIAL RENTS, OR OTHER SOURCES OF  INCOME  AVAILABLE
 TO  THE  HOUSING  PROVIDER  UNDER  THE  MODEL  THE NON-PROFIT CHOOSES TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN THIS ARTICLE IN
 LOCALITIES THAT HAVE ADOPTED OR OPTED IN TO THE RENT STABILIZATION  LAW.
 AT  LEAST  FIFTY  PERCENT OF ALL CONVERTED PROPERTIES SHALL BE SET ASIDE
 FOR INDIVIDUALS AND FAMILIES WHO WERE  EXPERIENCING  HOMELESSNESS  IMME-
 DIATELY  PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.  EACH UNIT

 S. 5257--B                          4
 
 MUST CONTAIN, AT A MINIMUM, A LIVING/SLEEPING  SPACE,  PRIVATE  BATHROOM
 WITH BATH AND/OR SHOWER, AND EITHER A FULL KITCHEN OR A KITCHENETTE WITH
 AT  LEAST  A  24-INCH  REFRIGERATOR,  SINK,  COOKTOP, MICROWAVE OVEN AND
 OUTLETS FOR COUNTERTOP APPLIANCES.
   5.  RESTRICTIONS.  THE  STATE SHALL NOT, IN ANY CASE, SELL OR TRANSFER
 PROPERTY UNLESS THE STATE HAS:
   (A) TAKEN ALL ACTIONS NECESSARY TO BRING THE PROPERTY INTO  COMPLIANCE
 WITH  APPLICABLE  BUILDING,  SAFETY,  HEALTH  AND HABITABILITY CODES AND
 REQUIREMENTS; OR
   (B) ENTERED INTO SUCH AGREEMENTS WITH THE PURCHASER OR  TRANSFEREE  TO
 ENSURE  THAT ANY ACTIONS NECESSARY TO BRING THE PROPERTY INTO COMPLIANCE
 WITH APPLICABLE BUILDING, SAFETY,  HEALTH  AND  HABITABILITY  CODES  AND
 REQUIREMENTS WILL BE TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6.  TENANT  PROTECTIONS.  TENANTS  RESIDING IN PROPERTIES CONVERTED TO
 AFFORDABLE HOUSING PURSUANT TO THIS  SECTION  SHALL  HAVE  FULL  TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION  AS  DEFINED  IN THIS ARTICLE.   TENANCY IN SUCH AFFORDABLE HOUSING
 SHALL NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR  ORIENTATION,
 GENDER  IDENTITY  OR  EXPRESSION,  CONVICTION  OR  ARREST RECORD, CREDIT
 HISTORY, OR IMMIGRATION STATUS.
   § 3. Section 301 of the multiple dwelling law is amended by  adding  a
 new subdivision 7 to read as follows:
   7.  A.  ANY  CERTIFICATE  BY THE DEPARTMENT AUTHORIZING OCCUPANCY OF A
 DWELLING AS A CLASS B HOTEL SHALL ALSO AUTHORIZE OCCUPANCY OF  UNITS  IN
 SUCH  DWELLING  FOR  PERMANENT  RESIDENCE  PURPOSES  NOTWITHSTANDING ANY
 PROVISION OF THIS CHAPTER OR OF ANY STATE  LAW,  LOCAL  LAW,  ORDINANCE,
 RESOLUTION  OR  REGULATION THAT WOULD OTHERWISE PROHIBIT SUCH OCCUPANCY,
 REQUIRE A CHANGE OR ALTERATION TO THE DWELLING,  OR  REQUIRE  A  NEW  OR
 AMENDED  CERTIFICATE,  PROVIDED  THAT:  (I) SUCH OCCUPANCY FOR PERMANENT
 RESIDENCE PURPOSES SHALL BE SUBJECT TO THE APPROVAL OF THE LOCAL HOUSING
 AGENCY IN ITS DISCRETION; (II) A  PORTION  OF  SUCH  DWELLING  SHALL  BE
 LOCATED  WITHIN  FOUR  HUNDRED  FEET  OF A DISTRICT THAT UNDER THE LOCAL
 ZONING REGULATIONS OR  ORDINANCES  PERMITS  RESIDENTIAL  USES  AND  SUCH
 DWELLING SHALL NOT BE LOCATED IN AN INDUSTRIAL BUSINESS ZONE ESTABLISHED
 PURSUANT TO CHAPTER SIX-D OF TITLE TWENTY-TWO OF THE ADMINISTRATIVE CODE
 OF  THE  CITY OF NEW YORK; AND (III) SUCH DWELLING SHALL MEET THE CONDI-
 TIONS IN PARAGRAPH B OF THIS SUBDIVISION. ALTERATIONS TO THE  CONFIGURA-
 TION  OF  ANY  SUCH  UNITS  SHALL BE PERMITTED AND SHALL COMPLY WITH ANY
 APPLICABLE REQUIREMENTS OF ANY STATE LAW, LOCAL LAW,  ORDINANCE,  RESOL-
 UTION  OR REGULATION RELATING TO CLASS B HOTELS. IF OCCUPANCY FOR PERMA-
 NENT RESIDENCE PURPOSES IS  AUTHORIZED  UNDER  THE  PROVISIONS  OF  THIS
 SUBDIVISION  WITHIN  A  DISTRICT  WHERE  THE LOCAL ZONING REGULATIONS OR
 ORDINANCES WOULD NOT OTHERWISE PERMIT SUCH USE, THE RESIDENTIAL  TENANTS
 SHALL BE NOTIFIED OF THE DISTRICT'S ZONING.
   B.  OCCUPANCY OF UNITS IN A DWELLING SHALL NOT BE AUTHORIZED UNDER THE
 PROVISIONS OF PARAGRAPH A OF THIS  SUBDIVISION  UNLESS  SUCH  UNITS  ARE
 PURCHASED,  ACQUIRED,  OR  FINANCED: (I) BY THE STATE PURSUANT TO AND IN
 COMPLIANCE WITH THE PROVISIONS OF  ARTICLE  THIRTY-ONE  OF  THE  PRIVATE
 HOUSING  FINANCE LAW; OR (II) BY A LOCAL HOUSING AGENCY, FOR THE PURPOSE
 OF CREATING SUPPORTIVE AND/OR AFFORDABLE HOUSING TO BE  OPERATED  BY  AN
 APPROPRIATE NONPROFIT ORGANIZATION PURSUANT TO A REGULATORY AGREEMENT OR
 CONTRACT  WITH  SUCH  LOCAL  AGENCY  FOR LOW-INCOME HOUSEHOLDS OR PEOPLE
 EXPERIENCING HOMELESSNESS IMMEDIATELY PRIOR TO  ENTERING  SUCH  HOUSING,
 WHERE  TENANTS  SHALL  PAY  NO  MORE THAN THIRTY PERCENT OF THEIR INCOME
 TOWARD RENT AND ALL UNITS ARE RENT STABILIZED AND SUBJECT  TO  PERMANENT
 AFFORDABILITY RESTRICTIONS. FOR PURPOSES OF THIS PARAGRAPH, "APPROPRIATE

 S. 5257--B                          5
 
 NONPROFIT  ORGANIZATION,"  "AFFORDABLE HOUSING," "EXPERIENCING HOMELESS-
 NESS," "RENT STABILIZED,"  AND  "PERMANENT  AFFORDABILITY  RESTRICTIONS"
 SHALL  HAVE  THE  SAME  MEANING  AS DEFINED IN ARTICLE THIRTY-ONE OF THE
 PRIVATE HOUSING FINANCE LAW.
   § 4. The state finance law is amended by adding a new section 99-nn to
 read as follows:
   §  99-NN.  SOCIAL  HOUSING  CONVERSION FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE  "SOCIAL
 HOUSING CONVERSION FUND".
   2.  THE  SOCIAL  HOUSING  CONVERSION  FUND  SHALL  CONSIST OF MONETARY
 GRANTS, GIFTS, BEQUESTS OR LOAN AUTHORITY RECEIVED BY THE STATE FOR  THE
 PURPOSES OF THE FUND, AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THER-
 ETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH FUND SHALL BE EXPENDED
 ONLY  TO  CARRY  OUT  THE  PROVISIONS  OF THE HOUSING OUR NEIGHBORS WITH
 DIGNITY PROGRAM PURSUANT TO ARTICLE THIRTY-ONE OF  THE  PRIVATE  HOUSING
 FINANCE LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE FROM SOLIC-
 ITING  AND  RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF SUCH
 FUND AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONEYS IN SUCH FUND SHALL BE KEPT SEPARATE FROM AND  SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR
 THE COMMISSIONER OF TAXATION AND FINANCE. ANY MONEYS  OF  THE  FUND  NOT
 REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN
 CONSULTATION  WITH  THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMP-
 TROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE,  OR  IN  OBLI-
 GATIONS THE PRINCIPAL AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED
 STATES  OR  BY  THE  STATE.  ANY INCOME EARNED BY THE INVESTMENT OF SUCH
 MONEYS SHALL BE ADDED TO AND BECOME A PART OF AND SHALL BE USED FOR  THE
 PURPOSES OF SUCH FUND.
   §  5.  Non-severability  clause. If any clause, sentence, subdivision,
 paragraph, section or part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, and such decision is not  reversed
 or  is otherwise deemed to be final, such judgment shall have the effect
 of rendering this act invalid, inoperative and void.
   § 6. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.

Co-Sponsors

S5257C (ACTIVE) - Details

See Assembly Version of this Bill:: A6593
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 31 §§1280 - 1282, Priv Hous Fin L

S5257C (ACTIVE) - Summary

S5257C (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5257C

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to enacting
the "housing our neighbors with dignity act"

 
PURPOSE:

To provide affordable permanent housing that meets standards established
to ensure safety, habitability, quality, and access to supportive
services as appropriate, for low- and moderate-income households and
people experiencing homeless through the state's purchase or financing
of purchase, holding, and conversion of distressed hotels and commercial
office properties.

 
SUMMARY OF PROVISIONS:

Section one titles the act.

Section two amends the private housing finance law by adding a new arti-
cle 31 which details the legislative findings and purposes, definitions,
and Housing our Neighbors with Dignity Program. The program will provide
a mechanism for the state to purchase or finance the purchase, acquire,
restore, and hold distressed hotels and commercial office real estate
for the purposes of maintaining or increasing permanently affordable
housing in New York State. These properties will then be owned, oper-
ated, and managed by appropriate nonprofit organizations. Appropriate
nonprofit organizations will be designated via a vetting process devel-
oped by DHCR. At least 50% of the converted properties will be set aside
for those experiencing homeless. Requirements for what each unit must
contain is also outlined. Affordable housing will be achieved by ensur-
ing that the new housing achieves income averaging at or below 50% of
AMI, with residents' eligibility capped at a maximum of 80% AMI at the
start of their lease. In addition, in the case of a property at which
any hotel workers are represented by a collective bargaining represen-
tative, prior to the proposed acquisition, the collective bargaining
representative shall be notified in writing of the proposed acquisition,
and the property owner shall certify prior to the state initiating the
acquisition that the collective bargaining representative has mutually
agreed in a separate writing with the property owner to take the specif-
ic acquisition described in the written notice. Tenants of the afforda-
ble housing units will have full tenancy rights, will have rent stabili-
zation in localities that have adopted or opted into the rent
stabilization law, and will have rent obligations set at no more than
30% of their income.

Section three amends section 301 of the multiple dwelling law to add a
new subdivision 7 which provides that any certificate by the department
authorizing occupancy of a dwelling as a Class B hotel shall also
authorize occupancy of units in such dwelling for permanent residence
purposes notwithstanding any provision of this chapter or of any state
law, local law, ordinance, resolution or regulation that would otherwise
prohibit such occupancy, require a change or alteration to the dwelling,
or require a new or amended certificate provided that such occupancy for
permanent residence purposes shall be subject to the approval of the
local housing agency in its discretion; a portion of such dwelling shall
be located within four hundred feet of a district that under the local
zoning regulations or ordinances permits residential uses and such
dwelling shall not be located in an industrial business zone established
pursuant to chapter six-D of title twenty-two of the administrative code
of the city of New York; and such dwelling shall meet the conditions in
paragraph b of this subdivision. It also outlines circumstances under
which occupancy of units in a dwelling shall not be authorized under the
provisions of paragraph a of the subdivision unless such units are
purchased, acquired, or financed.

Section four amends the state finance law by adding a new section 99-ii
which establishes a social housing conversion fund which will be used to
finance the Housing our Neighbors with Dignity Program.

Section five sets forth a non-severability clause. Section six sets the
effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

New York State faces an ongoing financial and public health crisis
related to housing. Currently, the number of homeless single adults in
New York City is 132% higher than it was ten years ago and has hit a
record 20,000 people in shelters as of October 2020. Additionally, even
prior to the pandemic, as many as 580,000 New Yorkers are either rent
burdened, overcrowded, or living in long-term shelters according to the
City Comptroller.

At the same time, the pandemic has hit New York's hotel industry hard;
in fact, as many as 25,000 rooms, or 20% of New York's total, may not
reopen. As a result, more than 25,000 hotel employees have been out of
work for more than six months. Moreover, according to CBRE Hotels
Research, US lodging demand is "forecast to increase by a compound annu-
al growth rate of 14.1% over the next four years, recovering to 2019
levels by Q3 2023."

This bill puts New York on a pathway to social housing with permanent
affordability. The state would also not be alone in implementing this
kind of solution. California has already taken steps to establish a
policy, known as the "HomeKey" program, to convert distressed hotels to
permanent housing utilizing federal funds.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
LOCAL FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.

S5257C (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5257--C
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced by Sens. GIANARIS, BRISPORT, KAVANAGH, MYRIE, RIVERA, SALAZAR
   -- 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 committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the private housing finance law, in relation to enacting
   the "housing our neighbors with dignity act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "housing our neighbors with dignity act".
   § 2. The private housing finance law is amended by adding a new  arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   §  1280.  LEGISLATIVE  FINDINGS  AND  PURPOSE.  THE STATE OF NEW YORK,
 THROUGH THE HOUSING TRUST FUND CORPORATION, IS EMPOWERED TO FINANCE  THE
 PURCHASE,  ACQUISITION,  HOLDING  OR CONVERSION OF DISTRESSED HOTELS AND
 COMMERCIAL OFFICE PROPERTIES FOR USE  AS  AFFORDABLE  PERMANENT  HOUSING
 THAT  MEETS STANDARDS ESTABLISHED TO ENSURE SAFETY, HABITABILITY, QUALI-
 TY, AND ACCESS TO SUPPORTIVE SERVICES AS APPROPRIATE, TO BE MADE  AVAIL-
 ABLE TO LOW-INCOME HOUSEHOLDS AND PEOPLE EXPERIENCING HOMELESSNESS IMME-
 DIATELY PRIOR TO ENTERING SUCH HOUSING. THESE PROPERTIES SHALL BE OWNED,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09863-10-1

 S. 5257--C                          2
 
 OPERATED  AND MANAGED BY APPROPRIATE NONPROFIT ORGANIZATIONS THROUGH THE
 USE OF GOVERNMENT AGENCY FUNDING TO ACQUIRE THE PROPERTY.
   THE ACQUIRED PROPERTIES SHALL BE CONVERTED INTO PERMANENTLY AFFORDABLE
 HOUSING MODELED AS FINANCIALLY AND OPERATIONALLY DEEMED NECESSARY BY THE
 STATE OR APPROPRIATE NONPROFIT ORGANIZATION FOR THE PURPOSES OF CREATING
 SUPPORTIVE  OR  PERMANENTLY  AFFORDABLE HOUSING UNITS; PROVIDED THAT THE
 HOUSING SHALL REMAIN AFFORDABLE AS DEFINED BY THE TERM AFFORDABLE  HOUS-
 ING INCLUDED IN THIS ARTICLE.
   §  1281.  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 PURSUANT TO SECTION FORTY-FIVE-A OF THIS CHAPTER.
   2.  "APPROPRIATE  NONPROFIT  ORGANIZATION" SHALL MEAN A NOT-FOR-PROFIT
 ORGANIZATION THAT:
   (A) HAS AS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I) THE PROVISION OF HOUSING THAT IS AFFORDABLE  TO  LOW-INCOME  FAMI-
 LIES; OR
   (II)  THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION, BY A VETTING PROCESS DEVELOPED BY THE CORPORATION.
   3. "AFFORDABLE HOUSING" SHALL MEAN PERMANENT HOUSING THAT IS  AFFORDA-
 BLE  TO  LOW  AND  MODERATE-INCOME HOUSEHOLDS, SUCH THAT THE NEW HOUSING
 ACHIEVES INCOME AVERAGING AT OR BELOW FIFTY PERCENT OF THE  AREA  MEDIAN
 INCOME,  WITH  RESIDENTS'  ELIGIBILITY  CAPPED  AT  A  MAXIMUM OF EIGHTY
 PERCENT OF THE AREA MEDIAN  INCOME AT THE START OF THEIR  LEASE.  APPLI-
 CANTS  SHALL  NOT BE REJECTED FROM ELIGIBILITY BASED ON CREDIT HISTORIES
 OR CREDIT SCORES.
   4. "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS  REGULARLY
 EMPLOYED  AT,  AND  PERFORMS WORK IN CONNECTION WITH THE CARE OR MAINTE-
 NANCE OF, A CONVERTED PROPERTY IN  A  CITY  WITH  A  POPULATION  OF  ONE
 MILLION  OR MORE, INCLUDING BUT NOT LIMITED TO, A WATCHMAN, GUARD, DOOR-
 MAN, BUILDING CLEANER, PORTER, HANDYMAN, JANITOR, GARDENER, GROUNDSKEEP-
 ER, ELEVATOR OPERATOR AND STARTER, OR WINDOW CLEANER.
   5. "DISTRESSED" SHALL MEAN AN  AVAILABLE  ASSET  THAT  IS  FINANCIALLY
 DISTRESSED AS DETERMINED BY THE CORPORATION.
   6. "EXEMPT SUPPORTIVE HOUSING" SHALL MEAN CONVERTED PROPERTY FOR WHICH
 A NONPROFIT ORGANIZATION HAS:
   (A)  ENTERED  INTO  A  REGULATORY  AGREEMENT WITH A FEDERAL, STATE, OR
 LOCAL GOVERNMENT ENTITY IN A CITY WITH A POPULATION OF  ONE  MILLION  OR
 MORE THAT REQUIRES:
   (I)  AT LEAST FIFTY PERCENT OF THE RESIDENTIAL UNITS IN SUCH CONVERTED
 PROPERTY BE RESERVED FOR  HOMELESS,  DISABLED  INDIVIDUALS  OR  HOMELESS
 FAMILIES WITH A DISABLED HEAD-OF-HOUSEHOLD; AND
   (II)  THE PROVISION OF ON-SITE SUPPORTIVE SERVICES TO THE RESIDENTS OF
 AT LEAST FIFTY PERCENT OF THE RESIDENTIAL UNITS; AND
   (B) THE REMAINING FIFTY PERCENT  OF  THE  RESIDENTIAL  UNITS  IN  SUCH
 CONVERTED  PROPERTY  RENTED  TO  HOUSEHOLDS  EARNING,  ON AVERAGE, UP TO
 EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR HOUSEHOLD SIZE.
   7. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING IN SHELTERS, TRANSITIONAL HOUSING, PUBLIC SPACES, AND OTHER TYPES OF
 EMERGENCY HOUSING.
   8. "FISCAL OFFICER" SHALL MEAN THE COMPTROLLER OF THE CITY OF NEW YORK
 OR OTHER ANALOGOUS OFFICER OF SUCH CITY.
   9. "PREVAILING WAGE" SHALL MEAN THE RATE  OF  WAGES  AND  SUPPLEMENTAL
 BENEFITS PAID IN THE LOCALITY TO WORKERS IN THE SAME TRADE OR OCCUPATION

 S. 5257--C                          3
 
 AND  ANNUALLY  DETERMINED  BY  THE FISCAL OFFICER IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION TWO HUNDRED THIRTY-FOUR OF THE LABOR LAW.
   10.  "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE RENT STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY TENANT PROTECTION ACT OF  NINETEEN  SEVENTY-FOUR,  ALL  AS  IN
 EFFECT  AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
 SAND TWENTY-ONE THAT ADDED THIS SUBDIVISION OR  AS  AMENDED  THEREAFTER,
 TOGETHER  WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   11. "SMALL CONVERTED PROPERTY" SHALL MEAN A CONVERTED PROPERTY PROJECT
 (A) TO IMPROVE NO MORE THAN ONE HUNDRED NINETEEN  RESIDENTIAL  UNITS  IN
 ONE  OR  MORE BUILDINGS; AND (B) WHICH HAS RECEIVED FINANCIAL ASSISTANCE
 PURSUANT TO THIS ARTICLE.
   § 1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1.  ESTABLISHMENT.
 SUBJECT  TO AMOUNTS AVAILABLE BY APPROPRIATION THEREFOR, THE CORPORATION
 SHALL DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM  (HEREINAFTER
 REFERRED  TO  AS "THE PROGRAM"), WHICH SHALL PROVIDE A MECHANISM FOR THE
 STATE TO FINANCE THE ACQUISITION OF  DISTRESSED  HOTELS  AND  COMMERCIAL
 OFFICE PROPERTIES BY APPROPRIATE NONPROFIT ORGANIZATIONS FOR THE PURPOSE
 OF MAINTAINING OR INCREASING AFFORDABLE HOUSING.  ALL AFFORDABLE HOUSING
 PROPERTIES  PRODUCED  THROUGH  THIS  PROGRAM  SHALL  REMAIN  PERMANENTLY
 AFFORDABLE, AND ALL CONVERTED PROPERTIES IN A CITY WITH A POPULATION  OF
 ONE  MILLION  OR  MORE, WITH THE EXCEPTION OF SMALL CONVERTED PROPERTIES
 AND EXEMPT SUPPORTIVE HOUSING, SHALL BE REQUIRED TO PAY BUILDING SERVICE
 EMPLOYEES THE APPLICABLE PREVAILING WAGE PURSUANT TO  SUBDIVISION  ONE-A
 OF  THIS SECTION.   PERMANENT AFFORDABILITY RESTRICTIONS SHALL REQUIRE A
 REGULATORY AGREEMENT WITH THE CORPORATION OR  LOCAL  HOUSING  AGENCY  OR
 OTHER  AFFORDABILITY RESTRICTIONS IN RECORDED DOCUMENTS NOT SPECIFICALLY
 LISTED IN THIS SUBDIVISION, PROVIDED THE CORPORATION  OR  LOCAL  HOUSING
 AGENCY  DETERMINES  THAT SUCH RESTRICTIONS ARE ENFORCEABLE AND LIKELY TO
 BE ENFORCED.  SUCH ENFORCEMENT MEASURES SHALL INCLUDE BUT NOT BE LIMITED
 TO THE ABILITY TO CANCEL OR TRANSFER THE REGULATORY AGREEMENT OR PROPER-
 TY TO ANOTHER ENTITY FOR VIOLATING THE TERMS OF SUCH  REGULATORY  AGREE-
 MENT,  SUCH AS FAILURE TO MEET THE MINIMUM OBLIGATIONS SET FORTH IN THIS
 ARTICLE WHEN SUCH FAILURE IS NOT CURED.
   1-A. IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ALL  BUILDING
 SERVICE EMPLOYEES EMPLOYED BY AN APPROPRIATE NONPROFIT ORGANIZATION AT A
 CONVERTED PROPERTY OR OTHERWISE EMPLOYED AT A CONVERTED PROPERTY THAT IS
 NOT  A  SMALL  CONVERTED  PROPERTY  OR  EXEMPT  SUPPORTIVE HOUSING SHALL
 RECEIVE AT LEAST THE APPLICABLE PREVAILING WAGE IN SUCH CITY FOR  CRAFT,
 TRADE,  OR  OCCUPATION  OF  SUCH BUILDING SERVICE EMPLOYEE.   THE FISCAL
 OFFICER SHALL HAVE THE POWER TO ENFORCE  SUCH  PROVISIONS  IN  THE  SAME
 MANNER AS PROVIDED UNDER SUBPARAGRAPH (III) OF PARAGRAPH (G) OF SUBDIVI-
 SION SEVENTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY
 TAX LAW. IN ADDITION, THE FISCAL OFFICER SHALL HAVE THE POWER TO CONDUCT
 AN  INVESTIGATION AND HEARING AND FILE A DETERMINATION AS TO THE PAYMENT
 OF WAGES OWED BY A LESSEE, OWNER, SUCCESSOR, OR ANY EMPLOYER OF BUILDING
 SERVICE EMPLOYEES, AS PROVIDED UNDER SUBDIVISIONS ONE, FOUR, FIVE,  SIX,
 EIGHT AND NINE OF SECTION TWO HUNDRED THIRTY-FIVE OF THE LABOR LAW.
   2. PURPOSE. THE PROGRAM SHALL SEEK TO:
   (A) FINANCE THE ACQUISITION OF DISTRESSED HOTELS AND COMMERCIAL OFFICE
 PROPERTIES  BY  APPROPRIATE  NONPROFIT  ORGANIZATIONS FOR THE PURPOSE OF
 STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B) FINANCE THE CONVERSION AND REHABILITATION OF THE  PHYSICAL  CONDI-
 TION  OF  ACQUIRED  PROPERTY  BY  APPROPRIATE NONPROFIT ORGANIZATIONS IN

 S. 5257--C                          4
 
 ORDER TO ENHANCE THE CONDITION OF SUCH PROPERTY  FOR  FUTURE  OCCUPANTS,
 SUCH AS HABITABILITY AND ENVIRONMENTAL SUSTAINABILITY; AND
   (C)  PROVIDE AN APPROPRIATE, EXPEDIENT AND EFFICIENT MANNER FOR OWNERS
 OF SUCH DISTRESSED PROPERTIES TO TRANSFER OWNERSHIP  TO  AN  APPROPRIATE
 NONPROFIT  ORGANIZATION  SO  AS  TO  PROMOTE THE STATE'S INTEREST IN THE
 CONVERSION OF SUCH PROPERTIES TO NEW SUPPORTIVE AND AFFORDABLE PERMANENT
 HOUSING UNITS.
   3. POWERS. THE STATE MAY FINANCE THE PURCHASE, ACQUISITION AND HOLDING
 BY APPROPRIATE NONPROFIT ORGANIZATIONS OF DISTRESSED HOTEL OR COMMERCIAL
 OFFICE PROPERTIES IN ANY PART OF THE STATE, AND MAY TAKE SUCH ACTIONS AS
 MAY BE NECESSARY TO IDENTIFY SUCH DISTRESSED PROPERTIES, FOR THE PURPOSE
 OF MAINTAINING OR INCREASING THE STOCK OF  AFFORDABLE,  STABLE,  QUALITY
 HOUSING;  PROVIDED  THAT  IN  THE  CASE OF A PROPERTY AT WHICH ANY HOTEL
 WORKERS ARE REPRESENTED BY A COLLECTIVE BARGAINING REPRESENTATIVE, PRIOR
 TO THE PROPOSED ACQUISITION, THE  COLLECTIVE  BARGAINING  REPRESENTATIVE
 SHALL  BE NOTIFIED IN WRITING OF THE PROPOSED ACQUISITION, AND THE PROP-
 ERTY OWNER SHALL CERTIFY PRIOR TO THE STATE INITIATING SUCH  ACQUISITION
 THAT  THE  COLLECTIVE BARGAINING REPRESENTATIVE HAS MUTUALLY AGREED IN A
 SEPARATE WRITING WITH THE PROPERTY OWNER TO TAKE THE  SPECIFIC  ACQUISI-
 TION DESCRIBED IN THE WRITTEN NOTICE.
   4.  CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY, SAFETY AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.    ADDI-
 TIONAL  OPERATING  EXPENSES  SHALL  BE  MET  THROUGH  ANY COMBINATION OF
 SUBSIDIES, VOUCHERS, COMMERCIAL RENTS, OR OTHER SOURCES OF INCOME AVAIL-
 ABLE TO THE HOUSING PROVIDER UNDER THE MODEL THE NON-PROFIT  CHOOSES  TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN THIS ARTICLE IN
 LOCALITIES  THAT HAVE ADOPTED OR OPTED IN TO THE RENT STABILIZATION LAW.
 AT LEAST FIFTY PERCENT OF ALL CONVERTED PROPERTIES SHALL  BE  SET  ASIDE
 FOR  INDIVIDUALS  AND  FAMILIES WHO WERE EXPERIENCING HOMELESSNESS IMME-
 DIATELY PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.  EACH  UNIT
 MUST  CONTAIN,  AT  A MINIMUM, A LIVING/SLEEPING SPACE, PRIVATE BATHROOM
 WITH BATH OR SHOWER, AND EITHER A FULL KITCHEN OR A KITCHENETTE WITH  AT
 LEAST  A 24-INCH REFRIGERATOR, SINK, COOKTOP, MICROWAVE OVEN AND OUTLETS
 FOR COUNTERTOP APPLIANCES.
   5. RESTRICTIONS. THE STATE SHALL NOT, IN ANY CASE, FACILITATE THE SALE
 OR TRANSFER OF PROPERTY UNLESS THE STATE HAS ENTERED INTO  AN  AGREEMENT
 WITH  THE  APPROPRIATE NONPROFIT ORGANIZATION TO ENSURE THAT ANY ACTIONS
 NECESSARY TO BRING THE PROPERTY INTO COMPLIANCE WITH  APPLICABLE  BUILD-
 ING,  SAFETY,  HEALTH  AND  HABITABILITY  CODES AND REQUIREMENTS WILL BE
 TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6. TENANT PROTECTIONS. TENANTS RESIDING  IN  PROPERTIES  CONVERTED  TO
 AFFORDABLE  HOUSING  PURSUANT  TO  THIS  SECTION SHALL HAVE FULL TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION AS DEFINED IN THIS ARTICLE IN LOCALITIES THAT HAVE ADOPTED OR OPTED
 IN TO THE RENT STABILIZATION LAWS.  TENANCY IN SUCH  AFFORDABLE  HOUSING
 SHALL  NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR ORIENTATION,
 GENDER IDENTITY OR  EXPRESSION,  CONVICTION  OR  ARREST  RECORD,  CREDIT
 HISTORY, CREDIT SCORE, OR IMMIGRATION STATUS.
   §  3.  Non-severability  clause. If any clause, sentence, subdivision,
 paragraph, section or part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, and such decision is not  reversed
 or  is otherwise deemed to be final, such judgment shall have the effect
 of rendering this act invalid, inoperative and void.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2021.

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The New York State Senate

senate Bill S5257C

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Jun 9, 2021 - floor Vote

Floor Vote: Jun 9, 2021

Jun 8, 2021 - Rules committee Vote

Rules Committee Vote: Jun 8, 2021

May 18, 2021 - Housing, Construction and Community Development committee Vote

Committee Vote: May 18, 2021

Bill Amendments

Co-Sponsors

S5257 - Details

S5257 - Summary

S5257 - Sponsor Memo

S5257 - Bill Text download pdf

Co-Sponsors

S5257A - Details

S5257A - Summary

S5257A - Sponsor Memo

S5257A - Bill Text download pdf

Co-Sponsors

S5257B - Details

S5257B - Summary

S5257B - Sponsor Memo

S5257B - Bill Text download pdf

Co-Sponsors

S5257C (ACTIVE) - Details

S5257C (ACTIVE) - Summary

S5257C (ACTIVE) - Sponsor Memo

S5257C (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5257C

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Sponsored By

Current Bill Status - Passed Senate & Assembly

Your Voice

Actions

Votes

Jun 9, 2021 - floor Vote

Floor Vote: Jun 9, 2021

Jun 8, 2021 - Rules committee Vote

Rules Committee Vote: Jun 8, 2021

May 18, 2021 - Housing, Construction and Community Development committee Vote

Committee Vote: May 18, 2021

Bill Amendments

Co-Sponsors

S5257 - Details

S5257 - Summary

S5257 - Sponsor Memo

S5257 - Bill Text download pdf

Co-Sponsors

S5257A - Details

S5257A - Summary

S5257A - Sponsor Memo

S5257A - Bill Text download pdf

Co-Sponsors

S5257B - Details

S5257B - Summary

S5257B - Sponsor Memo

S5257B - Bill Text download pdf

Co-Sponsors

S5257C (ACTIVE) - Details

S5257C (ACTIVE) - Summary

S5257C (ACTIVE) - Sponsor Memo

S5257C (ACTIVE) - Bill Text download pdf

Comments