S T A T E O F N E W Y O R K
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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.
