S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7772
 
                             I N  S E N A T E
 
                             January 11, 2022
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the private housing finance  law,  in  relation  to  the
   housing our neighbors with dignity program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 1280 of the private housing finance law,  as  added
 by  a  chapter  of the laws of 2021 amending the private housing finance
 law relating to enacting the "housing our neighbors with  dignity  act",
 as proposed in legislative bills numbers S.5257C and A.6593B, is amended
 to read as follows:
   §  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,
 operated  and managed by appropriate nonprofit organizations through the
 use of government agency funding,  PURSUANT  TO  SUCH  APPROPRIATION  TO
 SUPPORT THE CREATION OF AN ADAPTIVE REUSE AFFORDABLE HOUSING PROGRAM, to
 acquire AND/OR CONVERT 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.
   §  2.  Subdivisions  2  and  3  of section 1281 of the private housing
 finance law, as added by a chapter of the  laws  of  2021  amending  the
 private housing finance law relating to enacting the "housing our neigh-
 bors with dignity act", as proposed in legislative bills numbers S.5257C
 and A.6593B, are amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09863-12-2
 S. 7772                             2
 
   2.  "Appropriate  nonprofit  organization" shall mean a not-for-profit
 [organization] CORPORATION FORMED PURSUANT TO THE NOT-FOR-PROFIT  CORPO-
 RATION  LAW AND EXEMPT PURSUANT TO SECTION 501(C)(3) OR 502(C)(4) OF THE
 INTERNAL REVENUE CODE OF 1984 AS AMENDED AND 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] SIXTY 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.
   § 3. Subdivision 1 of section 1282 of the private housing finance law,
 as added by a chapter of the laws of 2021 amending the  private  housing
 finance law relating to enacting the "housing our neighbors with dignity
 act", as proposed in legislative bills numbers S. 5257C and A. 6593B, is
 amended to read as follows:
   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  AND/OR
 CONVERSION  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 regulato-
 ry  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  property
 to  another entity for violating the terms of such regulatory agreement,
 such as failure to meet the minimum obligations set forth in this  arti-
 cle when such failure is not cured.
   §  4.  Subdivisions  2, 3 and 4 of section 1282 of the private housing
 finance law, as added by a chapter of the  laws  of  2021  amending  the
 private housing finance law relating to enacting the "housing our neigh-
 bors  with  dignity  act",  as  proposed in legislative bills numbers S.
 5257C and A. 6593B, are amended to read as follows:
   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. 7772                             3
 
 order  to  [enhance]  IMPROVE  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]  ,
 CONVERSION  AND/OR  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 property owner shall certify prior to  the
 state  initiating such acquisition THROUGH FINANCING that the collective
 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.    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] UNITS shall be  set
 aside  for  individuals  and families who were experiencing homelessness
 immediately prior to entering such converted affordable housing.    Each
 unit  must contain, at a minimum, a living/sleeping space, private bath-
 room with bath or shower, and either a full  kitchen  or  a  kitchenette
 with  at  least  a  [24-inch]  7-CUBIC FEET CAPACITY refrigerator, sink,
 cooktop, microwave oven and outlets for countertop appliances.
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of the laws of 2021 amending the private housing
 finance law relating to enacting the "housing our neighbors with dignity
 act", as proposed in legislative bills numbers S. 5257C  and  A.  6593B,
 takes effect.