S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8589
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 21, 2025
                                ___________
 
 Introduced  by M. of A. HOOKS -- (at request of the New York State Homes
   and Community Renewal) -- read once and referred to the  Committee  on
   Housing
 
 AN  ACT  to  amend  the  private housing finance law, in relation to the
   amount of funds that may  be  used  per  dwelling  unit  to  modernize
   certain authorities used by the housing trust fund corporation
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1  of  section  1102  of  the  private  housing
 finance  law,  as amended by chapter 235 of the laws of 2021, is amended
 to read as follows:
   1. Within the limit of funds  available  in  the  housing  trust  fund
 account,  the  corporation  is hereby authorized to enter into contracts
 with eligible applicants for the furnishing by such applicants of  hous-
 ing  for  persons  of  low income. Each such contract shall provide that
 eligible applicants rehabilitate or construct one or  more  projects  or
 convert  one  or  more  nonresidential  properties.  Such  contracts may
 provide for payments, grants or loans by the corporation for the  activ-
 ities  to  be  carried out by the eligible applicant under the contract.
 Such contracts shall provide that a private  developer  make  an  equity
 investment  of  the  greater  of (i) two and one-half percent of project
 costs or (ii) five percent of project costs less grants which are to  be
 applied to such costs. The foregoing shall not preclude a private devel-
 oper  from  making  a greater equity investment. Any payments, grants or
 loans made by the corporation outstanding at the time of resale shall be
 subject to repayment in whole or in part upon resale  after  termination
 of  the regulatory period and as otherwise provided therein. Such repay-
 ment provisions may survive the  end  of  the  regulatory  period.  Such
 contracts  may provide that eligible applicants shall either (a) perform
 activities specified under the contract themselves or (b) act as  admin-
 istrators  of  a  program  under  which  projects  are  rehabilitated or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10170-01-5
              

 A. 8589                             2
 
 constructed or nonresidential properties are converted by other eligible
 applicants or (c) perform both such functions. In the case of a  munici-
 pality  acting  as an administrator, funds provided to such municipality
 hereunder  shall  not  be deemed to be municipal funds.  The corporation
 shall refer any request for payments, grants or loans  from  persons  of
 low  income  to  eligible  applicants  in the area in which such persons
 reside. Loans may be in the form of participation in loans including but
 not limited to participation in loans originated or financed by  lending
 institutions  as defined in section forty-two of this chapter, the state
 of New York mortgage agency,  the  New  York  city  housing  development
 corporation,  the  New  York  state housing finance agency or private or
 public employee pension funds. Notwithstanding any  other  provision  of
 law,  payments,  grants  and  loans  may be deposited by the corporation
 directly with a lending institution at or before  the  time  of  initial
 loan  closing pursuant to an escrow agreement satisfactory to the corpo-
 ration. Payments, grants and loans shall be on such terms and conditions
 as the corporation, or the eligible applicant with the approval  of  the
 corporation,  as  the case may be, shall determine. Payments, grants and
 loans shall be used to pay for the actual and necessary cost of acquisi-
 tion, construction, rehabilitation or conversion, provided that not more
 than fifty percent of such payments, grants and loans received  for  the
 rehabilitation,  construction or conversion of a project may be used for
 the cost of the project's acquisition and not more than ten  percent  of
 such  payments,  grants  and  loans  may be used for the rehabilitation,
 construction or conversion of community service facilities and, provided
 further, that payments, grants or loans shall not be used  for  (i)  the
 administrative  costs  of  an  eligible  applicant  except  as otherwise
 authorized by law, (ii)  the  cost  of  the  acquisition,  construction,
 conversion  or  rehabilitation of residential units which, subsequent to
 such acquisition, construction, conversion or rehabilitation, are to  be
 occupied by persons other than persons of low income, and (iii) the cost
 of  the acquisition, construction, conversion or rehabilitation of units
 which, subsequent to such acquisition, construction, conversion or reha-
 bilitation, are occupied or to be occupied for  other  than  residential
 purposes, except for community service facilities as described above. No
 such  payments,  grants  or  loans  shall exceed a total of [one hundred
 twenty-five] TWO HUNDRED FIFTY thousand dollars per  dwelling  unit,  OR
 SUCH  AMOUNT  OF  ADDITIONAL  FUNDS  AS THE CORPORATION MAY DETERMINE IN
 ACCORDANCE WITH THIS SUBDIVISION. Among  the  criteria  the  corporation
 shall  consider  in determining whether to provide additional funds are:
 average cost of construction in the area, location of  the  project  and
 the impact of the additional funding on the affordability of the project
 for the occupants of such project. The length of any loan provided under
 this article shall not exceed forty years. No more than fifty percent of
 the total amount originally appropriated pursuant to this article in any
 fiscal  year  shall  be  allocated to projects located within any single
 municipality. Of the amount originally appropriated to  the  corporation
 in  any  fiscal  year,  no  more than thirty-three and one-third percent
 shall be allocated to private developers for projects within a city with
 a population of one million or more. Of the amount originally  appropri-
 ated  to  the  corporation in any fiscal year, no more than thirty-three
 and one-third percent shall  be  allocated  to  private  developers  for
 projects  in the area outside cities with a population of one million or
 more.
   § 2. This act shall take effect immediately.