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.