S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1399--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the private housing finance law and  the  state  finance
   law, in relation to establishing the vacant rental improvement program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The private housing finance law is amended by adding a  new
 article 33 to read as follows:
                               ARTICLE XXXIII
                     VACANT RENTAL IMPROVEMENT PROGRAM
 SECTION 1300. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
         1301. VACANT RENTAL IMPROVEMENT PROGRAM.
   §  1300.  STATEMENT  OF LEGISLATIVE FINDINGS AND PURPOSE. IT IS HEREBY
 DECLARED AND FOUND THAT THERE EXISTS ACROSS UPSTATE NEW YORK A  SHORTAGE
 OF  SAFE  AND  AFFORDABLE  RENTAL UNITS. IT IS FURTHER FOUND THAT STABLE
 HOUSING IS TIED TO POSITIVE EMPLOYMENT, EDUCATION, AND HEALTH  OUTCOMES,
 AND  THAT  THE  STATE  THEREFORE  HAS  AN INTEREST IN PROMOTING SAFE AND
 AFFORDABLE HOUSING OPPORTUNITIES. IN ORDER,  FURTHER,  TO  PROMOTE  SUCH
 OPPORTUNITIES,  IT  IS HEREBY DECLARED THAT ADDITIONAL PROVISIONS SHOULD
 BE MADE TO PROVIDE PUBLIC MONIES FOR THE PURPOSE OF GRANTS TO OWNERS  OF
 BUILDINGS  WITH  FIVE  OR  FEWER UNITS TO MAKE NECESSARY IMPROVEMENTS TO
 RENTAL UNITS ON THE CONDITION THAT RENOVATED UNITS WILL BE LEASED  AT  A
 REASONABLE RATE FOR TEN YEARS.  THE NECESSITY IN THE PUBLIC INTEREST FOR
 THE  PROVISIONS OF THIS ARTICLE IS HEREBY DECLARED AS A MATTER OF LEGIS-
 LATIVE DETERMINATION.
   § 1301. VACANT RENTAL IMPROVEMENT PROGRAM.  1. (A) THE  HOUSING  TRUST
 FUND CORPORATION SHALL, SUBJECT TO APPROPRIATION, MAKE CAPITAL GRANTS OF
 UP TO SEVENTY-FIVE THOUSAND DOLLARS PER UNIT TO OWNERS OF BUILDINGS WITH
 FIVE  OR FEWER UNITS FOR THE PURPOSE OF MAKING NECESSARY IMPROVEMENTS TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03464-02-5
              

 S. 1399--A                          2
 
 RENTAL UNITS LOCATED OUTSIDE OF A CITY WITH A POPULATION OF ONE  MILLION
 OR MORE.  THE HOUSING TRUST FUND CORPORATION, TO THE EXTENT PRACTICABLE,
 SHALL  PRIORITIZE  FUNDING  FOR  UNITS THAT ARE CURRENTLY VACANT OR HAVE
 OUTSTANDING CODE VIOLATIONS.
   (B) RECEIPT OF SUCH CAPITAL GRANTS SHALL BE CONDITIONED UPON A REGULA-
 TORY  AGREEMENT  BY  SUCH OWNERS TO LEASE SUCH RENOVATED UNITS AT A RATE
 AFFORDABLE TO PERSONS EARNING NO MORE THAN EIGHTY PERCENT OF AREA MEDIAN
 INCOME, AS CALCULATED BY THE UNITED STATES  DEPARTMENT  OF  HOUSING  AND
 URBAN  DEVELOPMENT,  FOR  THE TEN-YEAR PERIOD COMMENCING AT THE START OF
 THE FIRST LEASE  AGREEMENT  FOLLOWING  A  RENOVATION  OR  REHABILITATION
 COMPLETED PURSUANT TO THIS ARTICLE.  UPON A FINDING BY THE HOUSING TRUST
 FUND  CORPORATION  THAT  AN OWNER WHO HAS RECEIVED A GRANT TO RENOVATE A
 RENTAL UNIT PURSUANT TO THIS SECTION HAS VIOLATED THE REGULATORY  AGREE-
 MENT,  ANY  GRANTS RECEIVED BY SUCH OWNER SHALL BE SUBJECT TO RECOUPMENT
 IN FULL.  RENTAL RESTRICTIONS SHALL NOT EXPIRE IF  THE  UNIT  IS  TRANS-
 FERRED  OR SOLD TO A NEW OWNER. THE HOUSING TRUST FUND CORPORATION SHALL
 PROMULGATE RULES AND REGULATIONS TO ENSURE COMPLIANCE WITH THIS SECTION.
   2. THE CHIEF EXECUTIVE OFFICER OF THE HOUSING TRUST  FUND  CORPORATION
 SHALL  PROMULGATE RULES AND REGULATIONS DEEMED NECESSARY AND APPROPRIATE
 TO ESTABLISH AND ADMINISTER THE VACANT RENTAL IMPROVEMENT PROGRAM PURSU-
 ANT TO THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE APPLICATION  PROC-
 ESS,  ELIGIBILITY REQUIREMENTS, DISBURSEMENT OF GRANTS, DETERMINATION OF
 A REASONABLE LEASE RATE, AND ANY  OTHER  RULES,  REGULATIONS,  OR  DEFI-
 NITIONS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 2. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   §  99-SS.  RENTAL  IMPROVEMENT FUND. 1. THERE IS HEREBY ESTABLISHED IN
 THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL A FUND TO BE KNOWN AS THE "RENTAL  IMPROVEMENT
 FUND".
   2. SUCH FUND SHALL CONSIST OF ALL MONEYS COLLECTED THEREFOR, OR MONEYS
 CREDITED,  APPROPRIATED  OR  TRANSFERRED  THERETO FROM ANY OTHER FUND OR
 SOURCE PURSUANT TO LAW, OR ANY  OTHER  MONEYS  MADE  AVAILABLE  FOR  THE
 PURPOSES OF THE FUND.
   3.  MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE AND
 ALLOCATION BY THE DIRECTOR OF THE BUDGET, SHALL BE  AVAILABLE  ONLY  FOR
 PURPOSES OF THE VACANT RENTAL IMPROVEMENT PROGRAM, AS SET FORTH IN ARTI-
 CLE THIRTY-THREE OF THE PRIVATE HOUSING FINANCE LAW.
   §  3.  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.