NY State Senate Bill 2025-S8178

Senate Bill S8178

2025-2026 Legislative Session

Increases the amount of funds that may be used per dwelling unit to modernize certain authorities used by the housing trust fund corporation

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Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 19, 2025	referred to housing, construction and community development

2025-S8178 (ACTIVE) - Details

See Assembly Version of this Bill:: A8589
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §1102, Priv Hous Fin L

2025-S8178 (ACTIVE) - Summary

Increases the amount of funds that may be used per dwelling unit to modernize certain authorities used by the housing trust fund corporation.

2025-S8178 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8178

SPONSOR: KAVANAGH
 
TITLE OF BILL:

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

 
PURPOSE OF THE BILL:

This bill would amend the Private Housing Finance Law (PHFL) in order to
amend HTFC's governing statute to increase the maximum loan or grant
amount per dwelling unit from $125,000 to $250,000 and to clarify that
HTFC may make a finding to exceed this cap in certain circumstances.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends subdivision one of Section 1102 of the
PHFL, as amended by chapter 235 of the laws of 2021, increasing the
maximum cap on HTFC payments, grants, and loans from $125,000 to
$250,000 per dwelling unit and clarifying that HTFC may make a finding

to exceed this cap in certain circumstances.

Section 2 of the bill provides for an immediate effective date.

 
JUSTIFICATION:

HTFC is currently limited to a maximum loan and grant amount of $125,000
per unit. The current $125,000 per unit cap was set in 2008 and has not
been revised since that time. Over the past decade and a half, land and
construction costs have risen dramatically, driving up the costs of
affordable housing. To keep pace with the rising costs of housing devel-
opment, this increase in the per unit maximum is necessary to ensure
that HTFC will continue to be able to develop affordable housing across
New York State. Existing law also suggests that HTFC may provide addi-
tional funds in certain circumstances, and this legislation would clari-
fy such authority.

 
PRIOR LEGISLATIVE HISTORY:

This HTFC maximum loan increase proposal was included as a departmental
in 2018. At that time, the increase would have been from $125,000 to
$175,000.

 
FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8178 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8178
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2025
                                ___________
 
 Introduced  by  Sen. KAVANAGH -- (at request of the New York State Homes
   and Community Renewal) -- 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,  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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10170-01-5

 S. 8178                             2
 
 istrators of  a  program  under  which  projects  are  rehabilitated  or
 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.

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