Bill Text: NY A06277 | 2019-2020 | General Assembly | Amended

Bill Title: Relates to affordable housing corporation grants by increasing the amount that can be granted to a high cost project.

Spectrum: Partisan Bill (Democrat 22-0)

Status: (Engrossed) 2019-06-14 - amended on third reading 6277a [A06277 Detail]

Download: New_York-2019-A06277-Amended.html

                STATE OF NEW YORK

                                                                Cal. No. 257

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      March 4, 2019

        Introduced  by M. of A. WALKER, AUBRY, DICKENS, PERRY, BARRON, WILLIAMS,
          sored by -- M. of A. HEVESI, LENTOL -- read once and referred  to  the
          Committee  on Housing -- advanced to a third reading, passed by Assem-
          bly and delivered to the Senate, recalled from the Senate, vote recon-
          sidered, bill amended, ordered reprinted, retaining its place  on  the
          order of third reading

        AN ACT to amend the private housing finance law, in relation to afforda-
          ble housing corporation grants

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1  of  section  1112  of  the  private  housing
     2  finance law, as amended by chapter 64 of the laws of 2012, is amended to
     3  read as follows:
     4    1.  Within  the  limit  of  funds  available in the affordable housing
     5  development account, the corporation is hereby authorized to enter  into
     6  contracts  with  eligible applicants to provide grants which such appli-
     7  cants  shall  use  to  finance  affordable  home  ownership  development
     8  programs subject to the terms and conditions of this article. Any grants
     9  received by a municipality hereunder shall not be deemed to be municipal
    10  funds.    Grantees shall utilize funds provided pursuant to this article
    11  solely as payments, grants and loans to owners to reduce  the  costs  of
    12  new  construction,  rehabilitation  or  home  improvement or the cost of
    13  acquisition, but only where such acquisition is part  of  an  affordable
    14  home  ownership development program or project to construct or rehabili-
    15  tate homes, or as otherwise authorized by law. Such financial assistance
    16  may be in the form of loans, participation in loans  including  but  not
    17  limited  to  participation  in  loans  originated or financed by lending
    18  institutions as defined in section forty-two of this chapter, private or
    19  public employee pension funds or the state of New York mortgage  agency,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6277--A                          2

     1  or grants, on such terms and conditions as the grantee with the approval
     2  of  the  corporation  shall  determine,  provided that no such payments,
     3  grants and loans shall exceed the lesser of (i)  sixty  percent  of  the
     4  project  cost  for projects involving acquisition or one hundred percent
     5  of rehabilitation programs without an acquisition component or (ii)  the
     6  following per dwelling unit limitations (A) [thirty-five] fifty thousand
     7  dollars  for  projects  except as provided in [item] subparagraph (B) of
     8  this [clause] paragraph or  (B)  [forty]  up  to  seventy-five  thousand
     9  dollars  for  a high cost project or a project which will receive a loan
    10  from the federal farmers home administration. Up to ten percent  of  the
    11  program  or  project  cost  may  be  used for grantee operating expenses
    12  including expenses related to the  organization  operating  support  and
    13  administration of the contract. Among the criteria the corporation shall
    14  consider  in  determining  whether a project is a high cost project are:
    15  average cost of construction in the area, location of the  project,  and
    16  the impact of the additional funding on the affordability of the project
    17  for  the  occupants  of such project.  No more than fifty percent of the
    18  total amount appropriated pursuant to this article in  any  fiscal  year
    19  shall be allocated to homes located within any single municipality.
    20    §  2. Subdivision 2 of section 1112 of the private housing finance law
    21  is amended by adding a new paragraph (j) to read as follows:
    22    (j) In the case of projects that receive an award of over forty  thou-
    23  sand  dollars,  the  grantee may establish resale restrictions requiring
    24  the sale of the unit or units receiving such  funding  through  a  grant
    25  from  the corporation be purchased only by qualified low-income homebuy-
    26  ers extending for a period of at least sixty years,  but  no  more  than
    27  ninety-nine years, and the grantee may ensure this resale restriction by
    28  use of deed restrictions, community land trusts, or limited-equity coop-
    29  erative ownership structure.
    30    §  3.  Section  1112  of the private housing finance law is amended by
    31  adding a new subdivision 3-a to read as follows:
    32    3-a. In determining awards pursuant to this article,  the  corporation
    33  shall  establish tiered project funding levels based on length and depth
    34  of affordability.
    35    § 4. Projects in pre-development that have  already  received  commit-
    36  ments from the corporation prior to the effective date of this act shall
    37  be  granted  the opportunity to request additional capital under the law
    38  after the effective date of this act.
    39    § 5. This act shall take effect on the two hundred fortieth day  after
    40  it  shall  have become a law. Effective immediately, the commissioner of
    41  homes and community renewal is authorized  and  directed  to  take  such
    42  actions  which are necessary for the implementation of this act, includ-
    43  ing the addition, amendment and/or repeal of any rule or regulation,  on
    44  or before such effective date.