Bill Text: NY A07233 | 2019-2020 | General Assembly | Introduced

Bill Title: Provides that revenues from buyouts of Mitchell-Lama projects, whether state-aided or municipally-aided, must be used for affordable housing purposes by the state or the municipality; creates a special state fund, the Mitchell-Lama buyout affordable housing fund; provides that such fund's revenues may only be used for housing projects meeting Mitchell-Lama eligibility criteria.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2019-04-15 - referred to housing [A07233 Detail]

Download: New_York-2019-A07233-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 15, 2019
        Introduced  by  M. of A. O'DONNELL, GLICK -- Multi-Sponsored by -- M. of
          A. GOTTFRIED -- read once and referred to the Committee on Housing
        AN ACT to amend the private housing finance law and  the  state  finance
          law,  in  relation  to  dedicating  Mitchell-Lama  buyout  revenues to
          affordable housing
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Legislative findings and intent. Mitchell-Lama housing was
     2  built in the 1950's as a response to the housing crisis after World  War
     3  II.  This  housing  created new vibrant communities that attracted busi-
     4  nesses, schools, day care centers and stimulated economic activity  that
     5  has  allowed  New  York  city to thrive. Without programs like Mitchell-
     6  Lama, New York City would only be inhabitable for the very rich  or  the
     7  very  poor. Mitchell-Lama housing allows people of all economic means to
     8  live together in decent, affordable housing.  This  community  is  being
     9  threatened  by  the  specter  of  buy-outs. Applying buy-out revenues to
    10  provide more affordable housing will preserve and promote the well being
    11  of our state's communities.
    12    § 2. The private housing finance  law  is  amended  by  adding  a  new
    13  section 36-b to read as follows:
    14    §  36-b.  Buyout  revenues  to  be  dedicated  to  affordable housing.
    15  Notwithstanding any inconsistent provision of law, any revenues  derived
    16  by  the  state from a buyout of a state-aided project shall be deposited
    17  to the credit of the Mitchell-Lama buyout affordable housing fund estab-
    18  lished pursuant to section ninety-two-ii of the state  finance  law  and
    19  used  for  the  purposes of providing affordable housing to projects and
    20  persons that meet the eligibility criteria provided for in this  article
    21  and  no other. Any revenues derived by a municipality from the buyout of
    22  a municipally-aided project shall be deposited to  a  special  municipal
    23  fund  consisting  solely  of  such revenues and shall be used solely for
    24  affordable housing purposes.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7233                             2
     1    § 3. The state finance law is amended by adding a new section 92-ii to
     2  read as follows:
     3    §  92-ii.  Mitchell-Lama  buyout  affordable housing fund. 1. There is
     4  hereby established in the joint custody of the state comptroller and the
     5  commissioner of taxation and finance a fund to be known  as  the  "Mitc-
     6  hell-Lama buyout affordable housing fund".
     7    2.  The  Mitchell-Lama buyout affordable housing fund shall be classi-
     8  fied by the comptroller within the capital project fund type  and  shall
     9  consist  of  all  moneys collected therefor or credited, appropriated or
    10  transferred thereto from any other fund or source pursuant to law or any
    11  other moneys made available for the purposes of the fund.
    12    3. Moneys of the fund may be invested by  the  state  comptroller  and
    13  income from such investments shall be credited to such fund.
    14    4.  Moneys  of  the  fund shall be appropriated by the legislature and
    15  paid out pursuant to the  terms  of  such  appropriation  and  only  for
    16  affordable  housing purposes as specified in section thirty-six-b of the
    17  private housing finance law.
    18    § 4. This act shall take effect on the first of January next  succeed-
    19  ing the date on which it shall have become a law.