Bill Text: NY A08427 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to loans by the housing trust fund corporation; provides that such loans may exceed the thirty year limit in instances where a lengthier period is necessary to provide for a loan term that is co-terminus with the terms of other financing or regulatory agencies participating in the project.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-02-25 - reported referred to ways and means [A08427 Detail]

Download: New_York-2019-A08427-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8427

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      June 17, 2019
                                       ___________

        Introduced  by  M. of A. CYMBROWITZ -- (at request of the New York State
          Homes and Community Renewal) -- read once and referred to the  Commit-
          tee on Housing

        AN ACT to amend the private housing finance law, in relation to loans by
          the housing trust fund corporation

          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  1102  of  the  private  housing
     2  finance  law,  as amended by chapter 199 of the laws of 2008, is amended
     3  to read as follows:
     4    1. Within the limit of funds  available  in  the  housing  trust  fund
     5  account,  the  corporation  is hereby authorized to enter into contracts
     6  with eligible applicants for the furnishing by such applicants of  hous-
     7  ing  for  persons  of  low income. Each such contract shall provide that
     8  eligible applicants rehabilitate or construct one or  more  projects  or
     9  convert  one  or  more  nonresidential  properties.  Such  contracts may
    10  provide for payments, grants or loans by the corporation for the  activ-
    11  ities  to  be  carried out by the eligible applicant under the contract.
    12  Such contracts shall provide that a private  developer  make  an  equity
    13  investment  of  the  greater  of (i) two and one-half percent of project
    14  costs or (ii) five percent of project costs less grants which are to  be
    15  applied to such costs. The foregoing shall not preclude a private devel-
    16  oper  from  making  a greater equity investment. Any payments, grants or
    17  loans made by the corporation outstanding at the time of resale shall be
    18  subject to repayment in whole or in part upon resale  after  termination
    19  of  the regulatory period and as otherwise provided therein. Such repay-
    20  ment provisions may survive the  end  of  the  regulatory  period.  Such
    21  contracts  may provide that eligible applicants shall either (a) perform
    22  activities specified under the contract themselves or (b) act as  admin-
    23  istrators  of  a  program  under  which  projects  are  rehabilitated or
    24  constructed or nonresidential properties are converted by other eligible

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09319-01-9

        A. 8427                             2

     1  applicants or (c) perform both such functions. In the case of a  munici-
     2  pality  acting  as an administrator, funds provided to such municipality
     3  hereunder shall not be deemed to be municipal funds.    The  corporation
     4  shall  refer  any  request for payments, grants or loans from persons of
     5  low income to eligible applicants in the  area  in  which  such  persons
     6  reside. Loans may be in the form of participation in loans including but
     7  not  limited to participation in loans originated or financed by lending
     8  institutions as defined in section forty-two of this chapter, the  state
     9  of  New  York  mortgage  agency,  the  New York city housing development
    10  corporation, the New York state housing finance  agency  or  private  or
    11  public  employee  pension  funds. Notwithstanding any other provision of
    12  law, payments, grants and loans may  be  deposited  by  the  corporation
    13  directly  with  a  lending  institution at or before the time of initial
    14  loan closing pursuant to an escrow agreement satisfactory to the  corpo-
    15  ration. Payments, grants and loans shall be on such terms and conditions
    16  as  the  corporation, or the eligible applicant with the approval of the
    17  corporation, as the case may be, shall determine. Payments,  grants  and
    18  loans shall be used to pay for the actual and necessary cost of acquisi-
    19  tion, construction, rehabilitation or conversion, provided that not more
    20  than  fifty  percent of such payments, grants and loans received for the
    21  rehabilitation, construction or conversion of a project may be used  for
    22  the  cost  of the project's acquisition and not more than ten percent of
    23  such payments, grants and loans may  be  used  for  the  rehabilitation,
    24  construction or conversion of community service facilities and, provided
    25  further,  that  payments,  grants or loans shall not be used for (i) the
    26  administrative costs  of  an  eligible  applicant  except  as  otherwise
    27  authorized  by  law,  (ii)  the  cost  of the acquisition, construction,
    28  conversion or rehabilitation of residential units which,  subsequent  to
    29  such  acquisition, construction, conversion or rehabilitation, are to be
    30  occupied by persons other than persons of low income, and (iii) the cost
    31  of the acquisition, construction, conversion or rehabilitation of  units
    32  which, subsequent to such acquisition, construction, conversion or reha-
    33  bilitation,  are  occupied  or to be occupied for other than residential
    34  purposes, except for community service facilities as described above. No
    35  such payments, grants or loans shall exceed a total of one hundred twen-
    36  ty-five thousand dollars per  dwelling  unit.  Among  the  criteria  the
    37  corporation  shall consider in determining whether to provide additional
    38  funds are: average cost of construction in the  area,  location  of  the
    39  project and the impact of the additional funding on the affordability of
    40  the  project  for  the occupants of such project. The length of any loan
    41  provided under this article shall not exceed  thirty  years,  except  in
    42  instances  where  a  lengthier loan period is necessary to provide for a
    43  loan term that is co-terminus with the terms of other financing or regu-
    44  latory agencies participating in the project. No more than fifty percent
    45  of the total amount originally appropriated pursuant to this article  in
    46  any fiscal year shall be allocated to projects located within any single
    47  municipality.  Of  the amount originally appropriated to the corporation
    48  in any fiscal year, no more  than  thirty-three  and  one-third  percent
    49  shall be allocated to private developers for projects within a city with
    50  a  population of one million or more. Of the amount originally appropri-
    51  ated to the corporation in any fiscal year, no  more  than  thirty-three
    52  and  one-third  percent  shall  be  allocated  to private developers for
    53  projects in the area outside cities with a population of one million  or
    54  more.
    55    § 2. This act shall take effect immediately.
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