Bill Text: NY S08018 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to rentals in projects provided under limited-profit housing companies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-06-17 - RECOMMITTED TO RULES [S08018 Detail]
Download: New_York-2015-S08018-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8018 IN SENATE June 6, 2016 ___________ Introduced by Sen. FELDER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the private housing finance law, in relation to rentals in projects provided under limited-profit housing companies and to repeal subdivision 5 of section 31 of such law, relating to continued occupancy by certain tenants in such projects The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of section 31 of the private housing finance 2 law, as amended by chapter 778 of the laws of 1971, is amended to read 3 as follows: 4 3. (a) In the event that the income of a person or family in occupancy 5 should increase and exceed the maximum prescribed by law for admission 6 or for continued occupancy, based on the latest existing rent, by more 7 than twenty-five per centum, such person or family shall be subject to 8 removal from the dwelling, non-housekeeping, aged care accommodations or 9 non-housekeeping accommodations for handicapped persons provided, howev- 10 er, that such person or family may be permitted to remain in occupancy 11 until such income exceeds the maximum prescribed by law by more than 12 fifty per centum, if the company, with the approval of the commissioner 13 or the supervising agency, shall determine that removal would cause 14 hardship to such person or family. Any person or family in occupancy 15 whose income exceeds the maximum prescribed by law shall pay a rental 16 surcharge in accordance with a schedule of surcharges to be promulgated 17 by the company with the approval of the commissioner or the supervising 18 agency, as the case may be, provided, however, such rental surcharge 19 shall in no event exceed fifty per centum of the existing rent. 20 (b) Notwithstanding paragraph (a) of this subdivision, any such person 21 or family in occupancy whose income exceeds such maximum in a municipal- 22 ly-aided project in a city with a population of one million or more 23 shall, with the approval of the supervising agency, pay a rental 24 surcharge in accordance with a schedule of surcharges to be promulgated 25 by the supervising agency, provided, however, that such rental surcharge 26 shall in no event exceed two hundred per centum of the existing rent. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15660-02-6S. 8018 2 1 § 2. Subdivision 5 of section 31 of the private housing finance law is 2 REPEALED. 3 § 3. Paragraphs (a) and (a-1) of subdivision 1 of section 125 of the 4 private housing finance law, paragraph (a) as amended by chapter 566 of 5 the laws of 1993 and paragraph (a-1) as added by chapter 140 of the laws 6 of 1987, are amended to read as follows: 7 (a) The local legislative body of any municipality in which a project 8 of such company is or is to be located may by contract agree with any 9 redevelopment company to exempt from local and municipal taxes, other 10 than assessments for local improvements, all or part of the value of the 11 property included in such project which represents an increase over the 12 assessed valuation of the real property, both land and improvements, 13 acquired for the project at the time of its acquisition by the redevel- 14 opment company which originally undertook the project and for such defi- 15 nite period of years as such contract may provide, except that where the 16 real property in a project was acquired for purposes of rehabilitation, 17 the local legislative body either may utilize the foregoing formula or 18 may agree to exempt from such taxes all or part of the value of the 19 property included in such project on condition that the amount of such 20 taxes to be paid shall not be less than ten per centum of the annual 21 shelter rent or carrying charges of such rehabilitation project. The tax 22 exemption shall not operate for a period of more than twenty-five years, 23 commencing in each instance from the date on which the benefits of such 24 exemption first become available and effective; provided, however, that 25 with respect to a project either acquired by a mutual redevelopment 26 company pursuant to section one hundred twenty-six of this article or 27 owned and continuing to be owned by a mutual redevelopment company which 28 would require substantial increases in carrying charges after the period 29 of tax exemption is ended unless relief is provided, the local legisla- 30 tive body may contract with such mutual redevelopment company to extend 31 such tax exemption for not more than twenty-five additional years at a 32 rate of tax exemption not to exceed an average of fifty per centum 33 during such additional period, provided that the tax exemption during 34 the first two years of such additional period shall continue at the rate 35 of the tax exemption of such project immediately preceding the termi- 36 nation of the initial twenty-five year period and that the tax exemption 37 thereafter shall be decreased in equal biennial decrements, the first of 38 which shall occur immediately following such two year period, and 39 provided that such contract shall contain provisions as to income limi- 40 tations relating to admission and continued occupancy of the project and 41 provisions as to rental surcharges to the same effect as are contained 42 in subdivisions two, three[,] and four [and five] of section thirty-one 43 of this chapter, except that in the case of projects owned and continu- 44 ing to be owned by mutual redevelopment companies, persons or families 45 whose probable aggregate annual income does not exceed the median income 46 for families of the same size in the same metropolitan area shall also 47 be eligible for admission to the project on the understanding that any 48 person or family becoming eligible by reason hereof whose probable 49 aggregate annual income at the time of admission or during the period of 50 occupancy exceeds, the greater of (i) the median income for such persons 51 or families for the metropolitan statistical area in which the project 52 is located, or if a project is located outside a metropolitan statis- 53 tical area, the median income for such persons or families for the coun- 54 ty in which the project is located, as most recently determined by the 55 United States department of housing and urban development, in which case 56 any person or family becoming eligible for admission pursuant to thisS. 8018 3 1 subparagraph shall pay, from the time of admission, a rental surcharge 2 as provided for in subdivision three of section thirty-one of this chap- 3 ter, computed on the basis of the income limitations applicable to such 4 persons or families in the absence of this subparagraph, or (ii) six 5 times the rental shall be liable for payment of rental surcharges here- 6 under computed on the basis of such ratio, except that in the case of 7 families with three or more dependents such ratio shall be seven to one; 8 and provided further that with respect to a project which is or is to be 9 permanently financed by a federally-aided mortgage, the tax exemption 10 shall operate for so long as such mortgage is outstanding, but in no 11 event for a period of more than forty years, commencing in each instance 12 from the date on which the benefits of such exemption first become 13 available and effective; and provided further that with respect to a 14 project which is or is to be permanently financed by a loan from the New 15 York city housing development corporation, the tax exemption shall oper- 16 ate for so long as such loan is outstanding. 17 (a-1) Where the redevelopment contract between a mutual redevelopment 18 company and the local legislative body under which the initial tax 19 exemption was granted contains provisions different from those in subdi- 20 visions two, three[,] and four [and five] of section thirty-one of this 21 chapter, then a contract to extend the tax exemption for an additional 22 period under paragraph (a) of this subdivision may provide that those 23 provisions of the redevelopment contract shall continue to apply (with 24 such modifications as the supervising agency of such mutual redevelop- 25 ment company shall approve) during the additional period as if such 26 additional period were the initial period of tax exemption for such 27 mutual redevelopment company, notwithstanding the provisions of para- 28 graph (a) of this subdivision to the contrary. 29 § 4. This act shall take effect immediately; provided however that: 30 (i) the amendments to subdivision 3 of section 31 of the private housing 31 finance law, made by section one of this act, shall take effect July 1, 32 2017; and (ii) any rule or regulation necessary for the timely implemen- 33 tation of any provision of this act may be promulgated, any procedures, 34 forms, or instructions necessary for such implementation may be adopted 35 and issued, and any other acts by any governmental agency necessary for 36 such implementation may be taken, on or before the effective date of any 37 provision of this act.
