Bill Text: NY S09380 | 2023-2024 | General Assembly | Amended
Bill Title: Creates an affordable housing relief fund program to preserve affordable multifamily residential properties located in New York state.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-05-20 - REPORTED AND COMMITTED TO FINANCE [S09380 Detail]
Download: New_York-2023-S09380-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9380--A IN SENATE May 14, 2024 ___________ Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the private housing finance law, in relation to creating an affordable housing relief fund program to preserve affordable multifamily residential properties located in New York state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The private housing finance law is amended by adding a new 2 article 33 to read as follows: 3 ARTICLE XXXIII 4 AFFORDABLE HOUSING RELIEF FUND PROGRAM 5 Section 1300. Statement of legislative findings. 6 1301. Definitions. 7 1302. Affordable housing relief fund program. 8 1303. Program criteria. 9 1304. Funding criteria. 10 1305. Affordability protection. 11 1306. Funding. 12 1307. Annual report. 13 § 1300. Statement of legislative findings. The legislature finds and 14 declares that there exists a serious shortage of safe and habitable 15 affordable housing in New York state for persons and families of low 16 income. A portion of the affordable, multifamily housing stock is in 17 operational and financial distress, threatening to exacerbate this shor- 18 tage. Rent collection losses, rising interest rates and insurance costs, 19 and other factors have caused significant increases in operating 20 expenses, which may jeopardize the availability to tenants of affordable 21 housing units or even the viability of some buildings. Existing preser- 22 vation program funding is limited, and distressed affordable housing 23 properties may not be eligible for such funding. The legislature there- 24 fore finds that a program should be established to provide needed capi- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15597-02-4S. 9380--A 2 1 tal funds and debt restructuring to ensure these distressed affordable 2 housing properties remain available to tenants. 3 § 1301. Definitions. For the purposes of this article, the following 4 terms shall have the following meanings: 5 1. "Corporation" shall mean the housing trust fund corporation estab- 6 lished in section forty-five-a of this chapter. 7 2. "Affordable housing relief fund program" shall mean forgivable 8 loans available to support the recapitalization and stabilization of 9 qualified properties and to assist developments that are outside of the 10 allowable refinancing term. 11 3. "Eligible projects" shall mean existing at-risk, one hundred 12 percent affordable or supportive multifamily rental properties subject 13 to a regulatory agreement with one or more municipal, state, or federal 14 housing agencies. 15 4. "Eligible uses" shall include but not be limited to the preserva- 16 tion and improvement of eligible projects, as established by this 17 section, to address deferred maintenance, capital needs, emergency 18 repairs, or any condition which poses a threat to the life, health, 19 safety, or habitation of residents, to include debt restructuring to 20 stabilize and preserve the housing supply and reduce the risk of 21 default. 22 5. "Eligible applicant" shall include not-for-profit or charitable 23 organizations, or a wholly owned subsidiary of such organizations, or 24 private for-profit property owners that have a regulatory agreement with 25 one or more municipal, state, or federal housing agencies applicable to 26 one hundred percent of the housing units on the property. The sponsor, 27 management company and principal participants in the project shall be in 28 good standing, not in default under any existing mortgage financing and 29 shall meet all credit review criteria imposed by the corporation. 30 § 1302. Affordable housing relief fund program. Within amounts appro- 31 priated or otherwise available therefor, the housing trust fund corpo- 32 ration shall develop and administer an affordable housing relief fund 33 program which shall provide aid in the form of payments and grants for 34 reasonable and necessary expenses to eligible applicants for the preser- 35 vation or improvement of affordable housing properties. 36 § 1303. Program criteria. The corporation shall develop procedures, 37 criteria and requirements related to the competitive application for and 38 award of aid pursuant to this section which shall include: eligibility, 39 market demand, feasibility and funding criteria; the funding determi- 40 nation process; supervision and evaluation of contracting applicants; 41 reporting, budgeting and record-keeping requirements; provisions for 42 modification and termination of contracts; and such other matters not 43 inconsistent with the purposes and provisions of this article as the 44 corporation shall deem necessary or appropriate. The corporation may 45 prioritize properties in the greatest distress. 46 § 1304. Funding criteria. Up to fifty thousand dollars per income-res- 47 tricted housing unit may be awarded for residential affordable housing 48 preservation or rehabilitation. Assistance shall be in the form of a 49 zero percent interest rate loan, with no monthly payments, that shall be 50 forgiven after ten years. All or a portion of program funds may be 51 required to be repaid if the project is sold within ten years or fails 52 to comply with the regulatory agreement. The amount subject to possible 53 repayment shall decrease by 1/120 per month each month the property 54 remains in compliance with affordability terms. 55 § 1305. Affordability protection. Recipients of assistance shall be 56 subject to affordability restrictions, tenant protections, and allS. 9380--A 3 1 existing provisions of any regulatory agreement with one or more munici- 2 pality, state, or federal housing agency that serves as a basis for 3 eligibility for assistance under this program. 4 § 1306. Funding. Subject to appropriations for this program, the 5 corporation in its sole discretion shall authorize all funding decisions 6 and make all award determinations. 7 § 1307. Annual report. The corporation shall, on or before January 8 thirty-first in each year submit a report to the legislature on the 9 implementation of this article. Such report shall include, but not be 10 limited to, the number of applications received by the end of the 11 preceding calendar year, the total dollar amount of such applications, 12 and the disposition of such applications; and for each award made to a 13 grantee under this article, a description of such award, the contract 14 amount and cumulative total, the specific activities performed by such 15 grantee, the amounts of monies received by the grantee from sources 16 other than payments made pursuant to this article, and such other infor- 17 mation as the corporation deems pertinent. 18 § 2. This act shall take effect immediately.
