Bill Text: NY A05607 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes a system of community improvement grants to be administered by and through neighborhood citizens' participation committees; makes definitions; directs commissioner of the New York state division for housing and community renewal to create the community improvement grant program; provides that municipalities receiving such grants establish citizens' participation committees.
Spectrum: Moderate Partisan Bill (Republican 7-1)
Status: (Introduced - Dead) 2022-01-05 - referred to housing [A05607 Detail]
Download: New_York-2021-A05607-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5607 2021-2022 Regular Sessions IN ASSEMBLY February 22, 2021 ___________ Introduced by M. of A. FITZPATRICK, COLTON, MIKULIN, MORINELLO, RA, SALKA, TAGUE -- Multi-Sponsored by -- M. of A. MANKTELOW -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to creating a demonstration program establishing a system of community improvement grants to be administered by and through neighborhood citizens' participation committees 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 6-B to read as follows: 3 ARTICLE 6-B 4 DEMONSTRATION PROGRAM: CITIZENS' PARTICIPATION COMMITTEES 5 Section 270. Legislative intent. 6 271. Definitions. 7 272. Community improvement grants. 8 273. General and administrative provisions. 9 § 270. Legislative intent. The legislature hereby finds and declares 10 that in certain regions of the state a supply of housing stock in excess 11 of that needed by the population of those regions has accumulated in 12 recent years, much of which is old, deteriorated, substandard, unmarket- 13 able, and often abandoned. 14 The legislature further finds that this excess housing has had a 15 blighting effect upon the communities in which it is located, reduces 16 the value of other residential properties in the surrounding neighbor- 17 hoods, and may cause persons, families, and businesses to abandon those 18 municipalities containing an overabundance of excess and blighted hous- 19 ing stock. 20 The legislature further finds that it is in the public interest to 21 encourage persons, families, and businesses to locate or remain in those 22 municipalities, in order to both utilize existing building stock and to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08140-01-1A. 5607 2 1 preserve the open spaces of the state, and that improving the quality of 2 life within those municipalities is a most effective method of accom- 3 plishing this goal. In addition, declining home values in these munici- 4 palities discourages home ownership by adversely affecting the ability 5 of families of moderate income to build and/or maintain equity in their 6 homes. 7 The legislature further finds that the residents of a community are 8 often in the best position to know and understand the needs of their 9 community, and have the greatest stake in the future of their community. 10 The legislature further finds that no state program presently exists 11 with the primary purpose of supporting and funding the identification 12 and demolition of surplus housing stock or for disposing of the real 13 estate upon which that housing stock is located. 14 The legislature hereby determines that such a program is in the 15 public's interest. 16 § 271. Definitions. As used in this article, the following words and 17 phrases shall have the following meanings: 18 1. "Commissioner" shall mean the commissioner of the state division of 19 housing and community renewal. 20 2. "Division" shall mean the state division of housing and community 21 renewal. 22 3. "Municipality" shall mean any city, town, or village within the 23 state with a population of less than one million persons. 24 4. "Grant" shall mean a community improvement grant as defined in this 25 article. 26 5. "Committee" shall mean a citizens' participation committee as 27 defined in this article. 28 § 272. Community improvement grants. 1. There is created under the 29 direction of the commissioner the community improvement grant program. 30 Within the limit of funds available in the community improvement grant 31 program, the commissioner is authorized to offer state financial assist- 32 ance to municipalities with a population of under one million persons in 33 the form of community improvement grants. 34 2. Prior to the award of a grant, the commissioner shall have made a 35 finding that the municipality requesting a grant contains neighborhoods 36 that contain a significant number of vacant residential housing units 37 that are in excess of the needs of the current population, and that many 38 of these residential housing units are deteriorated, substandard, or 39 obsolete. The municipality shall demonstrate to the division as part of 40 the grant application process that it is eligible to receive grant funds 41 under the provisions of this section and according to the rules and 42 regulations promulgated by the division. 43 3. Municipalities receiving community improvement grants shall cause 44 to be established citizens' participation committees, which are to be 45 representative of the neighborhoods in which these grant funds are to be 46 expended. The geographic boundaries of the neighborhood represented by 47 each committee shall be determined by the municipality. The committees 48 shall direct all aspects of the expenditure of grants, subject to the 49 provisions of this article. No member of a committee shall receive any 50 compensation for this service, nor shall such member personally profit 51 financially from the proceeds of any grant monies received. Membership 52 in a committee shall consist of representatives of local charitable, 53 not-for-profit, social service, faith-based, business and community 54 organizations with an interest in housing or development issues within 55 the affected neighborhood desiring to participate, as well as any inter- 56 ested local citizens desiring to be involved. Committees are to be self-A. 5607 3 1 governing, and shall establish rules and regulations concerning voting 2 and other procedures, provided that such rules and regulations are 3 constructed in such a manner as to ensure the broadest and most equita- 4 ble participation practicable by all concerned, and that such committees 5 are democratically organized. All proceedings of a committee shall be 6 subject to all provisions of article seven of the public officers law. 7 The municipality shall be responsible for the general oversight of its 8 committees, is to ensure that the committees conduct their business in 9 general conformity with the provisions of this article, and that the 10 organization of each committee is democratic and inclusive of all eligi- 11 ble organizations and individuals. The municipality shall distribute 12 grant monies received to the committees, which shall then expend those 13 funds according to the comprehensive plan developed by such committee. 14 The municipality shall also be responsible for the conduct of periodic 15 financial audits to ensure that all grant monies distributed to the 16 committees are properly accounted for and utilized in conformity with 17 this article. The municipality shall provide to each committee such 18 other technical, legal, and administrative assistance as is required to 19 fulfill the purposes of this article. 20 4. Each committee shall develop a comprehensive neighborhood plan 21 before commencing the expenditure of funds upon other authorized items 22 as defined in subdivision five of this section. The plan shall identify 23 short and long-term goals and objectives that are both consistent with 24 the intent of this article and that shall contribute significantly to 25 improving the quality of life for the citizens living in the neighbor- 26 hood. This plan shall be subject to review and general oversight by the 27 municipality. 28 5. Grant monies received by the committees may be expended upon the 29 following items, subject to the limits indicated: 30 (a) Acquisition of property - not limited. 31 (b) Demolition of structures - not limited. 32 (c) Selective rehabilitation - up to twenty-five percent. Selective 33 rehabilitation may be used to convert suitable multi-family homes into 34 single family homes, if such conversion is consistent with the intent 35 and purposes of this article. 36 (d) Neighborhood beautification - up to twenty percent. 37 (e) Administration - up to ten percent, to be used for expenses such 38 as legal costs, title searches, office supplies, and other miscellaneous 39 support as may be appropriate to assist the efforts of the citizens' 40 participation committees. 41 (f) Property improvement mini-grants - up to twenty percent, with no 42 individual mini-grant to exceed one thousand dollars. These mini-grants 43 are to be offered to individual property owners in order to improve 44 vacant and vacated land as defined in subdivision eight of this section. 45 (g) Planning and market study - up to ten percent, to be utilized by 46 citizens' participation committees in preparing the comprehensive neigh- 47 borhood plan. 48 6. Grant funds may be used by the municipality to acquire tax delin- 49 quent, vacant, and abandoned properties or properties owned by the 50 federal department of Housing and Urban Development, but are not author- 51 ized to acquire properties through eminent domain. Upon municipal acqui- 52 sition of a property, the committee shall assess its condition to deter- 53 mine whether salvaging property is both feasible and consistent with the 54 plans and objectives of the committee. The committee is authorized to 55 direct the demolition of structures when the committee deems this theA. 5607 4 1 most appropriate course of action in furthering the improvement of the 2 neighborhood. 3 7. Residential properties acquired through grant funds that are deemed 4 salvageable may only be conveyed to individuals if they contain no more 5 than four dwelling units, and those individuals agree to maintain their 6 primary residence at that property for not less than two years. 7 8. The committees are authorized to request that the municipality 8 transfer vacant land acquired through grant funds to eligible individual 9 homeowners or not-for-profit agencies for the sum of one dollar. In 10 disposing of vacant land, preference shall be given to transferring 11 portions of that land to the owners of adjoining residential properties, 12 provided that those owners are also occupants of the adjoining residen- 13 tial properties. The committee is authorized to award mini-grants of up 14 to one thousand dollars to these homeowners for the purpose of improving 15 this vacant property. In the event that disposition of vacant land to 16 adjoining individual homeowners is impossible or impractical according 17 to the determination of the committee, this land may be disposed of in 18 such other manner as will inure to the benefit of the community in 19 general and its inhabitants, by providing open public space, parkland or 20 parking spaces as is deemed best by the committee. 21 9. The municipality shall review any request by a committee for the 22 disposition of a property under the provisions of this article, and may 23 deny this request if such disposition is deemed improper or clearly 24 contrary to the intent of this article. 25 § 273. General and administrative provisions. 1. The commissioner 26 shall issue and promulgate rules and regulations for the administration 27 of this article. The rules and regulations shall include, but not be 28 limited to: eligibility for grants under this article; funding criteria 29 and the funding determination process; supervision and evaluation of 30 grantees; reporting and record keeping requirements; and other matters 31 not inconsistent with the purposes and provisions of this article as the 32 commissioner shall deem necessary or appropriate. 33 2. The commissioner shall provide for the periodic financial review of 34 the grantee's conformity to the purposes and provisions of this article. 35 § 2. This act shall take effect immediately.