Bill Text: NY A06277 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to affordable housing corporation grants by increasing the amount that can be granted to a high cost project.

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced) 2019-03-04 - referred to housing [A06277 Detail]

Download: New_York-2019-A06277-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 4, 2019
        Introduced by M. of A. WALKER -- read once and referred to the Committee
          on Housing
        AN ACT to amend the private housing finance law, in relation to afforda-
          ble housing corporation grants
          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  1112  of  the  private  housing
     2  finance law, as amended by chapter 64 of the laws of 2012, is amended to
     3  read as follows:
     4    1.  Within  the  limit  of  funds  available in the affordable housing
     5  development account, the corporation is hereby authorized to enter  into
     6  contracts  with  eligible applicants to provide grants which such appli-
     7  cants  shall  use  to  finance  affordable  home  ownership  development
     8  programs subject to the terms and conditions of this article. Any grants
     9  received by a municipality hereunder shall not be deemed to be municipal
    10  funds.    Grantees shall utilize funds provided pursuant to this article
    11  solely as payments, grants and loans to owners to reduce  the  costs  of
    12  new  construction,  rehabilitation  or  home  improvement or the cost of
    13  acquisition, but only where such acquisition is part  of  an  affordable
    14  home  ownership development program or project to construct or rehabili-
    15  tate homes, or as otherwise authorized by law. Such financial assistance
    16  may be in the form of loans, participation in loans  including  but  not
    17  limited  to  participation  in  loans  originated or financed by lending
    18  institutions as defined in section forty-two of this chapter, private or
    19  public employee pension funds or the state of New York mortgage  agency,
    20  or grants, on such terms and conditions as the grantee with the approval
    21  of  the  corporation  shall  determine,  provided that no such payments,
    22  grants and loans shall exceed the lesser of (i)  sixty  percent  of  the
    23  project  cost  for projects involving acquisition or one hundred percent
    24  of rehabilitation programs without an acquisition component or (ii)  the
    25  following per dwelling unit limitations (A) thirty-five thousand dollars
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6277                             2
     1  for  projects  except  as  provided  in  [item] subparagraph (B) of this
     2  [clause] paragraph or (B) [forty] up to  seventy-five  thousand  dollars
     3  for  a high cost project or a project which will receive a loan from the
     4  federal farmers home administration. Up to ten percent of the program or
     5  project  cost  may  be  used  for  grantee  operating expenses including
     6  expenses related to the  organization  operating  support  and  adminis-
     7  tration  of  the  contract.  Among  the  criteria  the corporation shall
     8  consider in determining whether a project is a high  cost  project  are:
     9  average  cost  of construction in the area, location of the project, and
    10  the impact of the additional funding on the affordability of the project
    11  for the occupants of such project.  No more than fifty  percent  of  the
    12  total  amount  appropriated  pursuant to this article in any fiscal year
    13  shall be allocated to homes located within any single municipality.
    14    § 2. Subdivision 2 of section 1112 of the private housing finance  law
    15  is amended by adding a new paragraph (j) to read as follows:
    16    (j)  In the case of projects that receive an award of over forty thou-
    17  sand dollars, the grantee may establish  resale  restrictions  requiring
    18  the  sale  of  the  unit or units receiving such funding through a grant
    19  from the corporation be purchased only by qualified low-income  homebuy-
    20  ers  extending  for  a  period of at least sixty years, but no more than
    21  ninety-nine years, and the grantee may ensure this resale restriction by
    22  use of deed restrictions, community land trusts, or limited-equity coop-
    23  erative ownership structure.
    24    § 3. Section 1112 of the private housing finance  law  is  amended  by
    25  adding a new subdivision 3-a to read as follows:
    26    3-a.  In  determining awards pursuant to this article, the corporation
    27  shall establish tiered project funding levels based on length and  depth
    28  of affordability.
    29    §  4.  Projects  in pre-development that have already received commit-
    30  ments from the corporation prior to the effective date of this act shall
    31  be granted the opportunity to request additional capital under  the  law
    32  after the effective date of this act.
    33    §  5. This act shall take effect on the two hundred fortieth day after
    34  it shall have become a law. Effective immediately, the  commissioner  of
    35  homes  and  community  renewal  is  authorized and directed to take such
    36  actions which are necessary for the implementation of this act,  includ-
    37  ing  the addition, amendment and/or repeal of any rule or regulation, on
    38  or before such effective date.