Bill Text: NY A07833 | 2011-2012 | General Assembly | Introduced


Bill Title: Provides that up to ten percent of project cost for affordable home ownership development contracts may be used for particular operating costs.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Engrossed - Dead) 2012-05-07 - substituted by s6554 [A07833 Detail]

Download: New_York-2011-A07833-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7833
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 18, 2011
                                      ___________
       Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
         tee on Housing
       AN ACT to amend the private housing finance law, in relation to afforda-
         ble home ownership development contracts
         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 333 of the laws of 2004, is amended
    3  to 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.
                                                                  LBD11705-01-1
       A. 7833                             2
    1  for projects except as provided in [clause] ITEM (B) of this [item (ii)]
    2  CLAUSE or (B) forty thousand dollars  for  a  high  cost  project  or  a
    3  project which will receive a loan from the federal farmers home adminis-
    4  tration.  UP  TO  TEN PERCENT OF THE PROGRAM OR PROJECT COST MAY BE USED
    5  FOR GRANTEE OPERATING EXPENSES INCLUDING EXPENSES RELATED TO THE  ORGAN-
    6  IZATION  OPERATING SUPPORT AND ADMINISTRATION OF THE CONTRACT. Among the
    7  criteria the corporation shall consider in determining whether a project
    8  is a high cost project are: average cost of construction  in  the  area,
    9  location of the project, and the impact of the additional funding on the
   10  affordability  of the project for the occupants of such project. No more
   11  than fifty percent of the total amount  appropriated  pursuant  to  this
   12  article  in  any  fiscal year shall be allocated to homes located within
   13  any single municipality.
   14    S 2. This act shall take effect immediately.
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