STATE OF NEW YORK
________________________________________________________________________
6866--A
2021-2022 Regular Sessions
IN SENATE
May 19, 2021
___________
Introduced by Sen. MANNION -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development -- recommitted to the Committee on Housing,
Construction and Community Development in accordance with Senate Rule
6, sec. 8 -- 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 the
mobile and manufactured home replacement program
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 27-A to read as follows:
3 ARTICLE XXVII-A
4 MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
5 Section 1240. Statement of legislative findings and purpose.
6 1241. Definitions.
7 1242. Mobile and manufactured home replacement contracts.
8 § 1240. Statement of legislative findings and purpose. The legislature
9 hereby finds and declares that there exists in New York state a serious
10 need to eliminate older, dilapidated mobile and manufactured homes and
11 replace them with new manufactured, modular or site-built homes. Older
12 mobile or manufactured home units with rusted, leaking metal roofs,
13 metal-framed windows with interior take-out storms, and metal siding,
14 are those that most need replacement. No matter the amount of rehabili-
15 tation investment, the end result is unsatisfactory in terms of longev-
16 ity, energy efficiency and affordability. The legislature therefore
17 finds that the state should establish a program to fund the replacement
18 of mobile or manufactured homes with new affordable and energy efficient
19 manufactured, modular or site-built homes.
20 § 1241. Definitions. For the purposes of this article the following
21 terms shall have the following meanings:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01591-04-2
S. 6866--A 2
1 1. "Corporation" shall mean the housing trust fund corporation estab-
2 lished in section forty-five-a of this chapter.
3 2. "Dilapidated" shall mean a housing unit that does not provide safe
4 and adequate shelter, and in its present condition endangers the health,
5 safety or well-being of the occupants. Such a housing unit shall have
6 one or more critical defects, or a combination of intermediate defects
7 in sufficient number or extent to require considerable repair or
8 rebuilding. Such defects may involve original construction, or they may
9 result from continued neglect or lack of repair or from serious damage
10 to the structure.
11 3. "Eligible applicant" shall mean a unit of local government or a
12 not-for-profit corporation in existence for a period of one or more
13 years prior to application, which is, or will be at the time of award,
14 incorporated under the not-for-profit corporation law and has substan-
15 tial experience in affordable housing.
16 4. "Eligible property" shall mean a mobile or manufactured home that
17 is the primary residence of a homeowner with a total household income
18 that does not exceed eighty percent of area median income for the county
19 in which a project is located as calculated by the United States depart-
20 ment of housing and urban development.
21 5. "Manufactured home" shall have the same meaning as is set forth for
22 such term in subdivision seven of section six hundred one of the execu-
23 tive law.
24 6. "Mobile and manufactured home replacement program" or "program"
25 shall mean a proposal by an eligible applicant for the replacement of a
26 dilapidated mobile or manufactured home with a new manufactured, modular
27 or site-built home. All replacement homes shall be energy star rated for
28 energy efficiency.
29 7. "Modular home" shall have the same meaning as is set forth for such
30 term in paragraph thirty-three of subdivision (b) of section eleven
31 hundred one of the tax law.
32 8. "Site-built home" shall mean a structure built on-site using build-
33 ing materials delivered to the site, even if some of such materials were
34 manufactured, produced or assembled off-site such as, by way of example
35 and not by way of limitation, concrete blocks, windows, door units, wall
36 or roof panels, trusses and dormers.
37 § 1242. Mobile and manufactured home replacement contracts. 1. Grants.
38 Within the limit of funds available in the mobile and manufactured home
39 replacement program, the corporation is hereby authorized to enter into
40 contracts with eligible applicants to provide grants, which shall be
41 used to establish programs to provide assistance to eligible property
42 owners to replace dilapidated mobile or manufactured homes in the state.
43 2. Program criteria. The corporation shall develop procedures, crite-
44 ria and requirements related to the application and award of projects
45 pursuant to this section which shall include: eligibility, market
46 demand, feasibility and funding criteria; the funding determination
47 process; supervision and evaluation of contracting applicants; report-
48 ing, budgeting and record-keeping requirements; provisions for modifica-
49 tion and termination of contracts; and such other matters not inconsist-
50 ent with the purposes and provisions of this article as the corporation
51 shall deem necessary or appropriate.
52 3. Contract limitations. The total contract pursuant to any one eligi-
53 ble applicant in a specified region shall not exceed seven hundred fifty
54 thousand dollars and the contract shall provide for completion of the
55 program within a reasonable period, as specified therein, which shall
56 not in any event exceed four years from commencement of the program.
S. 6866--A 3
1 Upon request, the corporation may extend the term of the contract for up
2 to an additional one year period for good cause shown by the eligible
3 applicant.
4 4. Planning and administrative costs. The corporation shall authorize
5 the eligible applicant to spend ten percent of the contract amount for
6 approved planning and administrative costs associated with administering
7 the program.
8 5. The corporation shall require that, in order to receive a grant
9 pursuant to this article, the eligible property owner shall have no
10 liens on the land after closing the grant other than the new home
11 financing and currently existing mortgage or mortgages, and all property
12 taxes and insurances must be current.
13 6. Assistance. Financial assistance to eligible property owners shall
14 be one hundred percent grants in the form of deferred payment loans
15 (hereinafter referred to in this subdivision as "DPL"). A ten year
16 declining balance lien in the form of a note and mortgage, duly filed at
17 the county clerk's office, will be utilized for replacement projects. No
18 interest or payments will be required on the DPL unless the property is
19 sold or transferred before the regulatory term expires. In such cases
20 funds will be recaptured from the proceeds of the sale of the home, on a
21 declining balance basis, unless an income-eligible immediate family
22 member accepts ownership of, and resides in the new replacement home for
23 the remainder of the regulatory term. In addition the mobile and manu-
24 factured home replacement program established by this article shall: (a)
25 provide funds for relocation assistance to homeowners who are unable to
26 voluntarily relocate during the demolition and construction phases of
27 the project; (b) provide funding for the costs of demolishing and
28 disposing of the dilapidated home; and (c) complement and be in addition
29 to any existing mobile home replacement established under the New York
30 state HOME program pursuant to section eleven hundred seventy-two of
31 this chapter, or any successor thereto, and funded with federal funds.
32 7. Homeownership training. The eligible property owner must agree to
33 attend an approved homeownership training program for post-purchase,
34 credit/budget, and home maintenance counseling as part of the applica-
35 tion process.
36 8. Funding criteria. The total payment pursuant to any one grant
37 contract shall not exceed two hundred thousand dollars and the contract
38 shall provide for completion of the program within a reasonable period,
39 as specified therein, not to exceed four years.
40 9. Funding and annual report. The corporation in its sole discretion
41 shall authorize all funding decisions and make all award announcements.
42 The corporation shall, on or before December thirty-first in each year
43 submit a report to the legislature on the implementation of this arti-
44 cle. Such report shall include, but not be limited to, for each award
45 made to a grantee under this article: a description of such award;
46 contract amount and cumulative total; and such other information as the
47 corporation deems pertinent.
48 § 2. This act shall take effect immediately.