S T A T E   O F   N E W   Y O R K
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                                  1587

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 3, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the private housing finance law, in relation to  author-
  izing  grants  to  municipalities  to  provide  affordable housing and
  making an appropriation therefor

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The private housing finance law is amended by adding a new
article 23 to read as follows:
                               ARTICLE XXIII
                        ZONING INCENTIVE PROGRAM
SECTION 1160. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        1161. DEFINITIONS.
        1162. ZONING INCENTIVE CONTRACTS.
        1163. GENERAL AND ADMINISTRATIVE PROVISIONS.
  S 1160. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
HEREBY FINDS AND DECLARES THAT MANY SUBURBAN AND RURAL COMMUNITIES  FACE
CRITICAL  AFFORDABLE  HOUSING  SHORTAGES, THAT SOME OF THESE COMMUNITIES
ZONE THEIR RESIDENTIAL DISTRICTS FOR LOW DENSITY DEVELOPMENT,  AND  THAT
CERTAIN  PROPERTIES  ZONED FOR ONLY LOW DENSITY RESIDENTIAL USE COULD BE
USED TO DEVELOP AFFORDABLE HOUSING IF THE PROPER INCENTIVES EXISTED. THE
LEGISLATURE THEREFORE FINDS THAT A  PROGRAM  SHOULD  BE  ESTABLISHED  TO
PROVIDE  A  FINANCIAL INCENTIVE FOR LOCALITIES TO USE THEIR ZONING POLI-
CIES AS A MECHANISM TO DEVELOP AFFORDABLE HOUSING.
  S 1161. DEFINITIONS. AS USED IN THIS ARTICLE, THE TERMS:
  1. "DIVISION"  SHALL  MEAN  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL.
  2. "MUNICIPALITY" SHALL MEAN A CITY, TOWN OR VILLAGE.
  3. "BONUS HOUSING" SHALL MEAN A RESIDENTIAL DWELLING.
  4.  "AFFORDABLE BONUS UNIT" SHALL MEAN BONUS HOUSING WHICH IS AFFORDA-
BLE TO AND OCCUPIED BY PERSONS EARNING THE LESSER OF THE  MEDIAN  INCOME

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07781-01-9
              

S. 1587                             2

OF  MUNICIPAL  EMPLOYEES IN THE AREA OR THE MEDIAN INCOME FOR THE METRO-
POLITAN STATISTICAL AREA.
  5.  "STATE FINANCIAL ASSISTANCE" SHALL MEAN PAYMENTS TO MUNICIPALITIES
TO PRODUCE AFFORDABLE BONUS UNITS WHICH PAYMENTS MAY BE USED  TO  DEFRAY
THE COST OF PRODUCING SUCH UNITS.
  S  1162.  ZONING  INCENTIVE  CONTRACTS.  1. WITHIN THE LIMITS OF FUNDS
AVAILABLE, THE DIVISION IS HEREBY AUTHORIZED  TO  ENTER  INTO  CONTRACTS
WITH MUNICIPALITIES TO PROVIDE STATE FINANCIAL ASSISTANCE FOR ACTIVITIES
TO  BE  CARRIED OUT PURSUANT TO THIS ARTICLE. THE DIVISION SHALL PROVIDE
SUCH STATE FINANCIAL ASSISTANCE IN THE FORM OF GRANTS IN AN  AMOUNT  NOT
TO  EXCEED TEN THOUSAND DOLLARS FOR EACH AFFORDABLE BONUS UNIT PRODUCED.
NO MORE THAN FIFTY PERCENT OF THE TOTAL AMOUNT APPROPRIATED PURSUANT  TO
THIS ARTICLE IN ANY FISCAL YEAR SHALL BE ALLOCATED TO CONTRACTS WITH ANY
SINGLE MUNICIPALITY.
  2.  THE  DIVISION  SHALL  NOT ENTER INTO A CONTRACT UNDER THIS ARTICLE
EXCEPT WITH A MUNICIPALITY WHICH HAS SUBMITTED AN  APPLICATION  PURSUANT
TO  A  REQUEST  FOR  PROPOSALS  ISSUED BY THE DIVISION WHICH APPLICATION
CONTAINS A PLAN ACCEPTABLE TO THE DIVISION WHICH PROVIDES THAT:  (A) THE
MUNICIPALITY SHALL AMEND ITS ZONING ORDINANCE WITH RESPECT TO THE  PROP-
ERTY  FOR  WHICH  A  ZONING  INCENTIVE CONTRACT IS SOUGHT TO ALLOW, AT A
MINIMUM, TWICE AS MUCH HOUSING DEVELOPMENT AS CURRENTLY ALLOWED;
  (B) THE MUNICIPALITY SHALL PROVIDE OR CONTRACT TO PROVIDE BONUS  HOUS-
ING ON THE LAND WHICH IS REZONED; AND
  (C)  AT  A  MINIMUM  ONE-THIRD  OF THE BONUS HOUSING PRODUCED SHALL BE
AFFORDABLE BONUS UNITS.
  3. IN DETERMINING AWARDS PURSUANT TO THIS ARTICLE THE  DIVISION  SHALL
GIVE PREFERENCE TO APPLICATIONS BASED UPON THE EXTENT TO WHICH THE MUNI-
CIPALITY WILL:
  (A) SERVE THE LOWEST INCOME HOUSEHOLDS IN THE MUNICIPALITY;
  (B) UNDERTAKE AND COMPLETE THE PROJECT IN A TIMELY FASHION;
  (C)  UTILIZE INNOVATIVE, COST EFFECTIVE DESIGN TECHNIQUES AND BUILDING
MATERIALS WHICH REDUCE CONSTRUCTION OR OPERATING COSTS INCLUDING BUT NOT
LIMITED TO FACTORY BUILT OR MODULAR HOMES.
  S 1163. GENERAL AND ADMINISTRATIVE PROVISIONS. 1. THE  DIVISION  SHALL
ISSUE  AND  PROMULGATE  RULES  AND REGULATIONS FOR THE ADMINISTRATION OF
THIS ARTICLE.
  2. THE DIVISION SHALL, ON OR BEFORE JANUARY FIRST IN EACH YEAR, SUBMIT
FOR THE PRECEDING FISCAL YEAR A REPORT TO THE  GOVERNOR,  THE  TEMPORARY
PRESIDENT  OF  THE SENATE, AND THE SPEAKER OF THE ASSEMBLY ON THE IMPLE-
MENTATION OF THIS ARTICLE. SUCH REPORT SHALL INCLUDE BUT NOT BE  LIMITED
TO  (A) A DESCRIPTION OF THE DISTRIBUTION OF FUNDS, (B) FOR EACH MUNICI-
PALITY RECEIVING A GRANT UNDER THIS ARTICLE, THE  NUMBER  OF  AFFORDABLE
UNITS PRODUCED, THE COST OF SUCH NEW UNITS AND A DESCRIPTION OF HOW SUCH
UNITS  WERE  PRODUCED  AND  (C)  THE  TOTAL  NUMBER  OF AFFORDABLE UNITS
PRODUCED.
  S 2. The sum of one million dollars ($1,000,000), or so  much  thereof
as may be necessary, is hereby allocated from monies appropriated to the
state  affordable  housing corporation and made immediately available to
the commissioner of housing and community renewal for expenses in carry-
ing out the provisions of this act. Such monies shall be payable on  the
audit  and  warrant of the comptroller on vouchers certified or approved
in the manner prescribed by law.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided however, that effective  immediate-
ly,  all  actions  and procedures with respect to the proposed adoption,
amendment, suspension or repeal of any rule or regulation necessary  for

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the  timely implementation of this act on its effective date are author-
ized and directed to be made and completed on or before  such  effective
date.