A. 5995 2
who shall be engaged by the neighborhood preservation company to perform
the activities embraced by the contract together with a schedule of
other anticipated expenses.
S 2. Subdivision 4 of section 1003 of the private housing finance law,
as amended by section 2 of part FF of chapter 57 of the laws of 2009, is
amended to read as follows:
4. Contracts pursuant to this section shall be for a period of no more
than one year, but may be renewed or extended from year to year, and
shall provide for payment by the division of no more than one hundred
thousand dollars per year[, provided that in any year in which the
aggregate sum of three hundred thousand dollars shall have been reached
and all succeeding years, the annual contract amount shall be subject to
a limit of ninety-seven thousand five hundred dollars per year]; they
shall define with particularity the region or portion thereof within
which the housing preservation and community renewal activities shall be
performed; they shall specify the nature of the housing preservation and
community renewal activities which shall be performed including the
approximate number of buildings, residential dwelling units and local
retail and service establishments which shall be affected; they shall
locate and describe, with as much particularity as is reasonably possi-
ble, the buildings with respect to which such activities shall be
performed during the contract term; and they shall specify the number of
persons, salaries or rates of compensation and a description of duties
of those who shall be engaged by the corporation to perform the activ-
ities embraced by the contract together with a schedule of other antic-
ipated expenses.
S 3. Subdivision 2 of section 906 of the private housing finance law,
as amended by chapter 432 of the laws of 1997, is amended to read as
follows:
2. The affordable housing corporation, the housing trust fund corpo-
ration or their designee as the case may be, shall provide an incentive
grant to each company that is awarded a contract pursuant to article
eighteen or nineteen of this chapter. Such incentive grant shall consist
of the payment of an additional sum of money equal to NOT LESS THAN
three percent BUT NOT MORE THAN SIX PERCENT of the amount payable to
such company pursuant to each contract provided, however, that such
payment shall not be counted against the per dwelling unit total
imposed by subdivision one of section eleven hundred two of this chapter
or the per dwelling unit limitation imposed by subdivision one of
section eleven hundred twelve of this chapter, and provided further that
such additional amount shall not exceed forty thousand dollars per
contract. Such incentive grant shall be utilized either for [purposes]
ADMINISTRATIVE EXPENSES consistent with the provisions of this article
or for the cost of neighborhood preservation activities related to such
contract and shall not be subject to the limitation on the amount of
funds which may be received by companies contained in subdivision four
of section nine hundred three of this article. Such incentive grant
shall be added to and considered a payment under the contract for
purposes of allocating funds to any single municipality.
S 4. Subdivision 2 of section 1006 of the private housing finance law,
as amended by chapter 432 of the laws of 1997, is amended to read as
follows:
2. The affordable housing corporation or the housing trust fund corpo-
ration, as the case may be, shall provide an incentive grant to each
corporation that is awarded a contract pursuant to article eighteen or
nineteen of this chapter. Such incentive grants shall consist of the
A. 5995 3
payment of an additional sum of money equal to NOT LESS THAN three
percent BUT NO MORE THAN SIX PERCENT of the amount payable to such
corporation pursuant to each contract provided, however, that such
payment shall not be counted against the per dwelling unit total imposed
by subdivision one of section eleven hundred two of this chapter or the
per dwelling unit limitation imposed by subdivision one of section elev-
en hundred twelve of this chapter, and provided further that such addi-
tional amount shall not exceed forty thousand dollars per contract. Such
incentive grant shall be utilized either for [purposes] ADMINISTRATIVE
EXPENSES consistent with the provisions of this article or for the cost
of housing preservation and community renewal activities related to such
contract and shall not be subject to the limitation on the amount of
funds which may be received by corporations contained in subdivision
four of section one thousand three of this article. Such incentive grant
shall be added to and considered a payment under the contract for
purposes of allocating funds to any single municipality.
S 5. Subdivision 1 of section 1102 of the private housing finance law,
as amended by chapter 199 of the laws of 2008, is amended to read as
follows:
1. Within the limit of funds available in the housing trust fund
account, the corporation is hereby authorized to enter into contracts
with eligible applicants for the furnishing by such applicants of hous-
ing for persons of low income. Each such contract shall provide that
eligible applicants rehabilitate or construct one or more projects or
convert one or more nonresidential properties. Such contracts may
provide for payments, grants or loans by the corporation for the activ-
ities to be carried out by the eligible applicant under the contract.
Such contracts shall provide that a private developer make an equity
investment of the greater of (i) two and one-half percent of project
costs or (ii) five percent of project costs less grants which are to be
applied to such costs. The foregoing shall not preclude a private devel-
oper from making a greater equity investment. Any payments, grants or
loans made by the corporation outstanding at the time of resale shall be
subject to repayment in whole or in part upon resale after termination
of the regulatory period and as otherwise provided therein. Such repay-
ment provisions may survive the end of the regulatory period. Such
contracts may provide that eligible applicants shall either (a) perform
activities specified under the contract themselves or (b) act as admin-
istrators of a program under which projects are rehabilitated or
constructed or nonresidential properties are converted by other eligible
applicants or (c) perform both such functions. In the case of a munici-
pality acting as an administrator, funds provided to such municipality
hereunder shall not be deemed to be municipal funds. The corporation
shall refer any request for payments, grants or loans from persons of
low income to eligible applicants in the area in which such persons
reside. Loans may be in the form of participation in loans including but
not limited to participation in loans originated or financed by lending
institutions as defined in section forty-two of this chapter, the state
of New York mortgage agency, the New York city housing development
corporation, the New York state housing finance agency or private or
public employee pension funds. Notwithstanding any other provision of
law, payments, grants and loans may be deposited by the corporation
directly with a lending institution at or before the time of initial
loan closing pursuant to an escrow agreement satisfactory to the corpo-
ration. Payments, grants and loans shall be on such terms and conditions
as the corporation, or the eligible applicant with the approval of the
A. 5995 4
corporation, as the case may be, shall determine. Payments, grants and
loans shall be used to pay for the actual and necessary cost of acquisi-
tion, construction, rehabilitation or conversion, provided that not more
than fifty percent of such payments, grants and loans received for the
rehabilitation, construction or conversion of a project may be used for
the cost of the project's acquisition and not more than ten percent of
such payments, grants and loans may be used for the rehabilitation,
construction or conversion of community service facilities and, provided
further, that payments, grants or loans shall not be used for (i) the
administrative costs of an eligible applicant except as otherwise
authorized by law INCLUDING, BUT NOT LIMITED TO, SUBDIVISION TWO OF
SECTION NINE HUNDRED SIX AND SUBDIVISION TWO OF SECTION ONE THOUSAND SIX
OF THIS CHAPTER, (ii) the cost of the acquisition, construction, conver-
sion or rehabilitation of residential units which, subsequent to such
acquisition, construction, conversion or rehabilitation, are to be occu-
pied by persons other than persons of low income, and (iii) the cost of
the acquisition, construction, conversion or rehabilitation of units
which, subsequent to such acquisition, construction, conversion or reha-
bilitation, are occupied or to be occupied for other than residential
purposes, except for community service facilities as described above. No
such payments, grants or loans shall exceed a total of one hundred twen-
ty-five thousand dollars per dwelling unit. Among the criteria the
corporation shall consider in determining whether to provide additional
funds are: average cost of construction in the area, location of the
project and the impact of the additional funding on the affordability of
the project for the occupants of such project. The length of any loan
provided under this article shall not exceed thirty years. No more than
fifty percent of the total amount originally appropriated pursuant to
this article in any fiscal year shall be allocated to projects located
within any single municipality. Of the amount originally appropriated to
the corporation in any fiscal year, no more than thirty-three and one-
third percent shall be allocated to private developers for projects
within a city with a population of one million or more. Of the amount
originally appropriated to the corporation in any fiscal year, no more
than thirty-three and one-third percent shall be allocated to private
developers for projects in the area outside cities with a population of
one million or more.
S 6. Subdivision 1 of section 1102 of the private housing finance law,
as amended by chapter 445 of the laws of 2004, is amended to read as
follows:
1. Within the limit of funds available in the housing trust fund
account, the corporation is hereby authorized to enter into contracts
with eligible applicants for the furnishing by such applicants of hous-
ing for persons of low income. Each such contract shall provide that
eligible applicants rehabilitate or construct one or more projects or
convert one or more nonresidential properties. Such contracts may
provide for payments, grants or loans by the corporation for the activ-
ities to be carried out by the eligible applicant under the contract.
Such contracts shall provide that a private developer make an equity
investment of the greater of (i) two and one-half percent of project
costs or (ii) five percent of project costs less grants which are to be
applied to such costs. The foregoing shall not preclude a private devel-
oper from making a greater equity investment. Any payments, grants or
loans made by the corporation outstanding at the time of resale shall be
subject to repayment in whole or in part upon resale after termination
of the regulatory period and as otherwise provided therein. Such repay-
A. 5995 5
ment provisions may survive the end of the regulatory period. Such
contracts may provide that eligible applicants shall either (a) perform
activities specified under the contract themselves or (b) act as admin-
istrators of a program under which projects are rehabilitated or
constructed or nonresidential properties are converted by other eligible
applicants or (c) perform both such functions. In the case of a munici-
pality acting as an administrator, funds provided to such municipality
hereunder shall not be deemed to be municipal funds. The corporation
shall refer any request for payments, grants or loans from persons of
low income to eligible applicants in the area in which such persons
reside. Loans may be in the form of participation in loans including but
not limited to participation in loans originated or financed by lending
institutions as defined in section forty-two of this chapter, the state
of New York mortgage agency, the New York city housing development
corporation, the New York state housing finance agency or private or
public employee pension funds. Notwithstanding any other provision of
law, payments, grants and loans may be deposited by the corporation
directly with a lending institution at or before the time of initial
loan closing pursuant to an escrow agreement satisfactory to the corpo-
ration. Payments, grants and loans shall be on such terms and conditions
as the corporation, or the eligible applicant with the approval of the
corporation, as the case may be, shall determine. Payments, grants and
loans shall be used to pay for the actual and necessary cost of acquisi-
tion, construction, rehabilitation or conversion, provided that not more
than twenty-five percent of such payments, grants and loans received for
the rehabilitation, construction or conversion of a project may be used
for the cost of the project's acquisition and, provided further, that
payments, grants or loans shall not be used for (i) the administrative
costs of an eligible applicant except as otherwise authorized by law
INCLUDING, BUT NOT LIMITED TO, SUBDIVISION TWO OF SECTION NINE HUNDRED
SIX AND SUBDIVISION TWO OF SECTION ONE THOUSAND SIX OF THIS CHAPTER,
(ii) the cost of the acquisition, construction, conversion or rehabili-
tation of residential units which, subsequent to such acquisition,
construction, conversion or rehabilitation, are to be occupied by
persons other than persons of low income, and (iii) the cost of the
acquisition, construction, conversion or rehabilitation of units which,
subsequent to such acquisition, construction, conversion or rehabili-
tation, are occupied or to be occupied for other than residential
purposes. No such payments, grants or loans shall exceed a total of
seventy-five thousand dollars per dwelling unit provided, however, that
the corporation shall have the discretion to provide payments, grants
and loans in excess of seventy-five thousand dollars provided that such
additional funds shall not exceed twenty-five thousand dollars per
dwelling unit. Among the criteria the corporation shall consider in
determining whether to provide additional funds are: average cost of
construction in the area, location of the project and the impact of the
additional funding on the affordability of the project for the occupants
of such project. The length of any loan provided under this article
shall not exceed thirty years. No more than fifty percent of the total
amount originally appropriated pursuant to this article in any fiscal
year shall be allocated to projects located within any single munici-
pality. Of the amount originally appropriated to the corporation in any
fiscal year, no more than thirty-three and one-third percent shall be
allocated to private developers for projects within a city with a popu-
lation of one million or more. Of the amount originally appropriated to
the corporation in any fiscal year, no more than thirty-three and one-
A. 5995 6
third percent shall be allocated to private developers for projects in
the area outside cities with a population of one million or more.
S 7. Subdivision 1 of section 1112 of the private housing finance law,
as amended by chapter 333 of the laws of 2004, is amended to read as
follows:
1. Within the limit of funds available in the affordable housing
development account, the corporation is hereby authorized to enter into
contracts with eligible applicants to provide grants which such appli-
cants shall use to finance affordable home ownership development
programs subject to the terms and conditions of this article. Any grants
received by a municipality hereunder shall not be deemed to be municipal
funds. Grantees shall utilize funds provided pursuant to this article
solely as payments, grants and loans to owners to reduce the costs of
new construction, rehabilitation or home improvement or the cost of
acquisition, but only where such acquisition is part of an affordable
home ownership development program or project to construct or rehabili-
tate homes, or as otherwise authorized by law INCLUDING, BUT NOT LIMITED
TO, SUBDIVISION TWO OF SECTION NINE HUNDRED SIX AND SUBDIVISION TWO OF
SECTION ONE THOUSAND SIX OF THIS CHAPTER. Such financial assistance may
be in the form of loans, participation in loans including but not limit-
ed to participation in loans originated or financed by lending insti-
tutions as defined in section forty-two of this chapter, private or
public employee pension funds or the state of New York mortgage agency,
or grants, on such terms and conditions as the grantee with the approval
of the corporation shall determine, provided that no such payments,
grants and loans shall exceed the lesser of (i) sixty percent of the
project cost or (ii) the following per dwelling unit limitations (A)
thirty-five thousand dollars for projects except as provided in clause
(B) of this item (ii) or (B) forty thousand dollars for a high cost
project or a project which will receive a loan from the federal farmers
home administration. Among the criteria the corporation shall consider
in determining whether a project is a high cost project are: average
cost of construction in the area, location of the project, and the
impact of the additional funding on the affordability of the project for
the occupants of such project. No more than fifty percent of the total
amount appropriated pursuant to this article in any fiscal year shall be
allocated to homes located within any single municipality.
S 8. This act shall take effect immediately; provided that the amend-
ments to subdivision 1 of section 1102 of the private housing finance
law made by section five of this act shall be subject to the expiration
and reversion of such subdivision pursuant to chapter 199 of the laws of
2008, as amended, when upon such date the provisions of section six of
this act shall take effect.