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

                                  5995

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              March 3, 2011
                               ___________

Introduced  by  M. of A. BURLING, FINCH, MONTESANO -- Multi-Sponsored by
  -- M. of A. BARCLAY, KOLB, OAKS --  read  once  and  referred  to  the
  Committee on Housing

AN ACT to amend the private housing finance law, in relation to removing
  the  annual  monetary limitation on contracts entered into with neigh-
  borhood preservation companies  and  not-for-profit  corporations  for
  housing preservation and community renewal activities

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

  Section 1. Subdivision 4 of section 903 of the private housing finance
law, as amended by section 1 of part FF of chapter 57  of  the  laws  of
2009, is amended to read as follows:
  4.  Contracts  entered  into [hereunder] PURSUANT TO THIS SECTION with
neighborhood preservation companies shall  be  limited  in  duration  to
periods  of  one  year,  but  may  thereafter  be  renewed,  extended or
succeeded by new contracts from year to year in the  discretion  of  the
commissioner;  they shall be limited in amount to the sum of one hundred
thousand dollars in a single 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 neighborhood or  portion
thereof  within  which the neighborhood preservation activities shall be
performed; they shall specify the nature of the  neighborhood  preserva-
tion  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  possible,  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03412-01-1
              

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.