S T A T E   O F   N E W   Y O R K
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                                  7609

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 11, 2011
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Housing

AN  ACT  to  amend part NN of chapter 57 of the laws of 2008 relating to
  authorizing the New York state mortgage  agency  to  transfer  certain
  moneys,  in  relation to income criteria for the use of funds from the
  greater Catskills flood remediation program

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

  Section  1.  Section  3  of  part NN of chapter 57 of the laws of 2008
relating to authorizing the New York state mortgage agency  to  transfer
certain  moneys,  as amended by section 1 of part X of chapter 58 of the
laws of 2011, is amended to read as follows:
  S 3. (a) Within the amounts transferred to the corporation pursuant to
section one of this act for  the  greater  Catskills  flood  remediation
program,  the corporation shall provide funds to the counties of Broome,
Chenango, Delaware, Herkimer,  Montgomery,  Orange,  Otsego,  Schoharie,
Sullivan,  Tioga and Ulster, upon application by a county and within the
amounts available for disbursement to such county, to enable  the  coun-
ties  to  purchase  and  demolish one or two family homes that have been
certified by the local building inspector and county  emergency  manage-
ment  director,  to  the satisfaction of the corporation, as having been
subject to one or more incidents of flooding since April 1, 2004 and  as
likely  to  be  subject  to  a  future  flood  incident that would cause
substantial damage thereto. Any application by a county for disbursement
of funds under this act shall demonstrate, to the  satisfaction  of  the
corporation,  that: (1) the home is occupied as the primary residence of
an owner [with a family income of up to one hundred fifty percent of the
area median income as defined by the United States department of housing
and urban development], provided, however, that  an  otherwise  eligible
home  shall be eligible for purchase under this act if the current owner
can demonstrate that the home was occupied as the owner's primary  resi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10756-03-1
              

A. 7609                             2

dence prior to a flood event that rendered the home unsuitable for habi-
tation;  (2) the current appraised value of the home does not exceed two
hundred fifty thousand dollars and the purchase price for the home  will
not  exceed the appraised value less the amount of any property casualty
insurance or disaster relief payments received by the owner  as  compen-
sation  for  damage incurred in a flood incident; (3) all recorded liens
or other encumbrances on the home will be released at closing;  (4)  the
county provides assurances that the home will be condemned and the prop-
erty  will  be  dedicated and maintained in perpetuity for a use that is
compatible with open space, recreational, flood mitigation  or  wetlands
management  practices; and (5) disbursements under this section shall be
limited to the costs of acquisition of eligible homes, including  legal,
appraisal, recording and other transaction costs, and the costs of demo-
lition.    In  selecting  homes  for purchase pursuant to this act, each
county shall give preference to homes with a current appraised value  of
less than one hundred fifty thousand dollars and to homes that have been
subject  to  two  or more incidents of flooding since April 1, 2004. The
corporation shall establish policies and procedures consistent with this
section, which shall include county reporting  requirements,  and  shall
report to the governor, the speaker of the assembly, the temporary pres-
ident of the senate and the director of the division of the budget on or
before  December  31, 2008 regarding the implementation of this section.
Of the amounts transferred to the corporation pursuant to section one of
this act, the amounts disbursed to counties  pursuant  to  this  section
shall  not  exceed  the  following  amounts: Broome, $750,000; Chenango,
$750,000;  Delaware,   $2,000,000;   Herkimer,   $750,000;   Montgomery,
$750,000;  Orange,  $2,000,000;  Otsego,  $750,000; Schoharie, $750,000;
Sullivan, $3,750,000; Tioga, $750,000; and Ulster, $2,000,000.
  (b) Any funds not under contract or grant agreement between any county
provided for by this section and the state of New York  or  any  of  its
divisions or agencies on or by January 1, 2010 may be used, upon a find-
ing  by the corporation that such funds are available, by Ulster county,
whether the funds are allocated to such  county  or  to  another  county
under  this program, to purchase and demolish homes which otherwise meet
the requirements of subdivision (a) of this section and  are  in  Ulster
county,  and/or  otherwise  purchase  homes  which  are  valued at under
$250,000 upon a finding by the corporation that: (1) the homes have been
subjected to seepage of water into the homes either through the walls or
foundation of such home or water otherwise enters into  the  home  other
than  through pipes intended for such purpose, and (2) the home is situ-
ated within two miles of an underground aqueduct  owned,  maintained  or
operated  by  the  city  of New York or any board, agency, department or
bureau thereof and is used for the transport of drinking  water  to  the
city  of New York.  In making determinations of which homes to purchase,
the county shall first seek to expend  funds  to  purchase  those  homes
which meet the requirements enumerated in paragraphs one and two of this
subdivision.
  S 2. This act shall take effect immediately.