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

                                  10285

                          I N  A S S E M B L Y

                              May 20, 2016
                               ___________

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

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:

  Section  1. The private housing finance law is amended by adding a new
article 28 to read as follows:
                             ARTICLE XXVIII
            MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
SECTION 1240. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        1241. DEFINITIONS.
        1242. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS.
  S 1240. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
HEREBY FINDS AND DECLARES THAT THERE EXISTS IN NEW YORK STATE A  SERIOUS
NEED  TO  ELIMINATE OLDER, DILAPIDATED MOBILE AND MANUFACTURED HOMES AND
REPLACE THEM WITH NEW MANUFACTURED, MODULAR OR SITE-BUILT  HOMES.  OLDER
MOBILE  OR  MANUFACTURED  HOME  UNITS  WITH RUSTED, LEAKING METAL ROOFS,
METAL-FRAMED WINDOWS WITH INTERIOR TAKE-OUT STORMS,  AND  METAL  SIDING,
ARE  THOSE THAT MOST NEED REPLACEMENT. NO MATTER THE AMOUNT OF REHABILI-
TATION INVESTMENT, THE END RESULT IS UNSATISFACTORY IN TERMS OF  LONGEV-
ITY,  ENERGY  EFFICIENCY  AND  AFFORDABILITY.  THE LEGISLATURE THEREFORE
FINDS THAT THE STATE SHOULD ESTABLISH A PROGRAM TO FUND THE  REPLACEMENT
OF MOBILE OR MANUFACTURED HOMES WITH NEW AFFORDABLE AND ENERGY EFFICIENT
MANUFACTURED, MODULAR OR SITE-BUILT HOMES.
  S 1241. DEFINITIONS.  FOR  THE  PURPOSES OF THIS ARTICLE THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION  ESTAB-
LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
  2.  "DILAPIDATED" SHALL MEAN A HOUSING UNIT THAT DOES NOT PROVIDE SAFE
AND ADEQUATE SHELTER, AND IN ITS PRESENT CONDITION ENDANGERS THE HEALTH,
SAFETY OR WELL-BEING OF THE OCCUPANTS. SUCH A HOUSING  UNIT  SHALL  HAVE
ONE  OR  MORE CRITICAL DEFECTS, OR A COMBINATION OF INTERMEDIATE DEFECTS
IN SUFFICIENT  NUMBER  OR  EXTENT  TO  REQUIRE  CONSIDERABLE  REPAIR  OR

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

                                                           LBD14637-05-6

A. 10285                            2

REBUILDING.  SUCH DEFECTS MAY INVOLVE ORIGINAL CONSTRUCTION, OR THEY MAY
RESULT FROM CONTINUED NEGLECT OR LACK OF REPAIR OR FROM  SERIOUS  DAMAGE
TO THE STRUCTURE.
  3.  "ELIGIBLE  APPLICANT"  SHALL  MEAN A UNIT OF LOCAL GOVERNMENT OR A
NOT-FOR-PROFIT CORPORATION IN EXISTENCE FOR A  PERIOD  OF  ONE  OR  MORE
YEARS  PRIOR  TO APPLICATION, WHICH IS, OR WILL BE AT THE TIME OF AWARD,
INCORPORATED UNDER THE NOT-FOR-PROFIT CORPORATION LAW AND  HAS  SUBSTAN-
TIAL EXPERIENCE IN AFFORDABLE HOUSING.
  4.  "ELIGIBLE  PROPERTY" SHALL MEAN A MOBILE OR MANUFACTURED HOME THAT
IS THE PRIMARY RESIDENCE OF A HOMEOWNER WITH A  TOTAL  HOUSEHOLD  INCOME
THAT DOES NOT EXCEED EIGHTY PERCENT OF AREA MEDIAN INCOME FOR THE COUNTY
IN WHICH A PROJECT IS LOCATED AS CALCULATED BY THE UNITED STATES DEPART-
MENT OF HOUSING AND URBAN DEVELOPMENT.
  5. "MANUFACTURED HOME" SHALL HAVE THE SAME MEANING AS IS SET FORTH FOR
SUCH  TERM IN SUBDIVISION SEVEN OF SECTION SIX HUNDRED ONE OF THE EXECU-
TIVE LAW.
  6. "MOBILE AND MANUFACTURED HOME  REPLACEMENT  PROGRAM"  OR  "PROGRAM"
SHALL  MEAN A PROPOSAL BY AN ELIGIBLE APPLICANT FOR THE REPLACEMENT OF A
DILAPIDATED MOBILE OR MANUFACTURED HOME WITH A NEW MANUFACTURED, MODULAR
OR SITE-BUILT HOME. ALL REPLACEMENT HOMES SHALL BE ENERGY STAR RATED FOR
ENERGY EFFICIENCY.
  7. "MODULAR HOME" SHALL HAVE THE SAME MEANING AS IS SET FORTH FOR SUCH
TERM IN PARAGRAPH THIRTY-THREE OF  SUBDIVISION  (B)  OF  SECTION  ELEVEN
HUNDRED ONE OF THE TAX LAW.
  8. "SITE-BUILT HOME" SHALL MEAN A STRUCTURE BUILT ON-SITE USING BUILD-
ING MATERIALS DELIVERED TO THE SITE, EVEN IF SOME OF SUCH MATERIALS WERE
MANUFACTURED,  PRODUCED OR ASSEMBLED OFF-SITE SUCH AS, BY WAY OF EXAMPLE
AND NOT BY WAY OF LIMITATION, CONCRETE BLOCKS, WINDOWS, DOOR UNITS, WALL
OR ROOF PANELS, TRUSSES AND DORMERS.
  S 1242. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS. 1. GRANTS.
WITHIN THE LIMIT OF FUNDS AVAILABLE IN THE MOBILE AND MANUFACTURED  HOME
REPLACEMENT  PROGRAM, THE CORPORATION IS HEREBY AUTHORIZED TO ENTER INTO
CONTRACTS WITH ELIGIBLE APPLICANTS TO PROVIDE  GRANTS,  WHICH  SHALL  BE
USED  TO  ESTABLISH  PROGRAMS TO PROVIDE ASSISTANCE TO ELIGIBLE PROPERTY
OWNERS TO REPLACE DILAPIDATED MOBILE OR MANUFACTURED HOMES IN THE STATE.
  2. PROGRAM CRITERIA. THE CORPORATION SHALL DEVELOP PROCEDURES,  CRITE-
RIA  AND  REQUIREMENTS  RELATED TO THE APPLICATION AND AWARD OF PROJECTS
PURSUANT TO THIS SECTION  WHICH  SHALL  INCLUDE:    ELIGIBILITY,  MARKET
DEMAND,  FEASIBILITY  AND  FUNDING  CRITERIA;  THE FUNDING DETERMINATION
PROCESS; SUPERVISION AND EVALUATION OF CONTRACTING  APPLICANTS;  REPORT-
ING, BUDGETING AND RECORD-KEEPING REQUIREMENTS; PROVISIONS FOR MODIFICA-
TION AND TERMINATION OF CONTRACTS; AND SUCH OTHER MATTERS NOT INCONSIST-
ENT  WITH THE PURPOSES AND PROVISIONS OF THIS ARTICLE AS THE CORPORATION
SHALL DEEM NECESSARY OR APPROPRIATE.
  3. CONTRACT LIMITATIONS. THE TOTAL CONTRACT PURSUANT TO ANY ONE ELIGI-
BLE APPLICANT IN A SPECIFIED REGION SHALL NOT EXCEED FIVE HUNDRED  THOU-
SAND  DOLLARS  AND  THE  CONTRACT  SHALL  PROVIDE  FOR COMPLETION OF THE
PROGRAM WITHIN A REASONABLE PERIOD, AS SPECIFIED  THEREIN,  WHICH  SHALL
NOT  IN  ANY  EVENT  EXCEED FOUR YEARS FROM COMMENCEMENT OF THE PROGRAM.
UPON REQUEST, THE CORPORATION MAY EXTEND THE TERM OF THE CONTRACT FOR UP
TO AN ADDITIONAL ONE YEAR PERIOD FOR GOOD CAUSE SHOWN  BY  THE  ELIGIBLE
APPLICANT.
  4.  PLANNING AND ADMINISTRATIVE COSTS. THE CORPORATION SHALL AUTHORIZE
THE ELIGIBLE APPLICANT TO  SPEND  SEVEN  AND  ONE-HALF  PERCENT  OF  THE
CONTRACT  AMOUNT  FOR APPROVED PLANNING AND ADMINISTRATIVE COSTS ASSOCI-
ATED WITH ADMINISTERING THE PROGRAM.

A. 10285                            3

  5. THE CORPORATION SHALL REQUIRE THAT, IN ORDER  TO  RECEIVE  A  GRANT
PURSUANT  TO  THIS  ARTICLE,  THE  ELIGIBLE PROPERTY OWNER SHALL HAVE NO
LIENS ON THE LAND AFTER CLOSING  THE  GRANT  OTHER  THAN  THE  NEW  HOME
FINANCING AND CURRENTLY EXISTING MORTGAGE OR MORTGAGES, AND ALL PROPERTY
TAXES AND INSURANCES MUST BE CURRENT.
  6.  ASSISTANCE. FINANCIAL ASSISTANCE TO ELIGIBLE PROPERTY OWNERS SHALL
BE ONE HUNDRED PERCENT GRANTS IN THE  FORM  OF  DEFERRED  PAYMENT  LOANS
(DPL). A TEN YEAR DECLINING BALANCE LIEN IN THE FORM OF A NOTE AND MORT-
GAGE,  DULY  FILED  AT  THE  COUNTY CLERK'S OFFICE, WILL BE UTILIZED FOR
REPLACEMENT PROJECTS. NO INTEREST OR PAYMENTS WILL BE  REQUIRED  ON  THE
DPL  UNLESS  THE  PROPERTY  IS SOLD OR TRANSFERRED BEFORE THE REGULATORY
TERM EXPIRES. IN SUCH CASES FUNDS WILL BE RECAPTURED FROM  THE  PROCEEDS
OF  THE  SALE  OF  THE  HOME,  ON  A  DECLINING BALANCE BASIS, UNLESS AN
INCOME-ELIGIBLE  IMMEDIATE  FAMILY  MEMBER  ACCEPTS  OWNERSHIP  OF,  AND
RESIDES  IN THE NEW REPLACEMENT HOME FOR THE REMAINDER OF THE REGULATORY
TERM.  IN ADDITION THE MOBILE AND MANUFACTURED HOME REPLACEMENT  PROGRAM
ESTABLISHED  BY  THIS  ARTICLE  SHALL:  (A) PROVIDE FUNDS FOR RELOCATION
ASSISTANCE TO HOMEOWNERS WHO ARE UNABLE TO VOLUNTARILY  RELOCATE  DURING
THE DEMOLITION AND CONSTRUCTION PHASES OF THE PROJECT; (B) PROVIDE FUND-
ING  FOR THE COSTS OF DEMOLISHING AND DISPOSING OF THE DILAPIDATED HOME;
AND (C) COMPLEMENT AND BE  IN  ADDITION  TO  ANY  EXISTING  MOBILE  HOME
REPLACEMENT  ESTABLISHED  UNDER THE NEW YORK STATE HOME PROGRAM PURSUANT
TO SECTION ELEVEN HUNDRED SEVENTY-TWO OF THIS CHAPTER, OR ANY  SUCCESSOR
THERETO, AND FUNDED WITH FEDERAL FUNDS.
  7.  HOMEOWNERSHIP  TRAINING. THE ELIGIBLE PROPERTY OWNER MUST AGREE TO
ATTEND AN APPROVED HOMEOWNERSHIP  TRAINING  PROGRAM  FOR  POST-PURCHASE,
CREDIT/BUDGET,  AND  HOME MAINTENANCE COUNSELING AS PART OF THE APPLICA-
TION PROCESS.
  8. FUNDING CRITERIA. THE TOTAL  PAYMENT  PURSUANT  TO  ANY  ONE  GRANT
CONTRACT  SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS AND THE CONTRACT
SHALL PROVIDE FOR COMPLETION OF THE PROGRAM WITHIN A REASONABLE  PERIOD,
AS SPECIFIED THEREIN, NOT TO EXCEED FOUR YEARS.
  9.  FUNDING  AND ANNUAL REPORT. THE CORPORATION IN ITS SOLE DISCRETION
SHALL AUTHORIZE ALL FUNDING DECISIONS AND MAKE ALL AWARD  ANNOUNCEMENTS.
THE  CORPORATION  SHALL, ON OR BEFORE DECEMBER THIRTY-FIRST IN EACH YEAR
SUBMIT A REPORT TO THE LEGISLATURE ON THE IMPLEMENTATION OF  THIS  ARTI-
CLE.  SUCH  REPORT  SHALL INCLUDE, BUT NOT BE LIMITED TO, FOR EACH AWARD
MADE TO A GRANTEE UNDER THIS  ARTICLE:  A  DESCRIPTION  OF  SUCH  AWARD;
CONTRACT  AMOUNT AND CUMULATIVE TOTAL; AND SUCH OTHER INFORMATION AS THE
CORPORATION DEEMS PERTINENT.
  S 2. This act shall take effect immediately.