S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1378--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens. LITTLE, RITCHIE -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Housing,
   Construction and Community Development -- recommitted to the Committee
   on  Housing, Construction and Community Development in accordance with
   Senate Rule 6, sec. 8 -- reported favorably from  said  committee  and
   committed  to  the  Committee on Finance -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 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 29 to read as follows:
                               ARTICLE XXIX
             MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
 SECTION 1260. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
         1261. DEFINITIONS.
         1262. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS.
   § 1260. 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00666-02-8

 S. 1378--A                          2
 
   § 1261. 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
 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.
   § 1262. 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

 S. 1378--A                          3
 
 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.
   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
 (HEREINAFTER REFERRED TO IN THIS SUBDIVISION AS  "DPL").    A  TEN  YEAR
 DECLINING BALANCE LIEN IN THE FORM OF A NOTE AND MORTGAGE, 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  MANU-
 FACTURED 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  FUNDING  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.
   § 2. This act shall take effect immediately.