S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    410
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  M. of A. CAHILL, BARRON -- 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 27-A to read as follows:
                              ARTICLE XXVII-A
             MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
 SECTION 1240. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
         1241. DEFINITIONS.
         1242. MOBILE AND MANUFACTURED HOME REPLACEMENT CONTRACTS.
   § 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.
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01974-01-9

 A. 410                              2
 
   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.
   § 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

 A. 410                              3
 
 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.