S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8436
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 8, 2019
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law and  the  local  finance
   law,  in  relation to affordable housing in cities having a population
   of one million or more
 
   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 31 to read as follows:
                               ARTICLE XXXI
                        AFFORDABILITY PLUS PROGRAM
 SECTION 1280. SHORT TITLE.
         1281. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
         1282. DEFINITIONS.
         1283. LOANS AND GRANTS.
         1284. RENTS.
         1285. RULES; ENFORCEMENT.
         1286. SEVERABILITY.
         1287. REPORTING.
   § 1280. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "AFFORDABILITY  PLUS PROGRAM".
   § 1281. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
 HEREBY  FINDS  AND DECLARES THAT THERE IS, IN CITIES HAVING A POPULATION
 OF ONE MILLION OR MORE, A SERIOUSLY INADEQUATE SUPPLY OF SAFE AND  SANI-
 TARY  HOUSING  ACCOMMODATIONS WITHIN THE FINANCIAL REACH OF FAMILIES AND
 PERSONS OF LOW INCOME. THIS CONDITION IS CONTRARY TO THE PUBLIC INTEREST
 AND THREATENS THE HEALTH, SAFETY, WELFARE, COMFORT AND SECURITY  OF  THE
 PEOPLE  OF  SUCH CITIES. THE LEGISLATURE FURTHER FINDS AND DECLARES THAT
 THE ORDINARY OPERATIONS OF PRIVATE ENTERPRISE CANNOT PROVIDE AN ADEQUATE
 SUPPLY OF SAFE AND SANITARY HOUSING ACCOMMODATIONS AT  RENTAL  AND  SALE
 PRICES  THAT  FAMILIES  AND  PERSONS OF LOW INCOME CAN AFFORD. IT IS THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13342-01-9

 A. 8436                             2
 
 PURPOSE OF THIS ACT TO PROVIDE LOANS AND GRANTS TO INCREASE  THE  SUPPLY
 OF  HOUSING  ACCOMMODATIONS  FOR FAMILIES AND PERSONS OF LOW INCOME, AND
 THEREBY IMPROVE THE QUALITY OF LIFE FOR ALL THE PEOPLE OF SUCH CITIES.
   §  1282.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AGENCY" SHALL MEAN A DEPARTMENT OF HOUSING PRESERVATION AND DEVEL-
 OPMENT IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.
   2. "HOUSING ACCOMMODATIONS"  SHALL  MEAN:(A)  A  PRIVATE  OR  MULTIPLE
 DWELLING,  OR  ANY  OTHER  STRUCTURE  CONTAINING DWELLING UNITS, ROOMING
 UNITS OR SLEEPING ACCOMMODATIONS, TOGETHER WITH THE LAND ON  WHICH  SUCH
 STRUCTURE  IS  SITUATED;  (B)  ANY REAL PROPERTY TO BE CONVERTED TO SUCH
 USER; OR (C) ALL OR A PORTION OF THE DWELLING UNITS,  ROOMING  UNITS  OR
 SLEEPING ACCOMMODATIONS THEREIN.
   3.  "OWNER"  SHALL MEAN A PERSON HAVING RECORD OR BENEFICIAL OWNERSHIP
 OF REAL PROPERTY OR A LESSEE OF REAL PROPERTY HAVING AN  UNEXPIRED  TERM
 OF AT LEAST THIRTY YEARS.
   4.  "REGULATORY  AGREEMENT"  SHALL  MEAN  A  WRITTEN AGREEMENT WITH OR
 APPROVED BY A CITY HAVING A POPULATION  OF  ONE  MILLION  OR  MORE  THAT
 REQUIRES  THE  PROVISION  OF  HOUSING  ACCOMMODATIONS  FOR  FAMILIES AND
 PERSONS OF LOW INCOME, IS ENTERED INTO ON OR AFTER THE EFFECTIVE DATE OF
 THIS ARTICLE, SPECIFICALLY PROVIDES THAT IT IS ENTERED INTO PURSUANT  TO
 THIS  ARTICLE, IS RECORDED AGAINST ONE OR MORE PARCELS OF REAL PROPERTY,
 AND BINDS THE OWNER  OF  SUCH  REAL  PROPERTY  AND  ITS  SUCCESSORS  AND
 ASSIGNS.  A REGULATORY AGREEMENT MAY INCLUDE SUCH OTHER TERMS AND CONDI-
 TIONS AS SUCH CITY SHALL DETERMINE.
   5. "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT  STABILIZA-
 TION  LAW  OF  NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE,
 AND THE EMERGENCY TENANT PROTECTION ACT  OF  NINETEEN  HUNDRED  SEVENTY-
 FOUR,  ALL  AS  IN EFFECT AS OF THE EFFECTIVE DATE OF THIS ARTICLE OR AS
 AMENDED THEREAFTER, TOGETHER WITH ANY SUCCESSOR STATUTES OR  REGULATIONS
 ADDRESSING SUBSTANTIALLY THE SAME SUBJECT MATTER.
   §  1283.  LOANS  AND  GRANTS. 1. NOTWITHSTANDING THE PROVISIONS OF ANY
 GENERAL, SPECIAL OR LOCAL LAW, A CITY HAVING A POPULATION OF ONE MILLION
 OR MORE IS AUTHORIZED TO MAKE LOANS OR GRANTS TO THE OWNER OF  ANY  REAL
 PROPERTY  FOR  THE PURPOSE OF: (A) CONSTRUCTION, REHABILITATION, CONVER-
 SION, ACQUISITION OR REFINANCING OF HOUSING ACCOMMODATIONS; (B)  PROVID-
 ING  SITE  IMPROVEMENTS,  INCLUDING, BUT NOT LIMITED TO, WATER AND SEWER
 FACILITIES, SIDEWALKS, LANDSCAPING, THE CURING  OF  PROBLEMS  CAUSED  BY
 ABNORMAL  SITE  CONDITIONS,  EXCAVATION AND CONSTRUCTION OF FOOTINGS AND
 FOUNDATIONS AND OTHER IMPROVEMENTS  ASSOCIATED  WITH  THE  PROVISION  OF
 INFRASTRUCTURE  FOR  HOUSING  ACCOMMODATIONS; OR (C) PROVIDING FOR OTHER
 COSTS OF DEVELOPING HOUSING ACCOMMODATIONS.
   2. ANY LOAN MADE IN ACCORDANCE WITH THIS SECTION SHALL BE EVIDENCED BY
 A NOTE AND MAY BE SECURED BY: (A) A MORTGAGE UPON THE  INTEREST  OF  THE
 OWNER IN THE REAL PROPERTY ASSISTED; (B) IN THE CASE OF A CONDOMINIUM, A
 MORTGAGE  UPON  EACH OF THE HOUSING ACCOMMODATIONS ASSISTED BY SUCH LOAN
 OR; (C) IN THE CASE OF A COOPERATIVE HOUSING CORPORATION,  A  LIEN  UPON
 THE  ECONOMIC  INTEREST  IN  SUCH CORPORATION OF EACH TENANT-SHAREHOLDER
 ASSISTED BY SUCH LOAN, OR A MORTGAGE UPON THE REAL PROPERTY ASSISTED, OR
 BOTH SUCH LIEN AND SUCH MORTGAGE. ANY SUCH MORTGAGE MAY BE  CONSOLIDATED
 WITH  A  MUNICIPALLY-AIDED  MORTGAGE THAT ENCUMBERS THE REAL PROPERTY AT
 THE TIME OF THE MAKING  OF  THE  LOAN  PURSUANT  TO  THIS  SECTION.  FOR
 PURPOSES  OF  THIS ARTICLE, THE TERM "MORTGAGE" SHALL INCLUDE ANY PLEDGE
 OR ASSIGNMENT OF SHARES, OR ASSIGNMENT OF  A  PROPRIETARY  LEASE,  IN  A
 COOPERATIVE  HOUSING  CORPORATION  WHERE  SUCH  PLEDGE  OR ASSIGNMENT IS

 A. 8436                             3
 
 INTENDED AS SECURITY FOR THE PERFORMANCE OF AN OBLIGATION AND IMPOSES  A
 LIEN ON OR AFFECTS TITLE TO SUCH SHARES OR SUCH PROPRIETARY LEASE.
   3.  THE  REPAYMENT  OF  ANY  LOAN MADE IN ACCORDANCE WITH THIS SECTION
 SHALL BE MADE IN SUCH MANNER AS MAY BE PROVIDED  IN  THE  NOTE  AND  ANY
 MORTGAGE  IN  CONNECTION  WITH  SUCH  LOAN.  SUCH  NOTE AND MORTGAGE MAY
 CONTAIN SUCH TERMS AND CONDITIONS AS THE  CITY  MAY  DEEM  NECESSARY  OR
 DESIRABLE  TO  EFFECTUATE  THE  PURPOSES AND PROVISIONS OF THIS ARTICLE.
 SUCH TERMS AND CONDITIONS MAY INCLUDE, BUT  SHALL  NOT  BE  LIMITED  TO,
 PROVISIONS  CONCERNING: (A) THE REPAYMENT OF THE LOAN; (B) THE INTEREST,
 IF ANY, THEREON; (C) THE CHARGES, IF ANY, IN CONNECTION  THEREWITH;  AND
 (D)  THE PREPAYMENT OF THE PRINCIPAL OF THE LOAN. SUCH NOTE AND MORTGAGE
 MAY PROVIDE THAT ALL OR A PORTION OF THE PRINCIPAL  OF  THE  LOAN  SHALL
 AUTOMATICALLY  BE REDUCED TO ZERO OVER A PERIOD OF CONTINUOUS COMPLIANCE
 BY THE OWNER WITH A REGULATORY AGREEMENT AND UPON  THE  SATISFACTION  OF
 ANY   ADDITIONAL  CONDITIONS  SPECIFIED  THEREIN.  NOTWITHSTANDING  SUCH
 PROVISION AS CONTAINED IN THE NOTE AND MORTGAGE, ALL OR A PORTION OF THE
 PRINCIPAL OF THE LOAN SHALL BE REDUCED TO ZERO  ONLY  IF,  PRIOR  TO  OR
 SIMULTANEOUSLY  WITH DELIVERY OF SUCH NOTE AND MORTGAGE, THE AGENCY MADE
 A WRITTEN DETERMINATION THAT SUCH REDUCTION WOULD BE NECESSARY TO ENSURE
 THE CONTINUED AFFORDABILITY OR ECONOMIC VIABILITY OF THE HOUSING  ACCOM-
 MODATIONS  ASSISTED BY SUCH LOAN. SUCH WRITTEN DETERMINATION SHALL DOCU-
 MENT THE BASIS UPON WHICH THE LOAN WAS DETERMINED  TO  BE  ELIGIBLE  FOR
 EVAPORATION.
   4.  THE  CITY SHALL REQUIRE THE OWNER OF ANY REAL PROPERTY THAT IS THE
 SUBJECT OF A LOAN OR GRANT PURSUANT  TO  THIS  SECTION  TO  EXECUTE  AND
 RECORD  A  REGULATORY  AGREEMENT HAVING A TERM COMMENCING NOT LATER THAN
 THE DATE OF SUCH LOAN OR GRANT. THE REGULATORY AGREEMENT  SHALL  PROVIDE
 THAT THE OWNER SHALL RENT OR SELL ALL HOUSING ACCOMMODATIONS REQUIRED TO
 BE  OCCUPIED  BY  FAMILIES  AND PERSONS OF LOW INCOME AT RENTAL OR SALES
 PRICES THAT DO NOT EXCEED, AVERAGING ALL HOUSING ACCOMMODATIONS REQUIRED
 TO BE OCCUPIED BY FAMILIES AND PERSONS OF LOW INCOME BY  THE  REGULATORY
 AGREEMENT,  RENTAL  OR  SALES  PRICES  THAT ARE AFFORDABLE TO HOUSEHOLDS
 EARNING ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN  INCOME,  ADJUSTED
 FOR HOUSEHOLD SIZE.
   5.  THE CITY SHALL NOT MAKE ANY LOAN OR GRANT PURSUANT TO THIS SECTION
 UNLESS THE AGENCY HAS MADE A WRITTEN DETERMINATION, WHICH SHALL BE STAT-
 ED OR REFERENCED IN THE REGULATORY AGREEMENT, THAT SUCH LOAN OR GRANT IS
 NECESSARY TO ENSURE THE AFFORDABILITY OR ECONOMIC VIABILITY OF THE HOUS-
 ING ACCOMMODATIONS IN ACCORDANCE WITH THE TERMS OF THE REGULATORY AGREE-
 MENT.
   6. AT THE DISCRETION OF THE AGENCY, A MORTGAGE SECURING  A  LOAN  MADE
 PURSUANT TO THIS SECTION MAY BE EXEMPT FROM THE TAX ON MORTGAGES IMPOSED
 BY  ARTICLE  ELEVEN  OF  THE TAX LAW AND THE TAX ON MORTGAGES IMPOSED BY
 CHAPTER TWENTY-SIX OF TITLE ELEVEN OF THE  ADMINISTRATIVE  CODE  OF  THE
 CITY OF NEW YORK.
   7. AT THE DISCRETION OF THE AGENCY, ANY TRANSFER OF REAL PROPERTY MADE
 IN  CONNECTION WITH A LOAN OR GRANT MADE PURSUANT TO THIS SECTION MAY BE
 EXEMPT FROM THE REAL ESTATE TRANSFER TAX IMPOSED BY  ARTICLE  THIRTY-ONE
 OF  THE  TAX  LAW  AND THE REAL PROPERTY TRANSFER TAX IMPOSED BY CHAPTER
 TWENTY-ONE OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
 YORK.
   8. THE AGENCY MAY MAKE PROVISION, EITHER IN THE MORTGAGE OR  BY  SEPA-
 RATE  AGREEMENT,  FOR  THE PERFORMANCE OF SUCH LOAN SERVICING FUNCTIONS,
 INCLUDING FUNCTIONS RELATED TO CONSTRUCTION LENDING, AS MAY GENERALLY BE
 PERFORMED BY AN INSTITUTIONAL LENDER. THE AGENCY MAY ACT IN SUCH CAPACI-
 TY OR APPOINT OR CONSENT TO THE APPOINTMENT OF A  FINANCIAL  INSTITUTION

 A. 8436                             4

 TO  ACT  IN SUCH CAPACITY ON BEHALF OF THE AGENCY. THE AGENCY IS AUTHOR-
 IZED TO PAY A REASONABLE AND CUSTOMARY FEE TO SUCH FINANCIAL INSTITUTION
 FOR THE PERFORMANCE OF SUCH SERVICES.
   § 1284. RENTS. NOTWITHSTANDING THE PROVISIONS OF RENT STABILIZATION OR
 THE LOCAL EMERGENCY HOUSING RENT CONTROL ACT, OR ANY REGULATION OR LOCAL
 LAW ENACTED PURSUANT THERETO:
   1.  THE  REGULATORY  AGREEMENT SHALL PROVIDE THAT ALL HOUSING ACCOMMO-
 DATIONS REQUIRED TO BE OCCUPIED BY FAMILIES AND PERSONS  OF  LOW  INCOME
 SHALL  BE  SUBJECT TO RENT STABILIZATION AS OF THE EFFECTIVE DATE OF THE
 REGULATORY AGREEMENT; PROVIDED, HOWEVER, THAT THE AGENCY MAY EXEMPT FROM
 THE REQUIREMENTS OF THIS SECTION ANY HOUSING  ACCOMMODATIONS  THAT  ARE:
 (A)  LOCATED  IN A STRUCTURE CONTAINING FEWER THAN SIX DWELLING UNITS OR
 ROOMING UNITS; (B) TO BE OCCUPIED ON A TRANSITIONAL BASIS BY PERSONS WHO
 ARE FORMERLY HOMELESS OR HAVE SPECIAL NEEDS;  (C)  SUBJECT  TO  ANY  LAW
 PROVIDING  FOR  THE  REGULATION  OF  RENTS  BY  A GOVERNMENTAL AGENCY OR
 INSTRUMENTALITY; OR (D) TO BE OCCUPIED  AS  HOMEOWNERSHIP,  RATHER  THAN
 RENTAL, HOUSING ACCOMMODATIONS.
   2. EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION ONE OF THIS SECTION, IF
 ANY  HOUSING  ACCOMMODATIONS  REQUIRED  TO  BE  OCCUPIED BY FAMILIES AND
 PERSONS OF LOW INCOME ARE NOT SUBJECT TO RENT STABILIZATION  AS  OF  THE
 EFFECTIVE  DATE  OF THE REGULATORY AGREEMENT, THE AGENCY SHALL ESTABLISH
 THE INITIAL RENTS FOR SUCH HOUSING ACCOMMODATIONS AS OF SUCH DATE.
   3. UPON COMPLETION OF THE CONSTRUCTION OR REHABILITATION OF A  HOUSING
 ACCOMMODATION WHICH IS ASSISTED BY A LOAN OR GRANT MADE BY A CITY PURSU-
 ANT  TO  SECTION TWELVE HUNDRED EIGHTY-THREE OF THIS ARTICLE, THE AGENCY
 MAY ESTABLISH A NEW INITIAL RENT FOR EACH DWELLING UNIT SUBJECT TO  RENT
 STABILIZATION  WITHIN  THE HOUSING ACCOMMODATION PURSUANT TO SUBDIVISION
 ONE OF THIS SECTION OR OTHERWISE. PRIOR TO THE  MAKING  OF  A  REHABILI-
 TATION  LOAN  OR  GRANT PURSUANT TO THIS ARTICLE, THE AGENCY SHALL CAUSE
 EACH TENANT IN OCCUPANCY OF A DWELLING UNIT FOR WHICH THE AGENCY INTENDS
 TO ESTABLISH A NEW INITIAL RENT TO BE NOTIFIED OF AND HAVE  AN  OPPORTU-
 NITY  TO  COMMENT  ON THE CONTEMPLATED REHABILITATION. SUCH NOTIFICATION
 SHALL ADVISE SUCH TENANTS OF THE APPROXIMATE EXPECTED INITIAL RENT. SUCH
 NOTIFICATION AND OPPORTUNITY TO COMMENT SHALL  BE  PROVIDED  BEFORE  THE
 REHABILITATION AND AGAIN AFTER THE REHABILITATION IS COMPLETED AND PRIOR
 TO  THE  ESTABLISHMENT OF THE NEW INITIAL RENTS. A REPRESENTATIVE OF THE
 AGENCY SHALL MEET OR OFFER TO MEET WITH  ALL  TENANTS  IN  OCCUPANCY  OF
 DWELLING  UNITS  AFFECTED BY THE PROVISIONS OF THIS SUBDIVISION AT LEAST
 ONCE BEFORE THE REHABILITATION.
   § 1285. RULES; ENFORCEMENT. 1. THE  AGENCY  MAY  PROMULGATE  RULES  TO
 CARRY  OUT  THE PROVISIONS OF THIS ARTICLE, AND MAY REQUIRE A FILING FEE
 IN AN AMOUNT EQUAL TO ONE THOUSAND DOLLARS PER DWELLING  UNIT,  OR  SUCH
 LESSER  AMOUNT  AS MAY BE PROVIDED BY SUCH RULES, IN CONNECTION WITH ANY
 APPLICATION FOR A LOAN OR GRANT PURSUANT TO THIS ARTICLE.
   2. THE AGENCY SHALL HAVE THE  POWER  TO:  (A)  SUBPOENA,  REQUIRE  THE
 ATTENDANCE  OF AND EXAMINE AND TAKE TESTIMONY UNDER OATH OF SUCH PERSONS
 AS IT MAY DEEM NECESSARY IN ORDER TO MONITOR AND ENFORCE COMPLIANCE WITH
 THE REGULATORY AGREEMENT; AND (B) SUBPOENA AND REQUIRE THE PRODUCTION OF
 BOOKS, ACCOUNTS, PAPERS, DOCUMENTS AND OTHER EVIDENCE  RELATED  TO  SUCH
 MONITORING AND ENFORCEMENT.
   §  1286.  SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
 PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT  JURIS-
 DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
 DATE  THE  REMAINDER  THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
 THE CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF  DIRECTLY

 A. 8436                             5
 
 INVOLVED  IN  THE  CONTROVERSY  IN  WHICH  SUCH JUDGMENT SHALL HAVE BEEN
 RENDERED.
   §  1287.  REPORTING.  ON  OR  BEFORE SEPTEMBER THIRTIETH OF EACH YEAR,
 BEGINNING IN TWO THOUSAND TWENTY, THE AGENCY SHALL SUBMIT  A  REPORT  TO
 THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON
 THE  HOUSING  PRODUCTION  ACTIVITY OF THE AFFORDABILITY PLUS PROGRAM FOR
 THE PREVIOUS CITY FISCAL YEAR.
   § 2. Subdivision a of section  11.00  of  the  local  finance  law  is
 amended by adding a new paragraph 41-f to read as follows:
   41-F.  AFFORDABILITY  PLUS  PROGRAM.  THE  MAKING  OF LOANS OR GRANTS,
 PURSUANT TO ARTICLE THIRTY-ONE OF THE PRIVATE HOUSING FINANCE LAW, THIR-
 TY YEARS; IMPROVEMENTS ASSOCIATED WITH THE CONSTRUCTION, REHABILITATION,
 CONVERSION, ACQUISITION OR REFINANCING OF HOUSING ACCOMMODATIONS, PURSU-
 ANT TO ARTICLE THIRTY-ONE OF THE PRIVATE  HOUSING  FINANCE  LAW,  THIRTY
 YEARS.
   § 3. This act shall take effect immediately.