S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10325
 
                           I N  A S S E M B L Y
 
                               May 13, 2022
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Fahy) --
   read once and referred to the Committee on Governmental Operations
 
 AN ACT to amend the executive law, in relation to the resilient New York
   revolving loan program;  and  to  amend  the  state  finance  law,  in
   relation to establishing the resilient New York revolving loan fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The executive law is amended by adding a new  section  29-l
 to read as follows:
   §  29-L.  RESILIENT NEW YORK REVOLVING LOAN PROGRAM.  1. THE DIVISION,
 IN CONJUNCTION WITH THE COMPTROLLER, SHALL ESTABLISH AND ADMINISTER  THE
 RESILIENT NEW YORK REVOLVING LOAN PROGRAM AS PROVIDED IN THIS SECTION.
   2. (A) THE RESILIENT NEW YORK REVOLVING LOAN PROGRAM SHALL PROVIDE LOW
 OR  NO-INTEREST LOANS TO MUNICIPALITIES AND NOT-FOR-PROFIT ORGANIZATIONS
 FOR HAZARD MITIGATION AND RESILIENCE PROJECTS, INCLUDING BUT NOT LIMITED
 TO, BUILDING RESILIENT INFRASTRUCTURES AND COMMUNITIES, FLOOD MITIGATION
 ASSISTANCE, FLOOD RISK REDUCTION PROJECTS SUCH AS LEVEES, CLOSURES, PUMP
 STATIONS AND NON-STRUCTURAL PROJECTS LIKE ELEVATION  AND  WET/DRY  FLOOD
 PROOFING  OR  ANY  ADAPTION  OR MITIGATION PROJECTS INCLUDED PURSUANT TO
 SECTION 54-1523 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (B) LOANS MAY ALSO BE GRANTED TO INDIVIDUAL PROPERTY OWNERS TO PROVIDE
 THE FINANCING FOR NATURAL HAZARD MITIGATION PROJECTS SUCH AS WIND RETRO-
 FITS, FLOOD MITIGATION ELEVATION AND WET OR DRY FLOOD-PROOFING PROJECTS,
 FIRE MITIGATION RETROFIT PROJECTS, AND  EARTHQUAKE  RETROFIT  MITIGATION
 PROJECTS.  THESE  LOANS  MAY BE ATTACHED TO PROPERTY TAXES, ALLOWING FOR
 THE PROPERTY TO BE SOLD SO LONG AS THE NEW OWNER AGREES  TO  ASSUME  THE
 DEBT OBLIGATION.
   (C)  LOANS PROVIDED UNDER THIS SECTION MAY BE USED TO SATISFY THE NON-
 FEDERAL MATCH FOR FEDERAL MITIGATION GRANTS.
   3. (A) THE DIVISION SHALL, TAKING INTO CONSIDERATION REQUIREMENTS FROM
 THE STORM ACT, ESTABLISH APPLICATION PROCEDURES AND ELIGIBILITY CRITERIA
 FOR LOANS FROM THE RESILIENT NEW YORK REVOLVING  LOAN  FUND  ESTABLISHED
 PURSUANT  TO SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW. THE ELIGI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14931-01-2
              

 A. 10325                            2
 
 BILITY CRITERIA SHALL REQUIRE THAT MUNICIPALITIES, NOT-FOR-PROFIT ORGAN-
 IZATIONS, AND INDIVIDUAL PROPERTY OWNER APPLICANTS DEMONSTRATE:
   (1) A NEED FOR A LOAN TO ADDRESS HAZARD MITIGATION; AND
   (2) THE ABILITY TO REPAY THE LOAN, IF REQUIRED, AT A LATER DATE.
   (B) LOANS PROVIDED PURSUANT TO THIS SECTION SHALL BE FOR A FIXED PERI-
 OD.
   (C) THE LOAN PROGRAM SHALL ALSO PROVIDE GRADUATED FORGIVABILITY AVAIL-
 ABLE  TO  ELIGIBLE INDIVIDUAL PROPERTY OWNER RECIPIENTS THAT SHALL, AT A
 MINIMUM:
   (1) PROVIDE FULL LOAN FORGIVENESS FOR ELIGIBLE HOUSEHOLDS WITH  INCOME
 BETWEEN  EIGHTY  PERCENT AND FIFTY PERCENT OF THE AREA MEDIAN INCOME FOR
 THE AREA IN WHICH THE PROPERTY TO WHICH THE LOAN APPLIES, IS LOCATED.
   (2) PROVIDE FIFTY PERCENT LOAN  FORGIVENESS  FOR  ELIGIBLE  HOUSEHOLDS
 WITH  INCOME  EQUAL TO EIGHTY PERCENT TO ONE HUNDRED PERCENT OF THE AREA
 MEDIAN INCOME FOR THE AREA IN WHICH  THE  PROPERTY  TO  WHICH  THE  LOAN
 APPLIES, IS LOCATED.
   (3)  PROVIDE  ADDITIONAL FORGIVABILITY PERCENTAGES FOR HOUSEHOLDS WITH
 INCOMES NOT WITHIN THOSE ADDRESSED IN THIS PARAGRAPH MAY BE  APPLIED  BY
 THE DIVISION BASED ON:
   I.  THE  NUMBER OF ELIGIBLE INDIVIDUAL RECIPIENTS PARTICIPATING IN THE
 PROGRAM AUTHORIZED UNDER THIS SECTION;
   II. THE AVAILABILITY OF FUNDING; AND
   III. ANY OTHER FACTOR THAT THE DIVISION FINDS  REASONABLE  AND  NECES-
 SARY.
   4.  SUCH  PROGRAM  SHALL  BE  IN ADDITION TO ANY FUNDS PROVIDED BY THE
 FEDERAL GOVERNMENT AND EXPENDED OR PROVIDED  THROUGH  THE  DIVISION  FOR
 DISASTER RECOVERY AND RELIEF.
   5.  (A)  THE  COMMISSIONER  SHALL  SUBMIT  TO  FEMA AN APPLICATION FOR
 CAPITALIZATION GRANT FUNDING, TOGETHER WITH ALL REQUIRED  PROPOSALS  AND
 INFORMATION REQUIRED PURSUANT TO THE STORM ACT OR REGULATIONS PROMULGAT-
 ED THERETO.
   (B)  UPON  APPROVAL OF SUCH APPLICATION, THE DIVISION SHALL ENTER INTO
 AN AGREEMENT WITH FEMA TO DEPOSIT THE CAPITALIZATION GRANT FUNDING  INTO
 THE RESILIENT NEW YORK REVOLVING LOAN FUND.
   6.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "CAPITALIZATION GRANT" MEANS FUNDS PROVIDED BY FEMA TO THE DEPART-
 MENT FOR THE ESTABLISHMENT OF THE RESILIENT NEW YORK REVOLVING LOAN FUND
 IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5135(F) OF THE STORM ACT.
   (B) "COMMISSIONER" MEANS THE COMMISSIONER OF THE DIVISION OF  HOMELAND
 SECURITY AND EMERGENCY SERVICES.
   (C)  "DIVISION"  MEANS THE DIVISION OF HOMELAND SECURITY AND EMERGENCY
 SERVICES.
   (D) "FEMA" MEANS THE FEDERAL EMERGENCY MANAGEMENT ADMINISTRATION.
   (E) "STORM ACT" MEANS THE FEDERAL "SAFEGUARDING TOMORROW THROUGH ONGO-
 ING RISK MANAGEMENT ACT", 42 U.S.C. SECTION 5135  ET  SEQ.,  ENACTED  BY
 PUBLIC  LAW 116-284, AND APPROVED ON JANUARY FIRST, TWO THOUSAND TWENTY-
 ONE.
   § 2. The state finance law is amended by adding a new section 99-pp to
 read as follows:
   § 99-PP. RESILIENT NEW YORK REVOLVING LOAN FUND.  1. THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES
 A SPECIAL FUND TO BE KNOWN AS THE "RESILIENT  NEW  YORK  REVOLVING  LOAN
 FUND"  TO  BE  ADMINISTERED  IN ACCORDANCE WITH THIS SECTION AND SECTION
 TWENTY-NINE-L OF THE EXECUTIVE LAW.
 A. 10325                            3
 
   2. THE FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR ITS  PURPOSE,
 ALL  MONEYS TRANSFERRED TO SUCH FUND PURSUANT TO LAW, ALL MONEY RECEIVED
 FROM FEMA UNDER THE STORM ACT, ANY REPAYMENTS OF PRINCIPAL AND  INTEREST
 FROM THE RESILIENT NEW YORK REVOLVING LOAN PROGRAM ADMINISTERED PURSUANT
 TO  SECTION  TWENTY-NINE-L  OF  THE  EXECUTIVE LAW, AND ALL OTHER MONEYS
 REQUIRED BY THIS SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO
 THIS FUND.
   3. MONEYS IN SUCH FUND SHALL BE KEPT SEPARATE FROM AND  SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR
 THE COMMISSIONER OF TAXATION AND FINANCE.  ANY MONEYS OF  THE  FUND  NOT
 REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN
 CONSULTATION  WITH  THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMP-
 TROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE,  OR  IN  OBLI-
 GATIONS THE PRINCIPAL AND INTEREST ON WHICH ARE GUARANTEED BY THE UNITED
 STATES  OR  BY  THE  STATE.  ANY INCOME EARNED BY THE INVESTMENT OF SUCH
 MONEYS SHALL BE ADDED TO AND BECOME A PART OF AND SHALL BE USED FOR  THE
 PURPOSES OF SUCH FUND.
   4.  MONEY  EXPENDED FROM SUCH FUND SHALL BE USED TO SUPPLEMENT AND NOT
 SUPPLANT OR REPLACE  ANY  OTHER  AVAILABLE  RECOVERY  OR  RELIEF  FUNDS,
 INCLUDING  FEDERAL  OR  STATE  FUNDING,  WHICH WOULD OTHERWISE HAVE BEEN
 EXPENDED FOR REIMBURSEMENT OR  APPROPRIATED  TO  LOCAL  GOVERNMENTS  FOR
 NATURAL HAZARD MITIGATION OR RESILIENCE PROJECTS.
   5. THE MONIES OF THE FUND SHALL BE PAID OUT, WITHOUT APPROPRIATION, ON
 THE  AUDIT AND WARRANT OF THE STATE COMPTROLLER ON VOUCHERS CERTIFIED OR
 APPROVED BY THE COMMISSIONER OF THE DIVISION OF  HOMELAND  SECURITY  AND
 EMERGENCY SERVICES AS PROVIDED IN SECTION TWENTY-NINE-L OF THE EXECUTIVE
 LAW. THE COMPTROLLER SHALL, IN CONSULTATION WITH THE COMMISSIONER OF THE
 DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES, PRESCRIBE BY REGU-
 LATION  THE  MANNER  IN WHICH MONEYS OF THE FUND SHALL BE DISTRIBUTED TO
 ELIGIBLE APPLICANTS.
   § 3. This act shall take effect immediately.