S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6593--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by  M.  of  A.  REYES,  MITAYNES,  MAMDANI, JACKSON, BARRON,
   PICHARDO, EPSTEIN,  KELLES,  BARNWELL,  HEVESI,  L. ROSENTHAL,  MEEKS,
   DE LA ROSA, OTIS, GONZALEZ-ROJAS, CLARK, CARROLL, FORREST -- read once
   and referred to the Committee on Housing -- committee discharged, bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the private housing finance law and  the  state  finance
   law,  in  relation to enacting the "housing our neighbors with dignity
   act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "housing our neighbors with dignity act".
   § 2. The private housing finance law is amended by adding a new  arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   §  1280.  LEGISLATIVE  FINDINGS  AND  PURPOSE.  THE STATE OF NEW YORK,
 THROUGH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, IS  EMPOWERED  TO
 PURCHASE, ACQUIRE, HOLD AND/OR CONVERT OR FINANCE THE PURCHASE, ACQUISI-
 TION,  HOLDING  AND/OR  CONVERSION  OF  DISTRESSED HOTELS AND COMMERCIAL
 OFFICE PROPERTIES FOR USE AS AFFORDABLE  PERMANENT  HOUSING  THAT  MEETS
 STANDARDS  ESTABLISHED  TO  ENSURE  SAFETY,  HABITABILITY,  QUALITY, AND
 ACCESS TO SUPPORTIVE SERVICES AS APPROPRIATE, TO BE  MADE  AVAILABLE  TO
 LOW-INCOME  HOUSEHOLDS  AND PEOPLE EXPERIENCING HOMELESSNESS IMMEDIATELY
 PRIOR TO ENTERING SUCH HOUSING. THESE PROPERTIES SHALL BE  OWNED,  OPER-
 ATED  AND MANAGED BY APPROPRIATE NONPROFIT ORGANIZATIONS, EITHER THROUGH
 TRANSFER OF OWNERSHIP OR LONG-TERM NET LEASE BY  THE  NEW  YORK  GOVERN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09863-07-1

 A. 6593--A                          2
 
 MENTAL  ENTITY THAT ACQUIRED THE PROPERTY, OR THROUGH THE USE OF GOVERN-
 MENT AGENCY FUNDING TO ACQUIRE THE PROPERTY.
   THE ACQUIRED PROPERTIES SHALL BE CONVERTED INTO PERMANENTLY AFFORDABLE
 HOUSING MODELED AS FINANCIALLY AND OPERATIONALLY DEEMED NECESSARY BY THE
 STATE OR APPROPRIATE NONPROFIT ORGANIZATION FOR THE PURPOSES OF CREATING
 SUPPORTIVE  AND/OR  PERMANENTLY  AFFORDABLE HOUSING UNITS; PROVIDED THAT
 THE HOUSING SHALL REMAIN AFFORDABLE AS DEFINED BY  THE  TERM  AFFORDABLE
 HOUSING INCLUDED IN THIS ARTICLE.
   §  1281.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "APPROPRIATE NONPROFIT ORGANIZATION" SHALL MEAN A BONA FIDE NONPRO-
 FIT ORGANIZATION THAT:
   (A) HAS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I) THE PROVISION OF HOUSING THAT IS AFFORDABLE  TO  LOW-INCOME  FAMI-
 LIES; OR
   (II)  THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION, BY A VETTING PROCESS DEVELOPED  BY  THE  DIVISION  OF
 HOUSING AND COMMUNITY RENEWAL.
   2.  "AFFORDABLE  HOUSING" SHALL MEAN HOUSING THAT IS AFFORDABLE TO LOW
 AND MODERATE-INCOME HOUSEHOLDS,  SUCH  THAT  THE  NEW  HOUSING  ACHIEVES
 INCOME  AVERAGING  AT  OR BELOW FIFTY PERCENT OF THE AREA MEDIAN INCOME,
 WITH RESIDENTS' ELIGIBILITY CAPPED AT A MAXIMUM OF EIGHTY PERCENT OF THE
 AREA MEDIAN  INCOME AT THE START OF THEIR LEASE. APPLICANTS SHALL NOT BE
 REJECTED FROM ELIGIBILITY BASED ON CREDIT HISTORIES OR CREDIT SCORES.
   3. "DISTRESSED" SHALL MEAN AN ASSET THAT IS FINANCIALLY DISTRESSED  OR
 FOR  SALE,  AS DETERMINED BY THE COMMISSIONER OF THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL.
   4. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING IN SHELTERS, TRANSITIONAL HOUSING, PUBLIC SPACES, AND OTHER TYPES OF
 EMERGENCY HOUSING.
   5. "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE  RENT  STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN SEVENTY-FOUR, ALL AS IN
 EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO  THOU-
 SAND  TWENTY-ONE  THAT  ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   §  1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1. ESTABLISHMENT.
 THE COMMISSIONER, IN CONJUNCTION WITH THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL, SHALL DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 (HEREINAFTER REFERRED TO AS "THE PROGRAM"), WHICH SHALL PROVIDE A  MECH-
 ANISM  FOR  THE  STATE  TO  PURCHASE, ACQUIRE AND HOLD DISTRESSED HOTELS
 AND/OR COMMERCIAL OFFICE PROPERTIES  OR  FINANCE  APPROPRIATE  NONPROFIT
 ORGANIZATIONS  TO ACQUIRE SUCH PROPERTIES FOR THE PURPOSE OF MAINTAINING
 OR INCREASING AFFORDABLE HOUSING.  SUCH PROGRAM SHALL  ACTIVELY  ACQUIRE
 SUCH  PROPERTIES FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE; PROVIDED,
 HOWEVER, THAT ALL AFFORDABLE HOUSING PROPERTIES  PRODUCED  THROUGH  THIS
 PROGRAM  SHALL  REMAIN PERMANENTLY AFFORDABLE, PURSUANT TO THIS ARTICLE.
 PERMANENT AFFORDABILITY RESTRICTIONS REQUIRE AT LEAST ONE OF THE FOLLOW-
 ING: (A) A NINETY-NINE-YEAR RENEWABLE LAND LEASE BETWEEN THE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL OR OTHER GOVERNMENT AGENCY AND THE NONPRO-
 FIT MANAGER WITH A REGULATORY  AGREEMENT  IN  PLACE,  WHERE  SUCH  LEASE
 INCLUDES   AUTOMATIC   REVERTER   LANGUAGE   FOR   REGULATORY  AGREEMENT
 VIOLATIONS, INCLUDING BUT NOT LIMITED TO FAILURE  TO  MEET  THE  MINIMUM

 A. 6593--A                          3
 
 OBLIGATIONS   SET   FORTH  IN  THIS  ARTICLE;  (B)  OTHER  AFFORDABILITY
 RESTRICTIONS IN LAND LEASES OR OTHER RECORDED DOCUMENTS NOT SPECIFICALLY
 LISTED IN THIS SUBDIVISION, SO LONG  AS  THE  DIVISION  OF  HOUSING  AND
 COMMUNITY  RENEWAL  OR  OTHER  GOVERNMENT  AGENCY  DETERMINES  THAT SUCH
 RESTRICTIONS ARE ENFORCEABLE AND LIKELY TO BE  ENFORCED,  INCLUDING  BUT
 NOT  LIMITED  TO  A REGULATORY AGREEMENT WITH A LOCAL HOUSING AGENCY; OR
 (C) A COMMUNITY LAND TRUST LEASE, WHICH IS A NINETY-NINE-YEAR  RENEWABLE
 LAND LEASE WITH AFFORDABILITY AND OWNER-OCCUPANCY RESTRICTIONS.
   2.  PURPOSE.  THE  PURPOSE  OF  THE HOUSING OUR NEIGHBORS WITH DIGNITY
 PROGRAM SHALL BE TO:
   (A) ACQUIRE OR FINANCE APPROPRIATE NONPROFIT ORGANIZATIONS TO  ACQUIRE
 DISTRESSED HOTELS AND/OR COMMERCIAL OFFICE PROPERTIES FOR THE PURPOSE OF
 STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B)  CONVERT  AND REHABILITATE OR FINANCE APPROPRIATE NONPROFIT ORGAN-
 IZATIONS TO CONVERT AND REHABILITATE THE PHYSICAL CONDITION OF  ACQUIRED
 PROPERTY  IN  ORDER TO ENHANCE THE CONDITION OF SUCH PROPERTY FOR FUTURE
 OCCUPANTS;
   (C) TRANSFER ACQUIRED PROPERTY TO APPROPRIATE NONPROFIT  ORGANIZATIONS
 THAT  WILL  OPERATE  AND  MANAGE  SUCH PROPERTY TO GUARANTEE AFFORDABLE,
 HABITABLE AND ENVIRONMENTALLY SUSTAINABLE HOUSING TO  FORMERLY  HOMELESS
 ASSET-LIMITED, OR LOW AND MODERATE-INCOME INDIVIDUALS AND FAMILIES;
   (D)  FINANCE  THE TRANSFER OF ACQUIRED PROPERTY TO SUCH ORGANIZATIONS;
 AND
   (E) PROVIDE AN APPROPRIATE AND EXPEDIENT MANNER  FOR  OWNERS  OF  SUCH
 DISTRESSED  PROPERTIES  TO TRANSFER OWNERSHIP TO THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL, ANY OTHER GOVERNMENT AGENCY, OR TO AN APPROPRIATE
 NONPROFIT ORGANIZATION.
   3. POWERS. THE STATE MAY PURCHASE, ACQUIRE, AND HOLD OR FINANCE APPRO-
 PRIATE NONPROFIT ORGANIZATIONS TO PURCHASE, ACQUIRE AND HOLD  DISTRESSED
 HOTEL  AND/OR COMMERCIAL OFFICE PROPERTIES IN ANY PART OF THE STATE, AND
 MAY TAKE SUCH ACTIONS AS MAY BE NECESSARY TO IDENTIFY AND  ACQUIRE  SUCH
 DISTRESSED  PROPERTIES, FOR THE PURPOSE OF MAINTAINING OR INCREASING THE
 STOCK OF AFFORDABLE, STABLE, QUALITY HOUSING, AND SUCH ACTION  SHALL  BE
 DEFINED  AS  AN  ACQUISITION  FOR PURPOSES OF THIS SUBDIVISION; PROVIDED
 THAT IN THE CASE OF A PROPERTY AT WHICH ANY HOTEL  WORKERS  ARE  REPRES-
 ENTED  BY  A COLLECTIVE BARGAINING REPRESENTATIVE, PRIOR TO THE PROPOSED
 ACQUISITION, THE COLLECTIVE BARGAINING REPRESENTATIVE SHALL BE  NOTIFIED
 IN  WRITING  OF  THE  PROPOSED ACQUISITION, AND THE PROPERTY OWNER SHALL
 CERTIFY PRIOR TO THE STATE INITIATING SUCH ACQUISITION THAT THE  COLLEC-
 TIVE BARGAINING REPRESENTATIVE HAS MUTUALLY AGREED IN A SEPARATE WRITING
 WITH  THE  PROPERTY  OWNER TO TAKE THE SPECIFIC ACQUISITION DESCRIBED IN
 THE WRITTEN NOTICE.
   4. CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE  HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY, SAFETY AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.  TENANTS
 SHALL PAY NO MORE THAN THIRTY PERCENT OF THEIR INCOME TOWARD RENT. ADDI-
 TIONAL OPERATING EXPENSES SHALL BE MET THROUGH ANY COMBINATION OF SUBSI-
 DIES,  VOUCHERS,  COMMERCIAL RENTS, OR OTHER SOURCES OF INCOME AVAILABLE
 TO THE HOUSING PROVIDER  UNDER  THE  MODEL  THE  NON-PROFIT  CHOOSES  TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN THIS ARTICLE IN
 LOCALITIES  THAT HAVE ADOPTED OR OPTED IN TO THE RENT STABILIZATION LAW.
 AT LEAST FIFTY PERCENT OF ALL CONVERTED PROPERTIES SHALL  BE  SET  ASIDE
 FOR  INDIVIDUALS  AND  FAMILIES WHO WERE EXPERIENCING HOMELESSNESS IMME-
 DIATELY PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.  EACH  UNIT
 MUST  CONTAIN,  AT  A MINIMUM, A LIVING/SLEEPING SPACE, PRIVATE BATHROOM
 WITH BATH AND/OR SHOWER, AND EITHER A FULL KITCHEN OR A KITCHENETTE WITH

 A. 6593--A                          4
 
 AT LEAST A 24-INCH  REFRIGERATOR,  SINK,  COOKTOP,  MICROWAVE  OVEN  AND
 OUTLETS FOR COUNTERTOP APPLIANCES.
   5.  RESTRICTIONS.  THE  STATE SHALL NOT, IN ANY CASE, SELL OR TRANSFER
 PROPERTY UNLESS THE STATE HAS:
   (A) TAKEN ALL ACTIONS NECESSARY TO BRING THE PROPERTY INTO  COMPLIANCE
 WITH  APPLICABLE  BUILDING,  SAFETY,  HEALTH  AND HABITABILITY CODES AND
 REQUIREMENTS; OR
   (B) ENTERED INTO SUCH AGREEMENTS WITH THE PURCHASER OR  TRANSFEREE  TO
 ENSURE  THAT ANY ACTIONS NECESSARY TO BRING THE PROPERTY INTO COMPLIANCE
 WITH APPLICABLE BUILDING, SAFETY,  HEALTH  AND  HABITABILITY  CODES  AND
 REQUIREMENTS WILL BE TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6.  TENANT  PROTECTIONS.  TENANTS  RESIDING IN PROPERTIES CONVERTED TO
 AFFORDABLE HOUSING PURSUANT TO THIS  SECTION  SHALL  HAVE  FULL  TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION  AS  DEFINED  IN THIS ARTICLE.   TENANCY IN SUCH AFFORDABLE HOUSING
 SHALL NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR  ORIENTATION,
 GENDER  IDENTITY  OR  EXPRESSION,  CONVICTION  OR  ARREST RECORD, CREDIT
 HISTORY, OR IMMIGRATION STATUS.
   § 3. Section 301 of the multiple dwelling law is amended by  adding  a
 new subdivision 7 to read as follows:
   7.  A.  ANY  CERTIFICATE  BY THE DEPARTMENT AUTHORIZING OCCUPANCY OF A
 DWELLING AS A CLASS B HOTEL SHALL ALSO AUTHORIZE OCCUPANCY OF  UNITS  IN
 SUCH  DWELLING  FOR  PERMANENT  RESIDENCE  PURPOSES  NOTWITHSTANDING ANY
 PROVISION OF THIS CHAPTER OR OF ANY STATE  LAW,  LOCAL  LAW,  ORDINANCE,
 RESOLUTION  OR  REGULATION THAT WOULD OTHERWISE PROHIBIT SUCH OCCUPANCY,
 REQUIRE A CHANGE OR ALTERATION TO THE DWELLING,  OR  REQUIRE  A  NEW  OR
 AMENDED  CERTIFICATE,  PROVIDED  THAT:  (I) SUCH OCCUPANCY FOR PERMANENT
 RESIDENCE PURPOSES SHALL BE SUBJECT TO THE APPROVAL OF THE LOCAL HOUSING
 AGENCY IN ITS DISCRETION; (II) A  PORTION  OF  SUCH  DWELLING  SHALL  BE
 LOCATED  WITHIN  FOUR  HUNDRED  FEET  OF A DISTRICT THAT UNDER THE LOCAL
 ZONING REGULATIONS OR  ORDINANCES  PERMITS  RESIDENTIAL  USES  AND  SUCH
 DWELLING SHALL NOT BE LOCATED IN AN INDUSTRIAL BUSINESS ZONE ESTABLISHED
 PURSUANT TO CHAPTER SIX-D OF TITLE TWENTY-TWO OF THE ADMINISTRATIVE CODE
 OF  THE  CITY OF NEW YORK; AND (III) SUCH DWELLING SHALL MEET THE CONDI-
 TIONS IN PARAGRAPH B OF THIS SUBDIVISION. ALTERATIONS TO THE  CONFIGURA-
 TION  OF  ANY  SUCH  UNITS  SHALL BE PERMITTED AND SHALL COMPLY WITH ANY
 APPLICABLE REQUIREMENTS OF ANY STATE LAW, LOCAL LAW,  ORDINANCE,  RESOL-
 UTION  OR REGULATION RELATING TO CLASS B HOTELS. IF OCCUPANCY FOR PERMA-
 NENT RESIDENCE PURPOSES IS  AUTHORIZED  UNDER  THE  PROVISIONS  OF  THIS
 SUBDIVISION  WITHIN  A  DISTRICT  WHERE  THE LOCAL ZONING REGULATIONS OR
 ORDINANCES WOULD NOT OTHERWISE PERMIT SUCH USE, THE RESIDENTIAL  TENANTS
 SHALL BE NOTIFIED OF THE DISTRICT'S ZONING.
   B.  OCCUPANCY OF UNITS IN A DWELLING SHALL NOT BE AUTHORIZED UNDER THE
 PROVISIONS OF PARAGRAPH A OF THIS  SUBDIVISION  UNLESS  SUCH  UNITS  ARE
 PURCHASED,  ACQUIRED,  OR  FINANCED: (I) BY THE STATE PURSUANT TO AND IN
 COMPLIANCE WITH THE PROVISIONS OF  ARTICLE  THIRTY-ONE  OF  THE  PRIVATE
 HOUSING  FINANCE LAW; OR (II) BY A LOCAL HOUSING AGENCY, FOR THE PURPOSE
 OF CREATING SUPPORTIVE AND/OR AFFORDABLE HOUSING TO BE  OPERATED  BY  AN
 APPROPRIATE NONPROFIT ORGANIZATION PURSUANT TO A REGULATORY AGREEMENT OR
 CONTRACT  WITH  SUCH  LOCAL  AGENCY  FOR LOW-INCOME HOUSEHOLDS OR PEOPLE
 EXPERIENCING HOMELESSNESS IMMEDIATELY PRIOR TO  ENTERING  SUCH  HOUSING,
 WHERE  TENANTS  SHALL  PAY  NO  MORE THAN THIRTY PERCENT OF THEIR INCOME
 TOWARD RENT AND ALL UNITS ARE RENT STABILIZED AND SUBJECT  TO  PERMANENT
 AFFORDABILITY RESTRICTIONS. FOR PURPOSES OF THIS PARAGRAPH, "APPROPRIATE
 NONPROFIT  ORGANIZATION,"  "AFFORDABLE HOUSING," "EXPERIENCING HOMELESS-
 NESS," "RENT STABILIZED,"  AND  "PERMANENT  AFFORDABILITY  RESTRICTIONS"

 A. 6593--A                          5
 
 SHALL  HAVE  THE  SAME  MEANING  AS DEFINED IN ARTICLE THIRTY-ONE OF THE
 PRIVATE HOUSING FINANCE LAW.
   § 4. The state finance law is amended by adding a new section 99-nn to
 read as follows:
   §  99-NN.  SOCIAL  HOUSING  CONVERSION FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE  "SOCIAL
 HOUSING CONVERSION FUND".
   2.  THE  SOCIAL  HOUSING  CONVERSION  FUND  SHALL  CONSIST OF MONETARY
 GRANTS, GIFTS, BEQUESTS OR LOAN AUTHORITY RECEIVED BY THE STATE FOR  THE
 PURPOSES OF THE FUND, AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THER-
 ETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH FUND SHALL BE EXPENDED
 ONLY  TO  CARRY  OUT  THE  PROVISIONS  OF THE HOUSING OUR NEIGHBORS WITH
 DIGNITY PROGRAM PURSUANT TO ARTICLE THIRTY-ONE OF  THE  PRIVATE  HOUSING
 FINANCE LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE FROM SOLIC-
 ITING  AND  RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF SUCH
 FUND AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   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.
   §  5.  Non-severability  clause. If any clause, sentence, subdivision,
 paragraph, section or part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, and such decision is not  reversed
 or  is otherwise deemed to be final, such judgment shall have the effect
 of rendering this act invalid, inoperative and void.
   § 6. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6593--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by  M.  of  A.  REYES,  MITAYNES,  MAMDANI, JACKSON, BARRON,
   PICHARDO, EPSTEIN,  KELLES,  BARNWELL,  HEVESI,  L. ROSENTHAL,  MEEKS,
   DE LA ROSA,  OTIS,  GONZALEZ-ROJAS,  CLARK, CARROLL, FORREST, SIMON --
   read once and referred  to  the  Committee  on  Housing  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  -- again reported from said committee with amend-
   ments, ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the private housing finance law, in relation to enacting
   the "housing our neighbors with dignity act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "housing our neighbors with dignity act".
   § 2. The private housing finance law is amended by adding a new  arti-
 cle 31 to read as follows:
                               ARTICLE XXXI
                HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
 SECTION 1280. LEGISLATIVE FINDINGS AND PURPOSE.
         1281. DEFINITIONS.
         1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM.
   §  1280.  LEGISLATIVE  FINDINGS  AND  PURPOSE.  THE STATE OF NEW YORK,
 THROUGH THE HOUSING TRUST FUND CORPORATION, IS EMPOWERED TO FINANCE  THE
 PURCHASE,  ACQUISITION,  HOLDING  OR CONVERSION OF DISTRESSED HOTELS AND
 COMMERCIAL OFFICE PROPERTIES FOR USE  AS  AFFORDABLE  PERMANENT  HOUSING
 THAT  MEETS STANDARDS ESTABLISHED TO ENSURE SAFETY, HABITABILITY, QUALI-
 TY, AND ACCESS TO SUPPORTIVE SERVICES AS APPROPRIATE, TO BE MADE  AVAIL-
 ABLE TO LOW-INCOME HOUSEHOLDS AND PEOPLE EXPERIENCING HOMELESSNESS IMME-
 DIATELY PRIOR TO ENTERING SUCH HOUSING. THESE PROPERTIES SHALL BE OWNED,
 OPERATED  AND MANAGED BY APPROPRIATE NONPROFIT ORGANIZATIONS THROUGH THE
 USE OF GOVERNMENT AGENCY FUNDING TO ACQUIRE THE PROPERTY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09863-11-1
              

 A. 6593--B                          2
 
   THE ACQUIRED PROPERTIES SHALL BE CONVERTED INTO PERMANENTLY AFFORDABLE
 HOUSING MODELED AS FINANCIALLY AND OPERATIONALLY DEEMED NECESSARY BY THE
 STATE OR APPROPRIATE NONPROFIT ORGANIZATION FOR THE PURPOSES OF CREATING
 SUPPORTIVE OR PERMANENTLY AFFORDABLE HOUSING UNITS;  PROVIDED  THAT  THE
 HOUSING  SHALL REMAIN AFFORDABLE AS DEFINED BY THE TERM AFFORDABLE HOUS-
 ING INCLUDED IN THIS ARTICLE.
   § 1281. 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 PURSUANT TO SECTION FORTY-FIVE-A OF THIS CHAPTER.
   2. "APPROPRIATE NONPROFIT ORGANIZATION" SHALL  MEAN  A  NOT-FOR-PROFIT
 ORGANIZATION THAT:
   (A) HAS AS ONE OF SUCH ORGANIZATION'S PRIMARY PURPOSES:
   (I)  THE  PROVISION  OF HOUSING THAT IS AFFORDABLE TO LOW-INCOME FAMI-
 LIES; OR
   (II) THE PROVISION OF SERVICES OR HOUSING FOR INDIVIDUALS OR  FAMILIES
 EXPERIENCING HOMELESSNESS; OR
   (B) IS OTHERWISE CONSIDERED BY THE STATE AS A SUITABLE HOUSING MANAGE-
 MENT ORGANIZATION, BY A VETTING PROCESS DEVELOPED BY THE CORPORATION.
   3.  "AFFORDABLE HOUSING" SHALL MEAN PERMANENT HOUSING THAT IS AFFORDA-
 BLE TO LOW AND MODERATE-INCOME HOUSEHOLDS, SUCH  THAT  THE  NEW  HOUSING
 ACHIEVES  INCOME  AVERAGING AT OR BELOW FIFTY PERCENT OF THE AREA MEDIAN
 INCOME, WITH RESIDENTS'  ELIGIBILITY  CAPPED  AT  A  MAXIMUM  OF  EIGHTY
 PERCENT  OF  THE AREA MEDIAN  INCOME AT THE START OF THEIR LEASE. APPLI-
 CANTS SHALL NOT BE REJECTED FROM ELIGIBILITY BASED ON  CREDIT  HISTORIES
 OR CREDIT SCORES.
   4.  "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS REGULARLY
 EMPLOYED AT, AND PERFORMS WORK IN CONNECTION WITH THE  CARE  OR  MAINTE-
 NANCE  OF,  A  CONVERTED  PROPERTY  IN  A  CITY WITH A POPULATION OF ONE
 MILLION OR MORE, INCLUDING BUT NOT LIMITED TO, A WATCHMAN, GUARD,  DOOR-
 MAN, BUILDING CLEANER, PORTER, HANDYMAN, JANITOR, GARDENER, GROUNDSKEEP-
 ER, ELEVATOR OPERATOR AND STARTER, OR WINDOW CLEANER.
   5.  "DISTRESSED"  SHALL  MEAN  AN  AVAILABLE ASSET THAT IS FINANCIALLY
 DISTRESSED AS DETERMINED BY THE CORPORATION.
   6. "EXEMPT SUPPORTIVE HOUSING" SHALL MEAN CONVERTED PROPERTY FOR WHICH
 A NONPROFIT ORGANIZATION HAS:
   (A) ENTERED INTO A REGULATORY AGREEMENT  WITH  A  FEDERAL,  STATE,  OR
 LOCAL  GOVERNMENT  ENTITY  IN A CITY WITH A POPULATION OF ONE MILLION OR
 MORE THAT REQUIRES:
   (I) AT LEAST FIFTY PERCENT OF THE RESIDENTIAL UNITS IN SUCH  CONVERTED
 PROPERTY  BE  RESERVED  FOR  HOMELESS,  DISABLED INDIVIDUALS OR HOMELESS
 FAMILIES WITH A DISABLED HEAD-OF-HOUSEHOLD; AND
   (II) THE PROVISION OF ON-SITE SUPPORTIVE SERVICES TO THE RESIDENTS  OF
 AT LEAST FIFTY PERCENT OF THE RESIDENTIAL UNITS; AND
   (B)  THE  REMAINING  FIFTY  PERCENT  OF  THE RESIDENTIAL UNITS IN SUCH
 CONVERTED PROPERTY RENTED TO  HOUSEHOLDS  EARNING,  ON  AVERAGE,  UP  TO
 EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR HOUSEHOLD SIZE.
   7. "EXPERIENCING HOMELESSNESS" SHALL REFER TO THOSE INDIVIDUALS RESID-
 ING IN SHELTERS, TRANSITIONAL HOUSING, PUBLIC SPACES, AND OTHER TYPES OF
 EMERGENCY HOUSING.
   8. "FISCAL OFFICER" SHALL MEAN THE COMPTROLLER OF THE CITY OF NEW YORK
 OR OTHER ANALOGOUS OFFICER OF SUCH CITY.
   9.  "PREVAILING  WAGE"  SHALL  MEAN THE RATE OF WAGES AND SUPPLEMENTAL
 BENEFITS PAID IN THE LOCALITY TO WORKERS IN THE SAME TRADE OR OCCUPATION
 AND ANNUALLY DETERMINED BY THE FISCAL OFFICER  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SECTION TWO HUNDRED THIRTY-FOUR OF THE LABOR LAW.

 A. 6593--B                          3
 
   10.  "RENT STABILIZED" SHALL MEAN COLLECTIVELY, THE RENT STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE
 EMERGENCY TENANT PROTECTION ACT OF  NINETEEN  SEVENTY-FOUR,  ALL  AS  IN
 EFFECT  AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
 SAND  TWENTY-ONE  THAT  ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
 TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING  SUBSTAN-
 TIALLY THE SAME SUBJECT MATTER.
   11. "SMALL CONVERTED PROPERTY" SHALL MEAN A CONVERTED PROPERTY PROJECT
 (A)  TO  IMPROVE  NO MORE THAN ONE HUNDRED NINETEEN RESIDENTIAL UNITS IN
 ONE OR MORE BUILDINGS; AND (B) WHICH HAS RECEIVED  FINANCIAL  ASSISTANCE
 PURSUANT TO THIS ARTICLE.
   §  1282. HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM. 1. ESTABLISHMENT.
 SUBJECT TO AMOUNTS AVAILABLE BY APPROPRIATION THEREFOR, THE  CORPORATION
 SHALL  DEVELOP A HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM (HEREINAFTER
 REFERRED TO AS "THE PROGRAM"), WHICH SHALL PROVIDE A MECHANISM  FOR  THE
 STATE  TO  FINANCE  THE  ACQUISITION OF DISTRESSED HOTELS AND COMMERCIAL
 OFFICE PROPERTIES BY APPROPRIATE NONPROFIT ORGANIZATIONS FOR THE PURPOSE
 OF MAINTAINING OR INCREASING AFFORDABLE HOUSING.  ALL AFFORDABLE HOUSING
 PROPERTIES  PRODUCED  THROUGH  THIS  PROGRAM  SHALL  REMAIN  PERMANENTLY
 AFFORDABLE,  AND ALL CONVERTED PROPERTIES IN A CITY WITH A POPULATION OF
 ONE MILLION OR MORE, WITH THE EXCEPTION OF  SMALL  CONVERTED  PROPERTIES
 AND EXEMPT SUPPORTIVE HOUSING, SHALL BE REQUIRED TO PAY BUILDING SERVICE
 EMPLOYEES  THE  APPLICABLE PREVAILING WAGE PURSUANT TO SUBDIVISION ONE-A
 OF THIS SECTION.  PERMANENT AFFORDABILITY RESTRICTIONS SHALL  REQUIRE  A
 REGULATORY  AGREEMENT  WITH  THE  CORPORATION OR LOCAL HOUSING AGENCY OR
 OTHER AFFORDABILITY RESTRICTIONS IN RECORDED DOCUMENTS NOT  SPECIFICALLY
 LISTED  IN  THIS  SUBDIVISION, PROVIDED THE CORPORATION OR LOCAL HOUSING
 AGENCY DETERMINES THAT SUCH RESTRICTIONS ARE ENFORCEABLE AND  LIKELY  TO
 BE ENFORCED.  SUCH ENFORCEMENT MEASURES SHALL INCLUDE BUT NOT BE LIMITED
 TO THE ABILITY TO CANCEL OR TRANSFER THE REGULATORY AGREEMENT OR PROPER-
 TY  TO  ANOTHER ENTITY FOR VIOLATING THE TERMS OF SUCH REGULATORY AGREE-
 MENT, SUCH AS FAILURE TO MEET THE MINIMUM OBLIGATIONS SET FORTH IN  THIS
 ARTICLE WHEN SUCH FAILURE IS NOT CURED.
   1-A.  IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ALL BUILDING
 SERVICE EMPLOYEES EMPLOYED BY AN APPROPRIATE NONPROFIT ORGANIZATION AT A
 CONVERTED PROPERTY OR OTHERWISE EMPLOYED AT A CONVERTED PROPERTY THAT IS
 NOT A SMALL  CONVERTED  PROPERTY  OR  EXEMPT  SUPPORTIVE  HOUSING  SHALL
 RECEIVE  AT LEAST THE APPLICABLE PREVAILING WAGE IN SUCH CITY FOR CRAFT,
 TRADE, OR OCCUPATION OF SUCH BUILDING  SERVICE  EMPLOYEE.    THE  FISCAL
 OFFICER  SHALL  HAVE  THE  POWER  TO ENFORCE SUCH PROVISIONS IN THE SAME
 MANNER AS PROVIDED UNDER SUBPARAGRAPH (III) OF PARAGRAPH (G) OF SUBDIVI-
 SION SEVENTEEN OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY
 TAX LAW. IN ADDITION, THE FISCAL OFFICER SHALL HAVE THE POWER TO CONDUCT
 AN INVESTIGATION AND HEARING AND FILE A DETERMINATION AS TO THE  PAYMENT
 OF WAGES OWED BY A LESSEE, OWNER, SUCCESSOR, OR ANY EMPLOYER OF BUILDING
 SERVICE  EMPLOYEES, AS PROVIDED UNDER SUBDIVISIONS ONE, FOUR, FIVE, SIX,
 EIGHT AND NINE OF SECTION TWO HUNDRED THIRTY-FIVE OF THE LABOR LAW.
   2. PURPOSE. THE PROGRAM SHALL SEEK TO:
   (A) FINANCE THE ACQUISITION OF DISTRESSED HOTELS AND COMMERCIAL OFFICE
 PROPERTIES BY APPROPRIATE NONPROFIT ORGANIZATIONS  FOR  THE  PURPOSE  OF
 STABILIZING COMMUNITIES AND THE HOUSING MARKET;
   (B)  FINANCE  THE CONVERSION AND REHABILITATION OF THE PHYSICAL CONDI-
 TION OF ACQUIRED PROPERTY  BY  APPROPRIATE  NONPROFIT  ORGANIZATIONS  IN
 ORDER  TO  ENHANCE  THE CONDITION OF SUCH PROPERTY FOR FUTURE OCCUPANTS,
 SUCH AS HABITABILITY AND ENVIRONMENTAL SUSTAINABILITY; AND

 A. 6593--B                          4
 
   (C) PROVIDE AN APPROPRIATE, EXPEDIENT AND EFFICIENT MANNER FOR  OWNERS
 OF  SUCH  DISTRESSED  PROPERTIES TO TRANSFER OWNERSHIP TO AN APPROPRIATE
 NONPROFIT ORGANIZATION SO AS TO PROMOTE  THE  STATE'S  INTEREST  IN  THE
 CONVERSION OF SUCH PROPERTIES TO NEW SUPPORTIVE AND AFFORDABLE PERMANENT
 HOUSING UNITS.
   3. POWERS. THE STATE MAY FINANCE THE PURCHASE, ACQUISITION AND HOLDING
 BY APPROPRIATE NONPROFIT ORGANIZATIONS OF DISTRESSED HOTEL OR COMMERCIAL
 OFFICE PROPERTIES IN ANY PART OF THE STATE, AND MAY TAKE SUCH ACTIONS AS
 MAY BE NECESSARY TO IDENTIFY SUCH DISTRESSED PROPERTIES, FOR THE PURPOSE
 OF  MAINTAINING  OR  INCREASING THE STOCK OF AFFORDABLE, STABLE, QUALITY
 HOUSING; PROVIDED THAT IN THE CASE OF A  PROPERTY  AT  WHICH  ANY  HOTEL
 WORKERS ARE REPRESENTED BY A COLLECTIVE BARGAINING REPRESENTATIVE, PRIOR
 TO  THE  PROPOSED  ACQUISITION, THE COLLECTIVE BARGAINING REPRESENTATIVE
 SHALL BE NOTIFIED IN WRITING OF THE PROPOSED ACQUISITION, AND THE  PROP-
 ERTY  OWNER SHALL CERTIFY PRIOR TO THE STATE INITIATING SUCH ACQUISITION
 THAT THE COLLECTIVE BARGAINING REPRESENTATIVE HAS MUTUALLY AGREED  IN  A
 SEPARATE  WRITING  WITH THE PROPERTY OWNER TO TAKE THE SPECIFIC ACQUISI-
 TION DESCRIBED IN THE WRITTEN NOTICE.
   4. CONVERTED PROPERTIES. ALL PROPERTIES CONVERTED TO AFFORDABLE  HOUS-
 ING PURSUANT TO THIS SECTION SHALL MEET THE MINIMUM STANDARDS OF HABITA-
 BILITY,  SAFETY  AND QUALITY OF LIFE FOR ALL ESTABLISHED HOUSING.  ADDI-
 TIONAL OPERATING EXPENSES  SHALL  BE  MET  THROUGH  ANY  COMBINATION  OF
 SUBSIDIES, VOUCHERS, COMMERCIAL RENTS, OR OTHER SOURCES OF INCOME AVAIL-
 ABLE  TO  THE HOUSING PROVIDER UNDER THE MODEL THE NON-PROFIT CHOOSES TO
 PURSUE. ALL UNITS SHALL BE RENT STABILIZED AS DEFINED IN THIS ARTICLE IN
 LOCALITIES THAT HAVE ADOPTED OR OPTED IN TO THE RENT STABILIZATION  LAW.
 AT  LEAST  FIFTY  PERCENT OF ALL CONVERTED PROPERTIES SHALL BE SET ASIDE
 FOR INDIVIDUALS AND FAMILIES WHO WERE  EXPERIENCING  HOMELESSNESS  IMME-
 DIATELY  PRIOR TO ENTERING SUCH CONVERTED AFFORDABLE HOUSING.  EACH UNIT
 MUST CONTAIN, AT A MINIMUM, A LIVING/SLEEPING  SPACE,  PRIVATE  BATHROOM
 WITH  BATH OR SHOWER, AND EITHER A FULL KITCHEN OR A KITCHENETTE WITH AT
 LEAST A 24-INCH REFRIGERATOR, SINK, COOKTOP, MICROWAVE OVEN AND  OUTLETS
 FOR COUNTERTOP APPLIANCES.
   5. RESTRICTIONS. THE STATE SHALL NOT, IN ANY CASE, FACILITATE THE SALE
 OR  TRANSFER  OF PROPERTY UNLESS THE STATE HAS ENTERED INTO AN AGREEMENT
 WITH THE APPROPRIATE NONPROFIT ORGANIZATION TO ENSURE THAT  ANY  ACTIONS
 NECESSARY  TO  BRING THE PROPERTY INTO COMPLIANCE WITH APPLICABLE BUILD-
 ING, SAFETY, HEALTH AND HABITABILITY  CODES  AND  REQUIREMENTS  WILL  BE
 TAKEN BEFORE SUCH PROPERTY IS OCCUPIED.
   6.  TENANT  PROTECTIONS.  TENANTS  RESIDING IN PROPERTIES CONVERTED TO
 AFFORDABLE HOUSING PURSUANT TO THIS  SECTION  SHALL  HAVE  FULL  TENANCY
 RIGHTS, INCLUDING ALL THE TENANT PROTECTIONS PURSUANT TO RENT STABILIZA-
 TION AS DEFINED IN THIS ARTICLE IN LOCALITIES THAT HAVE ADOPTED OR OPTED
 IN  TO  THE RENT STABILIZATION LAWS.  TENANCY IN SUCH AFFORDABLE HOUSING
 SHALL NOT BE RESTRICTED ON THE BASIS OF SEXUAL IDENTITY OR  ORIENTATION,
 GENDER  IDENTITY  OR  EXPRESSION,  CONVICTION  OR  ARREST RECORD, CREDIT
 HISTORY, CREDIT SCORE, OR IMMIGRATION STATUS.
   § 3. Non-severability clause. If any  clause,  sentence,  subdivision,
 paragraph, section or part of this act shall be adjudged by any court of
 competent  jurisdiction to be invalid, and such decision is not reversed
 or is otherwise deemed to be final, such judgment shall have the  effect
 of rendering this act invalid, inoperative and void.
   §  4.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2021.