S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3372
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sens. BAILEY, ADDABBO, BENJAMIN, BOYLE, COMRIE, HOYLMAN,
   JACKSON, KENNEDY, KRUEGER, MYRIE, PARKER, PERSAUD,  SALAZAR,  SANDERS,
   SAVINO,  SEPULVEDA,  SERRANO,  SKOUFIS,  STAVISKY  --  read  twice and
   ordered printed, and when printed to be committed to the Committee  on
   Housing, Construction and Community Development

 AN ACT to amend the private housing finance law, in relation to afforda-
   ble housing corporation grants
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1  of  section  1112  of  the  private  housing
 finance law, as amended by chapter 64 of the laws of 2012, is amended to
 read as follows:
   1.  Within  the  limit  of  funds  available in the affordable housing
 development account, the corporation is hereby authorized to enter  into
 contracts  with  eligible applicants to provide grants which such appli-
 cants  shall  use  to  finance  affordable  home  ownership  development
 programs subject to the terms and conditions of this article. Any grants
 received by a municipality hereunder shall not be deemed to be municipal
 funds.    Grantees shall utilize funds provided pursuant to this article
 solely as payments, grants and loans to owners to reduce  the  costs  of
 new  construction,  rehabilitation  or  home  improvement or the cost of
 acquisition, but only where such acquisition is part  of  an  affordable
 home  ownership development program or project to construct or rehabili-
 tate homes, or as otherwise authorized by law. Such financial assistance
 may be in the form of loans, participation in loans  including  but  not
 limited  to  participation  in  loans  originated or financed by lending
 institutions as defined in section forty-two of this chapter, private or
 public employee pension funds or the state of New York mortgage  agency,
 or grants, on such terms and conditions as the grantee with the approval
 of  the  corporation  shall  determine,  provided that no such payments,
 grants and loans shall exceed the lesser of (i)  sixty  percent  of  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06790-01-1

 S. 3372                             2
 
 project  cost  for projects involving acquisition or one hundred percent
 of rehabilitation programs without an acquisition component or (ii)  the
 following per dwelling unit limitations (A) [thirty-five] FIFTY thousand
 dollars  for  projects  except as provided in [item] SUBPARAGRAPH (B) of
 this [clause] PARAGRAPH or  (B)  [forty]  UP  TO  SEVENTY-FIVE  thousand
 dollars  for  a high cost project or a project which will receive a loan
 from the federal farmers home administration. Up to ten percent  of  the
 program  or  project  cost  may  be  used for grantee operating expenses
 including expenses related to the  organization  operating  support  and
 administration of the contract. Among the criteria the corporation shall
 consider  in  determining  whether a project is a high cost project are:
 average cost of construction in the area, location of the  project,  and
 the impact of the additional funding on the affordability of the project
 for  the  occupants  of such project.  No more than fifty percent of the
 total amount appropriated pursuant to this article in  any  fiscal  year
 shall be allocated to homes located within any single municipality.
   §  2. Subdivision 2 of section 1112 of the private housing finance law
 is amended by adding a new paragraph (j) to read as follows:
   (J) IN THE CASE OF PROJECTS THAT RECEIVE AN AWARD OF OVER FORTY  THOU-
 SAND  DOLLARS,  THE  GRANTEE MAY ESTABLISH RESALE RESTRICTIONS REQUIRING
 THE SALE OF THE UNIT OR UNITS RECEIVING SUCH  FUNDING  THROUGH  A  GRANT
 FROM  THE CORPORATION BE PURCHASED ONLY BY QUALIFIED LOW-INCOME HOMEBUY-
 ERS EXTENDING FOR A PERIOD OF AT LEAST SIXTY YEARS,  BUT  NO  MORE  THAN
 NINETY-NINE YEARS, AND THE GRANTEE MAY ENSURE THIS RESALE RESTRICTION BY
 USE OF DEED RESTRICTIONS, COMMUNITY LAND TRUSTS, OR LIMITED-EQUITY COOP-
 ERATIVE OWNERSHIP STRUCTURE.
   §  3.  Section  1112  of the private housing finance law is amended by
 adding a new subdivision 3-a to read as follows:
   3-A. IN DETERMINING AWARDS PURSUANT TO THIS ARTICLE,  THE  CORPORATION
 SHALL  ESTABLISH TIERED PROJECT FUNDING LEVELS BASED ON LENGTH AND DEPTH
 OF AFFORDABILITY.
   § 4. Projects in pre-development that have  already  received  commit-
 ments from the corporation prior to the effective date of this act shall
 be  granted  the opportunity to request additional capital under the law
 after the effective date of this act.
   § 5. This act shall take effect on the two hundred fortieth day  after
 it  shall  have become a law. Effective immediately, the commissioner of
 homes and community renewal is authorized to take such actions which are
 necessary for the implementation of this act,  including  the  addition,
 amendment  and/or  repeal  of  any rule or regulation, on or before such
 effective date.