S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6866--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2021
                                ___________
 
 Introduced  by  Sen. MANNION -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  recommitted  to  the Committee on Housing,
   Construction and Community Development in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01591-04-2
              

 S. 6866--A                          2
 
   1.  "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION ESTAB-
 LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
   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 SEVEN HUNDRED FIFTY
 THOUSAND 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.
 S. 6866--A                          3
 
 UPON REQUEST, THE CORPORATION MAY EXTEND THE TERM OF THE CONTRACT FOR UP
 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 TEN PERCENT OF THE CONTRACT  AMOUNT  FOR
 APPROVED PLANNING AND ADMINISTRATIVE COSTS ASSOCIATED 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 TWO 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.