S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10293
 
                           I N  A S S E M B L Y
 
                               May 17, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. L. Rosen-
   thal) -- read once and referred to the Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation to creating
   an affordable housing  relief  fund  program  to  preserve  affordable
   multifamily residential properties located in New York state

   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 33 to read as follows:
                               ARTICLE XXXIII
                  AFFORDABLE HOUSING RELIEF FUND PROGRAM
 SECTION 1300. STATEMENT OF LEGISLATIVE FINDINGS.
         1301. DEFINITIONS.
         1302. AFFORDABLE HOUSING RELIEF FUND PROGRAM.
         1303. PROGRAM CRITERIA.
         1304. FUNDING CRITERIA.
         1305. AFFORDABILITY PROTECTION.
         1306. FUNDING.
         1307. ANNUAL REPORT.
   § 1300. STATEMENT  OF  LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS AND
 DECLARES THAT THERE EXISTS A SERIOUS  SHORTAGE  OF  SAFE  AND  HABITABLE
 AFFORDABLE  HOUSING  IN  NEW  YORK STATE FOR PERSONS AND FAMILIES OF LOW
 INCOME. A PORTION OF THE AFFORDABLE, MULTIFAMILY  HOUSING  STOCK  IS  IN
 OPERATIONAL AND FINANCIAL DISTRESS, THREATENING TO EXACERBATE THIS SHOR-
 TAGE. RENT COLLECTION LOSSES, RISING INTEREST RATES AND INSURANCE COSTS,
 AND  OTHER  FACTORS  HAVE  CAUSED  SIGNIFICANT  INCREASES  IN  OPERATING
 EXPENSES, WHICH MAY JEOPARDIZE THE AVAILABILITY TO TENANTS OF AFFORDABLE
 HOUSING UNITS OR EVEN THE VIABILITY OF SOME BUILDINGS. EXISTING  PRESER-
 VATION  PROGRAM  FUNDING  IS  LIMITED, AND DISTRESSED AFFORDABLE HOUSING
 PROPERTIES MAY NOT BE ELIGIBLE FOR SUCH FUNDING. THE LEGISLATURE  THERE-
 FORE  FINDS THAT A PROGRAM SHOULD BE ESTABLISHED TO PROVIDE NEEDED CAPI-
 TAL FUNDS AND DEBT RESTRUCTURING TO ENSURE THESE  DISTRESSED  AFFORDABLE
 HOUSING PROPERTIES REMAIN AVAILABLE TO TENANTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15597-03-4
              

 A. 10293                            2
 
   § 1301. 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 IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
   2. "AFFORDABLE HOUSING RELIEF  FUND  PROGRAM"  SHALL  MEAN  FORGIVABLE
 LOANS  AVAILABLE  TO  SUPPORT  THE RECAPITALIZATION AND STABILIZATION OF
 QUALIFIED PROPERTIES AND TO ASSIST DEVELOPMENTS THAT ARE OUTSIDE OF  THE
 ALLOWABLE REFINANCING TERM.
   3. "ELIGIBLE  PROJECTS"  SHALL  MEAN  EXISTING  AT-RISK,  ONE  HUNDRED
 PERCENT AFFORDABLE OR SUPPORTIVE MULTIFAMILY RENTAL  PROPERTIES  SUBJECT
 TO  A REGULATORY AGREEMENT WITH ONE OR MORE MUNICIPAL, STATE, OR FEDERAL
 HOUSING AGENCIES.
   4. "ELIGIBLE USES" SHALL INCLUDE BUT NOT BE LIMITED TO  THE  PRESERVA-
 TION  AND  IMPROVEMENT  OF  ELIGIBLE  PROJECTS,  AS  ESTABLISHED BY THIS
 SECTION, TO  ADDRESS  DEFERRED  MAINTENANCE,  CAPITAL  NEEDS,  EMERGENCY
 REPAIRS,  OR  ANY  CONDITION  WHICH  POSES A THREAT TO THE LIFE, HEALTH,
 SAFETY, OR HABITATION OF RESIDENTS, TO  INCLUDE  DEBT  RESTRUCTURING  TO
 STABILIZE  AND  PRESERVE  THE  HOUSING  SUPPLY  AND  REDUCE  THE RISK OF
 DEFAULT.
   5. "ELIGIBLE APPLICANT" SHALL  INCLUDE  NOT-FOR-PROFIT  OR  CHARITABLE
 ORGANIZATIONS,  OR  A  WHOLLY OWNED SUBSIDIARY OF SUCH ORGANIZATIONS, OR
 PRIVATE FOR-PROFIT PROPERTY OWNERS THAT HAVE A REGULATORY AGREEMENT WITH
 ONE OR MORE MUNICIPAL, STATE, OR FEDERAL HOUSING AGENCIES APPLICABLE  TO
 ONE  HUNDRED PERCENT OF THE HOUSING UNITS ON THE PROPERTY.  THE SPONSOR,
 MANAGEMENT COMPANY AND PRINCIPAL PARTICIPANTS IN THE PROJECT SHALL BE IN
 GOOD STANDING, NOT IN DEFAULT UNDER ANY EXISTING MORTGAGE FINANCING  AND
 SHALL MEET ALL CREDIT REVIEW CRITERIA IMPOSED BY THE CORPORATION.
   § 1302. AFFORDABLE  HOUSING RELIEF FUND PROGRAM. WITHIN AMOUNTS APPRO-
 PRIATED OR OTHERWISE AVAILABLE THEREFOR, THE HOUSING TRUST  FUND  CORPO-
 RATION  SHALL  DEVELOP  AND ADMINISTER AN AFFORDABLE HOUSING RELIEF FUND
 PROGRAM WHICH SHALL PROVIDE AID IN THE FORM OF PAYMENTS AND  GRANTS  FOR
 REASONABLE AND NECESSARY EXPENSES TO ELIGIBLE APPLICANTS FOR THE PRESER-
 VATION OR IMPROVEMENT OF AFFORDABLE HOUSING PROPERTIES.
   § 1303. PROGRAM  CRITERIA.  THE  CORPORATION SHALL DEVELOP PROCEDURES,
 CRITERIA AND REQUIREMENTS RELATED TO THE COMPETITIVE APPLICATION FOR AND
 AWARD OF AID PURSUANT TO THIS SECTION WHICH SHALL INCLUDE:  ELIGIBILITY,
 MARKET DEMAND, FEASIBILITY AND FUNDING CRITERIA;  THE  FUNDING  DETERMI-
 NATION  PROCESS;  SUPERVISION  AND EVALUATION OF CONTRACTING APPLICANTS;
 REPORTING, BUDGETING AND  RECORD-KEEPING  REQUIREMENTS;  PROVISIONS  FOR
 MODIFICATION  AND  TERMINATION  OF CONTRACTS; AND SUCH OTHER MATTERS NOT
 INCONSISTENT WITH THE PURPOSES AND PROVISIONS OF  THIS  ARTICLE  AS  THE
 CORPORATION  SHALL  DEEM  NECESSARY  OR APPROPRIATE. THE CORPORATION MAY
 PRIORITIZE PROPERTIES IN THE GREATEST DISTRESS.
   § 1304. FUNDING CRITERIA. UP TO FIFTY THOUSAND DOLLARS PER INCOME-RES-
 TRICTED HOUSING UNIT MAY BE AWARDED FOR RESIDENTIAL  AFFORDABLE  HOUSING
 PRESERVATION  OR  REHABILITATION.  ASSISTANCE  SHALL BE IN THE FORM OF A
 ZERO PERCENT INTEREST RATE LOAN, WITH NO MONTHLY PAYMENTS, THAT SHALL BE
 FORGIVEN AFTER TEN YEARS. ALL OR A  PORTION  OF  PROGRAM  FUNDS  MAY  BE
 REQUIRED  TO  BE REPAID IF THE PROJECT IS SOLD WITHIN TEN YEARS OR FAILS
 TO COMPLY WITH THE REGULATORY AGREEMENT. THE AMOUNT SUBJECT TO  POSSIBLE
 REPAYMENT  SHALL  DECREASE  BY  1/120  PER MONTH EACH MONTH THE PROPERTY
 REMAINS IN COMPLIANCE WITH AFFORDABILITY TERMS.
   § 1305. AFFORDABILITY PROTECTION. RECIPIENTS OF  ASSISTANCE  SHALL  BE
 SUBJECT  TO  AFFORDABILITY  RESTRICTIONS,  TENANT  PROTECTIONS,  AND ALL
 EXISTING PROVISIONS OF ANY REGULATORY AGREEMENT WITH ONE OR MORE MUNICI-
 A. 10293                            3

 PALITY, STATE, OR FEDERAL HOUSING AGENCY THAT  SERVES  AS  A  BASIS  FOR
 ELIGIBILITY FOR ASSISTANCE UNDER THIS PROGRAM.
   § 1306. FUNDING.  SUBJECT  TO  APPROPRIATIONS  FOR  THIS  PROGRAM, THE
 CORPORATION IN ITS SOLE DISCRETION SHALL AUTHORIZE ALL FUNDING DECISIONS
 AND MAKE ALL AWARD DETERMINATIONS.
   § 1307. ANNUAL REPORT. THE CORPORATION SHALL,  ON  OR  BEFORE  JANUARY
 THIRTY-FIRST  IN  EACH  YEAR  SUBMIT  A REPORT TO THE LEGISLATURE ON THE
 IMPLEMENTATION OF THIS ARTICLE. SUCH REPORT SHALL INCLUDE,  BUT  NOT  BE
 LIMITED  TO,  THE  NUMBER  OF  APPLICATIONS  RECEIVED  BY THE END OF THE
 PRECEDING CALENDAR YEAR, THE TOTAL DOLLAR AMOUNT OF  SUCH  APPLICATIONS,
 AND  THE  DISPOSITION OF SUCH APPLICATIONS; AND FOR EACH AWARD MADE TO A
 GRANTEE UNDER THIS ARTICLE, A DESCRIPTION OF SUCH  AWARD,  THE  CONTRACT
 AMOUNT  AND  CUMULATIVE TOTAL, THE SPECIFIC ACTIVITIES PERFORMED BY SUCH
 GRANTEE, THE AMOUNTS OF MONIES RECEIVED  BY  THE  GRANTEE  FROM  SOURCES
 OTHER THAN PAYMENTS MADE PURSUANT TO THIS ARTICLE, AND SUCH OTHER INFOR-
 MATION AS THE CORPORATION DEEMS PERTINENT.
   § 2. This act shall take effect immediately.