S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7503
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation  to  estab-
   lishing an affordable housing 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 32 to read as follows:
                               ARTICLE XXXII
                           AFFORDABILITY PROGRAM
 SECTION 1300. DEFINITIONS.
         1301. LOANS AND GRANTS.
         1302. RULES; ENFORCEMENT.
         1303. SEVERABILITY.
   §  1300.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AGENCY" SHALL MEAN THE DIVISION OF HOMES AND COMMUNITY RENEWAL.
   2. "HOUSING ACCOMMODATIONS" SHALL MEAN:  (A)  A  PRIVATE  OR  MULTIPLE
 DWELLING,  OR  ANY  OTHER  STRUCTURE  CONTAINING DWELLING UNITS, ROOMING
 UNITS OR SLEEPING ACCOMMODATIONS, TOGETHER WITH THE LAND ON  WHICH  SUCH
 STRUCTURE  IS  SITUATED;  (B)  ANY REAL PROPERTY TO BE CONVERTED TO SUCH
 USER; OR (C) ALL OR A PORTION OF THE DWELLING UNITS,  ROOMING  UNITS  OR
 SLEEPING ACCOMMODATIONS THEREIN.
   3.  "OWNER"  SHALL MEAN A PERSON HAVING RECORD OR BENEFICIAL OWNERSHIP
 OF REAL PROPERTY OR A LESSEE OF REAL PROPERTY HAVING AN  UNEXPIRED  TERM
 OF AT LEAST THIRTY YEARS.
   4.  "REGULATORY  AGREEMENT"  SHALL  MEAN  A WRITTEN AGREEMENT WITH THE
 AGENCY THAT REQUIRES THE PROVISION OF HOUSING ACCOMMODATIONS  FOR  INDI-
 VIDUALS  AND  FAMILIES  AT  A  RENT  THAT IS THIRTY-THREE PERCENT OF THE
 TENANT'S INCOME, IS ENTERED INTO ON OR AFTER THE EFFECTIVE DATE OF  THIS
 ARTICLE,  SPECIFICALLY PROVIDES THAT IT IS ENTERED INTO PURSUANT TO THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11252-01-3
              

 A. 7503                             2
 
 ARTICLE, IS RECORDED AGAINST ONE OR MORE PARCELS OF REAL  PROPERTY,  AND
 BINDS  THE OWNER OF SUCH REAL PROPERTY AND ITS SUCCESSORS AND ASSIGNS. A
 REGULATORY AGREEMENT MAY INCLUDE SUCH OTHER TERMS AND CONDITIONS AS SUCH
 AGENCY SHALL DETERMINE.
   §  1301.  LOANS  AND  GRANTS. 1. NOTWITHSTANDING THE PROVISIONS OF ANY
 GENERAL, SPECIAL OR LOCAL LAW, THE AGENCY IS AUTHORIZED TO MAKE LOANS OR
 GRANTS TO THE OWNER OF  ANY  REAL  PROPERTY  FOR  THE  PURPOSE  OF:  (A)
 CONSTRUCTION,  REHABILITATION, CONVERSION, ACQUISITION OR REFINANCING OF
 HOUSING ACCOMMODATIONS; (B) PROVIDING SITE IMPROVEMENTS, INCLUDING,  BUT
 NOT  LIMITED TO, WATER AND SEWER FACILITIES, SIDEWALKS, LANDSCAPING, THE
 CURING OF PROBLEMS CAUSED BY ABNORMAL SITE  CONDITIONS,  EXCAVATION  AND
 CONSTRUCTION  OF FOOTINGS AND FOUNDATIONS AND OTHER IMPROVEMENTS ASSOCI-
 ATED WITH THE PROVISION OF INFRASTRUCTURE FOR HOUSING ACCOMMODATIONS; OR
 (C) PROVIDING FOR OTHER COSTS OF DEVELOPING HOUSING ACCOMMODATIONS.
   2. ANY LOAN MADE IN ACCORDANCE WITH THIS SECTION SHALL BE EVIDENCED BY
 A NOTE AND MAY BE SECURED BY: (A) A MORTGAGE UPON THE  INTEREST  OF  THE
 OWNER IN THE REAL PROPERTY ASSISTED; (B) IN THE CASE OF A CONDOMINIUM, A
 MORTGAGE  UPON  EACH OF THE HOUSING ACCOMMODATIONS ASSISTED BY SUCH LOAN
 OR; (C) IN THE CASE OF A COOPERATIVE HOUSING CORPORATION,  A  LIEN  UPON
 THE  ECONOMIC  INTEREST  IN  SUCH CORPORATION OF EACH TENANT-SHAREHOLDER
 ASSISTED BY SUCH LOAN, OR A MORTGAGE UPON THE REAL PROPERTY ASSISTED, OR
 BOTH SUCH LIEN AND SUCH MORTGAGE. ANY SUCH MORTGAGE MAY BE  CONSOLIDATED
 WITH  A  MUNICIPALLY-AIDED  MORTGAGE THAT ENCUMBERS THE REAL PROPERTY AT
 THE TIME OF THE MAKING  OF  THE  LOAN  PURSUANT  TO  THIS  SECTION.  FOR
 PURPOSES  OF  THIS ARTICLE, THE TERM "MORTGAGE" SHALL INCLUDE ANY PLEDGE
 OR ASSIGNMENT OF SHARES, OR ASSIGNMENT OF  A  PROPRIETARY  LEASE,  IN  A
 COOPERATIVE  HOUSING  CORPORATION  WHERE  SUCH  PLEDGE  OR ASSIGNMENT IS
 INTENDED AS SECURITY FOR THE PERFORMANCE OF AN OBLIGATION AND IMPOSES  A
 LIEN ON OR AFFECTS TITLE TO SUCH SHARES OR SUCH PROPRIETARY LEASE.
   3.  THE  REPAYMENT  OF  ANY  LOAN MADE IN ACCORDANCE WITH THIS SECTION
 SHALL BE MADE IN SUCH MANNER AS MAY BE PROVIDED  IN  THE  NOTE  AND  ANY
 MORTGAGE  IN  CONNECTION  WITH  SUCH  LOAN.  SUCH  NOTE AND MORTGAGE MAY
 CONTAIN SUCH TERMS AND CONDITIONS AS THE AGENCY MAY  DEEM  NECESSARY  OR
 DESIRABLE  TO  EFFECTUATE  THE  PURPOSES AND PROVISIONS OF THIS ARTICLE.
 SUCH TERMS AND CONDITIONS MAY INCLUDE, BUT  SHALL  NOT  BE  LIMITED  TO,
 PROVISIONS  CONCERNING: (A) THE REPAYMENT OF THE LOAN; (B) THE INTEREST,
 IF ANY, THEREON; (C) THE CHARGES, IF ANY, IN CONNECTION  THEREWITH;  AND
 (D)  THE PREPAYMENT OF THE PRINCIPAL OF THE LOAN. SUCH NOTE AND MORTGAGE
 MAY PROVIDE THAT ALL OR A PORTION OF THE PRINCIPAL  OF  THE  LOAN  SHALL
 AUTOMATICALLY  BE REDUCED TO ZERO OVER A PERIOD OF CONTINUOUS COMPLIANCE
 BY THE OWNER WITH A REGULATORY AGREEMENT AND UPON  THE  SATISFACTION  OF
 ANY   ADDITIONAL  CONDITIONS  SPECIFIED  THEREIN.  NOTWITHSTANDING  SUCH
 PROVISION AS CONTAINED IN THE NOTE AND MORTGAGE, ALL OR A PORTION OF THE
 PRINCIPAL OF THE LOAN SHALL BE REDUCED TO ZERO  ONLY  IF,  PRIOR  TO  OR
 SIMULTANEOUSLY  WITH DELIVERY OF SUCH NOTE AND MORTGAGE, THE AGENCY MADE
 A WRITTEN DETERMINATION THAT SUCH REDUCTION WOULD BE NECESSARY TO ENSURE
 THE CONTINUED AFFORDABILITY OR ECONOMIC VIABILITY OF THE HOUSING  ACCOM-
 MODATIONS  ASSISTED BY SUCH LOAN. SUCH WRITTEN DETERMINATION SHALL DOCU-
 MENT THE BASIS UPON WHICH THE LOAN WAS DETERMINED  TO  BE  ELIGIBLE  FOR
 EVAPORATION.
   4. THE AGENCY SHALL REQUIRE THE OWNER OF ANY REAL PROPERTY THAT IS THE
 SUBJECT  OF  A  LOAN  OR  GRANT  PURSUANT TO THIS SECTION TO EXECUTE AND
 RECORD A REGULATORY AGREEMENT HAVING A TERM COMMENCING  NOT  LATER  THAN
 THE  DATE  OF SUCH LOAN OR GRANT. THE REGULATORY AGREEMENT SHALL PROVIDE
 THAT THE OWNER SHALL RENT ALL HOUSING ACCOMMODATIONS  AT  RENTAL  PRICES
 THAT DO NOT EXCEED THIRTY-THREE PERCENT OF THE TENANT'S INCOME.
 A. 7503                             3

   5.  THE  AGENCY  SHALL  NOT  MAKE  ANY  LOAN OR GRANT PURSUANT TO THIS
 SECTION UNLESS THE AGENCY HAS MADE A WRITTEN DETERMINATION, WHICH  SHALL
 BE  STATED  OR REFERENCED IN THE REGULATORY AGREEMENT, THAT SUCH LOAN OR
 GRANT IS NECESSARY TO ENSURE THE AFFORDABILITY OR ECONOMIC VIABILITY  OF
 THE HOUSING ACCOMMODATIONS IN ACCORDANCE WITH THE TERMS OF THE REGULATO-
 RY AGREEMENT.
   6.  THE  AGENCY MAY MAKE PROVISION, EITHER IN THE MORTGAGE OR BY SEPA-
 RATE AGREEMENT, FOR THE PERFORMANCE OF SUCH  LOAN  SERVICING  FUNCTIONS,
 INCLUDING FUNCTIONS RELATED TO CONSTRUCTION LENDING, AS MAY GENERALLY BE
 PERFORMED BY AN INSTITUTIONAL LENDER. THE AGENCY MAY ACT IN SUCH CAPACI-
 TY  OR  APPOINT OR CONSENT TO THE APPOINTMENT OF A FINANCIAL INSTITUTION
 TO ACT IN SUCH CAPACITY ON BEHALF OF THE AGENCY. THE AGENCY  IS  AUTHOR-
 IZED TO PAY A REASONABLE AND CUSTOMARY FEE TO SUCH FINANCIAL INSTITUTION
 FOR THE PERFORMANCE OF SUCH SERVICES.
   §  1302.  RULES;  ENFORCEMENT.  1.  THE AGENCY MAY PROMULGATE RULES TO
 CARRY OUT THE PROVISIONS OF THIS ARTICLE, AND MAY REQUIRE A  FILING  FEE
 IN  AN  AMOUNT  EQUAL TO ONE THOUSAND DOLLARS PER DWELLING UNIT, OR SUCH
 LESSER AMOUNT AS MAY BE PROVIDED BY SUCH RULES, IN CONNECTION  WITH  ANY
 APPLICATION FOR A LOAN OR GRANT PURSUANT TO THIS ARTICLE.
   2.  THE  AGENCY  SHALL  HAVE  THE  POWER TO: (A) SUBPOENA, REQUIRE THE
 ATTENDANCE OF AND EXAMINE AND TAKE TESTIMONY UNDER OATH OF SUCH  PERSONS
 AS IT MAY DEEM NECESSARY IN ORDER TO MONITOR AND ENFORCE COMPLIANCE WITH
 THE REGULATORY AGREEMENT; AND (B) SUBPOENA AND REQUIRE THE PRODUCTION OF
 BOOKS,  ACCOUNTS,  PAPERS,  DOCUMENTS AND OTHER EVIDENCE RELATED TO SUCH
 MONITORING AND ENFORCEMENT.
   § 1303. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
 DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
 INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   § 2. This act shall take effect immediately.