NY State Senate Bill 2023-S9958

Current Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 06, 2024	referred to rules

2023-S9958 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Private Housing Finance Law
Laws Affected:: Add §59-j, Priv Hous Fin L; add §99-ss, St Fin L

2023-S9958 (ACTIVE) - Summary

Establishes a housing project revolving loan program and housing project revolving loan fund to encourage the development of mixed income housing by providing zero-percent interest or low-interest loans.

2023-S9958 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9958

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the private housing finance law and the state finance
law, in relation to establishing a housing project revolving loan
program and housing project revolving loan fund

 
PURPOSE:

To create a revolving loan program for residential housing construction

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes the housing project revolving loan program for
mixed-income housing developments

Section 2 establishes the housing project revolving loan fund

Section 3 establishes the effective date of the bill

 
JUSTIFICATION:

The great scale of New York State's housing crisis has been extremely
well documented and discussed. Tenants and prospective
 homeowners facing huge and rising costs, low availability, and poor
conditions virtually everywhere in the state. Financing for affordable
housing in the country overall remains at far too low a level to reach
the needs of New Yorkers, with the existing programs
 that are in existence requiring lengthy periods of time and vast
resources to be able to be successfully completed. Most of the state
outside of New York City has very few scalable financing options for
mixed-income development.

The recent high-interest rate environment has been a major driver of the
cost it takes to complete a residential development, and makes building
any units affordably very difficult. One key tool the state could use to
help build more housing, and more affordable units, is a revolving loan
fund.

Revolving funds work by issuing loans at much cheaper rates than typical
market rate loans for mixed-income buildings. Once the project is
completed, project owners are then able to obtain permanent financing at
a cheaper rate, due to a decrease in risk in construct ion and leasing.
The owners then pay the original loan back to the revolving loan fund,
ready to be used again. We believe this is a prudent use of public
dollars to create a virtuous cycle of investment well into the future.

By seeding a revolving loan fund to be used for mixed-income housing at
$1.5 billion, the state could unlock new housing production, helping
grow the economy and providing great relief for residents seeking more
affordable housing options.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:
Subject to appropriation

 
EFFECTIVE DATE:
Immediately

2023-S9958 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9958
 
                             I N  S E N A T E
 
                             December 6, 2024
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the private housing finance law and  the  state  finance
   law,  in  relation  to  establishing  a housing project revolving loan
   program and housing project revolving loan fund
 
   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
 section 59-j to read as follows:
   § 59-J. HOUSING PROJECT REVOLVING LOAN PROGRAM. 1. FOR THE PURPOSES OF
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "ELIGIBLE HOUSING PROJECT" MEANS A PROJECT TO BUILD  MIXED  INCOME
 HOUSING  WHERE  AT LEAST TWENTY PERCENT OF UNITS WILL BE RENTED TO INDI-
 VIDUALS AT OR BELOW FIFTY PERCENT OF THE AREA MEDIAN INCOME.
   (B) "PROGRAM" MEANS THE HOUSING PROJECT REVOLVING LOAN PROGRAM  ESTAB-
 LISHED PURSUANT TO THIS SECTION.
   (C)  "RESIDENTIAL  HOUSING  DEVELOPER" MEANS A FOR-PROFIT ENTITY, NON-
 PROFIT ENTITY, OR PUBLIC AUTHORITY PROPOSING TO BUILD AN ELIGIBLE  HOUS-
 ING PROJECT.
   2. THE AGENCY IS HEREBY AUTHORIZED AND DIRECTED TO ESTABLISH A HOUSING
 PROJECT  REVOLVING LOAN PROGRAM TO PROVIDE ZERO-PERCENT INTEREST OR LOW-
 PERCENT INTEREST LOANS, IN ACCORDANCE  WITH  SUBDIVISION  FOUR  OF  THIS
 SECTION,  TO  RESIDENTIAL HOUSING DEVELOPERS TO FINANCE ELIGIBLE HOUSING
 PROJECTS. NOTWITHSTANDING THE PROVISIONS OF ANY  LAW  TO  THE  CONTRARY,
 STATE  FINANCIAL  ASSISTANCE  IN  THE FORM OF A LOAN MAY BE PROVIDED FOR
 COSTS OF ELIGIBLE PROJECTS FOR CAPITAL COSTS RELATED TO SUCH PROJECTS.
   3. (A) THE AGENCY SHALL DEVELOP A METHOD WHEREBY  RESIDENTIAL  HOUSING
 DEVELOPERS  MAY  APPLY  TO THE AGENCY TO RECEIVE LOANS UNDER THE PROGRAM
 FOR ELIGIBLE HOUSING PROJECTS. THE AGENCY, AFTER REVIEW  OF  THE  FISCAL
 NEEDS  OF  SUCH  ELIGIBLE  HOUSING PROJECTS, SHALL MAKE A DETERMINATION,
 SUBJECT TO ANY RESTRICTIONS UNDER THIS SECTION, AS  TO  THE  RESIDENTIAL
 HOUSING  DEVELOPERS  TO BE AWARDED STATE FINANCIAL ASSISTANCE UNDER THIS
 SECTION, AND THE AMOUNT OF SUCH FINANCIAL  ASSISTANCE.  IN  MAKING  SUCH
 DETERMINATIONS, THE AGENCY SHALL CONSIDER THE POTENTIAL IMPACT OF ELIGI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16116-02-4
 S. 9958                             2
 
 BLE  HOUSING  PROJECTS,  AND  THE NEEDS OF THE AREAS WHERE SUCH ELIGIBLE
 HOUSING PROJECTS WOULD BE LOCATED, WITH A GOAL OF MAXIMIZING  AFFORDABLE
 HOUSING PRODUCTION.  THE AGENCY SHALL ENSURE THAT SUCH FINANCIAL ASSIST-
 ANCE  AWARDS  ARE  MADE  TO  RESIDENTIAL HOUSING DEVELOPERS FOR ELIGIBLE
 HOUSING PROJECTS LOCATED IN ALL GEOGRAPHIC REGIONS  OF  THE  STATE  FROM
 WHICH APPLICATIONS FOR SUCH FINANCIAL ASSISTANCE ARE MADE.
   (B)  THE  AGENCY  SHALL  BE AUTHORIZED TO ALLOCATE FUNDS FOR FINANCIAL
 ASSISTANCE TO OTHER HOUSING FINANCE AGENCIES IN THE STATE, AS DETERMINED
 BY THE AGENCY, TO BE USED FOR THE PURPOSES UNDER SUBDIVISION TWO OF THIS
 SECTION.
   4. FINANCIAL  ASSISTANCE  AWARDED  UNDER  SUBDIVISION  THREE  OF  THIS
 SECTION  SHALL  BE PROVIDED FROM THE HOUSING PROJECT REVOLVING LOAN FUND
 ESTABLISHED UNDER SECTION NINETY-NINE-SS OF THE STATE FINANCE LAW.  SUCH
 FINANCIAL  ASSISTANCE  SHALL  BE  AWARDED  IN THE FORM OF A LOAN, WITH A
 ZERO-INTEREST OR LOW-INTEREST RATE, TO BE DETERMINED ON  A  CASE-BY-CASE
 BASIS  BY  THE  AGENCY. SUCH LOANS MAY BE IN THE FORM OF MEZZANINE DEBT,
 FULL CONSTRUCTION FINANCING, OR OTHER FORM  DEEMED  APPROPRIATE  BY  THE
 AGENCY.  IN  DETERMINING  SUCH  INTEREST  RATES AND LOAN STRUCTURES, THE
 AGENCY SHALL HAVE THE GOAL OF COVERING ALL COSTS RELATED TO  THE  OPERA-
 TION OF THE PROGRAM, WITHOUT SEEKING TO MAXIMIZE ADDITIONAL PROFITS.
   5.  A  RESIDENTIAL HOUSING DEVELOPER AWARDED A LOAN UNDER THIS SECTION
 SHALL RETURN THE FULL AMOUNT OF SUCH LOAN AND ANY INTEREST DUE THEREUPON
 TO THE PROGRAM UPON COMPLETION OF THE ELIGIBLE HOUSING PROJECT FOR WHICH
 SUCH LOAN WAS AWARDED. A  RESIDENTIAL  HOUSING  DEVELOPER  SHALL  OBTAIN
 PERMANENT FINANCING FOR AN ELIGIBLE PROJECT FROM A SOURCE OTHER THAN THE
 PROGRAM  FOR  ANY  REMAINING DEBT AFTER INITIALLY RECEIVING A LOAN UNDER
 THIS SECTION. FUNDS RECEIVED BY  THE  AGENCY  FROM  RESIDENTIAL  HOUSING
 DEVELOPERS  UNDER  THIS  SUBDIVISION  SHALL  BE  RETURNED TO THE HOUSING
 PROJECT REVOLVING LOAN FUND ESTABLISHED UNDER SECTION NINETY-NINE-SS  OF
 THE STATE FINANCE LAW.
   6.  (A) RESIDENTIAL HOUSING DEVELOPERS SHALL BE AUTHORIZED TO PAIR ANY
 FUNDS RECEIVED UNDER THE PROGRAM WITH ANY OTHER SUBSIDIES OR FUNDING FOR
 RESIDENTIAL HOUSING PROJECTS, PROVIDED, HOWEVER, THAT  SUCH  RESIDENTIAL
 HOUSING  DEVELOPERS  SHALL  NOT BE AUTHORIZED TO PAIR ANY FUNDS RECEIVED
 UNDER THE PROGRAM WITH ANY FUNDS RECEIVED UNDER THE FEDERAL  LOW  INCOME
 HOUSING TAX CREDIT PROGRAM.
   (B)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, RESIDENTIAL
 HOUSING DEVELOPERS RECEIVING FUNDS  UNDER  THIS  SECTION  SHALL  NOT  BE
 PRECLUDED FROM CHARGING FAIR MARKET RENT, AS MOST RECENTLY PUBLISHED FOR
 THE  RELEVANT COUNTY AND UNIT TYPE BY THE DIVISION OF HOUSING AND COMMU-
 NITY RENEWAL, TO INDIVIDUALS USING VOUCHERS  TO  PAY  RENT  PURSUANT  TO
 SECTION EIGHT OF THE UNITED STATES HOUSING ACT OF NINETEEN HUNDRED THIR-
 TY-SEVEN, AS AMENDED, OR ANY SUCCESSOR PROVISION.
   § 2. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   §  99-SS.  HOUSING  PROJECT  REVOLVING  LOAN  FUND. 1. THERE IS HEREBY
 ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
 COMMISSIONER  OF  TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
 "HOUSING PROJECT REVOLVING LOAN FUND".
   2. THE HOUSING PROJECT REVOLVING LOAN FUND SHALL CONSIST OF ALL MONIES
 APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM THE GENERAL FUND  OR
 ANY  OTHER  SOURCE  PURSUANT  TO  LAW,  INCLUDING THE REPAYMENT OF LOANS
 PROVIDED UNDER SECTION FIFTY-NINE-J OF THE PRIVATE HOUSING FINANCE LAW.
   3. MONEYS OF THE ACCOUNT, WHEN ALLOCATED, SHALL BE  AVAILABLE  TO  THE
 CHAIR  OF THE NEW YORK STATE HOUSING FINANCE AGENCY TO MAKE LOANS PURSU-
 ANT TO SECTION FIFTY-NINE-J OF THE PRIVATE HOUSING FINANCE LAW.
 S. 9958                             3
 
   § 3. This act shall take effect on the ninetieth 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.

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Senate Bill S9958

Sponsored By

Current Bill Status - In Senate Committee Rules Committee

2023-S9958 (ACTIVE) - Details

2023-S9958 (ACTIVE) - Summary

2023-S9958 (ACTIVE) - Sponsor Memo

2023-S9958 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9958

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Rules Committee

2023-S9958 (ACTIVE) - Details

2023-S9958 (ACTIVE) - Summary

2023-S9958 (ACTIVE) - Sponsor Memo

2023-S9958 (ACTIVE) - Bill Text download pdf

Comments