S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5968
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 25, 2025
                                ___________
 
 Introduced  by  M.  of  A.  FITZPATRICK,  DiPIETRO, GIGLIO, RA, TAGUE --
   Multi-Sponsored by -- M. of A. BARCLAY,  DeSTEFANO,  MANKTELOW,  McDO-
   NOUGH -- read once and referred to the Committee on Local Governments
 
 AN  ACT to amend the general municipal law, in relation to expanding the
   provisions of the urban development action area act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 2 and 3 of section 692 of the general munici-
 pal law, subdivision 2 as amended by chapter 555 of the laws of 1994 and
 subdivision 3 as amended by chapter 492 of the laws of 2002, are amended
 to read as follows:
   2. "Municipality". A city [having a population of one hundred thousand
 or more] and the town of Huntington.
   3. "Eligible area". Real property, title to which is held by a munici-
 pality. Provided, however, that [in a city  of  one  million  or  more,]
 property  that  the  city conveys by deed made pursuant to a judgment of
 foreclosure in an in rem tax lien foreclosure  proceeding,  or  property
 whose  conveyance is caused by, or the result of, the city's foreclosure
 of a tax lien thereon, including property to which title has not  vested
 in  the  city,  which  is  then acquired by a third party, shall also be
 deemed an eligible area under this article. Provided  further,  however,
 that  in  a city of one million or more, property that has been acquired
 by the federal government as the result of the foreclosure of a mortgage
 loan insured or held by the federal government shall also be  deemed  an
 eligible  area  under this article. Provided further, however, that real
 property consisting of two contiguous acres or more of wooded land which
 exists as substantially undeveloped at the  time  this  article  becomes
 effective shall not be included as an eligible area for purposes of this
 article.
   §  2.  Subdivision 2 of section 696-d of the general municipal law, as
 added by chapter 680 of the laws of 1996, is amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08989-01-5
              

 A. 5968                             2
 
   2. Notwithstanding the provisions of any  general,  special  or  local
 law,  the  agency [in a city having a population of one million or more]
 is hereby authorized to make or contract to make mortgage  loans  or  to
 participate  with another lender in the making of mortgage loans for the
 development  of  any  neighborhood  improvement project that such agency
 determines to be an improvement  associated  with  the  construction  or
 rehabilitation  of private or multiple dwellings. Real property assisted
 with a loan pursuant to this section shall be located: (i) in  an  urban
 development  action  area;  (ii)  in  proximity  to an urban development
 action area; or (iii) in proximity to an urban development  action  area
 project  for  which the area designation requirement was waived pursuant
 to section six hundred ninety-three of this article.
   § 3. This act shall take effect immediately.