S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7528
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation to creating
   a demonstration program establishing a system of community improvement
   grants to  be  administered  by  and  through  neighborhood  citizens'
   participation committees

   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 6-B to read as follows:
                                ARTICLE 6-B
         DEMONSTRATION PROGRAM: CITIZENS' PARTICIPATION COMMITTEES
 SECTION 270. LEGISLATIVE INTENT.
         271. DEFINITIONS.
         272. COMMUNITY IMPROVEMENT GRANTS.
         273. GENERAL AND ADMINISTRATIVE PROVISIONS.
   §  270. LEGISLATIVE INTENT.  THE LEGISLATURE HEREBY FINDS AND DECLARES
 THAT IN CERTAIN REGIONS OF THE STATE A SUPPLY OF HOUSING STOCK IN EXCESS
 OF THAT NEEDED BY THE POPULATION OF THOSE  REGIONS  HAS  ACCUMULATED  IN
 RECENT YEARS, MUCH OF WHICH IS OLD, DETERIORATED, SUBSTANDARD, UNMARKET-
 ABLE, AND OFTEN ABANDONED.
   THE  LEGISLATURE  FURTHER  FINDS  THAT  THIS  EXCESS HOUSING HAS HAD A
 BLIGHTING EFFECT UPON THE COMMUNITIES IN WHICH IT  IS  LOCATED,  REDUCES
 THE  VALUE  OF OTHER RESIDENTIAL PROPERTIES IN THE SURROUNDING NEIGHBOR-
 HOODS, AND MAY CAUSE PERSONS, FAMILIES, AND BUSINESSES TO ABANDON  THOSE
 MUNICIPALITIES  CONTAINING AN OVERABUNDANCE OF EXCESS AND BLIGHTED HOUS-
 ING STOCK.
   THE LEGISLATURE FURTHER FINDS THAT IT IS IN  THE  PUBLIC  INTEREST  TO
 ENCOURAGE PERSONS, FAMILIES, AND BUSINESSES TO LOCATE OR REMAIN IN THOSE
 MUNICIPALITIES,  IN ORDER TO BOTH UTILIZE EXISTING BUILDING STOCK AND TO
 PRESERVE THE OPEN SPACES OF THE STATE, AND THAT IMPROVING THE QUALITY OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04304-01-5
              

 A. 7528                             2
 
 LIFE WITHIN THOSE MUNICIPALITIES IS A MOST EFFECTIVE  METHOD  OF  ACCOM-
 PLISHING  THIS GOAL. IN ADDITION, DECLINING HOME VALUES IN THESE MUNICI-
 PALITIES DISCOURAGES HOME OWNERSHIP BY ADVERSELY AFFECTING  THE  ABILITY
 OF  FAMILIES OF MODERATE INCOME TO BUILD AND/OR MAINTAIN EQUITY IN THEIR
 HOMES.
   THE LEGISLATURE FURTHER FINDS THAT THE RESIDENTS OF  A  COMMUNITY  ARE
 OFTEN  IN  THE  BEST  POSITION TO KNOW AND UNDERSTAND THE NEEDS OF THEIR
 COMMUNITY, AND HAVE THE GREATEST STAKE IN THE FUTURE OF THEIR COMMUNITY.
   THE LEGISLATURE FURTHER FINDS THAT NO STATE PROGRAM  PRESENTLY  EXISTS
 WITH  THE  PRIMARY  PURPOSE OF SUPPORTING AND FUNDING THE IDENTIFICATION
 AND DEMOLITION OF SURPLUS HOUSING STOCK OR FOR  DISPOSING  OF  THE  REAL
 ESTATE UPON WHICH THAT HOUSING STOCK IS LOCATED.
   THE  LEGISLATURE  HEREBY  DETERMINES  THAT  SUCH  A  PROGRAM IS IN THE
 PUBLIC'S INTEREST.
   § 271. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING  WORDS  AND
 PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
   1. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE STATE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL.
   2.  "DIVISION"  SHALL MEAN THE STATE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL.
   3. "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN,  OR  VILLAGE  WITHIN  THE
 STATE WITH A POPULATION OF LESS THAN ONE MILLION PERSONS.
   4. "GRANT" SHALL MEAN A COMMUNITY IMPROVEMENT GRANT AS DEFINED IN THIS
 ARTICLE.
   5.  "COMMITTEE"  SHALL  MEAN  A  CITIZENS'  PARTICIPATION COMMITTEE AS
 DEFINED IN THIS ARTICLE.
   § 272. COMMUNITY IMPROVEMENT GRANTS. 1. THERE  IS  CREATED  UNDER  THE
 DIRECTION  OF  THE COMMISSIONER THE COMMUNITY IMPROVEMENT GRANT PROGRAM.
 WITHIN THE LIMIT OF FUNDS AVAILABLE IN THE COMMUNITY  IMPROVEMENT  GRANT
 PROGRAM, THE COMMISSIONER IS AUTHORIZED TO OFFER STATE FINANCIAL ASSIST-
 ANCE TO MUNICIPALITIES WITH A POPULATION OF UNDER ONE MILLION PERSONS IN
 THE FORM OF COMMUNITY IMPROVEMENT GRANTS.
   2.  PRIOR  TO THE AWARD OF A GRANT, THE COMMISSIONER SHALL HAVE MADE A
 FINDING THAT THE MUNICIPALITY REQUESTING A GRANT CONTAINS  NEIGHBORHOODS
 THAT  CONTAIN  A  SIGNIFICANT NUMBER OF VACANT RESIDENTIAL HOUSING UNITS
 THAT ARE IN EXCESS OF THE NEEDS OF THE CURRENT POPULATION, AND THAT MANY
 OF THESE RESIDENTIAL HOUSING UNITS  ARE  DETERIORATED,  SUBSTANDARD,  OR
 OBSOLETE.  THE MUNICIPALITY SHALL DEMONSTRATE TO THE DIVISION AS PART OF
 THE GRANT APPLICATION PROCESS THAT IT IS ELIGIBLE TO RECEIVE GRANT FUNDS
 UNDER THE PROVISIONS OF THIS SECTION AND  ACCORDING  TO  THE  RULES  AND
 REGULATIONS PROMULGATED BY THE DIVISION.
   3.  MUNICIPALITIES  RECEIVING COMMUNITY IMPROVEMENT GRANTS SHALL CAUSE
 TO BE ESTABLISHED CITIZENS' PARTICIPATION COMMITTEES, WHICH  ARE  TO  BE
 REPRESENTATIVE OF THE NEIGHBORHOODS IN WHICH THESE GRANT FUNDS ARE TO BE
 EXPENDED.  THE  GEOGRAPHIC BOUNDARIES OF THE NEIGHBORHOOD REPRESENTED BY
 EACH COMMITTEE SHALL BE DETERMINED BY THE MUNICIPALITY.  THE  COMMITTEES
 SHALL  DIRECT  ALL  ASPECTS OF THE EXPENDITURE OF GRANTS, SUBJECT TO THE
 PROVISIONS OF THIS ARTICLE. NO MEMBER OF A COMMITTEE SHALL  RECEIVE  ANY
 COMPENSATION  FOR  THIS SERVICE, NOR SHALL SUCH MEMBER PERSONALLY PROFIT
 FINANCIALLY FROM THE PROCEEDS OF ANY GRANT MONIES RECEIVED.   MEMBERSHIP
 IN  A  COMMITTEE  SHALL  CONSIST OF REPRESENTATIVES OF LOCAL CHARITABLE,
 NOT-FOR-PROFIT, SOCIAL  SERVICE,  FAITH-BASED,  BUSINESS  AND  COMMUNITY
 ORGANIZATIONS  WITH  AN INTEREST IN HOUSING OR DEVELOPMENT ISSUES WITHIN
 THE AFFECTED NEIGHBORHOOD DESIRING TO PARTICIPATE, AS WELL AS ANY INTER-
 ESTED LOCAL CITIZENS DESIRING TO BE INVOLVED. COMMITTEES ARE TO BE SELF-
 GOVERNING, AND SHALL ESTABLISH RULES AND REGULATIONS  CONCERNING  VOTING
 A. 7528                             3
 
 AND  OTHER  PROCEDURES,  PROVIDED  THAT  SUCH  RULES AND REGULATIONS ARE
 CONSTRUCTED IN SUCH A MANNER AS TO ENSURE THE BROADEST AND MOST  EQUITA-
 BLE PARTICIPATION PRACTICABLE BY ALL CONCERNED, AND THAT SUCH COMMITTEES
 ARE  DEMOCRATICALLY ORGANIZED.   ALL PROCEEDINGS OF A COMMITTEE SHALL BE
 SUBJECT TO ALL PROVISIONS OF ARTICLE SEVEN OF THE PUBLIC  OFFICERS  LAW.
 THE  MUNICIPALITY  SHALL BE RESPONSIBLE FOR THE GENERAL OVERSIGHT OF ITS
 COMMITTEES, IS TO ENSURE THAT THE COMMITTEES CONDUCT THEIR  BUSINESS  IN
 GENERAL  CONFORMITY  WITH  THE  PROVISIONS OF THIS ARTICLE, AND THAT THE
 ORGANIZATION OF EACH COMMITTEE IS DEMOCRATIC AND INCLUSIVE OF ALL ELIGI-
 BLE ORGANIZATIONS AND INDIVIDUALS.  THE  MUNICIPALITY  SHALL  DISTRIBUTE
 GRANT  MONIES  RECEIVED TO THE COMMITTEES, WHICH SHALL THEN EXPEND THOSE
 FUNDS ACCORDING TO THE COMPREHENSIVE PLAN DEVELOPED BY  SUCH  COMMITTEE.
 THE  MUNICIPALITY  SHALL ALSO BE RESPONSIBLE FOR THE CONDUCT OF PERIODIC
 FINANCIAL AUDITS TO ENSURE THAT ALL  GRANT  MONIES  DISTRIBUTED  TO  THE
 COMMITTEES  ARE  PROPERLY  ACCOUNTED FOR AND UTILIZED IN CONFORMITY WITH
 THIS ARTICLE.  THE MUNICIPALITY SHALL PROVIDE  TO  EACH  COMMITTEE  SUCH
 OTHER  TECHNICAL, LEGAL, AND ADMINISTRATIVE ASSISTANCE AS IS REQUIRED TO
 FULFILL THE PURPOSES OF THIS ARTICLE.
   4. EACH COMMITTEE SHALL  DEVELOP  A  COMPREHENSIVE  NEIGHBORHOOD  PLAN
 BEFORE  COMMENCING  THE EXPENDITURE OF FUNDS UPON OTHER AUTHORIZED ITEMS
 AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.  THE PLAN SHALL IDENTIFY
 SHORT AND LONG-TERM GOALS AND OBJECTIVES THAT ARE BOTH  CONSISTENT  WITH
 THE  INTENT  OF  THIS ARTICLE AND THAT SHALL CONTRIBUTE SIGNIFICANTLY TO
 IMPROVING THE QUALITY OF LIFE FOR THE CITIZENS LIVING IN  THE  NEIGHBOR-
 HOOD.  THIS PLAN SHALL BE SUBJECT TO REVIEW AND GENERAL OVERSIGHT BY THE
 MUNICIPALITY.
   5. GRANT MONIES RECEIVED BY THE COMMITTEES MAY BE  EXPENDED  UPON  THE
 FOLLOWING ITEMS, SUBJECT TO THE LIMITS INDICATED:
   (A) ACQUISITION OF PROPERTY - NOT LIMITED.
   (B) DEMOLITION OF STRUCTURES - NOT LIMITED.
   (C)  SELECTIVE  REHABILITATION  - UP TO TWENTY-FIVE PERCENT. SELECTIVE
 REHABILITATION MAY BE USED TO CONVERT SUITABLE MULTI-FAMILY  HOMES  INTO
 SINGLE  FAMILY  HOMES,  IF SUCH CONVERSION IS CONSISTENT WITH THE INTENT
 AND PURPOSES OF THIS ARTICLE.
   (D) NEIGHBORHOOD BEAUTIFICATION - UP TO TWENTY PERCENT.
   (E) ADMINISTRATION - UP TO TEN PERCENT, TO BE USED FOR  EXPENSES  SUCH
 AS LEGAL COSTS, TITLE SEARCHES, OFFICE SUPPLIES, AND OTHER MISCELLANEOUS
 SUPPORT  AS  MAY  BE  APPROPRIATE TO ASSIST THE EFFORTS OF THE CITIZENS'
 PARTICIPATION COMMITTEES.
   (F) PROPERTY IMPROVEMENT MINI-GRANTS - UP TO TWENTY PERCENT,  WITH  NO
 INDIVIDUAL  MINI-GRANT TO EXCEED ONE THOUSAND DOLLARS. THESE MINI-GRANTS
 ARE TO BE OFFERED TO INDIVIDUAL PROPERTY  OWNERS  IN  ORDER  TO  IMPROVE
 VACANT AND VACATED LAND AS DEFINED IN SUBDIVISION EIGHT OF THIS SECTION.
   (G)  PLANNING  AND MARKET STUDY - UP TO TEN PERCENT, TO BE UTILIZED BY
 CITIZENS' PARTICIPATION COMMITTEES IN PREPARING THE COMPREHENSIVE NEIGH-
 BORHOOD PLAN.
   6. GRANT FUNDS MAY BE USED BY THE MUNICIPALITY TO ACQUIRE  TAX  DELIN-
 QUENT,  VACANT,  AND  ABANDONED  PROPERTIES  OR  PROPERTIES OWNED BY THE
 FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, BUT ARE NOT AUTHOR-
 IZED TO ACQUIRE PROPERTIES THROUGH EMINENT DOMAIN. UPON MUNICIPAL ACQUI-
 SITION OF A PROPERTY, THE COMMITTEE SHALL ASSESS ITS CONDITION TO DETER-
 MINE WHETHER SALVAGING PROPERTY IS BOTH FEASIBLE AND CONSISTENT WITH THE
 PLANS AND OBJECTIVES OF THE COMMITTEE. THE COMMITTEE  IS  AUTHORIZED  TO
 DIRECT  THE  DEMOLITION  OF STRUCTURES WHEN THE COMMITTEE DEEMS THIS THE
 MOST APPROPRIATE COURSE OF ACTION IN FURTHERING THE IMPROVEMENT  OF  THE
 NEIGHBORHOOD.
 A. 7528                             4
 
   7. RESIDENTIAL PROPERTIES ACQUIRED THROUGH GRANT FUNDS THAT ARE DEEMED
 SALVAGEABLE  MAY ONLY BE CONVEYED TO INDIVIDUALS IF THEY CONTAIN NO MORE
 THAN FOUR DWELLING UNITS, AND THOSE INDIVIDUALS AGREE TO MAINTAIN  THEIR
 PRIMARY RESIDENCE AT THAT PROPERTY FOR NOT LESS THAN TWO YEARS.
   8.  THE  COMMITTEES  ARE  AUTHORIZED  TO REQUEST THAT THE MUNICIPALITY
 TRANSFER VACANT LAND ACQUIRED THROUGH GRANT FUNDS TO ELIGIBLE INDIVIDUAL
 HOMEOWNERS OR NOT-FOR-PROFIT AGENCIES FOR THE  SUM  OF  ONE  DOLLAR.  IN
 DISPOSING  OF  VACANT  LAND,  PREFERENCE  SHALL BE GIVEN TO TRANSFERRING
 PORTIONS OF THAT LAND TO THE OWNERS OF ADJOINING RESIDENTIAL PROPERTIES,
 PROVIDED THAT THOSE OWNERS ARE ALSO OCCUPANTS OF THE ADJOINING  RESIDEN-
 TIAL  PROPERTIES. THE COMMITTEE IS AUTHORIZED TO AWARD MINI-GRANTS OF UP
 TO ONE THOUSAND DOLLARS TO THESE HOMEOWNERS FOR THE PURPOSE OF IMPROVING
 THIS VACANT PROPERTY.  IN THE EVENT THAT DISPOSITION OF VACANT  LAND  TO
 ADJOINING  INDIVIDUAL  HOMEOWNERS IS IMPOSSIBLE OR IMPRACTICAL ACCORDING
 TO THE DETERMINATION OF THE COMMITTEE, THIS LAND MAY BE DISPOSED  OF  IN
 SUCH  OTHER  MANNER  AS  WILL  INURE  TO THE BENEFIT OF THE COMMUNITY IN
 GENERAL AND ITS INHABITANTS, BY PROVIDING OPEN PUBLIC SPACE, PARKLAND OR
 PARKING SPACES AS IS DEEMED BEST BY THE COMMITTEE.
   9. THE MUNICIPALITY SHALL REVIEW ANY REQUEST BY A  COMMITTEE  FOR  THE
 DISPOSITION  OF A PROPERTY UNDER THE PROVISIONS OF THIS ARTICLE, AND MAY
 DENY THIS REQUEST IF SUCH DISPOSITION  IS  DEEMED  IMPROPER  OR  CLEARLY
 CONTRARY TO THE INTENT OF THIS ARTICLE.
   §  273.  GENERAL  AND  ADMINISTRATIVE  PROVISIONS. 1. THE COMMISSIONER
 SHALL ISSUE AND PROMULGATE RULES AND REGULATIONS FOR THE  ADMINISTRATION
 OF  THIS  ARTICLE.  THE  RULES AND REGULATIONS SHALL INCLUDE, BUT NOT BE
 LIMITED TO: ELIGIBILITY FOR GRANTS UNDER THIS ARTICLE; FUNDING  CRITERIA
 AND  THE  FUNDING  DETERMINATION  PROCESS; SUPERVISION AND EVALUATION OF
 GRANTEES; REPORTING AND RECORD KEEPING REQUIREMENTS; AND  OTHER  MATTERS
 NOT INCONSISTENT WITH THE PURPOSES AND PROVISIONS OF THIS ARTICLE AS THE
 COMMISSIONER SHALL DEEM NECESSARY OR APPROPRIATE.
   2. THE COMMISSIONER SHALL PROVIDE FOR THE PERIODIC FINANCIAL REVIEW OF
 THE GRANTEE'S CONFORMITY TO THE PURPOSES AND PROVISIONS OF THIS ARTICLE.
   § 2. This act shall take effect immediately.