S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7828
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 11, 2025
                                ___________
 
 Introduced by M. of A. TORRES -- 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 insurance relief fund program; and providing for
   the repeal of such provisions upon expiration thereof

   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 INSURANCE RELIEF FUND PROGRAM
 SECTION 1301. DEFINITIONS.
         1302. AFFORDABLE HOUSING INSURANCE RELIEF FUND PROGRAM.
         1303. PROGRAM CRITERIA.
         1304. FUNDING CRITERIA.
         1305. FUNDING.
         1306. ANNUAL REPORT.
         1307. STAKEHOLDER ADVISORY GROUP.
         1308. DISPOSITION UPON EXPIRATION.
   §  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.  "PROGRAM"  SHALL MEAN THE AFFORDABLE HOUSING INSURANCE RELIEF FUND
 PROGRAM ESTABLISHED UNDER THIS ARTICLE.
   3. "ELIGIBLE PROJECT" SHALL  MEAN  A  PROPOSED,  ONE  HUNDRED  PERCENT
 AFFORDABLE  OR SUPPORTIVE MULTIFAMILY RENTAL PROPERTY SUBJECT TO A REGU-
 LATORY AGREEMENT WITH ONE OR MORE MUNICIPAL, STATE, OR  FEDERAL  HOUSING
 AGENCIES.
   4.  "ELIGIBLE  APPLICANT"  SHALL INCLUDE FOR-PROFIT AND NOT-FOR-PROFIT
 AFFORDABLE HOUSING DEVELOPERS THAT HAVE A REGULATORY AGREEMENT WITH  ONE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11421-03-5
              

 A. 7828                             2
 
 OR  MORE  MUNICIPAL,  STATE,  OR  FEDERAL HOUSING AGENCIES WHICH WILL BE
 APPLICABLE TO ONE HUNDRED PERCENT OF THE HOUSING UNITS ON  THE  PROPERTY
 UPON COMPLETION OF THE PROPERTY'S DEVELOPMENT.
   §  1302.  AFFORDABLE  HOUSING  INSURANCE  RELIEF  FUND PROGRAM. WITHIN
 AMOUNTS APPROPRIATED OR OTHERWISE AVAILABLE THEREFOR, THE HOUSING  TRUST
 FUND  CORPORATION  SHALL  DEVELOP  AND  ADMINISTER AN AFFORDABLE HOUSING
 INSURANCE RELIEF FUND PROGRAM WHICH SHALL PROVIDE AID  IN  THE  FORM  OF
 PAYMENTS  AND  GRANTS  FOR  REASONABLE  AND  NECESSARY HOUSING INSURANCE
 EXPENSES TO ELIGIBLE APPLICANTS FOR THE DEVELOPMENT OF AFFORDABLE  HOUS-
 ING PROPERTIES IN ACCORDANCE WITH THIS ARTICLE.
   § 1303. PROGRAM CRITERIA. 1. THE CORPORATION SHALL DEVELOP PROCEDURES,
 CRITERIA  AND  REQUIREMENTS  FOR  THE PROGRAM RELATED TO THE COMPETITIVE
 APPLICATION FOR AND AWARD OF GRANTS PURSUANT TO THIS ARTICLE WHICH SHALL
 INCLUDE, BUT NOT BE LIMITED TO: ELIGIBILITY, MARKET DEMAND,  FEASIBILITY
 AND FUNDING CRITERIA; THE FUNDING DETERMINATION 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.
   2. THE CORPORATION SHALL CONSIDER APPLICATIONS FROM ELIGIBLE  PROJECTS
 LOCATED  IN AREAS WHERE PROPERTY OWNERS ARE UNABLE TO OBTAIN MULTIFAMILY
 PROPERTY INSURANCE DUE TO MARKET CONSTRAINTS, INCLUDING BUT NOT  LIMITED
 TO  THE  ABSENCE OF WILLING INSURERS OR UNAFFORDABLE PREMIUM LEVELS. THE
 CORPORATION MAY ALSO ESTABLISH A CASE-BY-CASE REVIEW PROCESS FOR  APPLI-
 CANTS  WHO:  (A)  CANNOT OBTAIN REINSURANCE COVERAGE NECESSARY TO SECURE
 FINANCING; OR (B) OPERATE IN REGIONS  LACKING  A  COMPETITIVE  INSURANCE
 MARKET, AS DETERMINED BY MARKET ANALYSIS OR CERTIFIED DOCUMENTATION FROM
 LICENSED INSURANCE BROKERS OR AGENTS.
   3.  THE CORPORATION MAY PRIORITIZE ELIGIBLE PROJECTS WITH DEMONSTRATED
 INSURANCE ACCESS BARRIERS, FINANCIAL VULNERABILITY, OR OTHER  INDICATORS
 OF CRITICAL NEED.
   §  1304.  FUNDING CRITERIA. 1. THE PROGRAM MAY AWARD UP TO TWO HUNDRED
 FIFTY DOLLARS PER PROPOSED INCOME-RESTRICTED HOUSING UNIT AND UP TO  ONE
 MILLION  DOLLARS  PER  PROPOSED  ELIGIBLE  PROJECT FOR HOUSING INSURANCE
 COVERAGE. THE CORPORATION SHALL ESTABLISH CRITERIA TO  DETERMINE  ELIGI-
 BILITY  FOR  SUCH AWARDS, WHICH MAY INCLUDE EVIDENCE OF INCREASED INSUR-
 ANCE COSTS, MARKET TRENDS, OR OTHER RELEVANT FACTORS AFFECTING  AFFORDA-
 BILITY AND PROJECT VIABILITY.
   2.  THE  CORPORATION  SHALL  HAVE  THE AUTHORITY TO ADJUST THE MAXIMUM
 AWARD AMOUNTS SET FORTH IN THIS  ARTICLE,  INCLUDING  THE  PER-UNIT  AND
 PER-PROJECT  CAPS,  TO  ACCOUNT  FOR INFLATION OR SIGNIFICANT CHANGES IN
 MARKET CONDITIONS. ANY SUCH ADJUSTMENTS SHALL BE MADE IN ACCORDANCE WITH
 A METHODOLOGY ESTABLISHED BY THE CORPORATION,  PUBLISHED  IN  THE  STATE
 REGISTER, AND REPORTED IN THE ANNUAL REPORT REQUIRED UNDER SECTION THIR-
 TEEN HUNDRED SIX OF THIS ARTICLE.
   §  1305.  FUNDING.  SUBJECT  TO  APPROPRIATIONS  FOR THIS PROGRAM, THE
 CORPORATION IN ITS SOLE DISCRETION SHALL AUTHORIZE ALL FUNDING DECISIONS
 AND MAKE ALL AWARD DETERMINATIONS.
   § 1306. ANNUAL REPORT. THE CORPORATION SHALL, ON OR BEFORE JUNE  THIR-
 TIETH  IN  EACH YEAR SUBMIT A REPORT TO THE LEGISLATURE AND THE GOVERNOR
 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
 A. 7828                             3
 
 AMOUNT AND CUMULATIVE TOTAL, AND SUCH OTHER INFORMATION  AS  THE  CORPO-
 RATION DEEMS PERTINENT.
   § 1307. STAKEHOLDER  ADVISORY  GROUP.  THE  CORPORATION  MAY CONVENE A
 STAKEHOLDER ADVISORY GROUP COMPOSED OF REPRESENTATIVES  FROM  AFFORDABLE
 HOUSING  DEVELOPMENT, INSURANCE MARKETS, NONPROFIT ORGANIZATIONS, TENANT
 ADVOCATES, AND LOCAL GOVERNMENTS. THE ADVISORY  GROUP  SHALL  ASSIST  IN
 REVIEWING  PROGRAM  IMPLEMENTATION, EQUITY CONSIDERATIONS, AND RECOMMEND
 IMPROVEMENTS TO SUPPORT LONG-TERM AFFORDABILITY AND SUSTAINABILITY.
   § 1308. DISPOSITION UPON EXPIRATION. UPON THE EXPIRATION OF THIS ARTI-
 CLE, THE CORPORATION  SHALL  CONTINUE  TO  ADMINISTER  AND  ENFORCE  ALL
 CONTRACTS, AWARDS, AND OBLIGATIONS ENTERED INTO PRIOR TO SUCH EXPIRATION
 IN  ACCORDANCE WITH THEIR TERMS. ANY UNENCUMBERED FUNDS APPROPRIATED FOR
 THE PURPOSES OF THIS ARTICLE THAT REMAIN AT THE TIME OF EXPIRATION SHALL
 BE RETURNED TO THE STATE TREASURY OR REALLOCATED IN A MANNER  CONSISTENT
 WITH  LEGISLATIVE  INTENT, AS DETERMINED BY THE CORPORATION IN CONSULTA-
 TION WITH THE DIVISION OF THE BUDGET. THE  EXPIRATION  OF  THIS  ARTICLE
 SHALL  NOT IMPAIR OR AFFECT THE RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER
 ANY CONTRACT EXECUTED PURSUANT TO THIS ARTICLE PRIOR TO ITS REPEAL.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the  date on which it shall have become a law  and shall expire and
 be deemed repealed twenty years after such effective  date.    Effective
 immediately,  the addition, amendment and/or repeal of any rule or regu-
 lation necessary for the implementation of this  act  on  its  effective
 date are authorized to be made and completed on or before such effective
 date.