S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    799
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by M. of A. LASHER -- read once and referred to the Committee
   on Housing
 
 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01304-01-5
 A. 799                              2
 
 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-
 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
 A. 799                              3
 
 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.
   §  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.