NY State Senate Bill 2025-S3219

Senate Bill S3219

2025-2026 Legislative Session

Creates an affordable housing relief fund program to preserve affordable multifamily residential properties located in New York state

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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
Jan 24, 2025	referred to housing, construction and community development

2025-S3219 (ACTIVE) - Details

See Assembly Version of this Bill:: A1729
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 33 §§1300 - 1307, Priv Hous Fin L
Versions Introduced in 2023-2024 Legislative Session:: S9380, A10293

2025-S3219 (ACTIVE) - Summary

Creates an affordable housing relief fund program to preserve affordable multifamily residential properties located in New York state.

2025-S3219 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3219

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to creating
an affordable housing relief fund program to preserve affordable multi-
family residential properties located in New York state

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish the Affordable Housing Relief Fund program to
assist distressed multifamily affordable housing properties with a
municipal, state, or federal regulatory agreement with capital repairs.

 
SUMMARY OF PROVISIONS:

Section 1 amends the private housing finance law by adding a new article
33 to establish an Affordable Housing Relief Fund program to be adminis-
tered by the Housing Trust Fund Corporation (HTFC). HTFC shall develop
procedures, criteria, and requirements related to a competitive applica-
tion process. Subject to appropriation, payments and grants of up to

$50,000 per income-restricted unit may be awarded on a competitive basis
for the reasonable and necessary expenses for the preservation or
improvement of distressed affordable housing properties throughout the
state. This section establishes the Affordable Housing Relief Fund and
its program criteria, funding criteria, and affordability protections.
It also authorizes HTFC to make all funding decisions and establishes
annual reporting requirements.

Section 2 sets forth the effective date.

 
JUSTIFICATION:

Much of the federal COVID-19 aid and administrative relief has come to
an end, but post-pandemic consequences have placed stress on affordable
housing property operations and their financial health.  Rent collection
losses, rising interest rates and insurance costs, and other factors
have caused significant increases in operating expenses and resulted in
some affordable housing operators absorbing additional debt.

An affordable housing property financed with federal Low-Income Housing
Tax Credits must be maintained for a 15-year compliance period. At the
end of this period, owners are permitted to refinance or recapitalize
with new credits to address capital needs, while preserving the units as
affordable for an additional term. However, a convergence of the factors
mentioned has caused these properties to operate at a deficit, placing
them at risk of financial and physical distress before reaching their
15-year compliance period. Given that these properties already operate
on tight margins, there is an emergent and ongoing threat of losing
affordable housing units.  Residents living in these properties are
among the most vulnerable, typically earning 60% or less of the Area
Median Income (AMI), with many earning less than 30% of AMI.

This bill would create an Affordable Housing Relief Fund program to
offer needed capital funds and debt restructuring to ensure these
at-risk affordable housing properties remain available. The Affordable
Housing Relief Fund would direct property owners' investment back into
physical properties - all intended to ensure tenants have safe and qual-
ity homes. Without the Affordable Housing Relief Fund, these units could
be lost to tenants at a higher rate than new units are being produced,
worsening the housing supply shortage.

 
PRIOR LEGISLATIVE HISTORY:

2024: S9380A (Kavanagh) - REPORTED AND COMMITTED TO FINANCE /A10293
(Rosenthal L) - referred to housing

 
FISCAL IMPLICATIONS:

To be determined. Program funding would be subject to amounts appropri-
ated, or otherwise available.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S3219 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3219
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the private housing finance law, in relation to creating
   an  affordable  housing  relief  fund  program  to preserve affordable
   multifamily residential properties located in New York state
 
   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 RELIEF FUND PROGRAM
 SECTION 1300. STATEMENT OF LEGISLATIVE FINDINGS.
         1301. DEFINITIONS.
         1302. AFFORDABLE HOUSING RELIEF FUND PROGRAM.
         1303. PROGRAM CRITERIA.
         1304. FUNDING CRITERIA.
         1305. AFFORDABILITY PROTECTION.
         1306. FUNDING.
         1307. ANNUAL REPORT.
   § 1300. STATEMENT OF LEGISLATIVE FINDINGS. THE LEGISLATURE  FINDS  AND
 DECLARES  THAT  THERE  EXISTS  A  SERIOUS SHORTAGE OF SAFE AND HABITABLE
 AFFORDABLE HOUSING IN NEW YORK STATE FOR PERSONS  AND  FAMILIES  OF  LOW
 INCOME.  A  PORTION  OF  THE AFFORDABLE, MULTIFAMILY HOUSING STOCK IS IN
 OPERATIONAL AND FINANCIAL DISTRESS, THREATENING TO EXACERBATE THIS SHOR-
 TAGE. RENT COLLECTION LOSSES, RISING INTEREST RATES AND INSURANCE COSTS,
 AND  OTHER  FACTORS  HAVE  CAUSED  SIGNIFICANT  INCREASES  IN  OPERATING
 EXPENSES, WHICH MAY JEOPARDIZE THE AVAILABILITY TO TENANTS OF AFFORDABLE
 HOUSING  UNITS OR EVEN THE VIABILITY OF SOME BUILDINGS. EXISTING PRESER-
 VATION PROGRAM FUNDING IS LIMITED,  AND  DISTRESSED  AFFORDABLE  HOUSING
 PROPERTIES  MAY NOT BE ELIGIBLE FOR SUCH FUNDING. THE LEGISLATURE THERE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04257-01-5

 S. 3219                             2
 
 FORE FINDS THAT A PROGRAM SHOULD BE ESTABLISHED TO PROVIDE NEEDED  CAPI-
 TAL  FUNDS  AND DEBT RESTRUCTURING TO ENSURE THESE DISTRESSED AFFORDABLE
 HOUSING PROPERTIES REMAIN AVAILABLE TO TENANTS.
   § 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. "AFFORDABLE  HOUSING  RELIEF  FUND  PROGRAM"  SHALL MEAN FORGIVABLE
 LOANS AVAILABLE TO SUPPORT THE  RECAPITALIZATION  AND  STABILIZATION  OF
 QUALIFIED  PROPERTIES AND TO ASSIST DEVELOPMENTS THAT ARE OUTSIDE OF THE
 ALLOWABLE REFINANCING TERM.
   3. "ELIGIBLE  PROJECTS"  SHALL  MEAN  EXISTING  AT-RISK,  ONE  HUNDRED
 PERCENT  AFFORDABLE  OR SUPPORTIVE MULTIFAMILY RENTAL PROPERTIES SUBJECT
 TO A REGULATORY AGREEMENT WITH ONE OR MORE MUNICIPAL, STATE, OR  FEDERAL
 HOUSING AGENCIES.
   4. "ELIGIBLE  USES"  SHALL INCLUDE BUT NOT BE LIMITED TO THE PRESERVA-
 TION AND IMPROVEMENT  OF  ELIGIBLE  PROJECTS,  AS  ESTABLISHED  BY  THIS
 SECTION,  TO  ADDRESS  DEFERRED  MAINTENANCE,  CAPITAL  NEEDS, EMERGENCY
 REPAIRS, OR ANY CONDITION WHICH POSES A  THREAT  TO  THE  LIFE,  HEALTH,
 SAFETY,  OR  HABITATION  OF  RESIDENTS, TO INCLUDE DEBT RESTRUCTURING TO
 STABILIZE AND PRESERVE  THE  HOUSING  SUPPLY  AND  REDUCE  THE  RISK  OF
 DEFAULT.
   5. "ELIGIBLE  APPLICANT"  SHALL  INCLUDE  NOT-FOR-PROFIT OR CHARITABLE
 ORGANIZATIONS, OR A WHOLLY OWNED SUBSIDIARY OF  SUCH  ORGANIZATIONS,  OR
 PRIVATE FOR-PROFIT PROPERTY OWNERS THAT HAVE A REGULATORY AGREEMENT WITH
 ONE  OR MORE MUNICIPAL, STATE, OR FEDERAL HOUSING AGENCIES APPLICABLE TO
 ONE HUNDRED PERCENT OF THE HOUSING UNITS ON THE PROPERTY.  THE  SPONSOR,
 MANAGEMENT COMPANY AND PRINCIPAL PARTICIPANTS IN THE PROJECT SHALL BE IN
 GOOD  STANDING, NOT IN DEFAULT UNDER ANY EXISTING MORTGAGE FINANCING AND
 SHALL MEET ALL CREDIT REVIEW CRITERIA IMPOSED BY THE CORPORATION.
   § 1302. AFFORDABLE HOUSING RELIEF FUND PROGRAM. WITHIN AMOUNTS  APPRO-
 PRIATED  OR  OTHERWISE AVAILABLE THEREFOR, THE HOUSING TRUST FUND CORPO-
 RATION SHALL DEVELOP AND ADMINISTER AN AFFORDABLE  HOUSING  RELIEF  FUND
 PROGRAM  WHICH  SHALL PROVIDE AID IN THE FORM OF PAYMENTS AND GRANTS FOR
 REASONABLE AND NECESSARY EXPENSES TO ELIGIBLE APPLICANTS FOR THE PRESER-
 VATION OR IMPROVEMENT OF AFFORDABLE HOUSING PROPERTIES.
   § 1303. PROGRAM CRITERIA. THE CORPORATION  SHALL  DEVELOP  PROCEDURES,
 CRITERIA AND REQUIREMENTS RELATED TO THE COMPETITIVE APPLICATION FOR AND
 AWARD OF AID PURSUANT TO THIS SECTION WHICH SHALL INCLUDE:  ELIGIBILITY,
 MARKET  DEMAND,  FEASIBILITY  AND FUNDING CRITERIA; THE FUNDING DETERMI-
 NATION 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.  THE  CORPORATION  MAY
 PRIORITIZE PROPERTIES IN THE GREATEST DISTRESS.
   § 1304. FUNDING CRITERIA. UP TO FIFTY THOUSAND DOLLARS PER INCOME-RES-
 TRICTED  HOUSING  UNIT MAY BE AWARDED FOR RESIDENTIAL AFFORDABLE HOUSING
 PRESERVATION OR REHABILITATION. ASSISTANCE SHALL BE IN  THE  FORM  OF  A
 ZERO PERCENT INTEREST RATE LOAN, WITH NO MONTHLY PAYMENTS, THAT SHALL BE
 FORGIVEN  AFTER  TEN  YEARS.  ALL  OR  A PORTION OF PROGRAM FUNDS MAY BE
 REQUIRED TO BE REPAID IF THE PROJECT IS SOLD WITHIN TEN YEARS  OR  FAILS
 TO  COMPLY WITH THE REGULATORY AGREEMENT. THE AMOUNT SUBJECT TO POSSIBLE
 REPAYMENT SHALL DECREASE BY 1/120 PER  MONTH  EACH  MONTH  THE  PROPERTY
 REMAINS IN COMPLIANCE WITH AFFORDABILITY TERMS.
 S. 3219                             3
 
   § 1305. AFFORDABILITY  PROTECTION.  RECIPIENTS  OF ASSISTANCE SHALL BE
 SUBJECT TO  AFFORDABILITY  RESTRICTIONS,  TENANT  PROTECTIONS,  AND  ALL
 EXISTING PROVISIONS OF ANY REGULATORY AGREEMENT WITH ONE OR MORE MUNICI-
 PALITY,  STATE,  OR  FEDERAL  HOUSING  AGENCY THAT SERVES AS A BASIS FOR
 ELIGIBILITY FOR ASSISTANCE UNDER THIS PROGRAM.
   § 1306. FUNDING.  SUBJECT  TO  APPROPRIATIONS  FOR  THIS  PROGRAM, THE
 CORPORATION IN ITS SOLE DISCRETION SHALL AUTHORIZE ALL FUNDING DECISIONS
 AND MAKE ALL AWARD DETERMINATIONS.
   § 1307. ANNUAL REPORT. THE CORPORATION SHALL,  ON  OR  BEFORE  JANUARY
 THIRTY-FIRST  IN  EACH  YEAR  SUBMIT  A REPORT TO THE LEGISLATURE 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
 AMOUNT  AND  CUMULATIVE TOTAL, THE SPECIFIC ACTIVITIES PERFORMED BY SUCH
 GRANTEE, THE AMOUNTS OF MONIES RECEIVED  BY  THE  GRANTEE  FROM  SOURCES
 OTHER THAN PAYMENTS MADE PURSUANT TO THIS ARTICLE, AND SUCH OTHER INFOR-
 MATION AS THE CORPORATION DEEMS PERTINENT.
   § 2. This act shall take effect immediately.

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