S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    733
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  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 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01304-01-5
 S. 733                              2
 
 NEEDS OF SUCH ELIGIBLE HOUSING PROJECTS,  SHALL  MAKE  A  DETERMINATION,
 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
 S. 733                              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.