S T A T E   O F   N E W   Y O R K
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    S. 1860                                                  A. 1462

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Local Governments

AN ACT to amend the town law, in relation to authorizing  certain  towns
  in  the  Peconic Bay region to establish community housing opportunity
  funds, provided that such towns adopt a housing plan adhering to smart
  growth principles in conjunction with the creation of  such  community
  housing opportunity fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The  legislature  hereby  finds  that
chapter  114  of  the laws of 1998 enacted provisions of law relating to
Peconic Bay region community preservation funds. Such chapter  permitted
the  five  towns of the Peconic Bay region to establish a dedicated fund
for the acquisition of interests in real property for  the  purposes  of
open  space,  farmland,  and  historic preservation, as well as park and
recreation purposes. The revenue for such fund was derived  from  a  two
percent  real  estate transfer tax. Community preservation funds in each
of the five Peconic Bay region towns  were  approved  overwhelmingly  by
public referendum.
  The  enactment  of  this  land  preservation  has  been  an incredible
success.  The funds have generated over one hundred million  dollars  as
of July 2002, resulting in thousands of acres of land being protected on
eastern  Long  Island. The program has received national recognition for
its innovative and creative approach to community preservation.
  Just as critical to the future of the Peconic Bay region is the  human
need  to protect community stability by providing for an adequate supply

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD01613-01-3

S. 1860                             2                            A. 1462

of community housing opportunities for all segments of the  Peconic  Bay
community. One of the great paradoxes of the Peconic Bay regional econo-
my  is  that  the  number of housing units in the Peconic Bay region has
increased from 38,000 in 1960 to more than 84,000 today. Yet, the avail-
ability  of  affordable  housing  opportunities  for moderate income and
working class residents is in critically short supply.
  The adverse impacts from this shortage of  housing  opportunities  are
critical.  For  example,  local  employers  have  difficulty  hiring and
retaining employees because of housing  costs  and  availability.  Local
volunteer  emergency services agencies experience difficulty in recruit-
ment and retention. Long time residents are forced to  leave  the  area.
Traffic congestion is exacerbated by the importation of labor from areas
with  lower  housing  costs.  Other  land  uses such as motels are being
converted to emergency and permanent housing.    Finally,  the  lack  of
affordable  housing  is  resulting  in residents being forced to live in
substandard, illegal conditions.
  Unique demographics and economics in the Peconic  Bay  region,  and  a
lack  of  affordable dwelling units, are creating this housing shortage.
The combination of the Peconic Bay region's attractiveness, proximity to
the dense population of the New York metropolitan region, and  proximity
to  that  region's  extraordinary wealth, makes the Peconic Bay region a
prime location for seasonal and luxury homes.
  While this combination of extraordinary attractiveness, population and
wealth has created a strong local economy for the Peconic Bay region, it
has resulted in housing problems for local families. In the Peconic  Bay
region,  37 percent of all housing units are seasonal. The population of
the region increases from 125,000 to more than 320,000 during the summer
season.
  In summary, the demand of land  for  luxury  and  seasonal  homes  and
seasonal  rentals  has  left a short supply of housing opportunities for
moderate income and working  class  local  residents.  The  Peconic  Bay
region  needs  a balanced housing policy where there exists a variety of
housing types and opportunities across the region's economic spectrum.
  The Peconic Bay region requires the  same  creativity,  planning,  and
community  consensus that resulted in the community preservation fund in
order to address the issue of housing  opportunity.  Further,  increased
housing  opportunities  must  be accomplished in the context of rational
long term planning.
  It is the purpose of this legislation, to give the towns of the Pecon-
ic Bay region the authority and resources needed to establish  community
housing  opportunities. Specifically, this legislation would permit each
town to establish a dedicated  community  housing  opportunity  fund  to
increase  housing  opportunities  in  the  region.  Such  fund  shall be
financed by a combination of state and  local  funds.  Further,  a  town
housing plan adhering to smart growth principles would be required to be
approved  and implemented to insure that these new housing opportunities
are enacted in the context of a comprehensive plan. The  fund  shall  be
enacted by local law subject to a mandatory referendum.
  S  2.  This  act  shall  be known and may be cited as the "Peconic Bay
region community housing opportunity act".
  S 3. The town law is amended by adding a new section 64-k to  read  as
follows:
  S  64-K.  PECONIC  BAY  REGION COMMUNITY HOUSING OPPORTUNITY FUND.  1.
DEFINITIONS. AS USED IN THIS SECTION,  THE  FOLLOWING  WORDS  AND  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:

S. 1860                             3                            A. 1462

  (A)  "PECONIC  BAY REGION" MEANS THE TOWNS OF EAST HAMPTON, RIVERHEAD,
SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD.
  (B)  "COMMUNITY  HOUSING"  SHALL  BE DEFINED AS HOUSING FOR HOUSEHOLDS
WITH INCOMES AT OR BELOW THE MEDIAN INCOME  FOR  EACH  TOWN  WITHIN  THE
PECONIC BAY REGION.
  (C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT TO THIS SECTION.
  (D)  "FUND"  MEANS  THE  COMMUNITY HOUSING OPPORTUNITY FUND AUTHORIZED
PURSUANT TO THIS SECTION.
  (E) "EDUCATION IMPACT PAYMENT" MEANS A PAYMENT MADE FROM THE  FUND  TO
SCHOOL  DISTRICTS NOT TO EXCEED AN AMOUNT EQUAL TO THE ADDITIONAL ANNUAL
COST OF EDUCATING THE NUMBER OF STUDENTS THAT WILL BE ADDED TO A  SCHOOL
DISTRICT  AS A RESULT OF THE PRODUCTION OF COMMUNITY HOUSING PURSUANT TO
THE FUND.
  2. FUND AUTHORIZED. THE TOWN BOARD OF ANY  TOWN  IN  THE  PECONIC  BAY
REGION  IS  AUTHORIZED  TO  ESTABLISH  BY  LOCAL LAW A COMMUNITY HOUSING
OPPORTUNITY FUND, PURSUANT TO THE PROVISIONS OF THIS  SECTION.  DEPOSITS
INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
SOURCE, INCLUDING BUT NOT LIMITED TO:  (A) ALL PROCEEDS FROM ANY INDEBT-
EDNESS  OR  OBLIGATIONS  ISSUED  PURSUANT  TO  THE LOCAL FINANCE LAW FOR
COMMUNITY HOUSING OPPORTUNITY PURPOSES AS PROVIDED  FOR  IN  SUBDIVISION
THREE OF THIS SECTION; (B) GENERAL FUND BALANCES OR SURPLUSES; (C) FUNDS
RECEIVED  BY THE TOWN FROM THE APPORTIONMENT OF MORTGAGE RECORDING TAXES
RECEIVED FROM THE COUNTY PURSUANT TO ARTICLE ELEVEN OF THE TAX LAW;  (D)
FUNDS  RECEIVED  BY  THE TOWN FROM THE SALE OF DEVELOPMENT RIGHTS FROM A
CENTRAL BANK CREATED PURSUANT TO SECTION SIXTY-FOUR-E OF  THIS  ARTICLE;
(E)  ANY  PROCEEDS  RECEIVED  BY  THE  LOCAL GOVERNMENT FROM THE SALE OF
AFFORDABLE HOUSING PRODUCED FROM REVENUES OF THE FUND; (F) THE REPAYMENT
OF ANY LOANS ISSUED FROM PROCEEDS OF THE FUND; (G) ANY GIFTS  OF  INTER-
ESTS  IN  LAND OR FUNDS; (H) ANY STATE OR FEDERAL GRANTS RECEIVED BY THE
TOWN FOR PROVIDING AFFORDABLE HOMES; AND (I) FUNDS RECEIVED BY THE  TOWN
FROM  FEES PAID TO THE TOWN PURSUANT TO AN INCLUSIONARY ZONING LAW WHERE
AUTHORIZED BY THE LEGISLATURE. INTEREST ACCRUED BY MONIES DEPOSITED INTO
THE FUND SHALL BE CREDITED TO THE FUND.  IN NO EVENT SHALL MONIES DEPOS-
ITED INTO  THE  FUND  BE  TRANSFERRED  TO  ANY  OTHER  ACCOUNT.  NOTHING
CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN
WHOLE  OR  IN PART, PURSUANT TO THE LOCAL FINANCE LAW, OF ANY PROJECT OR
PURPOSE AUTHORIZED PURSUANT TO THIS SECTION.  MONIES FROM THE  FUND  MAY
BE  UTILIZED  TO  REPAY INDEBTEDNESS OR OBLIGATIONS INCURRED PURSUANT TO
THE LOCAL FINANCE LAW CONSISTENT WITH EFFECTUATING THE PURPOSES OF  THIS
SECTION.
  3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
TO  SUBDIVISION  TWO OF THIS SECTION SHALL BE UTILIZED FOR THE FOLLOWING
PURPOSES:
  (A) THE PROVISION OF NO-INTEREST OR  LOW-INTEREST  LOANS  TO  ELIGIBLE
RESIDENTS OF THE TOWN FOR THE PURCHASE OF A FIRST HOME;
  (B)  THE  ACTUAL  PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
INDIVIDUALS BY THE TOWN;
  (C) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR  SALE  TO  ELIGIBLE
INDIVIDUALS  IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE
PRIVATE PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF  THE  NEW
YORK STATE AFFORDABLE HOUSING CORPORATION;
  (D)  THE  ACTUAL PRODUCTION AND MAINTENANCE OF RENTAL HOUSING FOR RENT
TO ELIGIBLE INDIVIDUALS EITHER BY THE TOWN, THE TOWN HOUSING  AUTHORITY,
OR  IN  CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE PRIVATE
PARTNER AGREES TO COMPLY WITH THE PROFIT  GUIDELINES  OF  THE  NEW  YORK
STATE AFFORDABLE HOUSING CORPORATION;

S. 1860                             4                            A. 1462

  (E)  THE  REHABILITATION  OF  EXISTING BUILDINGS AND STRUCTURES IN THE
TOWN FOR THE PURPOSE OF CONVERSION TO  COMMUNITY  HOUSING  FOR  SALE  OR
RENTAL TO ELIGIBLE INDIVIDUALS;
  (F)  THE  PROVISION  OF  HOUSING COUNSELING SERVICES BY NOT-FOR-PROFIT
CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES; AND
  (G) THE PROVISION OF EDUCATION IMPACT PAYMENTS TO SCHOOL DISTRICTS  AS
DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
  FOR  THE  PURPOSES  OF THIS SUBDIVISION, ELIGIBLE EXPENSES RELATING TO
THE PRODUCTION OF COMMUNITY HOUSING AND THE REHABILITATION  OF  EXISTING
BUILDINGS AND STRUCTURES UNDER THE FUND SHALL INCLUDE BUT NOT BE LIMITED
TO  LAND  ACQUISITION,  PLANNING,  ENGINEERING,  CONSTRUCTION COSTS, AND
OTHER HARD AND SOFT COSTS DIRECTLY RELATED TO THE CONSTRUCTION, REHABIL-
ITATION, PURCHASE OR RENTAL OF HOUSING PURSUANT TO THIS  SECTION.    ALL
REVENUES  RECEIVED  BY  THE  TOWN  FROM  THE SALE OR RENTAL OF COMMUNITY
HOMES, OR THE REPAYMENT OF LOANS SHALL BE DEPOSITED IN THE FUND.
  4. ADVISORY BOARD ESTABLISHED. THE TOWN  BOARD  OF  ANY  TOWN  IN  THE
PECONIC BAY REGION WHICH HAS ESTABLISHED A COMMUNITY HOUSING OPPORTUNITY
FUND  PURSUANT  TO THIS SECTION SHALL CREATE AN ADVISORY BOARD TO REVIEW
AND MAKE RECOMMENDATIONS REGARDING THE TOWN'S COMMUNITY HOUSING PROGRAM.
SUCH BOARD SHALL CONSIST OF NOT LESS THAN SEVEN NOR  MORE  THAN  FIFTEEN
LEGAL  RESIDENTS  OF  THE  MUNICIPALITY  WHO SHALL SERVE WITHOUT COMPEN-
SATION. NO MEMBER OF THE LOCAL  LEGISLATIVE  BODY  SHALL  SERVE  ON  THE
BOARD.  THE  BOARD  SHALL INCLUDE A REPRESENTATIVE OF:  (A) THE BUILDING
INDUSTRY; (B) THE REAL ESTATE INDUSTRY; (C) THE  BANKING  INDUSTRY;  AND
THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR HUMAN SERVICES ORGAN-
IZATIONS.  WHERE  A  VILLAGE  OR VILLAGES, LOCATED WITHIN THE TOWN, HAVE
ELECTED TO PARTICIPATE IN THE FUND, AS PROVIDED IN  SUBDIVISION  SIX  OF
THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT OF A PARTIC-
IPATING  VILLAGE  OR  VILLAGES. WHERE AN INDIAN NATION IS LOCATED WITHIN
THE BOUNDARIES OF A TOWN, THE BOARD SHALL INCLUDE AT  LEAST  ONE  MEMBER
FROM  SUCH  NATION.  THE  BOARD SHALL ACT IN AN ADVISORY CAPACITY TO THE
TOWN BOARD.
  5. ADOPTION OF HOUSING PLAN. (A) BEFORE A TOWN MAY ESTABLISH THE FUND,
THE TOWN BOARD SHALL FIRST ADOPT A TOWN HOUSING PLAN  WHICH  ESTABLISHES
AN  IMPLEMENTATION  PLAN FOR THE PROVISION OF COMMUNITY HOUSING OPPORTU-
NITIES BY THE FUND, AND A LOCAL LAW IMPLEMENTING SAID  PLAN.  SUCH  PLAN
SHALL ADHERE TO THE FOLLOWING SMART GROWTH PRINCIPLES:
  (1)  PUBLIC  INVESTMENT. TO ACCOUNT FOR AND MINIMIZE SOCIAL, ECONOMIC,
AND ENVIRONMENTAL COSTS OF  NEW  DEVELOPMENT,  INCLUDING  INFRASTRUCTURE
COSTS  SUCH  AS TRANSPORTATION, SEWERS, AND WASTEWATER TREATMENT, WATER,
SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
  (2) DEVELOPMENT. TO ENCOURAGE DEVELOPMENT IN AREAS  WHERE  TRANSPORTA-
TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
  (3)  CONSERVATION.  TO  PROTECT,  PRESERVE,  AND  ENHANCE  THE STATE'S
RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
AND ARCHEOLOGICAL SITES;
  (4) COORDINATION. TO PROMOTE COORDINATION OF STATE AND  LOCAL  GOVERN-
MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
EFFICIENT,  PLANNED  AND  COST-EFFECTIVE DELIVERY OF GOVERNMENT SERVICES
BY, AMONG OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS  AMONG  ADJA-
CENT  COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY OF
ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
  (5) COMMUNITY DESIGN. TO STRENGTHEN  COMMUNITIES  THROUGH  DEVELOPMENT
AND  REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME AND

S. 1860                             5                            A. 1462

AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
BORHOOD DEVELOPMENT, PLANNED UNIT  DEVELOPMENT,  OPEN  SPACE  DISTRICTS,
DOWNTOWN  REVITALIZATION,  BROWNFIELD  REDEVELOPMENT, ENHANCED BEAUTY IN
PUBLIC  SPACES,  AND DIVERSE AND COMMUNITY HOUSING IN CLOSE PROXIMITY TO
PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
  (6)  TRANSPORTATION.  TO  PROVIDE  TRANSPORTATION  CHOICES,  INCLUDING
INCREASING  PUBLIC  TRANSIT  AND ALTERNATIVE MODES OF TRANSPORTATION, IN
ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION,  AND  AUTOMO-
BILE POLLUTION;
  (7)  CONSISTENCY.  TO  INSURE  PREDICTABILITY IN BUILDING AND LAND USE
CODES;
  (8) COMMUNITY  COLLABORATION.  TO  PROVIDE  FOR  AND  ENCOURAGE  LOCAL
GOVERNMENTS  TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED EFFORT,
SMART GROWTH PLANS THAT INCLUDE LONG TERM LAND USE AND  PERMIT  PREDICT-
ABILITY  AND COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLE-
MENTATION.
  (B) SUCH PLAN MAY INCLUDE THE ESTABLISHMENT OF  A  MAP  OR  MAPS  THAT
DELINEATE  THE  HOUSING  IMPLEMENTATION  RECOMMENDATIONS PROPOSED BY THE
TOWN.
  (C) THE PLAN AND THE LOCAL LAW IMPLEMENTING  THE  PLAN  SHALL  NOT  BE
ADOPTED  UNTIL  AFTER  A PUBLIC HEARING HAS BEEN HELD BY THE TOWN BOARD.
SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS. SUCH PLAN AND
LOCAL LAW SHALL BE ADOPTED AT LEAST  SIXTY  DAYS  BEFORE  THE  MANDATORY
REFERENDUM REQUIRED BY SUBDIVISION SEVEN OF THIS SECTION.
  (D) THE TOWN HOUSING PLAN SHALL BE AN ELEMENT OF THE TOWN'S COMPREHEN-
SIVE PLAN.
  (E)  SUCH  HOUSING PLAN SHALL ALSO PROVIDE FOR INCOME AND OTHER ELIGI-
BILITY REQUIREMENTS FOR COMMUNITY  HOUSING,  INCLUDING  ANY  ELIGIBILITY
PREFERENCE  THAT  MAY  BE  GIVEN BASED UPON RESIDENCY OR OTHER CRITERIA.
SUCH PLAN SHALL ALSO PROVIDE  FOR  THE  LEGAL  MECHANISM  THAT  WILL  BE
EMPLOYED  TO MAINTAIN THE HOUSING STOCK CREATED PURSUANT TO THIS SECTION
AT COMMUNITY LEVELS. THE RESALE OF COMMUNITY HOUSING TO THE  PUBLIC  FOR
OCCUPANCY CREATED PURSUANT TO THIS SECTION TO OTHER THAN INCOME ELIGIBLE
HOUSEHOLDS SHALL BE PROHIBITED.
  (F)  SUCH  HOUSING  PLAN SHALL ALSO PROVIDE FOR THE EQUITABLE DISTRIB-
UTION OF COMMUNITY HOUSING  OPPORTUNITIES  AMONG  ALL  THE  HAMLETS  AND
COMMUNITIES  OF THE TOWN. THE PLAN SHALL INSURE THAT NO HAMLET OR COMMU-
NITY IS SITED FOR AN UNDUE CONCENTRATION OF COMMUNITY  HOUSING  OPPORTU-
NITIES  THAT  WOULD  SUBSTANTIALLY  ALTER THE CHARACTER OF THE HAMLET OR
COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION  OF  COMMUNITY  HOUSING
OPPORTUNITIES,  EXISTING  COMMUNITY HOUSING OPPORTUNITIES IN A HAMLET OR
COMMUNITY SHALL BE CONSIDERED.
  6. VILLAGE AND INDIAN NATION PARTICIPATION. (A) THE  PARTICIPATION  OF
ANY  VILLAGE  OR  INDIAN  NATION  IN  THE  COMMUNITY HOUSING OPPORTUNITY
PROGRAM AUTHORIZED BY THIS SECTION SHALL BE AT THE OPTION OF THE VILLAGE
OR INDIAN NATION. IN ORDER TO PARTICIPATE, A VILLAGE  OR  INDIAN  NATION
SHALL  PASS  A  RESOLUTION OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID
RESOLUTION TO THE TOWN BOARD.
  (B) WHERE A VILLAGE OR INDIAN NATION OPTS TO PARTICIPATE  PURSUANT  TO
THIS  SUBDIVISION,  AN  INTERGOVERNMENTAL  AGREEMENT  SHALL  BE EXECUTED
PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER  APPLI-
CABLE LEGAL AUTHORITY, IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBIL-
ITIES OF EACH GOVERNMENT REGARDING COMMUNITY HOUSING OPPORTUNITIES.
  7.  MANDATORY  REFERENDUM.  THE LOCAL LAW OR LAWS ADOPTING THE HOUSING
PLAN AND ESTABLISHING THE COMMUNITY HOUSING OPPORTUNITY  FUND  SHALL  BE
SUBJECT  TO  A  MANDATORY  REFERENDUM. SUCH LOCAL LAW OR LAWS SHALL ONLY

S. 1860                             6                            A. 1462

BECOME EFFECTIVE UPON THE ADOPTION OF SAID REFERENDUM BY THE ELECTORS OF
THE TOWN.
  S  4.  Subdivision  10  of section 64-e of the town law, as amended by
chapter 373 of the laws of 2008, is amended to read as follows:
  10. [Rights] EXCEPT AS PROVIDED FOR HEREIN,  RIGHTS  or  interests  in
real  property  acquired  with  monies from such fund shall not be sold,
leased, exchanged, donated, or otherwise disposed of or used  for  other
than the purposes permitted by this section without the express authori-
ty  of  an  act  of the legislature, which shall provide for the substi-
tution of other lands of equal environmental value and fair market value
and reasonably equivalent usefulness and location to those to be discon-
tinued, sold or disposed of, and such other  requirements  as  shall  be
approved  by  the legislature.  Nothing in this section shall preclude a
town, by local law, from establishing  additional  restrictions  to  the
alienation  of lands acquired pursuant to this section. This subdivision
shall not apply to the sale of development rights  by  a  town  acquired
pursuant  to  this  section,  where  said sale is made by a central bank
created by a town, pursuant to a transfer of development rights  program
established  by  a  town  pursuant to section two hundred sixty-one-a of
this chapter, provided, however (a)  that  the  lands  from  which  said
development rights were acquired shall remain preserved in perpetuity by
a  permanent  conservation  easement  or other instrument that similarly
preserves the community character referenced in subdivision four of this
section, and (b) the proceeds from such sale shall be deposited  in  the
community  preservation  fund  OR THE COMMUNITY HOUSING OPPORTUNITY FUND
PURSUANT TO SECTION SIXTY-FOUR-K OF THIS ARTICLE.
  S 5. Applicability. Nothing shall preclude a  town  from  transferring
development  rights  acquired after the effective date of chapter 114 of
the laws of 1998 but before the effective date of this  section  into  a
central bank.
  S  6. Severability clause. If any provision of this act or application
thereof shall for any reason be  adjudged  by  any  court  of  competent
jurisdiction  to  be invalid, such judgment shall not affect, impair, or
invalidate the remainder of the act, but shall be confined in its opera-
tion to the provision thereof directly involved in  the  controversy  in
which the judgment shall have been rendered.
  S 7. This act shall take effect immediately.