Bill S6554-2011

Provides that up to ten percent of project cost for affordable home ownership development contracts may be used for particular operating costs

Provides that up to ten percent of project cost for affordable home ownership development contracts may be used for particular operating costs.

Details

Actions

  • May 31, 2012: SIGNED CHAP.64
  • May 21, 2012: DELIVERED TO GOVERNOR
  • May 7, 2012: returned to senate
  • May 7, 2012: passed assembly
  • May 7, 2012: ordered to third reading cal.514
  • May 7, 2012: substituted for a7833
  • Mar 21, 2012: referred to ways and means
  • Mar 21, 2012: DELIVERED TO ASSEMBLY
  • Mar 21, 2012: PASSED SENATE
  • Mar 7, 2012: ADVANCED TO THIRD READING
  • Mar 6, 2012: 2ND REPORT CAL.
  • Mar 5, 2012: 1ST REPORT CAL.273
  • Feb 27, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Meetings

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - Mar 5, 2012
Ayes (8): Young, Bonacic, Gallivan, Grisanti, Ritchie, Espaillat, Diaz, Krueger

Memo

BILL NUMBER:S6554

TITLE OF BILL:

An act to amend the private housing finance law, in relation to affordable home ownership development contracts

PURPOSE:

This bill would allow for the payment of administrative funds to not-for-profit grantees. Additionally, the bill would broaden the pool of eligible projects to be assisted under the Affordable Home Ownership Development Program.

SUMMARY OF PROVISIONS:

This bill would: allow for grants to cover up to 100% of rehabilitation project costs if no acquisition is needed; allow for grants to cover up to 60% of rehabilitation project costs if an acquisition is taking place; and allow 10% of monies to be used for administrative costs associated with the development of affordable one-to-four family homes.

JUSTIFICATION:

This legislation would assist in program administration and operation, allowing the program to more effectively be carried out. Additionally, the program would be expanded to allow for larger grants for rehabilitation projects. This will provide more incentive for the rehabilitation of distressed and underutilized housing, which will create more affordable housing in an efficient manner.

LEGISLATIVE HISTORY:

This is a new bill for 2012 in the Senate. A.3013 of 2010/2011: Passed Assembly A.1025 of 2007/2008: Passed Assembly A.11712 of 2006: Passed Assembly

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6554 IN SENATE February 27, 2012 ___________
Introduced by Sen. YOUNG -- 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 afforda- ble home ownership development contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 1112 of the private housing finance law, as amended by chapter 333 of the laws of 2004, is amended to read as follows: 1. Within the limit of funds available in the affordable housing development account, the corporation is hereby authorized to enter into contracts with eligible applicants to provide grants which such appli- cants shall use to finance affordable home ownership development programs subject to the terms and conditions of this article. Any grants received by a municipality hereunder shall not be deemed to be municipal funds. Grantees shall utilize funds provided pursuant to this article solely as payments, grants and loans to owners to reduce the costs of new construction, rehabilitation or home improvement or the cost of acquisition, but only where such acquisition is part of an affordable home ownership development program or project to construct or rehabili- tate homes, or as otherwise authorized by law. Such financial assistance may be in the form of loans, participation in loans including but not limited to participation in loans originated or financed by lending institutions as defined in section forty-two of this chapter, private or public employee pension funds or the state of New York mortgage agency, or grants, on such terms and conditions as the grantee with the approval of the corporation shall determine, provided that no such payments, grants and loans shall exceed the lesser of (i) sixty percent of the project cost FOR PROJECTS INVOLVING ACQUISITION OR ONE HUNDRED PERCENT OF REHABILITATION PROGRAMS WITHOUT AN ACQUISITION COMPONENT or (ii) the following per dwelling unit limitations (A) thirty-five thousand dollars for projects except as provided in [clause] ITEM (B) of this [item (ii)] CLAUSE or (B) forty thousand dollars for a high cost project or a
project which will receive a loan from the federal farmers home adminis- tration. UP TO TEN PERCENT OF THE PROGRAM OR PROJECT COST MAY BE USED FOR GRANTEE OPERATING EXPENSES INCLUDING EXPENSES RELATED TO THE ORGAN- IZATION OPERATING SUPPORT AND ADMINISTRATION OF THE CONTRACT. Among the criteria the corporation shall consider in determining whether a project is a high cost project are: average cost of construction in the area, location of the project, and the impact of the additional funding on the affordability of the project for the occupants of such project. No more than fifty percent of the total amount appropriated pursuant to this article in any fiscal year shall be allocated to homes located within any single municipality. S 2. This act shall take effect immediately.

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