Bill S6878-2013

Extends expiration of authority granted to the department of housing preservation and development of city of New York to restructure rents of dwelling units in buildings foreclosed upon by the federal government

Extends expiration of the authority granted to the department of housing preservation and development of the city of New York to restructure the rents of dwelling units in buildings foreclosed upon by the federal government.

Details

Actions

  • May 19, 2014: SUBSTITUTED BY A9360
  • Apr 30, 2014: ADVANCED TO THIRD READING
  • Apr 29, 2014: 2ND REPORT CAL.
  • Apr 28, 2014: 1ST REPORT CAL.380
  • Mar 25, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - Apr 28, 2014
Ayes (9): Young, Bonacic, Boyle, Gallivan, Nozzolio, Avella, Espaillat, Diaz, Krueger

Memo

BILL NUMBER:S6878

TITLE OF BILL: An act to amend chapter 253 of the laws of 2004, amending the private housing finance law relating to rehabilitated multiple dwellings acquired and reconveyed by the federal government, in relation to extending the effectiveness thereof

SUMMARY OF PROVISIONS:

Chapter 253 of the Laws of 2004 granted the New York City Department of Housing Preservation and Development the authority to restructure the rents of dwelling units in buildings acquired by the federal government as a result of the foreclosure of a mortgage loan insured or held by the federal government. The restructuring authority was conditioned upon the properties being rehabilitated, and is scheduled to expire on June 30, 2014. This bill extends this authority to June 30, 2018.

REASONS FOR SUPPORT:

The federal 203(k) home mortgage scandal left approximately 500 small homes, tenements and brownstones in New York City facing foreclosure because the properties were bought and resold at inflated prices with owners in many instances pocketing the money that was intended for necessary repairs.

The Federal Department of Housing and Urban Development (HUD) and the New York City Department of Housing Preservation and Development (HPD) have been undertaking a joint effort to rehabilitate and transfer these buildings to qualified owners. HUD has agreed to contribute $130 million in federal money toward the rehabilitation cost.

The authority to restructure rents following the rehabilitation of a building is necessary for the operation of an affordable housing development. It is essential that sufficient building income exist to pay the maintenance, operating costs and debt service of a multiple dwelling or small home. Rent restructuring authority currently exists in every rehabilitation statute found in the New York State Private Housing Finance Law. Such authority is conditioned, however, upon the rehabilitation being financed by City capital funding. In the instance of the 203k properties, the rehabilitation financing is Federal. This legislation would extend the authority to restructure rents for 203k properties to June 30, 2018.

Permitting these troubled properties to be eligible for rent restructuring is essential in order for these buildings to be a source of affordable housing for the residents of the City of New York.

EFFECTIVE DATE:

Immediately with provisions.


Text

STATE OF NEW YORK ________________________________________________________________________ 6878 IN SENATE March 25, 2014 ___________
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 chapter 253 of the laws of 2004, amending the private housing finance law relating to rehabilitated multiple dwellings acquired and reconveyed by the federal government, in relation to extending the effectiveness thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of chapter 253 of the laws of 2004, amending the private housing finance law relating to rehabilitated multiple dwellings acquired and reconveyed by the federal government, as amended by chapter 414 of the laws 2009, is amended to read as follows: S 2. This act shall take effect immediately and shall expire and be deemed repealed June 30, [2014] 2018. S 2. This act shall take effect immediately; provided, however, that if this act shall have become a law on or after June 30, 2014, this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2014.

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