Extends certain provisions relating to buildings that are part of urban development action area projects and are rehabilitated with municipal loans.
TITLE OF BILL: An act to amend chapter 613 of the laws of 1996, amending the general municipal law relating to buildings that are part of urban development action area projects and are rehabilitated with municipal loans, in relation to the effectiveness thereof
SUMMARY OF PROVISIONS:
This bill would amend section two of chapter 613 of the laws of 1996 to extend the sunset of § 696-a of the General Municipal Law from June 30, 2014 to June 30, 2018 to grant municipalities the authority to restructure the rents of dwelling units in municipally-owned buildings that have been rehabilitated with the aid of a loan made pursuant to the above section. Currently the ability to restructure rents expires on June 30, 2014. This legislation would extend this authority to June 30, 2018.
REASONS FOR SUPPORT:
Municipalities are currently authorized to restructure existing rents in dwelling units in residential buildings owned by the private sector or by housing development fund companies that have received rehabilitation loans and have completed rehabilitation pursuant to Articles 8, 8A, 11 and 15 of the Private Housing Finance Law. Since 1996, section 696-a of the General Municipal Law has also authorized rehabilitation loans for the development of affordable housing in municipally owned multiple dwellings and the restructuring of rents following rehabilitation. The ability to restructure rents is necessary for the operation of an affordable housing development program.
In order to create sufficient building income to pay the building's maintenance and operating costs and debt service on private or City financing, the ability to restructure rents is essential. Rent restructuring authority in Article 16 of the General Municipal Law has been indispensable to the development of permanent affordable housing in the City of New York.
The legislation will significantly enhance the City's ability to continue to provide affordable housing following rehabilitation of City-owned municipal dwellings. EFFECTIVE DATE:
Immediately with provisions.
STATE OF NEW YORK ________________________________________________________________________ 7021 IN SENATE April 16, 2014 ___________Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend chapter 613 of the laws of 1996, amending the general municipal law relating to buildings that are part of urban development action area projects and are rehabilitated with municipal loans, in relation to 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 613 of the laws of 1996, amending the general municipal law relating to buildings that are part of urban development action projects and are rehabilitated with municipal loans, as amended by chapter 138 of the laws of 2010, is amended to read as follows: S 2. This act shall take effect immediately and shall remain in full force and effect until and including June 30,
2018 with respect to multiple dwellings rehabilitated with the aid of a loan from a muni- cipality, pursuant to subdivision 1 of section 696-a of the general municipal law as designated by section one of this act, that has closed on or prior to such date, after which date it shall expire and be deemed repealed except that multiple dwellings that are subject to the emergen- cy housing rent control law, the local emergency housing rent control act, the emergency tenant protection act of nineteen seventy-four and/or any local law enacted pursuant thereto pursuant to subdivision 2 of section 696-a of the general municipal law as added by section one of this act, shall continue to be subject thereto as provided in or pursu- ant to such laws and/or acts. S 2. This act shall take effect immediately; provided, however, that if this act shall have become a law after June 30, 2014, it shall be deemed to have been in full force and effect on and after June 30, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14743-01-4