Includes moderate rehabilitation within the definition of project for the purposes of the low income housing trust fund program; defines moderate rehabilitation project as any occupied residential property or portion thereof which if vacant or underoccupied would qualify as a cooperative project, condominium project, homesteading project or rental project.
TITLE OF BILL: An act to amend the private housing finance law, in relation to the low income housing trust fund program
PURPOSE: The bill authorizes the Housing Trust Fund Program to make grants or loans for the moderate rehabilitation of occupied buildings.
SUMMARY OF PROVISIONS: This bill amends the Private Housing Finance Law to state that the legislative findings and purpose for the Housing Trust Fund Program is changed by adding a finding that there exists throughout the State a significant number of occupied, as well as vacant or underutilized, dwellings which are deteriorated, unsafe or substandard.
This legislation also authorizes the Housing Trust Fund Corporation (HTFC) to fund Moderate Rehabilitation projects and eliminates for such projects the existing requirement that structures eligible for financing under the Trust Fund Program be vacant or under occupied.
JUSTIFICATION: Existing law limits the Housing Trust Fund Program to rehabilitating, constructing, or converting only those properties that are vacant or under occupied (i.e., less than 60 percent of legal occupancy).
The need for the rehabilitation of deteriorated, unsafe, or substandard structures occupied by persons of low income exists throughout the State, especially in rural areas. Authorizing the HTFC to finance the improvement and repair of this housing will enable the State to address the problems of substandard housing before a structure becomes uninhabitable and, possibly, irreparable.
LEGISLATIVE HISTORY: 2009-10: S.4678 Referred to Housing, Construction & Community Development 2007: S.374 Passed Senate 2008: S.374 Reported to Rules 2006: S.6265-A/A.9590-A Passed Senate 2005: A.5701 Referred to Housing 2003-04: A.4802 Referred to Housing
FISCAL IMPLICATIONS: The moderate rehabilitation proposal will primarily be implemented through participation loans, thus reducing the amount of public funds necessary to complete such projects.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 761 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________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 the low income housing trust fund program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1100 of the private housing finance law, as amended by chapter 121 of the laws of 1988, is amended to read as follows: S 1100. Statement of legislative findings and purpose. The legislature hereby finds and declares that there is a serious shortage of decent affordable housing in the state for persons of low income; that the cost of providing such housing without public participation and assistance is prohibitively high; that there exists throughout the state a significant number of dwellings which are deteriorated and are vacant or underuti- lized; THAT THERE EXISTS THROUGHOUT THE STATE A SIGNIFICANT NUMBER OF OCCUPIED DWELLINGS WHICH ARE ALSO DETERIORATED, UNSAFE OR SUBSTANDARD; that the existence of such properties creates a serious threat to the health and safety of persons who live in or near them, limits the avail- ability of decent affordable housing to others, contributes to the blight and deterioration of neighborhoods, and drains municipal resources and expenditures; that the rehabilitation of these properties would stem the deterioration of neighborhoods and promote the preserva- tion and creation of safe and sanitary low income housing; that the potential exists to make such housing available to persons of low income through projects carried out by eligible applicants to rehabilitate these dwelling accommodations, bring these accommodations into compli- ance with all applicable laws and regulations and remove all hazardous and immediately hazardous code conditions; that the purposes of this article should also be served by providing for new construction of hous-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02626-01-1 S. 761 2
ing for persons of low income in areas in which rehabilitation opportu- nities are limited or where new construction would prove to be more effective; that the carrying out of such projects serves a significant public purpose and may appropriately be performed by eligible appli- cants; that payment for such services, tax exemptions and other public participation in such projects would bring down the cost of such housing and make it affordable to persons of low income; and that it is the policy of the state to preserve and create such housing and to provide for the aid, care, and support of the needy. The legislature therefore finds that a program should be established to provide monies for the rehabilitation and construction of these properties by eligible appli- cants to promote the preservation and creation of affordable housing for persons of low income. It is intended that any payments, grants or loans provided to munici- palities through this program not substitute for funds which such muni- cipalities would have spent in the absence of this program and that such payments, grants and loans will enable such municipalities to expand their commitment to increase the supply of affordable low income housing to levels greater than would have been possible without this program. S 2. Subdivision 12 of section 1101 of the private housing finance law, as amended by chapter 121 of the laws of 1988, is amended to read as follows: 12. "Project" shall mean a MODERATE REHABILITATION, cooperative, condominium, homesteading or rental project. In cases where any such project consists of less than the total number of units or the total amount of floor space of a property, any reference in this article, to a "project", "MODERATE REHABILITATION PROJECT", "cooperative project", "condominium project", "rental project" or "homesteading project" shall mean that portion of such property which makes up such project. S 3. Section 1101 of the private housing finance law is amended by adding a new subdivision 14 to read as follows: 14. "MODERATE REHABILITATION PROJECT" SHALL MEAN ANY OCCUPIED RESIDEN- TIAL PROPERTY OR ANY PORTION THEREOF WHICH, IF VACANT OR UNDEROCCUPIED, WOULD QUALIFY AS A COOPERATIVE PROJECT, CONDOMINIUM PROJECT, HOMESTEAD- ING PROJECT OR RENTAL PROJECT. S 4. This act shall take effect immediately.