which are guaranteed by the state or the United States government, or in any other obligations in which the comptroller of the state is authorized to invest pursuant to section ninety-eight of the state finance law. 7. The corporation may do any and all things necessary or convenient to carry out and exercise the powers given and granted by this section and article nineteen of this chapter including, but not limited to contracting with the commissioner of the division of housing and community renewal to administer any of the provisions of article nineteen of this chapter. 8. The agency and all other state officers, departments, boards, divisions, commissions, public authorities and public benefit corporations may render such services to the corporation within their respective functions as may be requested by the corporation. § 2. Such law is amended by adding two new articles eighteen and nineteen to read as follows: ARTICLE XVIII LOW INCOME HOUSING TRUST FUND PROGRAM Section 1100. Statement of legislative findings and purpose. 1101. Definitions. 1102. Cooperative or condominium, homesteading and rental rehabilitation contracts. 1103. General and administrative provisions. low § 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 underutilized; 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 availability 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 preservation and creation of safe and sanitary low income housing; that the potential exists to make such housing available to persons of income through projects carried out by eligible applicants to rehabilitate these dwelling accommodations, bring these accommodations into compliance with all applicable laws and regulations and remove all hazardous and immediately hazardous code conditions; that the carrying out of such projects serves a significant public purpose and may appropriately be performed by eligible applicants; 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 of these properties by eligible applicants to promote the preservation and creation of affordable housing for persons of low income. § 1101. Definitions. For the purposes of this article: 1. "Commissioner" shall mean the commissioner of the state division of housing and community renewal. 2. "Corporation" shall mean the housing trust fund corporation established by section forty-five-a of this chapter. 3. "Rehabilitation" shall mean all work necessary to bring a residential property into compliance with all applicable laws and regulations including but not limited to the installation, replacement or repair of heating, plumbing, electrical and related systems and the elimination of all hazardous and immediately hazardous violations in the structure in accordance with state and local laws and regulations of state and local agencies. Rehabilitation may also include work to improve the habitability or prolong the useful life of the residential property. 4. "Cooperative or condominium project" shall mean any vacant or underoccupied residential property, or any nonresidential property, which subsequent to conversion or rehabilitation under this article will be owned as a cooperative or a condominium. 5. "Homesteading project" shall mean any vacant or underoccupied residential property, or any nonresidential property, which subsequent to conversion or rehabilitation under this article will contain less than five dwelling units, have at least one owner occupant and not be owned as a cooperative or a condominium. 6. "Rental rehabilitation project" shall mean any vacant or underoccupied residential property, or any nonresidential property, which subsequent to conversion or rehabilitation under this article will be owned and operated as a residential rental building. 7. "Eligible applicant" shall mean a person of low income, a housing development fund company incorporated pursuant to article eleven of this chapter, any not-for-profit corporation or charitable organization which has as one of its primary purposes, the improvement of housing for sons of low income, or a subsidiary of such a corporation or organization or any municipality. per 8. "Conversion" shall mean all work necessary to convert nonresidential property into a cooperative or condominium, homesteading or rental rehabilitation project. 9. "Nonresidential property" shall mean any property which is not a residential dwelling and is vacant. 10. "Persons of low income" shall mean those persons and families whose incomes do not exceed eighty percent of the median income for the metropolitan statistical area in which a project is located or, if a project is located outside such an area, those persons and families whose incomes do not exceed eighty percent of the median income for the county in which a project is located. 11. "Underoccupied residential property" shall mean residential property with an occupancy rate by lawful Occupants of less than sixty percent. 12. "Project" shall mean a cooperative or condominium, homesteading or rental rehabilitation project. § 1102. Cooperative or condominium, homesteading and rental rehabilitation contracts. 1. Within the limit of funds available in the housing trust fund account, the corporation is hereby authorized to enter into contracts with eligible applicants for the furnishing by such applicants of housing for persons of low income. Each such contract shall provide that eligible applicants rehabilitate one or more projects or convert one or more nonresidential properties. Such contracts may provide for payments, grants or loans by the corporation for the activities to be carried out by the eligible applicant under the contract. Such contracts may provide that eligible applicants shall either perform activities specified under the contract themselves or shall act as administrators of a program under which projects are rehabilitated or nonresidential properties are converted by other eligible applicants. In the case of a municipality acting as an administrator, funds provided to such municipality hereunder shall not be deemed to be municipal funds. Loans may be in the form of 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, the state of New York mortgage agency, the New York city housing development corporation, the New York state housing finance agency or private or public employee pension funds. Payments, grants and loans shall be on such terms and conditions as the corporation, or the eligible applicant with the approval of the corporation, as the case may be, shall determine. Payments, grants and loans shall be used to pay for the actual and necessary cost of rehabilitation or conversion, provided that not more than ten percent of such payments, grants and loans received for the rehabilitation conversion of a project may be used for the cost of the project's acquisition and provided further that payments, grants or loans shall not be used for the administrative costs of an eligible applicant. No such payments, grants or loans shall exceed a total of forty thousand dollars per dwelling unit and the length of any loan provided under this article shall not exceed thirty years. No more than fifty percent of the total amount appropriated pursuant to this article in any fiscal year shall be allocated to project's located within any single municipality. or 2. The corporation and eligible applicants which act as administrators of a program under this article shall deposit any recaptured funds or funds from the repayment of loans and interest received on loans into the housing trust fund account. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law 3. The corporation shall not enter into a contract under this article unless the eligible applicant has submitted an application pursuant to a request for proposals issued by the corporation and such application contains a plan, acceptable to the corporation, which provides for project: each and (a) That violations on the project which are classified as hazardous or immediately hazardous shall be repaired in accordance with state local laws and regulations of state and local agencies and the project shall be brought into compliance with with all applicable laws and regulations. (b) For the establishment of occupant selection procedures which provide that any lawful occupants who live in a project prior to rehabilitation shall not be displaced as a result of such rehabilitation, other than temporarily, in which case suitable relocation arrangements shall be provided, and that any additional occupants who move into a project are persons of low income. Preference in selection of such additional Occupants; (i) shall be given to persons or families with the lowest incomes possible, given the income requirements of the project and; (ii) shall also be given to persons or families whose current housing fails to meet basic standards of health and safety and who have little prospect of improving the condition of their housing except by residing in a project receiving payments, grants or loans under this article. (c) In the case of a homesteading project, that the resale price of the project shall not exceed the original amount paid by the owner, exclusive of any grants to such owner pursuant to this article, plus the value of any mortgage amortization paid by the owner subsequent to initial purchase plus the cost of any capital improvements made by the Owner. (d) In the case of a cooperative or condomimium* project, that the resale price of a tenant shareholder's shares or owner's unit shall not exceed the original amount paid by such tenant shareholder or unit owner, plus the pro-rata share of any mortgage amortization paid by such tenant shareholder or unit Owner plus the pro-rata share of any building-wide improvements, plus the value of any improvements made to the individual unit exclusive of any grants to such shareholder or unit Owner pursuant to this article, provided that all such amounts shall be calculated from the date of such tenant shareholder's or unit owner's purchase of such shares to the date of resale. (e) In the case of a rental rehabilitation project, that the project shall be operated initially as a rental property, and when located in the city of New York shall be subject to the rent stabilization law of nineteen hundred sixty-nine, and when located in a municipality which has elected to be covered by the provisions of the emergency tenant protection act of nineteen seventy-four, be subject to the provisions of such act. Any subsequent conversion to cooperative or condominium ownership during the period in which such property remains subject to the provisions of this article shall only be allowed with the consent of the corporation and if done pursuant to section three hundred fifty-two-eeee or three hundred fifty-two-eee of the general business law shall only be allowed pursuant to a non-eviction plan. The conversion of a rental rehabilitation project to cooperative or condominium ownership shall make the cooperative or condominium subject to the provisions of this article for cooperative or condominium projects for the remaining term which the rental rehabilitation project was to be subject to the provisions of this article. or (f) To be located in an area which is blighted, deteriorated or deteriorating, or has a blighting influence on the surrounding area, is in danger of becoming a slum or a blighted area because of the existence of substandard, insanitary, deteriorating or deteriorated conditions, an aged housing stock, or vacant non-residential property, or other factors indicating an inability or unwillingness of the private sector unaided to cause the rehabilitation or conversion which is contracted for under this article. 4. Notwithstanding the provisions of, or any regulation promulgated pursuant to, the emergency housing rent control law, the local emergency housing rent control act, or local law enacted pursuant thereto, the rent stabilization law of nineteen hundred sixty-nine, or the emergency tenant protection act of nineteen seventy-four, the eligible applicant with the approval of the corporation shall have the power to set the So in original. (Word misspelled.) initial rent level of any rental housing accommodation which is located in a rental rehabilitation or homesteading project receiving payments, grants or loans under this article. 5. Any cooperative or condominium or rental rehabilitation project which receives payments, grants or loans pursuant to this article shall be subject to its provisions for a period of twenty-five years following completion of rehabilitation work or conversion or for the period during which any loan or indebtedness received under this article remains outstanding, whichever is greater. 6. Any homesteading project which receives payments, grants or loans under this article shall be subject to its provisions for a period of fifteen years following completion of rehabilitation work or conversion, or for the period during which any loan or indebtedness received under this article remains outstanding, whichever is greater. con 7. The corporation shall provide for the review, at periodic intervals at least annually, of the performance of eligible applicants under tract pursuant to this article. Such review shall, among other things, be for the purposes of ascertaining conformity to contractual provisions, the financial integrity and efficiency of eligible applicants and the evaluation of the project. Contracts entered into pursuant to this article may be terminated, funds may be withheld and unspent funds may be recaptured by the corporation upon a finding of substantial nonperformance or breach by the eligible applicant of its obligations under its contract. 8. Preference in the awarding of contracts shall be given to economically feasible projects which contain a substantial number of persons of low income whose income does not exceed fifty percent of the median income for the metropolitan statistical area in which the project is located, or if the project is located outside such an area, to projects which contain a substantial number of persons of low income whose incomes do not exceed fifty percent of the median income for the county in which the project is located. § 1103. General and administrative provisions. 1. The corporation shall issue and promulgate rules and regulations for the administration of this article. The rules and regulations shall include provisions concerning the eligibility of applicants for payments, grants and loans under this article; funding criteria and the funding determination process; supervision and evaluation of contracting applicants; reporting, budgeting and record-keeping requirements; provisions for modification and termination of contracts; and such other matters not inconsistent with the purposes and provisions of this article as the corporation shall deem necessary or appropriate. 2. The corporation may provide technical services and assistance or contract to provide technical services and assistance to eligible applicants to comply with the provisions and intent of this article which services and assistance may include but shall not necessarily be limited to rehabilitation skills training, site selection, financial packaging and engineering and architectural services necessary for the preparation of proposals for entering into contracts or for the continued operation of cooperative or condominium, homesteading or rental rehabilitation projects. 3. (a) The corporation shall, on or before December thirty-first of each year, submit a report to the legislature on the implementation of this article. Such report shall include but not be limited to (i) a description of the distribution of funds pusuant to this article, (ii) the amounts of each payment, loan and grant and the identity of the eligible applicants receiving such funds, (iii) for each eligible applicant receiving payments, grants or loans under this article, such eligible applicant's address and executive director's name, a description of such eligible applicant's contract amount and cumulative total, a narrative description of the specific activities performed by such eligible applicant and the quantified results thereof expressed as housing units, (iv) outstanding and grants, (v) methods of selection of eligible applicants, (vi) income statistics on initial occupants of project, (vii) location of projects and (viii) number of units of each category of project completed during the year or in process. So in original. (Word misspelled.) EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law (b) The corporation shall, on or before September fifteenth in each year, submit a proposed budget for the operation of the corporation for its next fiscal year to the director of the budget for his review. The chairman of the corporation shall also deliver a copy of such budget to the chairman of the senate finance committee and the chairman of the assembly ways and means committee at the same time that the budget is delivered to the director of the budget. The budget shall include the total amount amount* needed for corporate purposes, including the funds required by the corporation for its general and administrative expenses, the source of all funds that the corporation expects to receive and such other information as the director of the budget shall require. ARTICLE XIX AFFORDABLE HOME OWNERSHIP DEVELOPMENT PROGRAM Section 1110. Statement of legislative findings and purpose. 1112. Affordable home ownership development contracts. a 1110. Statement of legislative findings and purpose. The legislature hereby finds and declares that home ownership by persons of low and moderate income has long been, and still is, an essential element of the state's social economy, resulting in the development, stabilization and preservation of neighborhoods and communities. The legislature further finds that persons of low and moderate income require assistance to enable them to supplement their own resources and the ability of the private sector to make the availability of private home ownership reality. By providing home ownership assistance the state may narrow the gap between the resources of the individual and the high cost of home ownership and by requiring leveraging may cause investment of other public and private funds. The appeal of private home ownership has been demonstrated to be a strong incentive to families to move into areas which otherwise may be in danger of becoming blighted through neglect and the lack of investment. Pride in ownership will halt deterioration and offer the prospect of turnaround. The legislature further finds that adequate private resources are often not available to persons with modest incomes to acquire, rehabilitate or construct their homes and that the preservation of and development of existing private homes can often prevent an area from becoming a slum or a blighted area. In addition, stimulation of the level of activity in construction of new affordable homes will provide needed jobs and stability for communities. § 1111. Definitions. 1. "Home" shall mean a one to four family dwelling which has at least one owner occupant or an owner occupied unit in a Cooperative or a condominium. 2. "Eligible applicant" shall mean a municipality, a housing development fund company incorporated pursuant to article eleven of this chapter or any not-for-profit corporation or charitable organization, which has as one of its primary purposes the improvement of housing. 3. "Grantee" shall mean an eligible applicant which operates a program of financial assistance pursuant to this article. 4. "Owner" shall mean an individual who owns or agrees to purchase a home assisted under this program and to occupy it as his principal place of residence or a partnership, corporation or other entity which will build or rehabilitate vacant properties for sale to home buyers. or 5. "Home buyers" shall mean individuals or households for whom there are no other reasonable and affordable homeownership, rehabilitation home improvement alternatives, as the case may. be, in the private market, as determined by the grantee and who shall оссиру a home assisted under this article as their principal place of residence. 6. "Rehabilitation" or "home improvement" shall mean all work necessary to bring a home into compliance with all applicable laws and regulations including but not limited to the installation, replacement or repair of heating, plumbing, electrical and related systems and the elimination of all hazardous and immediately hazardous violations in the structure in accordance with state and local laws and regulations of state and local agencies. Rehabilitation or home improvement may also include work to improve the habitability or prolong the useful life of a home. So in original. (Duplicate language. ) |