Establishes the New York main street program

BILL NUMBER:A7967A

Title of bill

An act to amend the private housing finance law, in relation to establishing the New York main street program

Purpose or general idea of bill

This bill would amend the Private Hous- ing Finance Law ("PHFL") to create the New York Main Street Program (the "Program") to be administered by the Housing Trust Fund Corporation ("HTFC").

Summary of specific provisions

Section 1 of the bill establishes the New York Main Street Program as Article XXVI of the PHFL. The Program supports renewal of New York cities, towns and villages by providing funds earned by the HTFC from administering federal programs for down- town streetscape improvement, facade renovation, building rehabilitation and/or residential rehabilitation. Contracts may not exceed $500,000, with up to 7.5% of the award allowed for planning and administrative costs.

Section 2 of the bill provides for an immediate effective date.

Existing law

No statute authorizes the New York Main Street Program, but the HTFC has funded the New York Main Street Program under the Urban Initiatives and the Rural Area Revitalization Projects, PHFL Arts. XVI-A and XVII-B respectively, which authorize similar activities to what is proposed.

Statement in support

The HTFC created the New York Main Street initi- ative in 2004 to support the renewal of New York's cities, towns, and villages. HTFC, with funds earned from administering federal programs, has awarded funds to support local main Street efforts across the State. Main street awards are intended to improve downtown areas by providing funds for streetscape improvement, facade renovation, building rehabili- tation and/or residential rehabilitation, with the goal of establishing long-term downtown and neighborhood commercial area revitalization programs which also favorably impact residential housing.

HTFC has now conducted six competitive rounds and received 518 applica- tions for main street awards from more than 200 different not-for-profit agencies in all 62 counties. The total amount requested in these appli- cations was $108,688,806. HTFC has made 239 awards in more than 149 communities in 60 counties for a total amount of $48,742,540. In addi- tion, the New York Main Street Program has provided $8 million for relief of the flood damage as a result of the floods of June 2006. The strong demand for this program over the last six years demonstrates the need to create a stand-alone program for these activities. The proposed statute will improve the effectiveness of the program by expanding eligibility to allow local governments to participate in the program, increasing the maximum award from $200,000 to $500,000, authorizing awardees to spend up to 7.5% of the award for administrative and plan- ning funds to cover the costs of implementing the program, and allowing for contract term extensions when necessary.

Prior legislative history

None.

Budget implications

None.

Effective date

This bill takes effect immediately.