Establishes the empire state housing investment fund act of 2009

Summary of provisions

There is hereby created the Empire State Housing Investment Fund (hereinafter "Housing Investment Fund" or "Fund") to dedicate public resources to expand the supply of affordable housing and meet the housing needs of low income households in the state of New York. The Housing Investment Fund shall be held as a separate fund within the State Treasure, administered by the Program Administrator, with advice and oversight by the Housing Investment Fund Commission.

There shall be deposited in the trust fund such amounts as may become available under the provisions of this Act. Unencumbered and unobligated moneys remaining in the Fund at the close of each fiscal year shall remain available for expenditure for the same purposes in the succeeding fiscal year.

Distribution Requirements:

Section XX05 outlines the distribution requirements as follows: up to sixty (60%) of available moneys in the Fund may be awarded on a competitive basis to Local Housing Trust Funds; and at least forty (40%) of available moneys in the Fund shall be awarded directly to project applications on a competitive basis. Additional distribution requirements include but are not limited to: no more than 50% of total funds shall be allocated to any one municipality; authority to award limited funds on an emergency basis; and a geographic distribution recommendation.

Local Housing Trust Funds: Certification and Eligibility for Funding (Section XX06):

Local Housing Trust Funds Shall apply to the Program Administrator annually to be certified to receive support from the Trust Fund (paragraph 3.), and meet eligibility requirements.

Program Administrator shall set forth program rules and regulations, and shall notify the Local Housing Trust Fund applicant of its approval for certification or reasons for denial, and maintain a list of certified Local Housing Trust Funds on its web site. Applications shall be reviewed separately from requests for certification.

Activities Eligible for Assistance (Section XX07):

All eligible activities and uses are outlined, and include but are not limited to: make grants, mortgages, or other loans to acquire, construct, rehabilitate, develop, preserve, and insure affordable single family and multi-family housing for low income, very low

income, extremely low-income, and poverty-level households with priority for funding to projects serving poverty-level households; site preparation, including demolition; up to 5% of funds deposited in the Fund may be used to subsidize operating and maintenance expense to make housing units affordable to poverty-level households; to make grants to non-profit organizations for (i) the provision of technical assistance (2) outreach, and; (3) building an organization's capacity to develop affordable housing projects for low income, very low income, extremely low-income, and poverty-level households; support mixed income development as outlined and defined in paragraph (5); multi-family new construction shall meet adaptability standards; funds may be used to provide home modifications to make a home accessible to a resident of any age with a disability; all new construction of single family homes shall meet visitability standards; and no more than ten (10%) percent of Fund re sources annually may be used to administer the Fund.

Housing Investment Fund restrictions and stipulations:

Section XX08 details fair housing requirements; deed restrictions requiring affordability for a period of not less than ninety-nine years, with a formula to be established to provide homeowners in assisted projects with a portion of the equity that has accrued in the property; loan guidelines; assistance for housing units for low-income, very low-income, extremely low-income and poverty level households in multifamily housing that is already occupied partly by such households and partly by households not qualifying as having incomes at low-income level or less; multi-family housing assisted by the Fund shall be prohibited from refusing to accept tenants for occupancy solely because the tenant receives governmental rental assistance; assisted project(s) must not result in permanent displacement of low or moderate income residents, with the cost for rent and utilities not to exceed 30 percent of the tenant's household income; housing assisted by the Fund shall be required to meet energy efficiency standards established by the Program Administrator,; and It is intended that Housing Investment Fund monies not be used to supplant existing resources.

Eligible Applicants: (Section XX09)

Identifies eligible applicants, including not-for-profit corporations, partnerships with not-for-profit corporation or charitable organization or subsidiary thereof; for-profit developer, provided that such entities shall only be eligible to receive loans; municipality or county; municipal housing authority; and Local Housing Trust Fund that meets the criteria in Section XX06.

Program Administrator - Duties:

Section XX10 outlines all authority of the Program Administrator, including but not limited to the power to identify, select and make financing available to eligible applicants from Monies in the Fund or from monies secured by the Fund for affordable housing for income eligible families; purchase first and second mortgages, to make loans or to issue grants, payments or subsidies for the predevelopment expenses, acquisition, construction, rehabilitation development, operation, insurance, or retention of projects in support of

affordable single family and multi-family housing for low and very low-income households; establish applications, notification procedures and other forms and to prepare and issue rules deemed necessary and appropriate to implement this Act with consultation from the Commission;

And to receive and accept any gifts, grants, donations or contributions from any source, of money, property, labor or other things of value, to be held, used and applied to carry out the purposes of this Act subject to including, but not limited to, gifts or grants from any Department or agency of the United States or the State or from any local unit of government, not-for-profit organization or private firm or individual for any purpose consistent with this Act; and exercise such powers as are necessary or incidental to the administration of this Act.

Advisory Commission - Establishment:

Section XX11 creates the Empire State Housing Investment Fund Advisory Commission, whose members shall be residents of the state and should, to the extent possible, reflect the demographics of the state with respect to geography, race, gender, and urban-rural mix; with specific composition, appointment and responsibilities outlined in paragraphs 1 - 8.

Annual Reporting:

Section XX12 outlines all reporting requirements, including an annual public report, and an evaluation, to be conducted on a periodic basis, of the economic impact of the Fund on the state and local economies.

Justification

Legislative findings show that there is a serious shortage of decent affordable housing in the State for persons of low income, very low income, extremely low income and poverty-level income; that the cost of providing such housing without public participation and assistance is prohibitively high; 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; new state resources must be directed to alleviate the shortage of affordable housing; and that new state resources should be provided to maximize the leveraging of federal and local resources, as well as support from the private sector.

Legislative history

None. This is new legislation.

Fiscal implications

Undetermined.

Effective date

This act shall take effect on the 60th day after it shall have become a law.