Authorizes the N.Y. city housing authority to transfer or restructure the ownership of all or part of certain housing developments

Summary of specific provisions

The bill authorizes the New York City Housing Authority (NYCHA) to sell or lease all or part of the projects commonly known as Marlboro Houses, Chelsea Houses,- Castle Hill Houses, 344 East 28th Street, Amsterdam Addition, Bushwick Houses, Stephen Wise Towers, Arthur H. Murphy Houses, Baychester Houses, Jonathan Williams Plaza, Drew-Hamilton Houses, Independence Towers, Rutgers Houses, Stapleton Houses and Manhattanville Houses, located in the city of New York, counties of Bronx, Kings, New York and Richmond, for the purpose of rehabilitation of the projects.

In particular, subdivision 1 sets out the legislative findings. Enumer- ated in this subdivision are protections for tenants in city financed Projects. The city financed projects include Marble Hill Houses, St. Mary's Park Houses, Bay View Houses, Boulevard Houses, Linden Houses, and Samuel Houses. Subdivision 2 authorizes the New York City Housing Authority, with the approval of the commissioner of the division of housing and community renewal, to sell or lease all or part of the projects commonly known as Marlboro Houses, Chelsea Houses, Castle Hill Houses, 344 East 28th Street, Amsterdam Addition, Bushwick Houses, Stephen Wise Towers, Arthur H. Murphy Houses, Baychester Houses, Jona- than Williams Plaza, Drew-Hamilton Houses, Independence Towers, Rutgers Houses, Stapleton Houses, and Manhattanville Houses in the city of New York for the purpose of redeveloping the project for low income fami- lies. The commissioner shall not grant approval unless new federal assistance is significantly more likely to be available after rehabili- tation and new operation. Subdivision 3 establishes the guidelines for occupancy, and that all applicable requirements of federal public hous- ing projects continue to apply after the sale or lease of the project. Subdivision 4 continues state subsidies for debt service on outstanding bonds, notes, or other obligations for the projects. Subdivision 5 requires the New York City Housing Authority to circulate a notice to all tenants in the listed public housing projects, containing informa- tion regarding the transfer and federalization process, as well as the tenants' rights. Subdivision 6 requires copies of the annual project activity report, which is related to both the state and city projects listed in this section, to be submitted to the commissioner of the divi- sion of housing and community Renewal and to various elected officials in the Assembly and the Senate.

Section 2 states that the act shall take effect immediately, provided, however; that the provisions of subdivision 4 of section 402-b of the

public housing law shall apply to any debt service payments which become due after such date.

Justification

Currently, none of these developments are included in the formulas by which HUD provides NYCHA Operating and Capital subsi- dies. As a result, NYCHA must draw down from its regular Federal Operat- ing fund and Capital fund and apply them to the State and City develop- ments. This lack of dedicated Federal subsidy, and the elimination of State operating subsidies, has contributed to operating deficits at not just the State/City developments, but to the structural deficits NYCHA is experiencing on agency-wide bases.

The American Recovery and Reinvestment Act (ARRA) provides NYCHA with a one-time opportunity to address the deficits generated at the State/City developments and to ameliorate NYCHA's structural deficit. ARRA permits Public housing authorities to bring additional units into the federal public housing portfolio and receive full Federal funding so long as such units are developed using ARRA funding. Since the physical needs of the State developments are so significant, non-Federal funds in addition to ARRA funds will be required to undertake and complete the level of necessary rehabilitation. In order to accomplish this, NYCHA will be required to employ HUD's mixed-finance approach for public housing developments, but must do so within the strict obligation and expendi- ture deadlines imposed by ARRA, on or no later than March 17, 2010. Be receiving operating and capital subsidies from the federal government on a regular basis, it ensures that the state and city financed projects will remain public housing within the financial reach of low-income persons or families.

Prior legislative history

New Bill

Fiscal implications

None to the State

Effective date

This act shall take effect immediately, provided, howev- er, that the provisions of section four of this act shall apply to any debt service payments which become due after such date.