Relates to activities engaged in by neighborhood preservation companies

3 Co-sponsors

• Ruth Hassell-Thompson
• Liz Krueger
• Suzi Oppenheimer

Title of bill

An act to amend the private housing finance law, in relation to activities engaged in by neighborhood preservation companies

Purpose of the bill

This bill would amend Private Housing Finance Law ("PHFL") Articles 16 and 17.

Summary of provisions

Section 1 of the bill would amend PHFL § 902(5) to permit a neighborhood preservation company that is operating within a designated neighborhood in a municipality to expand its service area to include underserved areas of the municipality.

Section 2 of the bill would add a new subdivision 7 to PHFL § 902 to define a "compelling public purpose" which would permit the division of housing and community renewal to exceed contract funding caps in order to expand a neighborhood preservation company's service area to include underserved areas of the municipality.

Section 3 of the bill would amend PHFL § 903(4) to authorize the Division of Housing and Community Renewal ("DHCR") to exceed the applicable limit on the annual contract amount if it is determined that such additional funding will address a compelling public purpose.

Section 4 of the bill would add a new subdivision 7 to PHFL § 1002 to define a "compelling public purpose" which would permit the DHCR to exceed contract funding caps in order to expand a rural preservation corporation's service area to include underserved rural areas.

Section 5 of the bill would amend PHFL § 1003(4) to authorize the DHCR to exceed the applicable limit on the annual contract amount if it is determined that such additional funding will address a compelling public purpose.

Section 6 of the bill provides for an immediate effective date.

Existing law

Currently, the law caps the funds a rural or neighborhood preservation company can receive in any one fiscal year and restricts a neighborhood preservation company's service area to a geographically defined neighborhood of a municipality.

Prior legislative history

This is a new bill.

Statement in support

The proposed amendments will improve the effectiveness of neighborhood preservation company programs by providing the DHCR with the discretion to exceed annual funding caps to address a compelling public purpose and to expand a neighborhood preservation company's service are to include underserved areas of the municipality. A compelling public purpose includes the merger or consolidation of two or more preservation companies or corporations where the pre-existing service areas of all merged or consolidated companies and corporations remain served following the merger or consolidation, and such action results in more efficient and cost effective delivery of services.

Budget implications

None. This bill could be implemented with the funds currently available for these programs.

Effective date

This act shall take effect immediately.