Includes moderate rehabilitation within projects eligible for assistance under the low income housing trust fund program

Title of bill

An act to amend the private housing finance law, in relation to the low income housing trust fund program

Purpose

The bill authorizes the Housing Trust Fund Program to make grants or loans for the moderate rehabilitation of occupied buildings.

Summary of provisions

This bill amends the Private Housing Finance Law to state that the legislative findings and purpose for the Housing Trust Fund Program is changed by adding a finding that there exists throughout the State a significant number of occupied, as well as vacant or underutilized, dwellings which are deteriorated, unsafe or substandard.

This legislation also authorizes the Housing Trust Fund Corporation (HTFC) to fund Moderate Rehabilitation projects and eliminates for such projects the existing requirement that structures eligible for financing under the Trust Fund Program be vacant or under occupied.

Justification

Existing law limits the Housing Trust Fund Program to rehabilitating, constructing, or converting only those properties that are vacant or under occupied (i.e., less than 60 percent of legal occupancy).

The need for the rehabilitation of deteriorated, unsafe, or substandard structures occupied by persons of low income exists throughout the State, especially in rural areas. Authorizing the HTFC to finance the improvement and repair of this housing will enable the State to address the problems of substandard housing before a structure becomes uninhabitable and, possibly, irreparable.

Legislative history

S.374 (2007) - Passed Senate S.6265-A (2005) A.9590-A (2005) - Passed Senate A.4802 (2004)

Fiscal implications

The moderate rehabilitation proposal will primarily be implemented through participation loans, thus reducing the amount of public funds necessary to complete such projects.

Effective date

This act shall take effect immediately.