Enacts the Housing New York Program for the twenty-first century

10 Co-sponsors

• Neil D. Breslin
• Ruben Diaz
• Martin Malavé Dilan
• Ruth Hassell-Thompson
• Brad Hoylman-Sigal
• Liz Krueger
• Velmanette Montgomery
• Kevin S. Parker
• José M. Serrano
• Malcolm A. Smith

BILL NUMBER:S1242

Title of bill

An act in relation to enacting the housing New York program act for the twenty-first century and to amend the private housing finance law, in relation to the housing New York corporation

Purpose

To establish a major new source of funding for the creation of affordable housing in New York City, utilizing surplus revenues of the Battery Park City Authority.

Summary of provisions

Section 1 of this bill enacts the Housing New York Program Act for the Twenty-First Century. Under the Act, New York City is authorized to use funds provided by the Housing New York Corporation to acquire, construct and rehabilitate residential housing. The Act contains provisions requiring that such housing be kept affordable for low and moderate income families, that displacement be kept to a minimum and that the City maintain its housing program efforts notwithstanding the new funds provided by this legislation.

Section 2 of the bill authorizes the existing Housing New York Corporation, which is a subsidiary of the New York City Housing Development Corporation, to borrow money and provide funds to New York City for the purposes of the Housing New York Program for the Twenty-First Century. The Corporation's bonding authority is raised from $400 million to $800 million.

Justification

This bill creates the Housing New York Program for the Twenty-First Century to provide funding for new construction and rehabilitation of affordable housing in New York City. Surplus revenues from the Battery Park City Authority will be dedicated to pay debt service on bonds to be issued by the Housing New York Corporation up to a total of $800 million dollars. Bond proceeds may be used by the City of New York to fund affordable housing programs in addition to those programs that would otherwise be funded through its normal budget process.

This program is a successor to the original Housing New York Program that was created by the legislature in 1986. That program achieved considerable success before its funding authorization expired on July 1, 1995. Currently, the Battery Park City Authority produces an annual surplus of approximately $60 million, after payment of its operating expenses and debt service. This surplus will be sufficient to support the additional bonding authorized to fund this new housing program.

The Housing New York Corporation has an unused bonding authority of approximately $200 million which, together with the additional borrowing authorized by this bill, will provide approximately $600 million of funds to the new housing program. It is estimated that such funds will support the construction and rehabilitation of

approximately 12,500 units of affordable housing for the residents of New York City.

Legislative history

2011-12: S.1376 - Referred to Housing, Construction and Community Development 2009-10: S.1139 - Referred to Housing, Construction and Community Development 2007-08: S.2917 - Referred to Housing, Construction and Community Development 2005-06: S.1737 - Referred to Housing, Construction, and Community Development 2004: S.7409 - Referred to Rules

Effective date

This act shall take effect immediately.