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Sponsors
Senator · Senate District 57
No co-sponsors yet.
History
- Substituted by A9360
- Advanced to third reading
- 2nd report cal.
- 1st report cal.380
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extends expiration of authority granted to the department of housing preservation and development of city of New York to restructure rents of dwelling units in buildings foreclosed upon by the federal government
Signed by Governor · Sponsor Keith L.T. Wright
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6878
Title of bill
An act to amend chapter 253 of the laws of 2004, amending the private housing finance law relating to rehabilitated multiple dwellings acquired and reconveyed by the federal government, in relation to extending the effectiveness thereof
Summary of provisions
Chapter 253 of the Laws of 2004 granted the New York City Department of Housing Preservation and Development the authority to restructure the rents of dwelling units in buildings acquired by the federal government as a result of the foreclosure of a mortgage loan insured or held by the federal government. The restructuring authority was conditioned upon the properties being rehabilitated, and is scheduled to expire on June 30, 2014. This bill extends this authority to June 30, 2018.
Reasons for support
The federal 203(k) home mortgage scandal left approximately 500 small homes, tenements and brownstones in New York City facing foreclosure because the properties were bought and resold at inflated prices with owners in many instances pocketing the money that was intended for necessary repairs.
The Federal Department of Housing and Urban Development (HUD) and the New York City Department of Housing Preservation and Development (HPD) have been undertaking a joint effort to rehabilitate and transfer these buildings to qualified owners. HUD has agreed to contribute $130 million in federal money toward the rehabilitation cost.
The authority to restructure rents following the rehabilitation of a building is necessary for the operation of an affordable housing development. It is essential that sufficient building income exist to pay the maintenance, operating costs and debt service of a multiple dwelling or small home. Rent restructuring authority currently exists in every rehabilitation statute found in the New York State Private Housing Finance Law. Such authority is conditioned, however, upon the rehabilitation being financed by City capital funding. In the instance of the 203k properties, the rehabilitation financing is Federal. This legislation would extend the authority to restructure rents for 203k properties to June 30, 2018.
Permitting these troubled properties to be eligible for rent restructuring is essential in order for these buildings to be a source of affordable housing for the residents of the City of New York.
Effective date
Immediately with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.