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S6878Senate2013-2014 SessionSame asA9360

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

Sponsor Catharine YoungSD-57Affects Housing
Status
Senate Floor Calendar
Impact
Pending
Outcome
Companion signed

Bill progress

Signed via A9360

What's happening

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Who cares

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Sponsors

Primary sponsor
Catharine Young

Senator · Senate District 57

Chair, Housing, Construction And Community Development

No co-sponsors yet.

History

  1. Substituted by A9360
  2. Advanced to third reading
  3. 2nd report cal.
  4. 1st report cal.380
  5. Referred to housing, construction and community development

Companion bill

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.