Authorizes certain towns in the Peconic Bay region to establish community housing opportunity funds

(a) general fund balances or surpluses

(b) funds received by the town from the appointment of mortgage recording taxes received from the county pursuant to article eleven of the tax law

(c) funds received by the town from the sale of development rights from a central bank created pursuant to section sixty-four-e of this article

(d) any proceeds received by the local government from the sale of affordable housing produced from revenues of the fund

(e) the repayment of any loans issued from proceeds of the fund

(f) any gifts of interests in land or funds

(g) any state or federal grants received by the town for providing affordable homes; and

(h) funds received by the town from fees paid to the town pursuant to sk 1nclusionary zoning law where authorized by the legislature Interest accrued by monies deposited into the fund shall be credited to the fund.

In no event shall monies deposited into the fund be transferred to any other account.

2. The proceeds of the fund shall be used in the following ways:

(a) The provision of no-interest or low-interest loans to eligible residents of the town for the purchase of a first home.

(b) The actual production of community housing for sale to eligible individuals by the town.

(c) The actual production of community housing for sale to eligible individuals in conjunction with a public/private partnership, where the private partner agrees to comply with the profit guidelines of the New York State affordable housing corporation.

(d) The actual production and maintenance of rental housing for rent to eligible individuals either by the town, the town housing authority, or in conjunction with a public/private partnership, where the private partner agrees to comply with the profit guidelines of the New York State affordable housing corporation.

(e) The rehabilitation of existing buildings and structures in the town for the purpose of conversion to community housing for sale or rental to eligible individuals.

(f) The provision of housing counseling services by not-for-profit corporations who are authorized by the United States department of housing and urban development to provide such services; and

(g) The provision of education impact payments to school districts.

3. This bill establishes an advisory board. It can consist of no less than 7 members and no more than 15 members. The board must consist of representatives from the building industry, the real estate industry, the banking industry, and three representatives of local housing advocacy or human services organizations. No member of the local legislative body can serve on the advisory board. If the town consists of villages or Native American nations, then the board must contain at least one member from each group if they consent.

4. This bill adopts a smart housing plan which must be established before implementing the housing plan with the fund. This plan contains the following smart growth principles:

(a) Public investment to minimize costs

(b) Development in areas where transportation, water, and sewage infrastructure are available

(c) Conservation of nature

(d) Coordination among communities for increased cooperation

(e) Community design to strengthen communities through development and redevelopment strategies

(f) Transportation to provide safe, smarter, and cleaner choices for people

(g) Consistency to insure predictability in building and land use codes

(h) Community collaboration

5. Native American nation participation shall be on an optional basis where the nation must pass a resolution opting into the program and submit that resolution to the town board. An intergovernmental agreement must be executed to establish the rights and responsibilities of each government regarding community housing opportunities.

6. Referendums must be held regarding the adoption of the housing plan and the housing fund. Only upon a successful referendum shall the housing plan and funds be established.

Justification

The legislature hereby finds the Chapter 114 of the Laws of 1998 enacted the Peconic Bay Region Community Preservation Fund law. Said law permitted the five towns of the Peconic Bay region to establish a dedicated fund for the acquisition of interests in real property for the purposes of open space, farmland, and historic preservation, as well as park and recreation purposes. The revenue for said fund was derived from a 2% real estate transfer tax. Community Preservation Funds in each of the five Peconic Bay region towns were approved overwhelmingly by public referendum.

The enactment of this land preservation has been an incredible success. The funds have generated over $100 million as of July 2002, resulting in thousands of acres of land being protected on eastern Long Island. The program has received national recognition for its innovative and creative approach to community preservation.

Just as critical to the future of the region of the human need to protect community stability by providing for an adequate supply of community housing opportunities for all segments of the Peconic Bay community. The availability of affordable opportunities for moderate income and working class residents is in critically short supply. The adverse impacts from this shortage of housing opportunities are critical. For example, local employers have difficulty hiring and retaining employees because of housing and availability. Local volunteer emergency service agencies experience difficulty in recruitment and retention. Traffic congestion is exacerbated by the importation of labor from areas with lower housing costs. Other land uses such a motels, are being converted to emergency and permanent housing. Finally, the lack of affordable housing is resulting in residents being forced to live in substandard, illegal conditions.

It is the purpose of this legislation to give the towns of the Peconic Bay region the authority and resources needed to establish community housing opportunities. Specifically, this legislation would permit each town to establish a dedicated community housing opportunity fund to increase housing opportunities in the region. Said fund would be financed by a combination of state and local funds. Further, a town housing plan adhering to smart growth principles would be required to be approved and implemented to insure that these new housing opportunities are enacted in the context of a comprehensive plan. The fund would be enacted by local law subject to a mandatory referendum.

Legislative history

2013-14 S.1860A/A.1462A; 2011-12 S.806; 2009-10 S.740; 2007-08, S.656; 2004-05, S.1636, 2003-04, S.4284-A.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.