Relates to urban development action areas

BILL NUMBER:S5914 REVISED 6/17/15

Title of bill

An act to amend the general municipal law, in relation to urban development action areas

Purpose

To continue to allow Section 202 and Section 811 housing units accelerated review process until June 30, 2018.

Summary of provisions

Existing provisions of Article 16 of the General Municipal Law permit expedited land use review under Urban Development Action Area Project (UDAAP) for low income residential rental developments for seniors and the disabled that are funded by the federal government (commonly known as Section 202 and Section 811 housing) until June 30, 2015. This bill would continue to allow Section 202 and Section 811 housing units to be subject to the UDAAP accelerated review process until June 30, 2018.

Existing law

Current law expires on June 30, 2015.

Justification

This bill would strongly assist in the development of federally financed housing for low-income elderly and disabled persons by continuing to make such developments eligible for expedited land use review. Under Section 202, the Supportive Housing for the Elderly Program, and Section 811, the Supportive Housing Program for Persons with Disabilities, not for profit sponsors purchase City owned land and construct new multiple dwellings with financing from the United States Department of Housing and Urban Development (HUD). The completed buildings provide rental housing for elderly or disabled persons of low income and receive operating subsidies from HUD. Since 2002, HUD has financed over 2,800 units of Section 202 and Section 811 housing in New York City. Over 95% of these units were allocated to the low income elderly, and the majority are located in areas of Brooklyn and the Bronx where the demand was greatest for this desperately needed, but scarce, housing resource.

As a general rule, the sale of City-owned land for such projects is subject to the Uniform Land Use Review Procedure (ULURP), which can take as long as 11 months to complete and delays the availability of affordable housing for these vulnerable populations. Expedited land use review under the UDAAP provisions in Article 16 of the General Municipal Law, however, can take as little as 150 days. For federally funded Section 202 and Section 811 developments, the difference between getting approval in 150 days compared to 11 months can be significant. Once the competitive funding for these HUD developments are allocated, the timeframes for completion cannot be renegotiated. A lengthy approval processes can quickly result in rising costs, requiring the City to find additional funds from other sources, exceedingly scarce in this fiscal environment, to cover the delay-caused overruns. This, in turn, stretches out the development process even longer. Continuing to allow land use review of Section 202 and Section 811 developments to proceed under UDAAP shortens the approval process while still maintaining the City Council's full land use review authority, and will help to ensure the timely and successful completion of these important housing developments.

The ability to accelerate the land use approval process of these developments will sunset on June 30, 2015. This legislation extends

such date until June, 30, 2018. No more than 6 such developments annually will be subject to this expedited land use process and developments subject to this authority cannot exceed 90 dwelling units. Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.

Legislative history

Extended on June 30, 2012 to expire on June 30, 2015.

Fiscal implications

None to the State.

Local fiscal implications

Unknown.

Effective date

This Act shall take effect immediately.