Establishes the community reinvestment program

Title of bill

An act to amend the state finance law, in relation to establishing the community reinvestment program; and establishes the community reinvestment program fund council

Purpose

To create within the Division of Housing and Community Renewal a "Community Reinvestment Program" as a statewide program to protect communities throughout the state by: (i) preventing foreclosures when possible, (ii) reducing blight, (iii) restoring property tax revenue, and (iv) supporting affordable housing options.

Summary of provisions

§ 1 - Statement of legislative purpose and findings

§ 2 - definitions

§ 3 - add new section 85 to the finance law establishing the "Community Investment Program Fund" in the custody of the state comptroller for the purposes of:

§ 4 - Creates a 27-member Community Reinvestment Program Fund Council appointed by the Governor upon advice and consent of the Senate to serve as an advisory board to the program manager comprised as follows:

*The Commissioner of Housing and Community Renewal or his or her designee;

*The Commissioner of Economic Development or his or her designee; The Chair of the Senate Committee on Housing, Construction and Community Development or his or her designee;

*The Chair of the Assembly Committee on Housing or his or her designee;

*23 Community based, not-for-profit members with two from each regional economic council area outside the city of New York (Western, Central, Finger Lakes, Southern Tier, Mohawk Valley, North Country, Capital Region, Mid-Hudson Region and Long Island). One member from each borough of NYC.

§ 5 - Requires Annual reporting to the Legislature

§ 6 - Makes the Community Reinvestment Program a governmental entity within the Division of Housing and Community Renewal, and makes this program the primary state program for purposes of distressed asset purchases. Requires notification to the program manager within 30 days of a distressed asset purchase not made by the program.

§ 7 - Authorizes the Division of Housing and Community Renewal to promulgate rules and regulations necessary to fulfill the purposes of this act provided guidelines ensure that no more than 40% of funds shall be spent in any one economic development council area annually.

§ 8 - immediate effective date

Existing law

Currently there is no statewide Community Reinvestment Program

Justification

New York's mortgage foreclosure crisis is ongoing. This state's communities have been devastated by the dramatic increase in foreclosures since the 2008 financial crisis. Many New Yorkers are working to keep their homes, but are faced with a mortgage servicing system moving too slowly. Communities across the state struggle to cope with vacant, distressed or abandoned properties that, if repaired and returned to the market, would be affordable housing and generate tax income for municipalities. The creation of a "Community Reinvestment Program" as a statewide program to protect communities throughout the state by: (i) preventing foreclosures when possible, (ii) reducing blight, (iii) restoring property tax revenue, and (iv) supporting affordable housing options.

Legislative history

New Legislation

Fiscal implications

To be determined

Local fiscal implications

To be determined

Effective date

Immediately