Establishes the mobile and manufactured home replacement program

Title of bill

An act to amend the private housing finance law, in relation to the mobile and manufactured home replacement program

Purpose

Establishes the mobile and manufactured home replacement program.

Summary of provisions

Section 1 amends the private housing finance law by adding a new article 28. Section 2 establishes the effective date.

Justification

Mobile and manufactured homes provide an important source of affordable housing throughout the State. Many of these homes are older and dilapidated with rusted, leaking metal roofs, holes in flooring, leaky metal-framed windows with interior take-outstorms. No matter the amount of rehabilitation investment, the end result is unsatisfactory in terms of longevity, energy efficiency and affordability.

The Mobile and Manufactured Home Replacement Program will fund the replacement of older, dilapidated mobile and manufactured homes that are sited on land owned by the homeowner, with new affordable and energy efficient manufactured, modular or site-built homes. This program will have a multiplier effect for the area as local contractors, labor and building materials are used.

Eligible units of local government, or not-for-profit organizations may apply to the New York State Housing Trust Fund Corporation to administer a local Mobile and Manufactured Home Replacement Program of up to $500,000. Local program administrators would be entitled to an administrative fee of 7.5%.

Eligible property owners, with a total household income not to exceed eighty percent of area median income, may apply through a local program for funding of up to $100,000 for replacement of their dilapidated mobile or manufactured home. As a condition of eligibility, property owners may not have liens on the land after closing the grant other than the new home financing and currently existing mortgage or mortgages, and all property taxes and insurances must be current. Recipients must live in the replaced home for ten years, or recapture terms would apply. Eligible property owners must complete a homeownership training program for which includes household budgeting, home maintenance, predatory lending and post-purchase counseling.

This program is an important component of replenishing the affordable housing stock in New York State.

Legislative history

New bill

Fiscal implications

This program would be funded subject to annual appropriations made through the State budget.

Effective date

This act shall take effect immediately