What's happening
This bill increases grant limits for affordable homeownership programs and allows long-term resale restrictions to maintain housing affordability.
Why it matters
Raises financial assistance caps for affordable homeownership projects. , allowing more substantial investments per unit—potentially increasing the quality or scope of housing that can be developed or rehabilitated, especially in higher-cost areas.
Permits long-term resale restrictions (up to 99 years) on homes receiving larger grants. , ensuring that housing built or improved with public funds remains affordable for future generations and is not quickly lost to market-rate resale.
Introduces tiered funding based on the depth and duration of affordability. , incentivizing projects that commit to longer and/or deeper affordability, which could lead to more sustainable benefits for low-income families and communities.
Allows projects already in the pipeline to access additional funding under the new, higher limits. , potentially rescuing or enhancing projects that might otherwise face financial shortfalls due to rising costs.
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Who cares
Affordable Housing Corporation
The bill would raise per-unit assistance caps from $35,000 to $50,000 for most projects and from $40,000 to up to $75,000 for high-cost projects or projects receiving federal Farmers Home Administration loans, while requiring tiered funding based on length and depth of affordability.
Affordable homeownership grantees
Grantees receiving project awards over $40,000 could impose resale restrictions lasting 60 to 99 years through deed restrictions, community land trusts or limited-equity cooperatives.
Qualified low-income homebuyers
Optional resale restrictions would reserve covered units for purchase by qualified low-income buyers during the restriction period.
Sponsors of pre-development housing projects
Projects with corporation commitments made before the bill’s effective date would have an opportunity to request additional capital under the new rules.
Headline styles
Increase Affordable Housing Grants
Plain English, a few words. Used as the page title.
Sponsors
19 Co-sponsors
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.458
- Referred to housing, construction and community development
- Print number 1824b
- Amend and recommit to housing, construction and community development
- Print number 1824a
- Amend and recommit to housing, construction and community development
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increase Affordable Housing Grants
Assembly Floor Calendar · Sponsor Latrice Walker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1824--B
2019-2020 Regular Sessions
IN SENATE
January 16, 2019
Introduced by Sens. BAILEY, BENJAMIN, BOYLE, COMRIE, HOYLMAN, JACKSON, KENNEDY, KRUEGER, MONTGOMERY, MYRIE, PERSAUD, SALAZAR, SAVINO, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the private housing finance law, in relation to affordable housing corporation grants
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1112 of the private housing finance law, as amended by chapter 64 of the laws of 2012, is amended to read as follows:
1. Within the limit of funds available in the affordable housing development account, the corporation is hereby authorized to enter into contracts with eligible applicants to provide grants which such applicants shall use to finance affordable home ownership development programs subject to the terms and conditions of this article. Any grants received by a municipality hereunder shall not be deemed to be municipal funds. Grantees shall utilize funds provided pursuant to this article solely as payments, grants and loans to owners to reduce the costs of new construction, rehabilitation or home improvement or the cost of acquisition, but only where such acquisition is part of an affordable home ownership development program or project to construct or rehabilitate homes, or as otherwise authorized by law. Such financial assistance may be in the form of loans, participation in loans including but not limited to participation in loans originated or financed by lending institutions as defined in section forty-two of this chapter, private or public employee pension funds or the state of New York mortgage agency,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05620-05-9
S. 1824--B 2
or grants, on such terms and conditions as the grantee with the approval of the corporation shall determine, provided that no such payments, grants and loans shall exceed the lesser of (i) sixty percent of the project cost for projects involving acquisition or one hundred percent of rehabilitation programs without an acquisition component or (ii) the following per dwelling unit limitations (A) [thirty-five] fifty thousand dollars for projects except as provided in [item] subparagraph (B) of this [clause] paragraph or (B) [forty] up to seventy-five thousand dollars for a high cost project or a project which will receive a loan from the federal farmers home administration. Up to ten percent of the program or project cost may be used for grantee operating expenses including expenses related to the organization operating support and administration of the contract. Among the criteria the corporation shall consider in determining whether a project is a high cost project are: average cost of construction in the area, location of the project, and the impact of the additional funding on the affordability of the project for the occupants of such project. No more than fifty percent of the total amount appropriated pursuant to this article in any fiscal year shall be allocated to homes located within any single municipality.
§ 2. Subdivision 2 of section 1112 of the private housing finance law is amended by adding a new paragraph (j) to read as follows:
(j) In the case of projects that receive an award of over forty thousand dollars, the grantee may establish resale restrictions requiring the sale of the unit or units receiving such funding through a grant from the corporation be purchased only by qualified low-income homebuyers extending for a period of at least sixty years, but no more than ninety-nine years, and the grantee may ensure this resale restriction by use of deed restrictions, community land trusts, or limited-equity cooperative ownership structure.
§ 3. Section 1112 of the private housing finance law is amended by adding a new subdivision 3-a to read as follows:
3-a. In determining awards pursuant to this article, the corporation shall establish tiered project funding levels based on length and depth of affordability.
§ 4. Projects in pre-development that have already received commitments from the corporation prior to the effective date of this act shall be granted the opportunity to request additional capital under the law after the effective date of this act.
§ 5. This act shall take effect on the two hundred fortieth day after it shall have become a law. Effective immediately, the commissioner of homes and community renewal is authorized and directed to take such actions which are necessary for the implementation of this act, including the addition, amendment and/or repeal of any rule or regulation, on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to affordable housing corporation grants
Purpose
OR GENERAL IDEA: Relates to affordable housing corporation grants by increasing the amount that can be granted to a high cost project.
Summary of specific provisions
This amendment to the Private Housing Finance Law Article XIX Section 1112 and related sections that would reflect the following changes:
Section 1. Increases subsidy availability for projects in high cost markets from $40,000 per dwelling unit to up to $75,000/du
Section 2. Requires resale restrictions for no less than GO years and no more than 99 years for projects seeking more than $40,000/du through deed restrictions, community land trusts, or limited-equity cooperative ownership structures.
Section 3. Establishes that the corporation shall establish tiered. project funding levels based on length and depth of affordability.
Section 4. Establishes that projects in pre-development that have already received commitments from ABC under previous guidelines shall be granted the opportunity to request additional capital subsidies under these revised conditions
Justification
The New York State Affordable Housing Corporation ("AMC") is a public benefit corporation, established in 1965 pursuant to Section 45-b of the Private Housing Finance Law ("PHFL") as a subsidiary of the New York State Housing Finance Agency ("HFA"), to administer the Affordable Home Ownership Development Program ("Program") under PHFL Article 19. The purpose of the Program is to promote homeownership by persons of low and moderate income, which, in turn, fosters the development, stabilization and preservation of neighborhoods and communities. To achieve these goals, AHC provides financial assistance, in conjunction with other private and public investment, for the construction, acquisition, reha- bilitation and improvement of owner-occupied housing. This program has not been adjusted to reflect the increased cost of construction over the past 30 years. This bill would support affordable homeownership.
Prior legislative history
2017-18: S.7063B - Committed to Rules
Fiscal implications
The cost to the state and localities in lost revenues due to the special benefits would be offset through new construction resulting in increased income tax, partial property tax and mortgage recording tax collections.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.