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A01124 Summary:

BILL NOA01124
 
SAME ASSAME AS S01378
 
SPONSORCahill
 
COSPNSRBarron, Jenne
 
MLTSPNSR
 
Add Art 28 1240 - 1242, Priv Hous Fin L
 
Establishes the mobile and manufactured home replacement program.
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A01124 Actions:

BILL NOA01124
 
01/10/2017referred to housing
06/07/2017reported referred to ways and means
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A01124 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1124
 
SPONSOR: Cahill
  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 dilapi- dated 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 teems 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 adminis- trative 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: 2015-2016: A10285 - Referred to Housing   FISCAL IMPLICATIONS: This program would be funded subject to annual appropriations made through the State budget.   EFFECTIVE DATE: This act shall take effect immediately
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A01124 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1124
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2017
                                       ___________
 
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Housing
 
        AN  ACT  to  amend  the  private housing finance law, in relation to the
          mobile and manufactured home replacement program
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The private housing finance law is amended by adding a new
     2  article 28 to read as follows:
     3                               ARTICLE XXVIII
     4              MOBILE AND MANUFACTURED HOME REPLACEMENT PROGRAM
     5  Section 1240. Statement of legislative findings and purpose.
     6          1241. Definitions.
     7          1242. Mobile and manufactured home replacement contracts.
     8    § 1240. Statement of legislative findings and purpose. The legislature
     9  hereby finds and declares that there exists in New York state a  serious
    10  need  to  eliminate older, dilapidated mobile and manufactured homes and
    11  replace them with new manufactured, modular or site-built  homes.  Older
    12  mobile  or  manufactured  home  units  with rusted, leaking metal roofs,
    13  metal-framed windows with interior take-out storms,  and  metal  siding,
    14  are  those that most need replacement. No matter the amount of rehabili-
    15  tation investment, the end result is unsatisfactory in terms of  longev-
    16  ity,  energy  efficiency  and  affordability.  The legislature therefore
    17  finds that the state should establish a program to fund the  replacement
    18  of mobile or manufactured homes with new affordable and energy efficient
    19  manufactured, modular or site-built homes.
    20    § 1241. Definitions.  For  the  purposes of this article the following
    21  terms shall have the following meanings:
    22    1. "Corporation" shall mean the housing trust fund corporation  estab-
    23  lished in section forty-five-a of this chapter.
    24    2.  "Dilapidated" shall mean a housing unit that does not provide safe
    25  and adequate shelter, and in its present condition endangers the health,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00666-01-7

        A. 1124                             2
 
     1  safety or well-being of the occupants. Such a housing  unit  shall  have
     2  one  or  more critical defects, or a combination of intermediate defects
     3  in sufficient  number  or  extent  to  require  considerable  repair  or
     4  rebuilding.  Such defects may involve original construction, or they may
     5  result from continued neglect or lack of repair or from  serious  damage
     6  to the structure.
     7    3.  "Eligible  applicant"  shall  mean a unit of local government or a
     8  not-for-profit corporation in existence for a  period  of  one  or  more
     9  years  prior  to application, which is, or will be at the time of award,
    10  incorporated under the not-for-profit corporation law and  has  substan-
    11  tial experience in affordable housing.
    12    4.  "Eligible  property" shall mean a mobile or manufactured home that
    13  is the primary residence of a homeowner with a  total  household  income
    14  that does not exceed eighty percent of area median income for the county
    15  in which a project is located as calculated by the United States depart-
    16  ment of housing and urban development.
    17    5. "Manufactured home" shall have the same meaning as is set forth for
    18  such  term in subdivision seven of section six hundred one of the execu-
    19  tive law.
    20    6. "Mobile and manufactured home  replacement  program"  or  "program"
    21  shall  mean a proposal by an eligible applicant for the replacement of a
    22  dilapidated mobile or manufactured home with a new manufactured, modular
    23  or site-built home. All replacement homes shall be energy star rated for
    24  energy efficiency.
    25    7. "Modular home" shall have the same meaning as is set forth for such
    26  term in paragraph thirty-three of  subdivision  (b)  of  section  eleven
    27  hundred one of the tax law.
    28    8. "Site-built home" shall mean a structure built on-site using build-
    29  ing materials delivered to the site, even if some of such materials were
    30  manufactured,  produced or assembled off-site such as, by way of example
    31  and not by way of limitation, concrete blocks, windows, door units, wall
    32  or roof panels, trusses and dormers.
    33    § 1242. Mobile and manufactured home replacement contracts. 1. Grants.
    34  Within the limit of funds available in the mobile and manufactured  home
    35  replacement  program, the corporation is hereby authorized to enter into
    36  contracts with eligible applicants to provide  grants,  which  shall  be
    37  used  to  establish  programs to provide assistance to eligible property
    38  owners to replace dilapidated mobile or manufactured homes in the state.
    39    2. Program criteria. The corporation shall develop procedures,  crite-
    40  ria  and  requirements  related to the application and award of projects
    41  pursuant to this section  which  shall  include:    eligibility,  market
    42  demand,  feasibility  and  funding  criteria;  the funding determination
    43  process; supervision and evaluation of contracting  applicants;  report-
    44  ing, budgeting and record-keeping requirements; provisions for modifica-
    45  tion and termination of contracts; and such other matters not inconsist-
    46  ent  with the purposes and provisions of this article as the corporation
    47  shall deem necessary or appropriate.
    48    3. Contract limitations. The total contract pursuant to any one eligi-
    49  ble applicant in a specified region shall not exceed five hundred  thou-
    50  sand  dollars  and  the  contract  shall  provide  for completion of the
    51  program within a reasonable period, as specified  therein,  which  shall
    52  not  in  any  event  exceed four years from commencement of the program.
    53  Upon request, the corporation may extend the term of the contract for up
    54  to an additional one year period for good cause shown  by  the  eligible
    55  applicant.

        A. 1124                             3
 
     1    4.  Planning and administrative costs. The corporation shall authorize
     2  the eligible applicant to  spend  seven  and  one-half  percent  of  the
     3  contract  amount  for approved planning and administrative costs associ-
     4  ated with administering the program.
     5    5.  The  corporation  shall  require that, in order to receive a grant
     6  pursuant to this article, the eligible  property  owner  shall  have  no
     7  liens  on  the  land  after  closing  the  grant other than the new home
     8  financing and currently existing mortgage or mortgages, and all property
     9  taxes and insurances must be current.
    10    6. Assistance. Financial assistance to eligible property owners  shall
    11  be  one  hundred  percent  grants  in the form of deferred payment loans
    12  (hereinafter referred to in this subdivision as  "DPL").    A  ten  year
    13  declining balance lien in the form of a note and mortgage, duly filed at
    14  the county clerk's office, will be utilized for replacement projects. No
    15  interest  or payments will be required on the DPL unless the property is
    16  sold or transferred before the regulatory term expires.  In  such  cases
    17  funds will be recaptured from the proceeds of the sale of the home, on a
    18  declining  balance  basis,  unless  an  income-eligible immediate family
    19  member accepts ownership of, and resides in the new replacement home for
    20  the remainder of the regulatory term.  In addition the mobile and  manu-
    21  factured home replacement program established by this article shall: (a)
    22  provide  funds for relocation assistance to homeowners who are unable to
    23  voluntarily relocate during the demolition and  construction  phases  of
    24  the  project;  (b)  provide  funding  for  the  costs of demolishing and
    25  disposing of the dilapidated home; and (c) complement and be in addition
    26  to any existing mobile home replacement established under the  New  York
    27  state  HOME  program  pursuant  to section eleven hundred seventy-two of
    28  this chapter, or any successor thereto, and funded with federal funds.
    29    7. Homeownership training. The eligible property owner must  agree  to
    30  attend  an  approved  homeownership  training program for post-purchase,
    31  credit/budget, and home maintenance counseling as part of  the  applica-
    32  tion process.
    33    8.  Funding  criteria.  The  total  payment  pursuant to any one grant
    34  contract shall not exceed one hundred thousand dollars and the  contract
    35  shall  provide for completion of the program within a reasonable period,
    36  as specified therein, not to exceed four years.
    37    9. Funding and annual report. The corporation in its  sole  discretion
    38  shall  authorize all funding decisions and make all award announcements.
    39  The corporation shall, on or before December thirty-first in  each  year
    40  submit  a  report to the legislature on the implementation of this arti-
    41  cle. Such report shall include, but not be limited to,  for  each  award
    42  made  to  a  grantee  under  this  article: a description of such award;
    43  contract amount and cumulative total; and such other information as  the
    44  corporation deems pertinent.
    45    § 2. This act shall take effect immediately.
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