•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video 

A05788 Summary:

BILL NOA05788
 
SAME ASNo Same As
 
SPONSORCymbrowitz
 
COSPNSR
 
MLTSPNSR
 
Add 97-yyyy, 97-zzzz & 97-ss, St Fin L
 
Establishes the senior housing fund, the emergency affordable housing construction fund and the jobs training fund and makes an appropriation therefor; directs the Commissioner of Housing and Community Renewal to enter into a contract with New York Homes and Community Renewal to make periodic subsidies for one or more projects to assist in developing rental units for seniors and other persons or families having a monthly income at or below seventy percent of the area median income; increases the amount of the state low income tax credit allowable under article 2-A of the public housing law and the amount of the real property tax exemption allowable under article 18-A of the private housing finance law for certain projects; establishes certain operational subsidies; requires property owners and developers to utilize certified minority and women-owned business enterprises on certain capital projects; and establishes a specialized jobs training program.
Go to top    

A05788 Actions:

BILL NOA05788
 
02/15/2017referred to housing
Go to top

A05788 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5788
 
SPONSOR: Cymbrowitz
  TITLE OF BILL: An act to amend the state finance law, in relation to establishing the senior housing fund, the emergency affordable housing construction fund and the jobs training fund; to direct the commissioner of housing and community renewal to enter into a contract with New York Homes and Community Renewal to make periodic subsidies for one or more projects to assist in developing rental units for seniors and other persons or families having a monthly income at or below seventy percent of the area median income; to increase the amount of the state low income tax credit allowable under article 2-A of the public housing law and to increase the amount of the real property tax exemption allowable under article 18-A of the private housing finance law for certain projects; to establish certain operational subsidies; to require proper- ty owners and developers to utilize certified minority and women-owned business enterprises on certain capital projects; to establish a specialized jobs training program; and making an appropriation therefor   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to address the demands for affordable hous- ing, jobs, and hiring of MWBEs on certain capital projects.   SUMMARY OF PROVISIONS: Section 1 provides that this act shall be known and cited as the "Emer- gency Affordable Housing Construction Act". Section 2 provides: a. that the act shall assist in developing rental units for persons or families at or below seventy percent AMI; and b. that the Commissioner of Housing and Community Renewal (HCR) shall be authorized to enter into contracts providing a capital subsidy, from the emergency affordable housing construction fund created herein, not to exceed one hundred thousand dollars for the construction of rental units for persons or families having a monthly income at or below seventy percent AMI; and c. that the Commissioner shall increase the amount of state low income housing tax credit allowable for the construction of units in projects, which are one hundred percent occupied by persons or families having a monthly income at or below seventy percent AMI and one third of whom are at forty percent or below of the area median income, to twenty-five thousand dollars per unit and one million dollars per project; and d. that the Commissioner shall increase the amount of loan funding under the homes for working families program for the construction of units in projects, which are one hundred percent occupied by persons or families having a monthly income at or below seventy percent AMI, to forty-five thousand dollars per unit; and e. that the Commissioner shall increase the amount of state low income housing tax credit allowable for the construction of units in projects which are one hundred percent occupied by seniors to fifty thousand dollars and provide an additional subsidy, from the senior housing fund created herein, of up to three hundred thousand dollars for preventative health, wellness activities and case management services in such build- ings; and f. that twenty-five million dollars for establishment of the Senior Housing Fund; and g. that subsidies under the Emergency Affordable Housing Construction Act be subject regulation and oversight under article four of the Public Housing Law; and h. that contracts for eligible projects be awarded on a competitive basis subject to process and criteria, including preference for non-pro- fit partnerships or projects in gentrifying neighborhoods or neighbor- hoods of opportunity, as established by the Commissioner upon consulta- tion with the New York City Housing Development Corporation (HPD) or the New York State Housing Finance Agency (HFA); and i. that senior housing means any rental project which is one hundred percent occupied by tenants, substantially all of whom are sixty-two years of age or older and have a monthly income at or below seventy percent of AMI and one third of whom are at forty percent or below of the AMI. Section 3 amends the State Finance Law by adding two new sections, 97-yyyy and 97-zzzz to create a Senior Housing Fund and Emergency Hous- ing Fund respectively. Both funds are to be appropriated from moneys in the state treasury in the abandoned property fund and for projects in cities having a population of ninety-five thousand or more persons upon audit and warrant of the State comptroller. Section 6 establishes a job training program to be funded by the jobs training fund and administered by the department of labor. Seventy-five percent of the funds are to provide training through local not-for-pro- fit organizations to recently incarcerated individuals, parolees, certain probationers and "disconnected youth" for GED examination passage, technical skills training and occupational or trade skills development. Section 7 amends the State Finance Law by adding a new section 97-ss to create the Jobs Training Fund. Such fund shall be appropriated from moneys in the state treasury in the abandoned property fund in the amount of twenty-five million dollars. The funds are to be appropriated toward educational programs for young adults, low wage workers and indi- viduals from households with income at or below two hundred and fifty percent of the poverty level.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: In the past decade, the estimated percentage of rental households with rents above the affordability rate, as defined by the U.S. Department of Housing and Urban Development, has risen above 50% across New York State. In recent years, just below 1 million households were determined 'severely cost-burdened' under HUD statues. These trends are consistent throughout the state, but the housing difficulties facing the residents of New York City are unique and particularly detrimental to seniors and low-income families. Further, the lack of affordable housing options threatens the fabric of the City of New York, the economic prosperity of the State, and the quality of life of millions of its residents. In response to these inimical problems, the Emergency Affordable Housing Construction Act seeks to countermeasure the housing crisis by encourag- ing affordable development and extends to the underutilization of women-owned and minority-owned business enterprises in development opportunities. The Emergency Affordable Housing Construction Act would assist in developing rental units for persons or families with a median income at or below seventy percent of the area median income. It would increase the amount of the state low income tax credit for certain projects, and develop a dedicated senior housing fund to help eliminate homelessness among senior citizens. It would also establish a corre- sponding jobs training program and mandate responsible utilization of certified MWBE utilization on capital projects.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Estimated cost is two hundred million dollars ($200,000,000).   EFFECTIVE DATE: This act shall take effect on the 180th day following its enactment.
Go to top

A05788 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5788
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 15, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
          Committee on Housing
 
        AN ACT to amend the state finance law, in relation to  establishing  the
          senior  housing  fund,  the  emergency affordable housing construction
          fund and the jobs training fund; to direct the commissioner of housing
          and community renewal to enter into a contract with New York Homes and
          Community Renewal to make periodic subsidies for one or more  projects
          to  assist in developing rental units for seniors and other persons or
          families having a monthly income at or below seventy  percent  of  the
          area median income; to increase the amount of the state low income tax
          credit  allowable  under  article 2-A of the public housing law and to
          increase the amount of the real property tax exemption allowable under
          article 18-A of the private housing finance law for certain  projects;
          to establish certain operational subsidies; to require property owners
          and  developers to utilize certified minority and women-owned business
          enterprises on certain capital projects; to  establish  a  specialized
          jobs training program; and making an appropriation therefor

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited as the  "emergency
     2  affordable housing construction act".
     3    § 2. (a) The provisions of this section apply to projects to assist in
     4  developing  rental  units  for  persons  or  families all of whom have a
     5  monthly income at or below seventy percent of  the  area  median  income
     6  (AMI)  and  one-third  of  whom  have a monthly income at or below forty
     7  percent of the area median income (AMI) as determined on an annual basis
     8  by the U.S. department of housing and urban development.
     9    (b) The commissioner of housing and community renewal shall be author-
    10  ized to enter into contracts by and through New York Homes and Community
    11  Renewal to make periodic subsidies for one or more projects to assist in
    12  developing rental units for persons or families having a monthly  income
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09769-01-7

        A. 5788                             2
 
     1  at  or below seventy percent of the AMI. Any property owner or developer
     2  of such a project shall be eligible to receive a capital subsidy for the
     3  construction of such unit in an amount not to exceed one  hundred  thou-
     4  sand  dollars  ($100,000) per unit. The subsidy shall be administered by
     5  New York Homes and Community Renewal and its affiliates.    Funding  for
     6  such   subsidy   shall   come  from  the  emergency  affordable  housing
     7  construction fund established by section 97-zzzz of  the  state  finance
     8  law.
     9    (c)  The  commissioner of housing and community renewal shall increase
    10  the amount of the state low income housing tax  credit  allowable  under
    11  article  2-A  of  the public housing law to assist in the development of
    12  property consisting of units one hundred percent of which  are  occupied
    13  by  persons  or  families  all of whom have a monthly income at or below
    14  seventy percent of the area median income (AMI) and  one-third  of  whom
    15  have  a  monthly  income  at  or  below forty percent of the area median
    16  income (AMI) as determined on an annual basis by the U.S. department  of
    17  housing  and urban development, regardless of the designation or market-
    18  ing of such property, as follows:
    19    (i) the allowable per unit amount shall be increased from twenty thou-
    20  sand dollars to twenty-five thousand dollars; and
    21    (ii) the allowable per project amount shall be  increased  from  seven
    22  hundred fifty thousand dollars to one million dollars.
    23    (d)  The  commissioner of housing and community renewal shall increase
    24  the amount of loan funding under the homes for working families  program
    25  allowable  under  article  18-A  of  the  private housing finance law to
    26  assist in the development of property consisting of  units  one  hundred
    27  percent  of  which  are occupied by persons or families having a monthly
    28  income at or below seventy percent of the AMI, regardless of the  desig-
    29  nation  or marketing of such property, from thirty-five thousand dollars
    30  per unit to forty-five thousand dollars per unit.
    31    (e) The commissioner of housing and community renewal  shall  increase
    32  the  amount  of  the state low income housing tax credit allowable under
    33  article 2-A of the public housing law for projects to assist in develop-
    34  ing rental units for senior housing as follows:
    35    (i) the allowable per unit amount shall be fifty thousand dollars; and
    36    (ii) an additional annual subsidy of  up  to  three  hundred  thousand
    37  dollars  per  project  shall  be allowable for services performed at any
    38  qualifying senior housing building that  offers  preventive  health  and
    39  wellness  activities  and  case  management  services.  Funding for such
    40  subsidy shall come from the senior housing fund established  by  section
    41  97-yyyy of the state finance law.
    42    (f)  The commissioner of housing and community renewal, in conjunction
    43  with the state comptroller shall monitor the senior housing fund  estab-
    44  lished  by  section  97-yyyy  of the state finance law and the emergency
    45  affordable housing construction fund established by section  97-zzzz  of
    46  the  state finance law and shall ensure that an initial deposit of twen-
    47  ty-five million dollars is placed into each fund.
    48    (g) Any subsidy awarded pursuant to the terms of this section shall be
    49  subject to the provisions of article 4 of the public housing law.
    50    (h) Contracts for projects eligible for subsidies, loans and tax cred-
    51  its as provided in this section shall be awarded on a competitive basis.
    52  The process  for  applying  for  and  the  criteria  for  awarding  such
    53  contracts shall be established by the commissioner of housing and commu-
    54  nity  renewal, upon consultation with the New York city housing develop-
    55  ment corporation or the New York state housing finance agency.   Prefer-
    56  ence  shall  be given to projects that are developed in conjunction with

        A. 5788                             3
 
     1  non-profit partners or that are located in HUD neighborhoods of opportu-
     2  nity or in neighborhoods that are ripe for gentrification  as  evidenced
     3  by  increased  median  household  incomes and rent levels in a community
     4  ward board or district.
     5    (i) As used in this section, "senior housing" means any rental proper-
     6  ty  consisting  of  units  one  hundred percent of which are occupied by
     7  tenants, substantially all of whom are over sixty-two years of  age  and
     8  all  of  whom  have  a monthly income at or below seventy percent of the
     9  area median income (AMI) and one-third of whom have a monthly income  at
    10  or  below forty percent of the area median income (AMI) as determined on
    11  an annual basis by the U.S. department of housing and urban development,
    12  regardless of the designation or marketing of such property.
    13    § 3. The state finance law is  amended  by  adding  two  new  sections
    14  97-yyyy and 97-zzzz to read as follows:
    15    § 97-yyyy. Senior housing fund. 1.  There is hereby established in the
    16  joint  custody of the state comptroller and the commissioner of taxation
    17  and finance a fund to be known as the "senior housing fund".
    18    2. Such fund shall consist of twenty-five million dollars, or so  much
    19  thereof as may be necessary, appropriated to the division of housing and
    20  community renewal from any moneys in the state treasury in the abandoned
    21  property  fund  established  by section ninety-five of this article, not
    22  otherwise appropriated, and all other  moneys  credited  or  transferred
    23  thereto from any other fund or source pursuant to law.
    24    3.  Moneys of the fund shall be expended for projects to assist in the
    25  development of senior housing in cities having a population  of  ninety-
    26  five  thousand or more persons as provided in the chapter of the laws of
    27  two thousand seventeen which added this section. Moneys  shall  be  paid
    28  out  of  the  fund  on the audit and warrant of the state comptroller on
    29  vouchers approved by the commissioner of housing and community  renewal.
    30  Any  interest  received  by  the comptroller on moneys on deposit in the
    31  senior housing fund shall be retained in and become part of  such  fund.
    32  No  money  from  such fund may be withdrawn, transferred, or used by any
    33  person for any purpose other than as permitted in this section.
    34    4. As used in this section, "senior housing" means any rental property
    35  consisting of units  one  hundred  percent  of  which  are  occupied  by
    36  tenants,  substantially  all  of  whom  are over sixty-two years of age,
    37  regardless of the designation or marketing of such property.
    38    § 97-zzzz. Emergency affordable housing construction fund. 1.    There
    39  is  hereby established in the joint custody of the state comptroller and
    40  the commissioner of taxation and finance a  fund  to  be  known  as  the
    41  "emergency affordable housing construction fund".
    42    2.  Such fund shall consist of twenty-five million dollars, or so much
    43  thereof as may be necessary, appropriated to the division of housing and
    44  community renewal from any moneys in the state treasury in the abandoned
    45  property fund established by section ninety-five of  this  article,  not
    46  otherwise  appropriated,  and  all  other moneys credited or transferred
    47  thereto from any other fund or source pursuant to law.
    48    3. Moneys of the fund shall be expended for projects to assist in  the
    49  development of low income housing in cities having a population of nine-
    50  ty-five  thousand or more persons as provided in the chapter of the laws
    51  of two thousand seventeen which added this section.    Moneys  shall  be
    52  paid  out  of the fund on the audit and warrant of the state comptroller
    53  on vouchers approved  by  the  commissioner  of  housing  and  community
    54  renewal.  Any  interest received by the comptroller on moneys on deposit
    55  in the housing fund shall be retained in and become part of  such  fund.

        A. 5788                             4
 
     1  No  money  from  such fund may be withdrawn, transferred, or used by any
     2  person for any purpose other than as permitted in this section.
     3    4.  As  used  in  this  section, "low income housing" means any rental
     4  property consisting of units one hundred percent of which  are  occupied
     5  by  persons  or  families  all of whom have a monthly income at or below
     6  seventy percent of the area median income (AMI) and  one-third  of  whom
     7  have  a  monthly  income  at  or  below forty percent of the area median
     8  income (AMI) as determined on an annual basis by the U.S.  department of
     9  housing and urban development, regardless of the designation or  market-
    10  ing of such property.
    11    § 4. (a) New York Homes and Community Renewal shall establish an oper-
    12  ational  subsidy in the amount of eight million dollars ($8,000,000) for
    13  the purpose of providing rental assistance to persons or families having
    14  a monthly income at or below forty percent of  the  area  median  income
    15  (AMI) as determined on an annual basis by the U.S. department of housing
    16  and  urban  development.  The  subsidy shall be administered by New York
    17  Homes and Community Renewal and its affiliates.  Funding for such subsi-
    18  dy shall come from the emergency affordable  housing  construction  fund
    19  established by section 97-zzzz of the state finance law.
    20    (b)  The  subsidy shall consist of project-based rental assistance and
    21  shall be specific to qualifying units in qualifying projects  to  ensure
    22  long-term affordability.
    23    (c) The amount of rental assistance paid on behalf of eligible tenants
    24  shall be the difference between the tenant contribution and the contract
    25  rent  for  the  qualifying unit. The tenant contribution shall be twenty
    26  percent of the family's monthly income or thirty percent of the tenant's
    27  monthly adjusted gross income less a  utility  allowance,  whichever  is
    28  greater.
    29    (d)  New  York  Homes  and  Community  Renewal shall take all measures
    30  necessary to implement the processing of the subsidy, including develop-
    31  ing application and distribution procedures.
    32    § 5. (a) Any property owner or developer of projects receiving a capi-
    33  tal subsidy or an  operating  subsidy  pursuant  to  the  provisions  of
    34  section  two  of  this  act  shall enter into a minority and women-owned
    35  business enterprise (MWBE) utilization agreement with New York Homes and
    36  Community Renewal regarding the utilization of  certified  minority  and
    37  women-owned business enterprises on capital projects during the applica-
    38  ble period of such subsidy.
    39    (b) The MWBE utilization agreement shall include terms consistent with
    40  the following provisions:
    41    (i)  the  property owner or developer shall use best efforts to meet a
    42  goal of thirty percent utilization of certified minority and women-owned
    43  business enterprises on all capital projects during the applicable  term
    44  of the subsidy or subsidies;
    45    (ii)  the property owner or developer shall submit an annual report to
    46  New York Homes and Community Renewal indicating its compliance with  the
    47  MWBE utilization agreement;
    48    (iii) such other terms deemed necessary by New York Homes and Communi-
    49  ty Renewal to carry out the provisions of this act.
    50    (c) Notwithstanding the provisions of subdivision (b) of this section,
    51  capital  projects entailing a total expenditure of less than ten million
    52  dollars ($10,000,000) shall be exempted from the MWBE utilization agree-
    53  ment.
    54    (d) As used in this section:

        A. 5788                             5
 
     1    (i) "applicable period" means the period of time up to, but not longer
     2  than, the period required to complete the initial  construction  of  the
     3  project;
     4    (ii)  "capital  project"  means any construction project with an esti-
     5  mated value equal to or exceeding forty million  dollars  ($40,000,000);
     6  and
     7    (iii) "certified minority and women-owned enterprises" means a minori-
     8  ty  or  women-owned business enterprise certified by the director of the
     9  division of minority and women's business development in the  department
    10  of economic development pursuant to section 314 of the executive law.
    11    § 6. A specialized job training program will be established within the
    12  department  of  labor  for the purposes of:   (i) assisting eligible job
    13  trainees to study for and pass the GED examination; (ii) provide techni-
    14  cal skills training; and (iii) link basic education to  occupational  or
    15  trade skills development.
    16    (a) The job training program shall be funded by the jobs training fund
    17  established pursuant to section 97-ss of the state finance law.
    18    (b)  The  training  program  will be administered by the department of
    19  labor.
    20    (c) The training program administrator will use best efforts to:
    21    (i) allocate seventy-five percent of the funds in  the  jobs  training
    22  fund  established  pursuant to section 97-ss of the state finance law to
    23  provide training through  locally  based  not-for-profit  organizations;
    24  provided  that  the  provisions  of  this  paragraph  shall  not include
    25  programs operated by trade organizations; and
    26    (ii) direct training first to recently incarcerated  persons,  persons
    27  on  parole, persons sentenced to probation for commission of a felony or
    28  a misdemeanor as defined in section 55.10 of the penal law, and  sixteen
    29  to twenty-four year old "disconnected youth".
    30    § 7. The state finance law is amended by adding a new section 97-ss to
    31  read as follows:
    32    §  97-ss.  Jobs  training  fund. 1. There is hereby established in the
    33  joint custody of the state comptroller and the commissioner of  taxation
    34  and finance a fund to be known as the "jobs training fund".
    35    2.  Such fund shall consist of twenty-five million dollars, or so much
    36  thereof as may be necessary, appropriated to the division of housing and
    37  community renewal from any moneys in the state treasury in the abandoned
    38  property fund established by section ninety-five of  this  article,  not
    39  otherwise  appropriated,  and  all  other moneys credited or transferred
    40  thereto from any other fund or source pursuant to law.
    41    3. Moneys of the fund shall be expended  for  educational  instruction
    42  for  young  adults sixteen to twenty-four years of age, low wage workers
    43  and households with income at or below two hundred and fifty percent  of
    44  the  federal  poverty guidelines as set by the U.S. department of health
    45  and human services, as provided in the chapter of the laws of two  thou-
    46  sand  seventeen  which  added this section.  Moneys shall be paid out of
    47  the fund on the audit and warrant of the state comptroller  on  vouchers
    48  approved  by  the  commissioner  of  labor. Any interest received by the
    49  comptroller on moneys on deposit in the  jobs  training  fund  shall  be
    50  retained  in  and become part of such fund.  No money from such fund may
    51  be withdrawn, transferred, or used by any person for any  purpose  other
    52  than as permitted in this section.
    53    § 8. The sum of two hundred million dollars ($200,000,000), or so much
    54  thereof  as  may be necessary, is hereby appropriated to the division of
    55  housing and community renewal from any moneys in the state  treasury  in
    56  the  general  fund  to  the  credit of the local assistance account, not

        A. 5788                             6
 
     1  otherwise appropriated, for the purposes of carrying out the  provisions
     2  sections  two  and  six  of this act.   Such sum shall be payable on the
     3  audit and warrant of the state  comptroller  on  vouchers  certified  or
     4  approved by the commissioner of housing and community renewal, or his or
     5  her  duly  designated  representative  in the manner provided by law. No
     6  expenditure shall be made from this appropriation until a certificate of
     7  approval of availability shall have been issued by the director  of  the
     8  budget  and  filed  with the state comptroller and a copy filed with the
     9  chair of the senate finance committee and the chair of the assembly ways
    10  and means committee. Such certificate may be amended from time  to  time
    11  by the director of the budget and a copy of each such amendment shall be
    12  filed  with  the  state  comptroller,  the  chair  of the senate finance
    13  committee and the chair of the assembly ways and means committee.
    14    § 9. This act shall take effect on the one hundred eightieth day after
    15  it shall have become a law; provided that,  effective  immediately,  the
    16  division  of  housing  and  community renewal, the New York city housing
    17  development corporation and the New York state  housing  finance  agency
    18  shall  make  and implement all rules, regulations and standards and take
    19  such other actions as are necessary to implement this act on  or  before
    20  its effective date.
Go to top