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A08198 Summary:

BILL NOA08198
 
SAME ASNo Same As
 
SPONSORFitzpatrick
 
COSPNSR
 
MLTSPNSR
 
Amd 58-a, Pub Hous L
 
Authorizes the purchase of dwelling units in public housing projects by residents thereof in certain instances; provides for the availability of loans for such purchase and technical assistance to prepare resident management associations undertaking the management of such project.
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A08198 Actions:

BILL NOA08198
 
06/02/2017referred to housing
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A08198 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8198
 
SPONSOR: Fitzpatrick
  TITLE OF BILL: An act to amend the public housing law, in relation to the purchase of dwelling units by residents of public housing projects   PURPOSE: To allow tenants of public housing projects to purchase their dwelling units.   SUMMARY OF PROVISIONS: This bill would add a new subdivision (3) to § 58-a of the Public Hous- ing Law to give tenants of public housing projects the opportunity to purchase their dwelling units. Tenants could purchase their dwelling units if they have lived in public housing projects for not less than two years, have resided in their dwelling unit for not less than a year, and have been found by the Commissioner of the Department of Housing and Community Renewal to be capable of assuming the responsibilities of homeownership. In addition, for said purchase to occur, the Commissioner would have to determine that the purchase would not interfere with the right of other residents in the projects or would not harm the efficient operation f such project. Purchase of such dwelling unit would also entitle the tenant to a fixed percentage of the common elements. The price for any purchase of a dwelling unit could not exceed 25 percent of the fair market value of the property involved. The public housing authority involved would also be authorized to make a loan on the security of the property to the purchasing resident at a rate which could not exceed 70 percent of the market interest rate. If the purchas- ing tenant in turn sells the apartment before the expiration of a five year period, the purchaser would have to pay a fixed percentage of the sale price to the appropriate public housing authority. Finally, upon the purchase of all the dwelling units of a project by the tenants, the authority is authorized to turn over their management and maintenance functions to a resident management association which shall have been provided training and technical assistance by the Commissioner and by the authority to undertake the aforementioned functions.   EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill would add a new subdivision (3) to § 58-a of the Public Hous- ing Law.   JUSTIFICATION: This bill extends the idea of owning a home to low income residents of public housing projects. The residents of these projects thus acquire an equity stake in the future of their building and hence their neighbor- hood. If successful, this program could help revitalize some of New York's most blighted neighborhoods by drawing on the strengths of resi- dents to tackle the problems of their own community.   PRIOR LEGISLATIVE HISTORY: 2014 - A.3219 - Held in Housing Committee 2012 - A.2570 - Held in Housing Committee 2010 - A.4262 - Held in Housing Committee 2008 - A.4028 - Held in Housing Committee 2006 - A.9582 - Held in Housing Committee   FISCAL IMPLICATIONS:   EFFECTIVE DATE: This act shall take effect immediately.
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A08198 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8198
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 2, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
          Committee on Housing
 
        AN ACT to amend the public housing law, in relation to the  purchase  of
          dwelling units by residents of public housing projects
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.   Section 58-a of the public  housing  law  is  amended  by
     2  adding a new subdivision 3 to read as follows:
     3    3.  (a)  Subject  to the approval of the commissioner in the case of a
     4  state project or in the case of dwelling units  operated  as  public  or
     5  Indian  housing  pursuant to the provisions of the United States housing
     6  act of 1937, as amended, and the local legislative body in the  case  of
     7  municipal  projects  an  authority shall provide to those residents of a
     8  project the opportunity to purchase dwelling units in a project provided
     9  that:
    10    (i) the resident has resided in public housing projects for  not  less
    11  than twenty-four consecutive months; and
    12    (ii)  is  determined  by  the  authority to be capable of assuming the
    13  responsibilities of homeownership; and
    14    (iii) complies with such additional requirements as  the  commissioner
    15  or  the  authority  may  establish in the case of a state or a municipal
    16  project.
    17    (b) Any resident meeting the requirements of  paragraph  (a)  of  this
    18  subdivision  may  purchase  his  or  her dwelling unit directly from the
    19  authority if the authority determines that such purchase will not inter-
    20  fere with the rights of other residents residing in the project or  harm
    21  the  efficient  operation  of  such project. Such purchase of a dwelling
    22  unit by a resident shall also include a fixed percentage of  the  common
    23  elements  of  the  project as determined by the authority. The price for
    24  any such purchase shall not be more than the fair market  value  of  the
    25  dwelling unit as determined by the authority.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11142-01-7

        A. 8198                             2
 
     1    (c)  For  the purpose of assisting any purchase by a resident pursuant
     2  to this subdivision the authority involved or any subsidiary corporation
     3  of such authority may make a  loan  on  the  security  of  the  property
     4  involved to such purchasing resident at a rate of interest determined by
     5  the authority to be appropriate.
     6    (d)  If  any  resident  purchaser  of a dwelling unit pursuant to this
     7  subdivision sells such dwelling unit before the  expiration  of  a  five
     8  year  period,  such  purchaser shall pay the following percentage of the
     9  sale price to the authority involved:
    10    (i) seventy-five percent, if such sale occurs  during  the  first  one
    11  year period following such date;
    12    (ii)  sixty  percent,  if  such sale occurs during the second one year
    13  period following such date;
    14    (iii) forty-five percent, if such sale occurs  during  the  third  one
    15  year period following such date;
    16    (iv)  thirty  percent,  if such sale occurs during the fourth one year
    17  period following such date; and
    18    (v) fifteen percent, if such sale occurs during  the  fifth  one  year
    19  period following such date.
    20    (e)  The  authority  or  any existing tenant management corporation or
    21  association shall continue to manage the project and provide maintenance
    22  for the project until such  time  as  all  of  the  dwelling  units  are
    23  purchased  by  project  residents at which time the aforementioned func-
    24  tions shall be transferred to a resident management association or to  a
    25  private management company.
    26    (f)  The  commissioner  and  the authority involved shall provide such
    27  training, technical assistance and education  as  may  be  necessary  to
    28  prepare  the resident management association to undertake the management
    29  and maintenance of such project and to prepare  the  residents  for  the
    30  responsibility of homeownership.
    31    (g)  The commissioner shall issue such regulations as may be necessary
    32  to carry out the provisions of this subdivision.  Such  regulations  may
    33  establish any additional terms and conditions for homeownership or resi-
    34  dent  management pursuant to this subdivision that are determined by the
    35  commissioner to be appropriate.
    36    § 2. This act shall take effect immediately.
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