|SAME AS||No Same As|
|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.|
|06/02/2017||referred to housing|
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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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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. LBD11142-01-7A. 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.