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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9537
SPONSOR: Wright
 
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 fami-
lies 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 estab-
lish certain operational subsidies; to require property owners and
developers to utilize certified minority and women-owned business enter-
prises on certain capital projects; to establish a specialized jobs
training program; and making an appropriation therefor
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would 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 projects to assist in developing rental
units for seniors, individuals and families with a monthly income at or
below seventy percent of the area median income; increase the amount of
the state low income tax credit and the real property tax exemption for
certain projects; establish certain operational subsidies in the form of
a project based rental assistance program; require property owners and
developers to utilize certified minority and women-owned business enter-
prises on certain capital projects; and establish and make an appropri-
ation for a specialized jobs training program.
 
SUMMARY OF SPECIFIC 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 of the area median income; and
b. that the commissioner of Housing and Community Renewal ("Commission-
er") 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 of the area median income; 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 of the area median income 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 of the area median
income, 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 or the New
York State Housing Finance Agency; 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 the area median income and one third of whom are at forty
percent or below of the area median income.
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 4. establishes an operational subsidy administered by the
Commissioner, in the amount of eight million dollars for the purpose of
providing project based rental assistance vouchers, from the emergency
affordable housing construction fund, to persons or families having a
monthly income at or below forty percent or below of the area median
income, of which the tenant's portion shall be up to thirty percent of
their monthly income.
Section 5. requires that any developer receiving a capital or operating
subsidy from the emergency housing construction fund or the senior hous-
ing fund for a project entailing a total expenditure of more than ten
million dollars shall enter into a minority and women-owned business
enterprise. utilization agreement applicable to the capital construction
portion of the project and provides terms for the utilization agreement
including a reporting requirement.
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, to 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 educa-
tional programs for young adults, low wage workers and individuals from
households with income at or below two hundred and fifty percent of the
poverty level.
Section 8. provides for the appropriation of $200,000,000 to the divi-
sion of community renewal to carry out the provisions sections two and
six of the act.
Section 9. provides the Act shall be effective on the one hundred eight-
ieth day after is shall have become law and further, an immediate effec-
tive date for promulgation of rules and regulations necessary to imple-
ment the Act.
 
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 MBE utilization on capital projects.
 
FISCAL IMPLICATIONS:
Estimated cost is two hundred million dollars ($200,000,000.)
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law.
STATE OF NEW YORK
________________________________________________________________________
9537
IN ASSEMBLY
March 15, 2016
___________
Introduced by M. of A. WRIGHT -- 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
13 at or below seventy percent of the AMI. Any property owner or developer
14 of such a project shall be eligible to receive a capital subsidy for the
15 construction of such unit in an amount not to exceed one hundred thou-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14661-01-6
A. 9537 2
1 sand dollars ($100,000) per unit. The subsidy shall be administered by
2 New York Homes and Community Renewal and its affiliates. Funding for
3 such subsidy shall come from the emergency affordable housing
4 construction fund established by section 97-zzzz of the state finance
5 law.
6 (c) The commissioner of housing and community renewal shall increase
7 the amount of the state low income housing tax credit allowable under
8 article 2-A of the public housing law to assist in the development of
9 property consisting of units one hundred percent of which are occupied
10 by persons or families all of whom have a monthly income at or below
11 seventy percent of the area median income (AMI) and one-third of whom
12 have a monthly income at or below forty percent of the area median
13 income (AMI) as determined on an annual basis by the U.S. department of
14 housing and urban development, regardless of the designation or market-
15 ing of such property, as follows:
16 (i) the allowable per unit amount shall be increased from twenty thou-
17 sand dollars to twenty-five thousand dollars; and
18 (ii) the allowable per project amount shall be increased from seven
19 hundred fifty thousand dollars to one million dollars.
20 (d) The commissioner of housing and community renewal shall increase
21 the amount of loan funding under the homes for working families program
22 allowable under article 18-A of the private housing finance law to
23 assist in the development of property consisting of units one hundred
24 percent of which are occupied by persons or families having a monthly
25 income at or below seventy percent of the AMI, regardless of the desig-
26 nation or marketing of such property, from thirty-five thousand dollars
27 per unit to forty-five thousand dollars per unit.
28 (e) The commissioner of housing and community renewal shall increase
29 the amount of the state low income housing tax credit allowable under
30 article 2-A of the public housing law for projects to assist in develop-
31 ing rental units for senior housing as follows:
32 (i) the allowable per unit amount shall be fifty thousand dollars; and
33 (ii) an additional annual subsidy of up to three hundred thousand
34 dollars per project shall be allowable for services performed at any
35 qualifying senior housing building that offers preventive health and
36 wellness activities and case management services. Funding for such
37 subsidy shall come from the senior housing fund established by section
38 97-yyyy of the state finance law.
39 (f) The commissioner of housing and community renewal, in conjunction
40 with the state comptroller shall monitor the senior housing fund estab-
41 lished by section 97-yyyy of the state finance law and the emergency
42 affordable housing construction fund established by section 97-zzzz of
43 the state finance law and shall ensure that an initial deposit of twen-
44 ty-five million dollars is placed into each fund.
45 (g) Any subsidy awarded pursuant to the terms of this section shall be
46 subject to the provisions of article 4 of the public housing law.
47 (h) Contracts for projects eligible for subsidies, loans and tax cred-
48 its as provided in this section shall be awarded on a competitive basis.
49 The process for applying for and the criteria for awarding such
50 contracts shall be established by the commissioner of housing and commu-
51 nity renewal, upon consultation with the New York city housing develop-
52 ment corporation or the New York state housing finance agency. Prefer-
53 ence shall be given to projects that are developed in conjunction with
54 non-profit partners or that are located in HUD neighborhoods of opportu-
55 nity or in neighborhoods that are ripe for gentrification as evidenced
A. 9537 3
1 by increased median household incomes and rent levels in a community
2 ward board or district.
3 (i) As used in this section, "senior housing" means any rental proper-
4 ty consisting of units one hundred percent of which are occupied by
5 tenants, substantially all of whom are over sixty-two years of age and
6 all of whom have a monthly income at or below seventy percent of the
7 area median income (AMI) and one-third of whom have a monthly income at
8 or below forty percent of the area median income (AMI) as determined on
9 an annual basis by the U.S. department of housing and urban development,
10 regardless of the designation or marketing of such property.
11 § 3. The state finance law is amended by adding two new sections
12 97-yyyy and 97-zzzz to read as follows:
13 § 97-yyyy. Senior housing fund. 1. There is hereby established in the
14 joint custody of the state comptroller and the commissioner of taxation
15 and finance a fund to be known as the "senior housing fund".
16 2. Such fund shall consist of twenty-five million dollars, or so much
17 thereof as may be necessary, appropriated to the division of housing and
18 community renewal from any moneys in the state treasury in the abandoned
19 property fund established by section ninety-five of this article, not
20 otherwise appropriated, and all other moneys credited or transferred
21 thereto from any other fund or source pursuant to law.
22 3. Moneys of the fund shall be expended for projects to assist in the
23 development of senior housing in cities having a population of ninety-
24 five thousand or more persons as provided in the chapter of the laws of
25 two thousand sixteen which added this section. Moneys shall be paid out
26 of the fund on the audit and warrant of the state comptroller on vouch-
27 ers approved by the commissioner of housing and community renewal. Any
28 interest received by the comptroller on moneys on deposit in the senior
29 housing fund shall be retained in and become part of such fund. No money
30 from such fund may be withdrawn, transferred, or used by any person for
31 any purpose other than as permitted in this section.
32 4. As used in this section, "senior housing" means any rental property
33 consisting of units one hundred percent of which are occupied by
34 tenants, substantially all of whom are over sixty-two years of age,
35 regardless of the designation or marketing of such property.
36 § 97-zzzz. Emergency affordable housing construction fund. 1. There
37 is hereby established in the joint custody of the state comptroller and
38 the commissioner of taxation and finance a fund to be known as the
39 "emergency affordable housing construction fund".
40 2. Such fund shall consist of twenty-five million dollars, or so much
41 thereof as may be necessary, appropriated to the division of housing and
42 community renewal from any moneys in the state treasury in the abandoned
43 property fund established by section ninety-five of this article, not
44 otherwise appropriated, and all other moneys credited or transferred
45 thereto from any other fund or source pursuant to law.
46 3. Moneys of the fund shall be expended for projects to assist in the
47 development of low income housing in cities having a population of nine-
48 ty-five thousand or more persons as provided in the chapter of the laws
49 of two thousand sixteen which added this section. Moneys shall be paid
50 out of the fund on the audit and warrant of the state comptroller on
51 vouchers approved by the commissioner of housing and community renewal.
52 Any interest received by the comptroller on moneys on deposit in the
53 housing fund shall be retained in and become part of such fund. No money
54 from such fund may be withdrawn, transferred, or used by any person for
55 any purpose other than as permitted in this section.
A. 9537 4
1 4. As used in this section, "low income housing" means any rental
2 property consisting of units one hundred percent of which are occupied
3 by persons or families all of whom have a monthly income at or below
4 seventy percent of the area median income (AMI) and one-third of whom
5 have a monthly income at or below forty percent of the area median
6 income (AMI) as determined on an annual basis by the U.S. department of
7 housing and urban development, regardless of the designation or market-
8 ing of such property.
9 § 4. (a) New York Homes and Community Renewal shall establish an oper-
10 ational subsidy in the amount of eight million dollars ($8,000,000) for
11 the purpose of providing rental assistance to persons or families having
12 a monthly income at or below forty percent of the area median income
13 (AMI) as determined on an annual basis by the U.S. department of housing
14 and urban development. The subsidy shall be administered by New York
15 Homes and Community Renewal and its affiliates. Funding for such subsi-
16 dy shall come from the emergency affordable housing construction fund
17 established by section 97-zzzz of the state finance law.
18 (b) The subsidy shall consist of project-based rental assistance and
19 shall be specific to qualifying units in qualifying projects to ensure
20 long-term affordability.
21 (c) The amount of rental assistance paid on behalf of eligible tenants
22 shall be the difference between the tenant contribution and the contract
23 rent for the qualifying unit. The tenant contribution shall be twenty
24 percent of the family's monthly income or thirty percent of the tenant's
25 monthly adjusted gross income less a utility allowance, whichever is
26 greater.
27 (d) New York Homes and Community Renewal shall take all measures
28 necessary to implement the processing of the subsidy, including develop-
29 ing application and distribution procedures.
30 § 5. (a) Any property owner or developer of projects receiving a capi-
31 tal subsidy or an operating subsidy pursuant to the provisions of
32 section two of this act shall enter into a minority and women-owned
33 business enterprise (MWBE) utilization agreement with New York Homes and
34 Community Renewal regarding the utilization of certified minority and
35 women-owned business enterprises on capital projects during the applica-
36 ble period of such subsidy.
37 (b) The MWBE utilization agreement shall include terms consistent with
38 the following provisions:
39 (i) the property owner or developer shall use best efforts to meet a
40 goal of thirty percent utilization of certified minority and women-owned
41 business enterprises on all capital projects during the applicable term
42 of the subsidy or subsidies;
43 (ii) the property owner or developer shall submit an annual report to
44 New York Homes and Community Renewal indicating its compliance with the
45 MWBE utilization agreement;
46 (iii) such other terms deemed necessary by New York Homes and Communi-
47 ty Renewal to carry out the provisions of this act.
48 (c) Notwithstanding the provisions of subdivision (b) of this section,
49 capital projects entailing a total expenditure of less than ten million
50 dollars ($10,000,000) shall be exempted from the MWBE utilization agree-
51 ment.
52 (d) As used in this section:
53 (i) "applicable period" means the period of time up to, but not longer
54 than, the period required to complete the initial construction of the
55 project;
A. 9537 5
1 (ii) "capital project" means any construction project with an esti-
2 mated value equal to or exceeding forty million dollars ($40,000,000);
3 and
4 (iii) "certified minority and women-owned enterprises" means a minori-
5 ty or women-owned business enterprise certified by the director of the
6 division of minority and women's business development in the department
7 of economic development pursuant to section 314 of the executive law.
8 § 6. A specialized job training program will be established within the
9 department of labor for the purposes of: (i) assisting eligible job
10 trainees to study for and pass the GED examination; (ii) provide techni-
11 cal skills training; and (iii) link basic education to occupational or
12 trade skills development.
13 (a) The job training program shall be funded by the jobs training fund
14 established pursuant to section 97-ss of the state finance law.
15 (b) The training program will be administered by the department of
16 labor.
17 (c) The training program administrator will use best efforts to:
18 (i) allocate seventy-five percent of the funds in the jobs training
19 fund established pursuant to section 97-ss of the state finance law to
20 provide training through locally based not-for-profit organizations;
21 provided that the provisions of this paragraph shall not include
22 programs operated by trade organizations; and
23 (ii) direct training first to recently incarcerated persons, persons
24 on parole, persons sentenced to probation for commission of a felony or
25 a misdemeanor as defined in section 55.10 of the penal law, and sixteen
26 to twenty-four year old "disconnected youth".
27 § 7. The state finance law is amended by adding a new section 97-ss to
28 read as follows:
29 § 97-ss. Jobs training fund. 1. There is hereby established in the
30 joint custody of the state comptroller and the commissioner of taxation
31 and finance a fund to be known as the "jobs training fund".
32 2. Such fund shall consist of twenty-five million dollars, or so much
33 thereof as may be necessary, appropriated to the division of housing and
34 community renewal from any moneys in the state treasury in the abandoned
35 property fund established by section ninety-five of this article, not
36 otherwise appropriated, and all other moneys credited or transferred
37 thereto from any other fund or source pursuant to law.
38 3. Moneys of the fund shall be expended for educational instruction
39 for young adults sixteen to twenty-four years of age, low wage workers
40 and households with income at or below two hundred and fifty percent of
41 the federal poverty guidelines as set by the U.S. department of health
42 and human services, as provided in the chapter of the laws of two thou-
43 sand sixteen which added this section. Moneys shall be paid out of the
44 fund on the audit and warrant of the state comptroller on vouchers
45 approved by the commissioner of labor. Any interest received by the
46 comptroller on moneys on deposit in the jobs training fund shall be
47 retained in and become part of such fund. No money from such fund may
48 be withdrawn, transferred, or used by any person for any purpose other
49 than as permitted in this section.
50 § 8. The sum of two hundred million dollars ($200,000,000), or so much
51 thereof as may be necessary, is hereby appropriated to the division of
52 housing and community renewal from any moneys in the state treasury in
53 the general fund to the credit of the local assistance account, not
54 otherwise appropriated, for the purposes of carrying out the provisions
55 sections two and six of this act. Such sum shall be payable on the
56 audit and warrant of the state comptroller on vouchers certified or
A. 9537 6
1 approved by the commissioner of housing and community renewal, or his or
2 her duly designated representative in the manner provided by law. No
3 expenditure shall be made from this appropriation until a certificate of
4 approval of availability shall have been issued by the director of the
5 budget and filed with the state comptroller and a copy filed with the
6 chair of the senate finance committee and the chair of the assembly ways
7 and means committee. Such certificate may be amended from time to time
8 by the director of the budget and a copy of each such amendment shall be
9 filed with the state comptroller, the chair of the senate finance
10 committee and the chair of the assembly ways and means committee.
11 § 9. This act shall take effect on the one hundred eightieth day after
12 it shall have become a law; provided that, effective immediately, the
13 division of housing and community renewal, the New York city housing
14 development corporation and the New York state housing finance agency
15 shall make and implement all rules, regulations and standards and take
16 such other actions as are necessary to implement this act on or before
17 its effective date.