A09537 Summary:

BILL NOA09537
 
SAME ASNo Same As
 
SPONSORWright
 
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.
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A09537 Actions:

BILL NOA09537
 
03/15/2016referred to housing
06/08/2016reported referred to ways and means
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A09537 Memo:

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.
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A09537 Text:



 
                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.
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