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S06958 Summary:

BILL NOS06958
 
SAME ASNo Same As
 
SPONSORJACKSON
 
COSPNSR
 
MLTSPNSR
 
Add Art 16 §§700 - 723, Pub Hous L; add §99-ss, St Fin L
 
Enacts the New York fair housing act to require municipalities to take affirmative steps to address the creation and maintenance of affordable housing.
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S06958 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6958
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                     March 27, 2025
                                       ___________
 
        Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development
 
        AN  ACT  to  amend  the public housing law and the state finance law, in
          relation to enacting the New York fair housing act

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York fair housing act".
     3    § 2. The public housing law is amended by adding a new article  16  to
     4  read as follows:
     5                                  ARTICLE XVI
     6                          NEW YORK FAIR HOUSING ACT
     7  Section 700. Legislative findings and intent.
     8          701. Definitions.
     9          702. Housing regions.
    10          703. Affordable housing committee.
    11          704. Fair housing obligations.
    12          705. Municipal housing element and fair share plan.
    13          706. Municipal housing element; contents.
    14          707.  Calculation  of  available  land for municipal adjustment;
    15                 certain land excluded.
    16          708. Municipal housing element; techniques  for  providing  fair
    17                 share of low and moderate income housing.
    18          709. Accessibility requirement for new construction.
    19          710. Prohibition of demolition of certain residential structures
    20                 for fair housing purposes.
    21          711.  Municipalities; provision for purchase of certain residen-
    22                 tial property.
    23          712. Certification of housing element.
    24          713. Affordable housing dispute resolution program.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01029-01-5

        S. 6958                             2
 
     1          714. Affordable housing programs.
     2          715. Allocation of federal low-income tax credits.
     3          716. Annual report on activities promoting affordable housing.
     4          717.  Administration  of  online  portal  for affordable housing
     5                 listings and searches.
     6          718. Marketing of affordable housing  units;  posting;  lottery;
     7                 proof of listing; penalties for noncompliance.
     8          719.  Contractual  agreements  with  willing  municipalities  or
     9                 developers  of  inclusionary  developments  for  adminis-
    10                 tration of resale and rent controls.
    11          720.  Purchase,  lease  or acquisition by gift of real property;
    12                 acquisition, construction and  maintenance  of  buildings
    13                 and structures; private sale or lease by municipality.
    14          721. Coordination and review of housing elements; reservation of
    15                 housing  units  made available for occupancy by very low-
    16                 income households.
    17          722. Collection and expenditure of affordable  housing  develop-
    18                 ment fees by municipalities; exclusion from collection.
    19          723.  Status report concerning petitions for substantive certif-
    20                 ication; housing unit information; fair share plan infor-
    21                 mation.
    22    § 700. Legislative findings  and  intent.  New  York  state's  housing
    23  production  has been insufficient to meet growing demand due to policies
    24  that severely limit construction of housing.  The  National  Low  Income
    25  Housing  Coalition  estimates  that  New  York has a shortage of 656,000
    26  housing units. The legislature finds that this  shortage  of  affordable
    27  housing  is an emergency. It has made New York unaffordable to millions,
    28  slowed economic  growth,  fueled  gentrification,  limited  individuals'
    29  freedom to choose where they live, and entrenched racial segregation and
    30  inequality.
    31    The  Mount  Laurel  decisions  by  the  New  Jersey  Supreme Court, S.
    32  Burlington County N.A.A.C.P. v Mount Laurel Tp., 67 NJ 151, 336 A2d  713
    33  (1975)  and  S.  Burlington  County N.A.A.C.P. v Mount Laurel Tp., 92 NJ
    34  158, 456 A2d 390 (1983), a  product  of  the  commendable  civil  rights
    35  activism  of  Ethel Lawrence, declared that each municipality must build
    36  its fair share of the affordable housing units needed in the region. New
    37  York seeks to emulate this justice-based, economically and morally sound
    38  approach to housing.
    39    New Jersey's Fair Housing Act, a result of the Mount Laurel decisions,
    40  has proved to be an effective tool that balances local autonomy with the
    41  region's housing needs. It has allowed for the construction of  afforda-
    42  ble housing in New Jersey at a far higher rate than New York.
    43    Recognizing  the effectiveness of this model in our neighboring state,
    44  the legislature finds that adopting it will serve as a crucial  tool  to
    45  addressing New York's affordability crisis.
    46    § 701. Definitions. As used in this article, the following terms shall
    47  have the following meanings:
    48    1.  "Accessible"  means  constructed in compliance with all applicable
    49  accessibility provisions of the New York state uniform  fire  prevention
    50  and  building  code,  and  any  local  code or ordinance applicable to a
    51  jurisdiction.
    52    2. "Builder's remedy" means court-imposed site-specific relief  for  a
    53  litigant  who  seeks  to  build  affordable  housing for which the court
    54  requires a municipality to utilize zoning techniques, such as  mandatory
    55  set-asides,  including techniques which provide for the economic viabil-

        S. 6958                             3
 
     1  ity of a residential development by including housing that  is  not  for
     2  low- and moderate-income households.
     3    3.  "Committee"  means  the  affordable  housing committee established
     4  pursuant to section seven hundred three of this article.
     5    4. "Compliance certification" means the certification  obtained  by  a
     6  municipality  pursuant  to  section  seven hundred five of this article,
     7  that protects the  municipality  from  exclusionary  zoning  litigation,
     8  which  is  also  known  as  a  "judgment  of compliance" or "judgment of
     9  repose." The term "compliance certification" shall include a judgment of
    10  repose granted in an action filed  pursuant  to  section  seven  hundred
    11  twelve of this article.
    12    5.  "Conversion"  means  the conversion of existing commercial, indus-
    13  trial, or residential structures for low-  and  moderate-income  housing
    14  purposes  where  a  substantial  percentage  of  the  housing  units are
    15  provided for a reasonable  income  range  of  low-  and  moderate-income
    16  households.
    17    6.  "County-level  housing  judge" means a judge appointed pursuant to
    18  section seven hundred thirteen of this article, to resolve disputes over
    19  the compliance of municipal fair share  affordable  housing  obligations
    20  and municipal fair share plans and housing elements, with the provisions
    21  of this article.
    22    7.  "Deficient  housing  unit"  means  housing that: (a) is over fifty
    23  years old and overcrowded; (b) lacks complete  plumbing;  or  (c)  lacks
    24  complete kitchen facilities.
    25    8. "Disability" shall have the same definition as such term is defined
    26  in section two hundred ninety-two of the executive law.
    27    9. "Division" means the division of housing and community renewal.
    28    10. "Exclusionary zoning litigation" means litigation to challenge the
    29  fair  share  plan,  housing element, or ordinances or resolutions imple-
    30  menting the fair share plan or housing element of a  municipality  based
    31  on  alleged  noncompliance  with  the  provisions of this article, which
    32  litigation shall include, but shall not be limited to, litigation  seek-
    33  ing a builder's remedy.
    34    11.  "Fair  share  plan"  means the plan or proposal that is in a form
    35  which may readily be adopted, with accompanying  ordinances  and  resol-
    36  utions, pursuant to section seven hundred five of this article, by which
    37  a  municipality proposes to satisfy its obligation to create a realistic
    38  opportunity to meet its fair share of low- and  moderate-income  housing
    39  needs of its region and which details the affirmative measures the muni-
    40  cipality  proposes  to  undertake  to achieve its fair share of low- and
    41  moderate-income housing, as provided in the municipal  housing  element,
    42  and  addresses  the  development  regulations necessary to implement the
    43  housing element, including, but not limited  to,  inclusionary  require-
    44  ments  and  development fees, and the elimination of unnecessary housing
    45  cost-generating features from the  municipal  land  use  ordinances  and
    46  regulations.
    47    12.  "Housing  element" means that portion of a municipality's compre-
    48  hensive  plan  consisting  of  reports,  statements,  proposals,   maps,
    49  diagrams, and text designed to meet the municipality's fair share of its
    50  region's present and prospective housing needs, particularly with regard
    51  to low- and moderate-income housing, and which shall contain the munici-
    52  pal  present  and  prospective obligation for affordable housing, deter-
    53  mined pursuant to section seven hundred four of this article.
    54    13. "Housing region" means a geographic area established  pursuant  to
    55  section seven hundred two of this article.

        S. 6958                             4
 
     1    14. "Inclusionary development" means a residential housing development
     2  in  which a substantial percentage of the housing units are provided for
     3  a reasonable income range of low- and moderate-income households.
     4    15. "Low-income housing" means housing affordable according to federal
     5  Department  of  Housing and Urban Development or other recognized stand-
     6  ards for home ownership and rental costs and occupied  or  reserved  for
     7  occupancy  by  households  with  a gross household income equal to fifty
     8  percent or less of the median gross household income for  households  of
     9  the same size within the housing region in which the housing is located.
    10    16.  "Moderate-income  housing"  means housing affordable according to
    11  federal Department of Housing and Urban Development or other  recognized
    12  standards  for  home ownership and rental costs and occupied or reserved
    13  for occupancy by households with a gross household income equal to  more
    14  than  fifty  percent  but  less  than eighty percent of the median gross
    15  household income for households of the  same  size  within  the  housing
    16  region in which the housing is located.
    17    17.  "Municipality"  means  a  municipality within the state which has
    18  zoning authority.
    19    18. "Program" means the Affordable Housing Dispute Resolution Program,
    20  established pursuant to section seven hundred thirteen of this article.
    21    19. "Prospective need" means a projection of housing  needs  based  on
    22  development  and  growth which is reasonably likely to occur in a region
    23  or a municipality, as the case may be, as a result  of  actual  determi-
    24  nation of public and private entities.
    25    20. "Transitional housing" means temporary housing that:
    26    (a)  includes, but is not limited to, single-room occupancy housing or
    27  shared living and supportive living arrangements;
    28    (b) provides access to on-site or  off-site  supportive  services  for
    29  very  low-income  households  who  have  recently  been homeless or lack
    30  stable housing;
    31    (c) is licensed by the division; and
    32    (d) allows households to remain for a minimum of six months.
    33    21. "Very low-income housing" means housing  affordable  according  to
    34  federal  Department of Housing and Urban Development or other recognized
    35  standards for home ownership and rental costs and occupied  or  reserved
    36  for occupancy by households with a gross household income equal to thir-
    37  ty  percent  or less of the median gross household income for households
    38  of the same size within the housing  region  in  which  the  housing  is
    39  located.
    40    §  702.  Housing regions. The commissioner shall divide the state into
    41  eight to fifteen geographic regions  for  the  purpose  of  establishing
    42  housing obligations, in the discretion of such commissioner.
    43    §  703. Affordable housing committee. The commissioner shall establish
    44  an affordable housing committee to  determine  municipal  housing  obli-
    45  gations  in  the  state.  Such committee shall be comprised of represen-
    46  tatives of each region established pursuant to section seven hundred two
    47  of this article. The membership of the committee shall be determined  by
    48  the  commissioner  and  shall  include  representatives from each county
    49  equal to one representative for every one hundred thousand residents  of
    50  such  county  over two hundred thousand residents, with a minimum of one
    51  representative per county and one representative per city.
    52    § 704. Fair housing obligations. 1. Regional and municipal fair  hous-
    53  ing obligations shall be determined on a ten-year basis running from the
    54  first  of  April  next  succeeding  the  effective  date of this article
    55  through March thirty-first  of  the  tenth  year  thereafter,  and  each
    56  successive ten-year period.

        S. 6958                             5
 
     1    2. For the purpose of determining regional need for the ten-year round
     2  of  low-  and  moderate-income  housing  obligations, the division shall
     3  determine such need based on the provisions of subdivision three of this
     4  section. Such regional need determinations shall  be  presented  to  the
     5  committee  representatives  for such region, and such representatives in
     6  conjunction with the division shall establish fair  housing  obligations
     7  for  each  municipality within such region. Municipal obligations estab-
     8  lished pursuant to this subdivision shall be made within sixty  days  of
     9  receipt of the regional need determinations by the committee.
    10    3.  (a)  Regional  present  need for each ten-year round of affordable
    11  housing obligations shall be determined by the division  estimating  the
    12  deficient  housing units occupied by low- and moderate-income households
    13  in the region, following a methodology promulgated by the  commissioner,
    14  through  the  use of the most recent datasets made available through the
    15  federal decennial census and the American  Community  Survey,  including
    16  the Comprehensive Housing Affordability Strategy dataset thereof.
    17    (b)  Regional prospective need for a ten-year round of low- and moder-
    18  ate-income housing obligations  shall  be  determined  by  the  division
    19  utilizing the calculation provided in this subdivision. Projected house-
    20  hold  change  for  a  ten-year  round  in a region shall be estimated by
    21  establishing the household change experienced in the region between  the
    22  most recent federal decennial census, and the second-most recent federal
    23  decennial  census.  This household change, if positive, shall be divided
    24  by two and a half to estimate the number  of  low-  and  moderate-income
    25  homes needed to address low- and moderate-income household change in the
    26  region  and  to  determine  the regional prospective need for a ten-year
    27  round of low- and  moderate-income  housing  obligations.  If  household
    28  change is zero or negative, the number of low- and moderate-income homes
    29  needed  to  address  low-  and  moderate-income  household change in the
    30  region and the regional prospective need shall be zero.
    31    4. The division shall report its regional need for the ten-year  round
    32  of  low-  and  moderate-income  housing obligation determinations to the
    33  governor and the legislature within thirty days of making such  determi-
    34  nations.  Such  determinations  shall  also  be  published on the public
    35  website of the division.
    36    § 705. Municipal housing element and fair share plan. 1. (a) A munici-
    37  pality shall adopt a housing element and fair share  plan,  and  propose
    38  drafts of the appropriate zoning and other ordinances and resolutions to
    39  implement  its present and prospective obligation established in section
    40  seven hundred four of this article within ninety days of the  establish-
    41  ment of such obligations. After adoption of the housing element and fair
    42  share  plan,  and  the  proposal of drafts of the appropriate zoning and
    43  other ordinances and resolutions, the municipality shall  within  forty-
    44  eight hours, file the same with the program through the program's Inter-
    45  net  website.  Any  municipality  that fails to adopt and file a housing
    46  element and fair share plan within the timeframes set by this paragraph,
    47  shall not retain immunity from exclusionary zoning litigation until such
    48  time as the municipality is determined to have come into compliance with
    49  the provisions of this article and shall be subject  to  review  through
    50  the  declaratory  judgment  process as established in subdivision two of
    51  this section. As part of its housing element and fair  share  plan,  the
    52  municipality  shall  include  an  assessment  of the degree to which the
    53  municipality has met its fair share obligation from the prior rounds  of
    54  affordable  housing  obligations as established by prior court approval,
    55  or approval by the committee, and determine to what  extent  this  obli-
    56  gation  is unfulfilled or whether the municipality has credits in excess

        S. 6958                             6
 
     1  of its prior round obligations. If  a  prior  round  obligation  remains
     2  unfulfilled,  or a municipality never received an approval from court or
     3  the committee for any prior round, the municipality shall  address  such
     4  unfulfilled prior round obligation in its housing element and fair share
     5  plan.  Units  included  as  part of the municipality's unfulfilled prior
     6  round obligation shall not count towards the cap on units in the munici-
     7  pality's prospective need obligation. In addressing  prior  round  obli-
     8  gations, the municipality shall retain any sites that, in furtherance of
     9  the  prior  round obligation, are the subject of a contractual agreement
    10  with a developer, or for which the developer has filed a complete appli-
    11  cation seeking subdivision or site plan approval prior to  the  date  by
    12  which the housing element and fair share plan are required to be submit-
    13  ted,  and  shall  demonstrate  how  any sites that were not built in the
    14  prior rounds continue to present  a  realistic  opportunity,  which  may
    15  include proposing changes to the zoning on the site to make its develop-
    16  ment more likely, and which may also include the dedication of municipal
    17  affordable  housing  trust  fund  dollars  or  other monetary or in-kind
    18  resources. The municipality shall only plan to replace any sites planned
    19  for development as provided by a prior court approval, settlement agree-
    20  ment, or approval by the committee, with alternative development  plans,
    21  if  it is determined that the previously planned sites no longer present
    22  a realistic opportunity, and the sites in  the  alternative  development
    23  plan  provide  at least an equivalent number of affordable units and are
    24  otherwise in compliance with this article. If a municipality proposes to
    25  replace a site for which a complete application seeking  subdivision  or
    26  site  plan  approval  has  not been filed prior to the date by which the
    27  housing element and fair share plan is required to be  submitted,  there
    28  shall  be a rebuttable presumption in any challenge filed to the munici-
    29  pality's plan that any site for which a zoning designation  was  adopted
    30  creating  a realistic opportunity for the development of a site prior to
    31  July first of  every  tenth  year  thereafter,  as  applicable,  may  be
    32  replaced  with  one  or  more alternative sites that provide a realistic
    33  opportunity for at least the same number  of  affordable  units  and  is
    34  otherwise  in  compliance  with  the  provisions of this article. To the
    35  extent a municipality has credits, from units  created  during  a  prior
    36  round  that  are  otherwise permitted to be allocated toward the munici-
    37  pality's unfulfilled prior round obligation or  present  or  prospective
    38  need obligation in an upcoming round, the municipality shall be entitled
    39  to rely on the rules applicable for the round during which those credits
    40  were  accumulated.  If a municipality has credits in excess of its prior
    41  round obligations, and such excess credits represent housing  that  will
    42  continue to be deed-restricted and affordable through the current round,
    43  the municipality may include such housing towards addressing the munici-
    44  pality's new calculation of prospective need.
    45    (b)  Within  ninety  days  following  the filing of an adopted housing
    46  element and fair share plan pursuant to paragraph (a) of  this  subdivi-
    47  sion,  the attorney general or an interested party may file in an action
    48  a response alleging that the municipality's fair share plan and  housing
    49  element  are  not  in  compliance with the requirements of this article.
    50  Such allegation shall not include a claim that a site on  real  property
    51  proposed  by  the  interested  party is a better site than a site in the
    52  plan, but rather shall be based on whether the housing element and  fair
    53  share plan as proposed is compliant with the provisions of this article.
    54  To  resolve a challenge, the program shall apply an objective assessment
    55  standard to determine whether or not the municipality's housing  element
    56  and fair share plan is compliant with this article. The attorney general

        S. 6958                             7
 
     1  or any interested party that files a challenge shall specify with parti-
     2  cularity which sites or elements of the municipal fair share plan do not
     3  comply with this article, and the basis for alleging such noncompliance.
     4  The   program  shall  establish  procedures  to  summarily  dismiss  any
     5  objection or challenge that does not meet these minimum  standards.  For
     6  the  purpose  of  efficiency,  the program shall, in its own discretion,
     7  permit multiple challenges to the same  municipal  housing  element  and
     8  fair  share plan to be consolidated. If a municipality's fair share plan
     9  and housing element is not challenged within ninety days  following  the
    10  filing  of  an  adopted  housing element and fair share plan pursuant to
    11  paragraph (a) of this subdivision,  then  the  program  shall  apply  an
    12  objective  standard  to  conduct a limited review of the fair share plan
    13  and housing element for consistency and to determine whether it  enables
    14  the municipality to satisfy the fair share obligation, applies compliant
    15  mechanisms,  meets  the  threshold  requirements  for  rental and family
    16  units, does not exceed limits on other unit or category  types,  and  is
    17  compliant with the provisions of this article. The program shall issue a
    18  compliance  certification  unless these objective standards are not met.
    19  The program shall facilitate communication between the municipality, the
    20  attorney general and any interested parties for a challenge and  provide
    21  the  municipality a period of ninety days to commit to revising its fair
    22  share plan and housing element in compliance with the changes  requested
    23  in  the  challenge, or provide an explanation as to why it will not make
    24  all of the requested changes, or both. Upon resolution of  a  challenge,
    25  the  program  shall  issue  compliance certification, conditioned on the
    26  municipality's commitment, as necessary, to revise its fair  share  plan
    27  and  housing element in accordance with the resolution of the challenge.
    28  The program may also terminate immunity if it  finds  that  the  munici-
    29  pality  is  not  determined  to come into compliance at any point in the
    30  process.  If by the conclusion of the ninety  day  revision  period  the
    31  municipality, the attorney general and any interested party that filed a
    32  response  have resolved the issues raised in the response through agree-
    33  ment or withdrawal of the filing, then the program shall review the fair
    34  share plan and housing element for consistency and to determine  whether
    35  it  is compliant with the provisions of this article and issue a compli-
    36  ance certification unless these objective standards are not met.
    37    (c) The program may permit a municipality that still has  a  remaining
    38  dispute  by  interested  parties  to  retain  immunity from exclusionary
    39  zoning litigation into the year following the year in which a new  round
    40  begins  if  the  program, or county-level housing judge, determines that
    41  the municipality has been unable to resolve the issues disputed  despite
    42  being  determined  to  come  into  constitutional  compliance. The chief
    43  administrator of the courts shall develop procedures to enable  a  coun-
    44  ty-level  housing  judge  to  resolve  this dispute over the issuance of
    45  compliance certification through a summary proceeding in  supreme  court
    46  following  the  year  in  which  the  new round begins. A judge shall be
    47  permitted to serve as a county-level housing judge  for  more  than  one
    48  county  in  the  same vicinage. The pendency of such a dispute shall not
    49  stay the deadline for adoption of  implementing  ordinances  and  resol-
    50  utions  pursuant  to  this  subdivision. The implementing ordinances and
    51  resolutions adopted prior to  the  resolution  of  the  dispute  may  be
    52  subject to changes to reflect the results of the dispute. As an alterna-
    53  tive  to  adopting all necessary implementing ordinances and resolutions
    54  by the deadlines set in this  section,  a  municipality  involved  in  a
    55  continuing  dispute  over  the  issuance of compliance certification may
    56  adopt a binding resolution by such deadlines to commit to  adopting  the

        S. 6958                             8
 
     1  implementing  ordinances  and  resolutions  following  resolution of the
     2  dispute, with necessary adjustments to reflect  the  resolution  of  the
     3  dispute.
     4    (d)  A  compliance certification, issued pursuant to this subdivision,
     5  shall be accompanied by a written report that shall set forth the  basis
     6  of  the  issuance  of  the  certification and shall be in a format to be
     7  developed and approved by the chief administrator of the courts.
     8    2. (a) If a municipality fails to materially  adhere  to  any  of  the
     9  deadlines  established in subdivision one of this section due to circum-
    10  stances beyond the control  of  the  municipality,  including,  but  not
    11  limited  to,  an  inability to meet a deadline due to an extreme weather
    12  event, then the program, or the county level housing judge,  in  accord-
    13  ance  with court rules, may permit a municipality to have a grace period
    14  to come into compliance with the timeline,  the  length  of  which,  and
    15  effect  of  which  on later deadlines, shall be determined on a case-by-
    16  case basis.
    17    (b) A municipality that has not adopted and filed  a  housing  element
    18  and fair share plan pursuant to subdivision one of this section may seek
    19  compliance  certification  by filing an action pursuant to section seven
    20  hundred twelve of this article, provided that  any  exclusionary  zoning
    21  litigation  filed  by  a  plaintiff against such a municipality prior to
    22  such time may proceed notwithstanding such  filing.  In  a  municipality
    23  that  has adopted and filed a housing element and fair share plan pursu-
    24  ant to subdivision one of this  section,  a  court  shall  not  consider
    25  exclusionary  zoning  litigation  during  the timeframe after the timely
    26  submission of a binding  resolution  or  fair  share  plan  and  housing
    27  element of a municipality, or both, and before a challenge is submitted,
    28  or  during  the timeframe of a challenge that is pending resolution with
    29  the program pursuant to this section. A court may consider  exclusionary
    30  zoning  litigation  after such timeframe upon a finding that the munici-
    31  pality:  (i) is determined to be noncompliant with its  responsibilities
    32  pursuant  to  the  provisions of this section or is participating in the
    33  program in bad faith; (ii) has failed to meet the deadlines  established
    34  pursuant  to  this  section;  or  (iii)  has, after receiving compliance
    35  certification, failed to comply with the terms of that certification  by
    36  not  actually  allowing for the development of the affordable housing as
    37  provided for in its fair share plan and housing element through  actions
    38  or omissions, or both, of a municipality or its subordinate boards.
    39    (c)  All  parties  shall  bear their own fees and costs in proceedings
    40  before the program.
    41    (d) A determination by the program as to the present  and  prospective
    42  need  obligation  or as to issuance of compliance certification pursuant
    43  to this section shall be considered a final decision, subject to  appel-
    44  late review.
    45    3.  (a)  Once  a  municipality has received a compliance certification
    46  pursuant to subdivision one of this section or  otherwise  has  had  its
    47  fair  share  obligation  and housing element and fair share plan finally
    48  determined via judgment of repose or other  judgment,  the  municipality
    49  shall  make  the  municipality's fair share plan and housing element, as
    50  well as any subsequently  adopted  implementing  ordinances  and  resol-
    51  utions, or amendments thereto, available to the division and the program
    52  for  publication  on  the  division's  and program's respective Internet
    53  websites.
    54    (b) A municipality shall not be deemed  out  of  compliance  with  the
    55  deadlines  of  subdivision  one  of  this section, or lose immunity from
    56  exclusionary zoning litigation, due to  a  failure  by  the  program  to

        S. 6958                             9

     1  promptly  maintain  and update its Internet website or other operational
     2  failure of the program.
     3    4.  (a)  A  municipality  shall have immunity from exclusionary zoning
     4  litigation if the municipality complies with the  deadlines  established
     5  in  subdivision  one  of this section for adopting a housing element and
     6  fair share plan to meet  present  and  prospective  fair  housing  obli-
     7  gations.
     8    (b)  Immunity  from exclusionary zoning litigation shall not limit the
     9  ability of the attorney general or an interested party  to  challenge  a
    10  municipality  for  failure  to  comply  with the terms of its compliance
    11  certification. However, a municipality's  actions  to  comply  with  the
    12  terms  of  its  compliance  certification  shall retain a presumption of
    13  validity if challenged for an alleged failure described  in  this  para-
    14  graph.
    15    (c)  Immunity  from exclusionary zoning litigation shall not limit the
    16  ability of the attorney general or an interested party to bring a  chal-
    17  lenge  before the program alleging that, despite the issuance of compli-
    18  ance certification, a municipality's fair share obligation,  fair  share
    19  plan, housing element, or ordinances implementing the fair share plan or
    20  housing  element  are  in  violation  of the provisions of this article.
    21  However, the decisions of the program  shall  retain  a  presumption  of
    22  validity  if challenged for an alleged violation described in this para-
    23  graph.
    24    § 706. Municipal housing element; contents. A  municipality's  housing
    25  element  shall  be  designed to achieve the goal of access to affordable
    26  housing to meet present and prospective housing needs,  with  particular
    27  attention  to  low-  and  moderate-income  housing, and shall contain at
    28  least:
    29    1. An inventory of the municipality's housing stock by age, condition,
    30  purchase or rental value, occupancy characteristics, and type, including
    31  the number of units affordable to low-  and  moderate-income  households
    32  and  substandard housing capable of being rehabilitated, and in conduct-
    33  ing this inventory the municipality shall have access, on a confidential
    34  basis for the sole purpose of conducting the inventory, to all necessary
    35  property tax  assessment  records  and  information  in  the  assessor's
    36  office;
    37    2.  A  projection  of  the municipality's housing stock, including the
    38  probable future construction of low- and  moderate-income  housing,  for
    39  the next ten years, taking into account, but not necessarily limited to,
    40  construction  permits  issued, approvals of applications for development
    41  and probable residential development of lands;
    42    3. An analysis  of  the  municipality's  demographic  characteristics,
    43  including  but  not necessarily limited to, household size, income level
    44  and age;
    45    4. An analysis of the existing and probable future employment  charac-
    46  teristics of the municipality;
    47    5.  A determination of the municipality's present and prospective fair
    48  share for low- and moderate-income housing and its capacity to  accommo-
    49  date its present and prospective housing needs, including its fair share
    50  for low- and moderate-income housing, as established pursuant to section
    51  seven hundred four of this article; and
    52    6.  A  consideration  of  the  lands  that  are  most  appropriate for
    53  construction of low- and moderate-income housing  and  of  the  existing
    54  structures  most  appropriate  for conversion to, or rehabilitation for,
    55  low- and moderate-income housing, including a consideration of lands  of

        S. 6958                            10

     1  developers  who  have  expressed a commitment to provide low- and moder-
     2  ate-income housing.
     3    § 707. Calculation of available land for municipal adjustment; certain
     4  land  excluded.  1.  Any municipality that receives an adjustment of its
     5  prospective need obligations based on a lack of  vacant  land  shall  as
     6  part of the process of adopting and implementing its housing element and
     7  fair  share  plan identify sufficient parcels likely to redevelop during
     8  the current round of obligations to address at least twenty-five percent
     9  of the prospective need obligation that has  been  adjusted,  and  adopt
    10  realistic  zoning  that  allows  for such adjusted obligation, or demon-
    11  strate why the municipality is unable to do so. When computing a munici-
    12  pal adjustment regarding available land resources as part of the  deter-
    13  mination  of  a  municipality's  fair  share  of affordable housing, the
    14  municipality, in filing a housing element and fair share  plan  pursuant
    15  to section seven hundred five of this article, shall exclude from desig-
    16  nating as vacant land:
    17    (a)  any  land  that  is  owned by a local government entity that, has
    18  adopted, prior to the institution of a lawsuit seeking a builder's reme-
    19  dy or prior to the filing of a petition for substantive certification of
    20  a housing element and fair  share  plan,  a  resolution  authorizing  an
    21  execution  of  agreement  that the land be utilized for a public purpose
    22  other than housing;
    23    (b) any land listed on a comprehensive plan of a municipality as being
    24  dedicated, by easement or otherwise, for purposes of conservation,  park
    25  lands  or  open  space  and  which is owned, leased, licensed, or in any
    26  manner operated by  a  county,  municipality  or  tax-exempt,  nonprofit
    27  organization  including  a local board of education, or by more than one
    28  municipality by joint agreement, for so long  as  the  entity  maintains
    29  such ownership, lease, license, or operational control of such land;
    30    (c)  any  vacant  contiguous parcels of land in private ownership of a
    31  size which would accommodate fewer than  five  housing  units  based  on
    32  appropriate standards pertaining to housing density;
    33    (d)  historic  and architecturally important sites listed on the state
    34  register of historic sites and objects pursuant to section 19.03 of  the
    35  parks, recreation and historic preservation law;
    36    (e) agricultural lands when the development rights to these lands have
    37  been purchased or restricted by covenant;
    38    (f)  sites  designated  for  active recreation that are designated for
    39  recreational purposes in the municipal comprehensive plan; and
    40    (g) environmentally sensitive lands where development is prohibited by
    41  any state or federal agency.
    42    2. No municipality shall be required to utilize land that is  excluded
    43  from being designated as vacant land for affordable housing purposes.
    44    3.  Notwithstanding  any  law  or  regulation to the contrary, nothing
    45  shall preclude a municipality which has reserved less than three percent
    46  of its land area for conservation, park lands or open space from reserv-
    47  ing up to three percent of its land  area  for  such  purposes.  Nothing
    48  herein  is intended to alter the responsibilities of municipalities with
    49  respect to plans already approved which were based upon the right  to  a
    50  vacant land adjustment.
    51    §  708. Municipal housing element; techniques for providing fair share
    52  of low- and moderate-income housing. 1. In adopting its housing element,
    53  the municipality may provide for its fair share of low- and moderate-in-
    54  come housing by means of any  technique  or  combination  of  techniques
    55  which  provide  a  realistic  opportunity  for the provision of the fair
    56  share. The housing element shall contain an analysis demonstrating  that

        S. 6958                            11
 
     1  it will provide such a realistic opportunity, and the municipality shall
     2  establish  that  its  land  use  and other relevant ordinances have been
     3  revised to incorporate the provisions for low- and moderate-income hous-
     4  ing.  In  preparing the housing element, the municipality shall consider
     5  the following techniques for providing low- and moderate-income  housing
     6  within the municipality, as well as such other appropriate techniques as
     7  have  been  established through applicable precedent and may be employed
     8  by the municipality:
     9    (a) Rezoning for densities necessary to assure the economic  viability
    10  of  any  inclusionary developments, either through mandatory set-asides,
    11  as may be necessary to meet all or part of the municipality's fair share
    12  in accordance with the provisions of subdivision seven of this section;
    13    (b) Determination of the total residential zoning necessary to  assure
    14  that the municipality's fair share is achieved;
    15    (c)  Determination  of  measures  that  the  municipality will take to
    16  assure that low- and moderate-income units remain affordable to low- and
    17  moderate-income households for an appropriate period of  not  less  than
    18  the  period required by the regulations adopted by the division pursuant
    19  to subdivision six of section seven hundred fourteen of this article;
    20    (d) A plan for infrastructure expansion and rehabilitation and conver-
    21  sion or redevelopment of unused or underutilized real property,  includ-
    22  ing  existing  structures, if necessary to assure the achievement of the
    23  municipality's fair share of low- and moderate-income housing;
    24    (e) Donation or use of municipally owned land or land condemned by the
    25  municipality for purposes of providing low- and moderate-income housing;
    26    (f) Tax abatements for purposes of providing low- and  moderate-income
    27  housing;
    28    (g)  Utilization  of  funds obtained from any state or federal subsidy
    29  toward the construction of low- and moderate-income housing;
    30    (h) Utilization of municipally generated funds toward the construction
    31  of low- and moderate-income housing; and
    32    (i) The purchase of privately owned real property used for residential
    33  purposes at the value of all liens secured by  the  property,  excluding
    34  any  tax liens, notwithstanding that the total amount of debt secured by
    35  liens exceeds the appraised value of the  property,  pursuant  to  regu-
    36  lations  promulgated  by  the  commissioner  pursuant  to  section seven
    37  hundred eleven of this article.
    38    2. The municipality  may  provide  for  a  phasing  schedule  for  the
    39  achievement of its fair share of low- and moderate-income housing.
    40    3.  Nothing  in  this article shall require a municipality to raise or
    41  expend municipal revenues in order to provide low-  and  moderate-income
    42  housing.
    43    4.  When  a  municipality's  housing element includes the provision of
    44  rental housing units in a community residence for persons with  a  disa-
    45  bility,  or in transitional housing, which will be affordable to persons
    46  of low- and moderate-income, and for which adequate measures  to  retain
    47  such  affordability pursuant to paragraph (c) of subdivision one of this
    48  section are included in the housing element, those housing  units  shall
    49  be  fully  credited  towards  the fulfillment of the municipality's fair
    50  share of low- and moderate-income  housing.  A  municipality  shall  not
    51  credit  transitional  housing units towards more than ten percent of the
    52  municipality's fair share obligation.
    53    5. It having been determined by the legislature that the provision  of
    54  housing  under this article is a public purpose, a municipality or muni-
    55  cipalities may utilize public monies to make donations, grants or  loans
    56  of  public  funds  for the rehabilitation of deficient housing units and

        S. 6958                            12
 
     1  the provision of new or substantially rehabilitated housing for low- and
     2  moderate-income persons, providing that any private advantage  is  inci-
     3  dental.
     4    6.  A  municipality  that has received approval of its housing element
     5  and fair share plan  for  the  current  round,  and  that  has  actually
     6  effected  the  construction  of the affordable housing units it is obli-
     7  gated to provide, may amend its affordable  housing  element  or  zoning
     8  ordinances without losing immunity from exclusionary zoning litigation.
     9    7.  Whenever  affordable  housing  units  are  proposed to be provided
    10  through an  inclusionary  development,  a  municipality  shall  provide,
    11  through  its  zoning  powers,  incentives  to the developer, which shall
    12  include increased densities and reduced costs.
    13    8. A municipality and a developer may  request  a  modification  of  a
    14  compliance certification involving reduced affordable housing set-asides
    15  or  increased  densities to ensure the economic feasibility of an inclu-
    16  sionary development, if any such application demonstrates how any short-
    17  fall in meeting  the  municipal  fair  share  obligation  will  then  be
    18  addressed.  Such  a  request may be granted only if the municipality and
    19  developer have demonstrated that the project has been impacted by market
    20  conditions beyond their reasonable control.
    21    9. A municipality may enter into an  agreement  with  a  developer  or
    22  residential  development  owner  to  provide a preference for affordable
    23  housing to low- and moderate-income veterans, as defined in section  one
    24  of  the veterans' services law, of up to fifty percent of the affordable
    25  units in that particular project. This preference shall  be  established
    26  in  the  applicant  selection  process for available affordable units so
    27  that applicants who are veterans who apply within  ninety  days  of  the
    28  initial  marketing period shall receive preference for the rental of the
    29  agreed-upon percentage of affordable units. After the first ninety  days
    30  of  the  initial  one  hundred  twenty-day marketing period, if any such
    31  units subject to the preference remain available, then  applicants  from
    32  the  general  public  shall  be  considered for occupancy. Following the
    33  initial one hundred twenty-day marketing  period,  previously  qualified
    34  applicants  and  future  qualified  applicants who are veterans shall be
    35  placed on a special waiting list as well as the  general  waiting  list.
    36  The  veterans  on the special waiting list shall be given preference for
    37  affordable units, as the units become available, whenever the percentage
    38  of preference-occupied units falls below the agreed upon percentage. Any
    39  agreement to provide affordable housing preferences for veterans  pursu-
    40  ant  to  this  subdivision  shall not affect a municipality's ability to
    41  receive credit for the unit.
    42    10. A municipality may not satisfy more than  thirty  percent  of  the
    43  affordable  housing  units,  to  address its prospective need affordable
    44  housing obligation through the creation  of  age-restricted  housing.  A
    45  municipality  shall  satisfy  a  minimum  of fifty percent of the actual
    46  affordable housing units created to address its prospective need afford-
    47  able housing obligation through the creation  of  housing  available  to
    48  families with children and otherwise in compliance with the requirements
    49  and  controls  established  pursuant to subdivision six of section seven
    50  hundred fourteen of this article. A municipality shall satisfy a minimum
    51  of twenty-five percent of the actual affordable housing units to address
    52  its prospective need affordable housing obligation, through rental hous-
    53  ing, including at least half of that number available to  families  with
    54  children.  All  units  referred to in this section shall otherwise be in
    55  compliance with the requirements and controls  established  pursuant  to
    56  subdivision six of section seven hundred fourteen of this article.

        S. 6958                            13
 
     1    11. The provisions of this article shall not be construed to require a
     2  municipality  to fund infrastructure improvements for affordable housing
     3  projects beyond any commitments made in a fair share  plan  and  housing
     4  element  that has been provided with compliance certification. A munici-
     5  pality  may  fund  infrastructure  improvements  for  affordable housing
     6  projects, through the adoption  of  a  development  agreement  with  the
     7  applicant,  beyond any commitments made in a fair share plan and housing
     8  element that has been provided with compliance certification.
     9    § 709. Accessibility requirement for new  construction.  1.  Beginning
    10  upon  the effective date of this article, any new construction for which
    11  credit is sought against a fair share obligation  shall  be  accessible.
    12  For  the  purposes  of  this  section,  "new construction" shall mean an
    13  entirely new  improvement  not  previously  occupied  or  used  for  any
    14  purpose.
    15    2.  A  municipality  may take such measures as are necessary to assure
    16  compliance with the accessibility requirements imposed pursuant to  this
    17  section,  including  the  inspection  of  those  units  which  are newly
    18  constructed and receive housing credit for accessibility, as part of the
    19  monitoring which occurs pursuant to this article. If any units for which
    20  credit was granted in accordance with the provisions of this article are
    21  found not to conform to the requirements  of  this  section,  any  party
    22  representing  the  interests  of households with disabilities may seek a
    23  modification to the approval of the municipal fair share plan to require
    24  the municipality to amend its fair share plan within ninety days of such
    25  a finding, to address its fair share obligation pursuant to  this  arti-
    26  cle.    In the event that the municipality fails to amend its fair share
    27  plan within ninety days of such a finding, the municipality  shall  lose
    28  immunity  to exclusionary zoning litigation for the portion of its obli-
    29  gation that is found not to conform to the requirements of this section.
    30    § 710. Prohibition of demolition of certain residential structures for
    31  fair housing purposes. Nothing in this article  shall  be  construed  to
    32  require that a municipality fulfill all or any portion of its fair share
    33  housing  obligation  through permitting the development or redevelopment
    34  of property within the municipality on which is  located  a  residential
    35  structure  which  has  not  been declared unfit, or which was within the
    36  previous three years negligently or willfully rendered unfit, for  human
    37  occupancy  or use, and which is situated on a lot of less than two acres
    38  of land or on a lot formed by merging two or  more  such  lots,  if  the
    39  development or redevelopment would require the demolition of such struc-
    40  ture.
    41    §  711.  Municipalities; provision for purchase of certain residential
    42  property. 1. Notwithstanding the provisions of the eminent domain proce-
    43  dure law, or of any other law, rule or regulation  to  the  contrary,  a
    44  municipality may provide for the purchase of privately owned residential
    45  property  at  the value of all liens secured by real property, excluding
    46  any tax lien to which the property is subject and  include  those  units
    47  toward  the fulfillment of its fair share housing obligation pursuant to
    48  the provisions of this article. Any such  purchase  under  this  section
    49  shall be made pursuant to and consistent with regulations promulgated by
    50  the commissioner pursuant to subdivision two of this section.
    51    2.  The commissioner shall promulgate any rules and regulations neces-
    52  sary to effectuate the provisions of this section.
    53    § 712. Certification of housing element.   1. If  a  municipality  has
    54  adopted  a housing element and fair share plan pursuant to section seven
    55  hundred five of this article, but has failed to  satisfy  the  deadlines
    56  established  in  such section, for any round of affordable housing obli-

        S. 6958                            14
 
     1  gations, the municipality may request and be provided with a grace peri-
     2  od pursuant to subdivision two of section seven  hundred  five  of  this
     3  article,  if authorized by the program or county-level housing judge, as
     4  determined  by the rules of court. If a municipality that has not satis-
     5  fied this deadline is not provided with a grace period, the municipality
     6  may institute an action for declaratory judgment granting it  repose  in
     7  the supreme court for the ten-year period constituting the current round
     8  of  fair share obligations. The municipality shall publish notice of its
     9  filing of a declaratory judgment action in a newspaper of general circu-
    10  lation within the municipality and county and shall  make  available  to
    11  the  public information on the element and ordinances by submitting such
    12  information to the program to be published on the  Internet  website  of
    13  the  program in accordance with section seven hundred five of this arti-
    14  cle.
    15    2. (a) A municipality, the attorney general or  any  other  interested
    16  party  may file an action through the program seeking a realistic oppor-
    17  tunity review at the midpoint of  the  certification  period  and  shall
    18  provide  for  notice  to  the  public, including a realistic opportunity
    19  review of any inclusionary development site in the housing  element  and
    20  fair  share  plan  that  has not received preliminary site plan approval
    21  prior to the midpoint of the ten-year round. If such an action is initi-
    22  ated by a municipality, the municipality may propose one or more  alter-
    23  native sites with an accompanying development plan or plans that provide
    24  a  realistic  opportunity for the same number of affordable units and is
    25  otherwise in compliance with the provisions of  this  article,  provided
    26  that  if  the facts demonstrate that the municipality or its subordinate
    27  boards have prevented the site from receiving site plan  approval,  then
    28  the program shall reject the municipality's challenge.
    29    (b)  Any  party  may  file  a request for information from the program
    30  regarding the progress of development at  any  inclusionary  development
    31  site  in the housing element and fair share plan of a municipality or at
    32  any alternative site proposed  by  the  municipality.  The  program  may
    33  respond to a request independently or in coordination with the division.
    34    §  713.  Affordable  housing dispute resolution program.   1. There is
    35  established an affordable housing dispute resolution program that  shall
    36  have  the  purpose  of  efficiently  resolving  disputes  involving  the
    37  provisions of this article, to consist of an odd number of  members,  of
    38  at  least three and no more than seven members who shall lead the admin-
    39  istration of the program. The chief administrator of  the  courts  shall
    40  update  the  assignment  of  designated housing judges to indicate which
    41  current or retired and on-recall judges of the supreme court shall serve
    42  as members, within sixty days  following  the  effective  date  of  this
    43  section.  The chief administrator of the courts may appoint other quali-
    44  fied experts as members if sufficient current  and  retired  judges  are
    45  unavailable.  The  chief  administrator  of  the  courts shall take into
    46  consideration in making such appointments experience in  the  employment
    47  of  alternative  dispute  resolution  methods  and  in  relevant subject
    48  matter.
    49    2. The chief administrator of the courts shall designate a  member  to
    50  serve  as  chair.  The  chief administrator of the courts shall make new
    51  appointments as needs arise for new appointments.
    52    3. The program, in its discretion and in  accordance  with  applicable
    53  court  rules,  may consult or employ the services of one or more special
    54  masters or staff to assist it  in  rendering  determinations,  resolving
    55  disputes,  and  facilitating  communication as required in section seven
    56  hundred five of this article. In addition, the program  may  incorporate

        S. 6958                            15

     1  any existing or newly established court mediation or alternative dispute
     2  resolution  process  to  assist  the  program  in resolving disputes and
     3  facilitating communication among municipalities and interested parties.
     4    4.  The  chief  administrator  of  the courts shall establish a filing
     5  system via an Internet website in which the public is  able  to  access,
     6  without  cost,  filings  made  pursuant  to  this article and such other
     7  related filings as the chief administrator of the courts may include  on
     8  the filing system.
     9    5. The chief administrator of the courts may assign additional respon-
    10  sibilities  to  the  program  for  resolving  disputes arising out of or
    11  related to the provisions of this article.
    12    6. The chief administrator of the courts  shall  establish  procedures
    13  for   the  purpose  of  efficiently  resolving  disputes  involving  the
    14  provisions of this section, for circumstances in which  the  program  is
    15  unable  to  address  the dispute within the time limitations established
    16  pursuant to section seven hundred five of this article. As a part of the
    17  procedures established pursuant to this section, in order to  facilitate
    18  an  appropriate  level  of localized control of affordable housing deci-
    19  sions, for each vicinage, the chief administrator of  the  courts  shall
    20  designate  a  supreme  court  judge  who  sits within the vicinage, or a
    21  retired judge who, during the judge's tenure as a judge,  served  within
    22  the vicinage, to serve as county-level housing judge to resolve disputes
    23  over the compliance, of fair share plans and housing elements of munici-
    24  palities within their designated county or counties, with the provisions
    25  of  this article, as well as disputes that arise with respect to ongoing
    26  compliance or noncompliance  with  obligations  created  by  fair  share
    27  plans,  housing  elements,  and  the provisions of this article. A judge
    28  shall be permitted to serve as a county-level  housing  judge  for  more
    29  than one county in the same vicinage.
    30    7.  The  chief administrator of the courts shall promulgate, maintain,
    31  and apply a code of ethics that is modeled upon  the  Code  of  Judicial
    32  Conduct  of  the American Bar Association, and may establish additional,
    33  more restrictive ethical standards in order to meet the  specific  needs
    34  of the program and of county-level housing judges.
    35    §  714.  Affordable  housing programs. 1. The division shall establish
    36  affordable housing programs to  assist  municipalities  in  meeting  the
    37  obligation of developing communities to provide low- and moderate-income
    38  housing.
    39    2.  The division shall to the extent of available funds, award assist-
    40  ance to affordable housing  programs  located  in  municipalities  whose
    41  housing  elements  have obtained compliance certification, or which have
    42  been subject to a builder's remedy. During any period which  the  agency
    43  may  approve,  the  division may assist affordable housing programs that
    44  have a  pending  request  for  compliance  certification;  provided  the
    45  affordable housing program will meet all or in part a municipal low- and
    46  moderate-income housing obligation.
    47    3.  Assistance  provided pursuant to this section may take the form of
    48  grants or awards to municipalities, prospective home purchasers,  or  as
    49  contributions  to the issuance of mortgage revenue bonds or multi-family
    50  housing development bonds which have the effect of achieving the goal of
    51  producing affordable housing.
    52    4. Affordable housing programs which may be financed or assisted under
    53  this provision may include, but are not limited to:
    54    (a) Assistance for home purchase and  improvement  including  interest
    55  rate  assistance,  down  payment and closing cost assistance, and direct
    56  grants for principal reduction;

        S. 6958                            16
 
     1    (b)  Rental  programs  including  loans  or  grants  for  developments
     2  containing  low- and moderate-income housing, moderate rehabilitation of
     3  existing rental housing, congregate care and retirement facilities;
     4    (c) Financial assistance for the conversion of nonresidential space to
     5  residences;
     6    (d)  Other  housing  programs  for  low-  and moderate-income housing,
     7  including infrastructure projects directly facilitating the construction
     8  of low- and moderate-income housing; and
     9    (e) Grants or loans to municipalities, housing sponsors and  community
    10  organizations  to  encourage  development  of  innovative  approaches to
    11  affordable housing, including:
    12    (i) Such advisory, consultative, training and educational services  as
    13  will  assist in the planning, construction, rehabilitation and operation
    14  of housing; and
    15    (ii) Encouraging research in and demonstration projects to develop new
    16  and better techniques and methods for increasing the supply,  types  and
    17  financing of housing and housing projects in the state.
    18    5.  The  division  shall establish procedures and guidelines governing
    19  the qualifications of applicants, the  application  procedures  and  the
    20  criteria  for  awarding grants and loans for affordable housing programs
    21  and the standards for establishing the amount, terms and  conditions  of
    22  each grant or loan.
    23    6.  The  division  shall establish requirements and controls to ensure
    24  the maintenance of housing assisted under this article as affordable  to
    25  low-  and moderate-income households for a period of not less than forty
    26  years for newly created rental units, thirty years for  for-sale  units,
    27  and  thirty years for housing units for which affordability controls are
    28  extended for a new term of  affordability,  provided  that  the  minimum
    29  extension  term  may  be limited to no less than twenty years as long as
    30  the original and extended terms, in combination, total  at  least  sixty
    31  years.   Any one hundred percent affordable rental property shall have a
    32  right to extinguish a deed restriction regardless  of  original  length,
    33  beginning  thirty  years  following  the  start of the deed restriction,
    34  provided a refinancing or rehabilitation, or both, for  the  purpose  of
    35  preservation  is  commenced  and that a new deed restriction of at least
    36  thirty years is provided. A municipality shall be  eligible  to  receive
    37  credits for all preserved units pursuant to this subdivision, as long as
    38  the  original  and  extended  terms total at least sixty years, and this
    39  credit may be obtained at the time  of  preservation.  All  one  hundred
    40  percent affordable projects shall be eligible for any affordable housing
    41  preservation  program  administered by the state, beginning thirty years
    42  following the start of the  deed  restriction,  regardless  of  original
    43  length  of  the  deed  restriction.  Any state administered preservation
    44  program may allow a refinancing funding process to commence prior to the
    45  thirtieth year of the deed restriction when such refinancing or rehabil-
    46  itation funding is needed to preserve affordable housing.  The  controls
    47  may  include,  among  others,  requirements  for recapture of assistance
    48  provided pursuant to this article or restrictions on return on equity in
    49  the event of failure to meet the requirements of the program.
    50    7. (a) The division shall promulgate processes and standards  for  the
    51  certification of administrative agents and municipal housing liaisons in
    52  the state, as well as standards for measuring performance of and enforc-
    53  ing  compliance  by administrative agents and municipal housing liaisons
    54  in implementing the affordable housing requirements and controls  estab-
    55  lished pursuant to subdivision six of this section.

        S. 6958                            17
 
     1    (b)  Administrative  agents  shall be responsible for implementing the
     2  requirements and controls set by the regulations promulgated pursuant to
     3  subdivision six of this section. The  division  may  bring  via  summary
     4  proceeding  any  findings of violation of the responsibilities set forth
     5  in  this  section  before  a  county-level  housing  judge to docket the
     6  violation and issue corrective orders and levy fines.
     7    (c) Municipal housing liaisons shall  be  responsible  for  monitoring
     8  administrative agents within their municipality's jurisdiction to ensure
     9  compliance  with  the  requirements and controls set by regulation under
    10  subdivision six of this section.
    11    (d) Municipal housing liaisons, the division, and  interested  parties
    12  may  bring  a challenge before a county-level housing judge to determine
    13  whether properties subject to the regulations set forth by this  section
    14  are  out  of  compliance  with  the regulations. A finding of deliberate
    15  noncompliance may result in the  division  removing  the  administrative
    16  agent's certification.
    17    (e)  A county-level housing judge may issue fines and order corrective
    18  actions for violations and may consider patterns of violations in deter-
    19  mining whether a municipality  is  meeting  its  obligations  under  the
    20  compliance  certification  established  by section seven hundred five of
    21  this article.
    22    (f) The division shall promulgate all rules and regulations  necessary
    23  to implement the provisions of this subdivision.
    24    §  715.  Allocation of federal low-income tax credits. Notwithstanding
    25  any law, rule or regulation to the contrary, the allocation  of  federal
    26  low-income tax credits shall be made to the full extent such credits are
    27  permitted  to  be  allocated under federal law, including allocations of
    28  four percent or nine percent federal low-income tax credits and  includ-
    29  ing allocations allowable for partial credits. The affordable portion of
    30  any  mixed  income or mixed-use development that is part of a fair share
    31  housing plan that has obtained  compliance  certification,  including  a
    32  court-approved  judgment  of repose or compliance, shall be permitted to
    33  receive allocations of low-income tax credits, provided that the  appli-
    34  cant  can  conclusively  demonstrate that the market rate residential or
    35  commercial units are  unable  to  internally  subsidize  the  affordable
    36  units, and the affordable units are developed contemporaneously with the
    37  commercial or market rate residential units.
    38    §  716.  Annual report on activities promoting affordable housing. The
    39  division shall maintain on its website and  publish  annually  a  report
    40  concerning  its  activities  during  the year in promotion of affordable
    41  housing, including any activity pursuant to section seven hundred  four-
    42  teen  of  this  article  and section ninety-nine-ss of the state finance
    43  law. The report shall detail the number and amounts  of  grants,  loans,
    44  the  average  loan  amount  made,  the amounts of low income tax credits
    45  allocated by the division, by  location,  and  the  number  of  proposed
    46  units,  and  any additional information which the division deems inform-
    47  ative to the public.
    48    § 717. Administration of online portal for affordable housing listings
    49  and searches. The division shall establish a housing resource center, as
    50  an online portal for income-restricted housing listings and searches.
    51    § 718. Marketing of affordable housing units; posting; lottery;  proof
    52  of listing; penalties for noncompliance. 1. As used in this section, the
    53  following terms shall have the following meanings:
    54    (a)  "Affirmative  marketing plan" means a regional marketing strategy
    55  designed to attract buyers, renters, or both to housing units which  are
    56  being  marketed  by  a  developer  or  sponsor of affordable housing. An

        S. 6958                            18

     1  affirmative marketing plan shall target eligible persons who  are  least
     2  likely to apply for affordable units in the region.
     3    (b)  "Development"  means any residential development in which housing
     4  for very low-, low-, or moderate-income households is required,  includ-
     5  ing  developments  receiving  credit  in a municipal housing element and
     6  fair share plan or otherwise approved by the committee or court,  or  in
     7  which such housing is required via land use approvals from any municipal
     8  land use board.
     9    (c)  "Housing resource center" means the online portal for income-res-
    10  tricted housing listings and searches established  pursuant  to  section
    11  seven hundred seventeen of this article.
    12    2.  Every  municipality  shall establish an affirmative marketing plan
    13  and require owners, developers, property managers, or other  administra-
    14  tive entities which offer affordable housing within such municipality to
    15  implement such affirmative marketing plan for their developments.
    16    3. (a) The owner, developer, property manager, or other administrative
    17  entity  required  to implement the affirmative marketing plan of a newly
    18  constructed development where affordable housing units will be leased or
    19  sold for the first time shall be required to post a listing on the hous-
    20  ing resource center of the available affordable  housing  units,  on  or
    21  before  the  earlier  of:  (i) at least sixty days prior to conducting a
    22  lottery of the applicants; or (ii) within one  day  following  when  the
    23  owner,  developer,  property  manager,  or  other  administrative entity
    24  provides any information regarding how to apply for units to prospective
    25  applicants  or  solicits  any  applications  from  potential  applicants
    26  through  any  other  means. The posting shall include, at a minimum, the
    27  date that the affordable housing units are expected to be completed, the
    28  date of the lottery, the number of affordable housing units, an account-
    29  ing of how many of the affordable housing units  will  be  available  to
    30  very  low-,  low-, and moderate-income households, and each bedroom size
    31  that will be available.
    32    (b) A lottery shall not take place  less  than  sixty  days  following
    33  posting  on  the  housing  resource  center.  Any posting on the housing
    34  resource center shall provide a link to an online fillable form or port-
    35  able document format (PDF) form of the application  for  the  affordable
    36  housing  units on the website of the owner, developer, property manager,
    37  or other administrative entity and information on how to request a paper
    38  copy of the application from the owner, developer, property manager,  or
    39  other administrative entity.
    40    4.  The  owner,  developer,  property manager, or other administrative
    41  entity required to implement the affirmative marketing plan of an exist-
    42  ing development where one  or  more  affordable  housing  units  becomes
    43  available  shall  post vacancies and waitlist openings for any such unit
    44  on the housing resource center and the requirements  set  forth  in  the
    45  affirmative  marketing plan of the municipality where the development is
    46  located. The posting shall be made within one day of accepting  applica-
    47  tions  and  shall  include,  at  a  minimum,  the expected date that the
    48  affordable housing units will become available, the number of affordable
    49  housing units, an accounting of how many of the affordable housing units
    50  will be available to very low-, low-,  and  moderate-income  households,
    51  and each bedroom size that will be available.
    52    5.  (a)  From  time to time the owner, developer, property manager, or
    53  administrative entity required to implement  the  affirmative  marketing
    54  plan  of  an  existing development may elect to conduct a new lottery to
    55  generate or expand the pool  of  applicants,  provided  that  applicants
    56  already  on a waitlist for a particular unit type are not displaced from

        S. 6958                            19
 
     1  their place in the queue in the  lottery.  In  such  cases,  the  owner,
     2  developer,  property  manager,  or  other administrative entity shall be
     3  required to post a listing on the housing  resource  center  website  at
     4  least  sixty  days prior to conducting the lottery of the applicants, or
     5  within one day of when the owner, developer, property manager, or  other
     6  administrative  entity  provides  any information regarding how to apply
     7  for the lottery to prospective applicants or solicits  any  applications
     8  from potential applicants through any other means, whichever is earlier.
     9    (b)  A  lottery  shall  not  take place less than sixty days following
    10  posting on the housing resource  center.  Any  posting  on  the  housing
    11  resource center shall provide a link to an online fillable form or port-
    12  able  document  format  (PDF) form of the application for the affordable
    13  housing units on the website of the owner, developer, property  manager,
    14  or other administrative entity and information on how to request a paper
    15  copy  of the application from the owner, developer, property manager, or
    16  other administrative entity.
    17    6. The owner, developer, property  manager,  or  other  administrative
    18  entity shall submit evidence of the listing of their available units and
    19  waitlist  openings,  as  required by this section, to the administrative
    20  agent for the municipality.
    21    7. (a) The administrative agent for the municipality and the municipal
    22  housing liaison shall ensure compliance  with  the  provisions  of  this
    23  section.
    24    (b)  The  administrative  agent for the municipality and the municipal
    25  housing liaison shall have the authority to levy fines against the owner
    26  of the development for instances  of  noncompliance,  following  written
    27  notice  to  the  owner.  The fine for the first offense of noncompliance
    28  shall be five thousand dollars, the  fine  for  the  second  offense  of
    29  noncompliance  shall  be  ten  thousand  dollars,  and the fine for each
    30  subsequent offense of noncompliance shall be fifteen thousand dollars.
    31    (c) The commissioner may adjust the fine schedule established in para-
    32  graph (b) of this subdivision, but shall not adjust such  fine  schedule
    33  until at least sixty months after the effective date of this section.
    34    (d)  All  revenue  generated  from  the  fines levied pursuant to this
    35  section shall be deposited into the  municipality's  affordable  housing
    36  trust fund.
    37    (e) A fine shall not be issued pursuant to this subdivision unless the
    38  administrative agent for the municipality or the municipal housing liai-
    39  son first provides the owner with written notice no less than two months
    40  prior to the date the fine is levied. A fine shall only be issued if the
    41  offense has not been cured within that two-month timeframe.  Issuance of
    42  a  written  notice or a fine shall not provide exemption to the require-
    43  ment of conducting a lottery no less than sixty days  following  posting
    44  on the housing resource center.
    45    (f)  The  administrative agent and the municipal housing liaison shall
    46  have the authority to require the owner, developer, property manager, or
    47  administrative entity to conduct a new lottery if the provisions of this
    48  section are not implemented properly.
    49    8. If a municipality fails to  comply  with  the  provisions  of  this
    50  section, then the municipality shall be considered noncompliant with the
    51  affirmative  marketing  plan  requirements, except in cases in which the
    52  municipality  takes  appropriate  corrective  action  pursuant  to  this
    53  section  that  such corrective action shall be construed as remaining in
    54  compliance.
    55    § 719. Contractual agreements with willing municipalities or  develop-
    56  ers  of  inclusionary developments for administration of resale and rent

        S. 6958                            20
 
     1  controls. 1. The division shall establish procedures for entering  into,
     2  and shall enter into, contractual agreements with willing municipalities
     3  or  developers  of  inclusionary  developments  whereby  the agency will
     4  administer  resale controls and rent controls in municipalities where no
     5  appropriate administrative agency  exists.  The  contractual  agreements
     6  shall  be for the duration of the controls and shall involve eligibility
     7  determinations, determination of initial  occupants,  the  marketing  of
     8  units,  maintenance  of  eligibility  lists for subsequent purchasers or
     9  renters, and determination of maximum resale prices or rents. The  divi-
    10  sion  may charge the municipality or inclusionary developer a reasonable
    11  per unit fee for entering into  such  an  agreement,  or  may  charge  a
    12  reasonable  fee  to  a low- or moderate-income household at the time the
    13  home is sold subject to the resale control or both.
    14    2. Neither the division nor any other entity entering into  an  agree-
    15  ment  to  provide  services  to  a municipality under this section shall
    16  require, as a  condition  of  such  agreement,  that  such  services  be
    17  provided  for  all eligible housing units in the municipality. A munici-
    18  pality, at its discretion, may enter into an agreement for the provision
    19  of services for any reasonable portion of its eligible housing units.
    20    § 720. Purchase, lease or acquisition by gift of real property; acqui-
    21  sition,  construction  and  maintenance  of  buildings  and  structures;
    22  private  sale or lease by municipality. 1. Notwithstanding any other law
    23  to the contrary, a municipality may purchase, lease or acquire  by  gift
    24  or  through the exercise of eminent domain, real property and any estate
    25  or interest therein,  which  the  municipal  governing  body  determines
    26  necessary  or  useful for the construction or rehabilitation of low- and
    27  moderate-income housing or conversion to low- and moderate-income  hous-
    28  ing.
    29    2.  The municipality may provide for the acquisition, construction and
    30  maintenance of buildings, structures or other improvements necessary  or
    31  useful  for  the  provision of low- and moderate-income housing, and may
    32  provide for the reconstruction, conversion or  rehabilitation  of  those
    33  improvements  in  such  manner  as  may be necessary or useful for those
    34  purposes.
    35    3. Notwithstanding the provisions  of  any  other  law  regarding  the
    36  conveyance, sale or lease of real property by municipalities, the munic-
    37  ipal  governing  body may, by resolution, authorize the private sale and
    38  conveyance or lease of a housing unit or units acquired  or  constructed
    39  pursuant  to  this  section, where the sale, conveyance or lease is to a
    40  low- or moderate-income household or nonprofit  entity  and  contains  a
    41  contractual  guarantee  that  the  housing unit will remain available to
    42  low- and moderate-income households for a  period  of  at  least  thirty
    43  years.
    44    §  721.  Coordination  and  review of housing elements; reservation of
    45  housing units made available for occupancy  by  very  low-income  house-
    46  holds.    Housing  elements  and  fair  share  plans adopted pursuant to
    47  section seven hundred five of this article shall ensure  that  at  least
    48  thirteen  percent  of  the housing units made available for occupancy by
    49  low- and moderate-income households to address a municipality's prospec-
    50  tive need obligation will be reserved for occupancy by  very  low-income
    51  households, with at least half of such units made available for families
    52  with  children.  Such  thirteen  percent shall count towards the minimum
    53  fifty percent of the housing units required to  be  made  available  for
    54  occupancy  by low-income households to address a municipality's prospec-
    55  tive need obligation  pursuant  to  subdivision  ten  of  section  seven
    56  hundred  eight  of  this  article. Nothing in this section shall require

        S. 6958                            21
 
     1  that a specific percentage of the  units  in  any  specific  project  be
     2  reserved as very low-income housing.
     3    §  722.  Collection  and expenditure of affordable housing development
     4  fees by municipalities; exclusion from collection. 1. (a) A municipality
     5  that is in the process of seeking compliance certification, has obtained
     6  compliance certification, or that has been so authorized by a  court  of
     7  competent  jurisdiction,  and  which has adopted a municipal development
     8  fee ordinance shall be authorized to impose and collect development fees
     9  from developers  of  residential  property,  in  accordance  with  rules
    10  promulgated  by  the  division. Each amount collected shall be deposited
    11  and shall be accounted for separately, by payer and date of deposit.
    12    (b) No later than one hundred eighty days following the effective date
    13  of adopting a municipal development fee ordinance, any municipality that
    14  is or has been authorized to impose and collect  development  fees  from
    15  developers  of residential property, or payments in lieu of constructing
    16  affordable housing, shall provide the division with a detailed  account-
    17  ing  of  all  such  fees that have been collected and expended since the
    18  inception of the municipal authorization to collect such fees.
    19    (c) Beginning with the year first succeeding  the  effective  date  of
    20  this article, annually by February fifteenth, every municipality that is
    21  or  has  been  authorized  to  impose  and collect development fees from
    22  developers of residential property, or payments in lieu of  constructing
    23  affordable  housing, shall provide the division with a detailed account-
    24  ing of all such fees that have been collected and expended the  previous
    25  year.
    26    (d)  A  municipality  may  not spend or commit to spend any affordable
    27  housing development fees without first obtaining  the  approval  of  the
    28  expenditure  as  part  of its compliance certification or from the divi-
    29  sion.  A municipality shall include in  its  housing  element  and  fair
    30  share  plan adopted pursuant to section seven hundred five of this arti-
    31  cle a spending plan for current funds in the municipal affordable  hous-
    32  ing  trust fund and projected funds through the current round. Review of
    33  such spending plan for consistency with applicable law and  the  munici-
    34  pality's  housing element and fair share plan shall be part of the proc-
    35  ess specified in section seven hundred five of this article.  The  divi-
    36  sion  shall  promulgate  updated  regulations  no later than nine months
    37  following the effective date of this article  regarding  the  establish-
    38  ment,  administration,  reporting, and enforcement of the expenditure of
    39  affordable housing  development  fees  by  municipalities,  which  shall
    40  include  establishing  an  expedited process for approving spending plan
    41  expenditures for emergent opportunities  to  create  affordable  housing
    42  after  a  municipality  has obtained compliance certification and proce-
    43  dures for monitoring the collection and expenditure of trust funds.  The
    44  division  shall  develop  and publish on its Internet website a detailed
    45  summary of the municipal affordable housing trust fund expenditures  for
    46  each  municipality  and shall update each summary on an annual basis. As
    47  part of the regulations adopted pursuant to  this  section  and  section
    48  seven  hundred  twenty-three  of  this article, the division shall adopt
    49  reporting requirements applicable to municipal affordable housing  trust
    50  funds  to  facilitate fulfillment of the division's obligations pursuant
    51  to this section.
    52    (e) The governing body of a municipality which is spending or  commit-
    53  ting  to spend affordable housing development fees may provide, by ordi-
    54  nance, that the units of affordable housing being developed or preserved
    55  pursuant to a housing project or program being funded, in  whole  or  in
    56  part,  through  affordable housing development fees shall be exempt from

        S. 6958                            22
 
     1  real property taxation if the housing sponsor enters into  an  agreement
     2  with  the municipality for payments to the municipality in lieu of taxes
     3  for municipal services. Any such agreement may require the housing spon-
     4  sor  to  pay  to  the municipality an amount up to twenty percent of the
     5  annual gross revenue from each housing project  situated  on  such  real
     6  property  for  each  year  of  operation  of the agreement following the
     7  substantial completion of the housing project. Any such agreement  shall
     8  require  the  housing sponsor to pay the municipality an amount not less
     9  than the greater of four percent of the  annual  gross  revenue  or  the
    10  amount  of  the  taxes  attributable  to the land value component of the
    11  property comprising the project site for the year preceding the  record-
    12  ing of the mortgage, if applicable. For the purpose of this subdivision,
    13  "annual  gross  revenue" means the total annual gross rental or carrying
    14  charge and other income of a housing sponsor from a housing project.  If
    15  an  agreement is entered into from the date of recording the mortgage on
    16  the housing project to the date of substantial completion of the housing
    17  project, the annual amount payable to the municipality as  taxes  or  as
    18  payments in lieu of taxes in respect of the project site shall not be in
    19  excess of the amount of taxes on the project site for the year preceding
    20  the  recording  of  the mortgage. Within thirty calendar days following:
    21  the effective date of an ordinance adopted by a municipal governing body
    22  approving a tax exemption under this subdivision; or the execution of  a
    23  financial agreement between a housing sponsor and a municipality entered
    24  into  pursuant to this subdivision, whichever is later, the municipality
    25  shall electronically transmit a certified copy of the ordinance and  the
    26  agreement  to  the  applicable  tax  assessor in such a manner as may be
    27  specified by such assessor.  An  exemption  from  taxation  provided  in
    28  accordance  with  this  subdivision  shall not extend beyond the date on
    29  which an eligible loan made for the project is paid in full.
    30    (f) Notwithstanding the provisions of any law  or  regulation  to  the
    31  contrary,  the governing body of a municipality may agree to continue or
    32  grant a new tax exemption for a state, federally, or municipally  subsi-
    33  dized housing project beyond the date on which an eligible loan made for
    34  the project is fully paid, or beyond the date upon which a tax exemption
    35  expires,  for  any  period  the project remains subject to affordability
    36  controls pursuant to:
    37    (i) project-based federal rental assistance,  authorized  pursuant  to
    38  section  8 of the United States Housing Act of 1937 (42 U.S.C. s.1437f),
    39  or other federal or state project-based assistance;
    40    (ii) section four hundred twenty-one-a of the real property  tax  law;
    41  or
    42    (iii) the rent and income limits established by the federal Low Income
    43  Housing Tax Credit program pursuant to section 42 of the Internal Reven-
    44  ue Code (26 U.S.C. s.42).
    45    2.  A  municipality  shall  deposit all fees collected, whether or not
    46  such collections were derived from fees imposed upon non-residential  or
    47  residential  construction  into a trust fund dedicated to those purposes
    48  as required under this section, and such additional purposes as  may  be
    49  approved by the division.
    50    3.  (a) A municipality may only spend development fees for an activity
    51  approved by the division to address the municipal fair share  obligation
    52  or approved as part of compliance certification.
    53    (b) Municipal development trust funds shall not be expended unless the
    54  municipality  has  immunity  from  exclusionary zoning litigation at the
    55  time of the expenditure, or said municipality has  previously  collected
    56  such funds while under the protection of presumptive validity or immuni-

        S. 6958                            23
 
     1  ty  from  exclusionary  zoning  litigation  and  in  accordance  with an
     2  approved spending plan. Municipal development fee trust funds shall  not
     3  be expended:
     4    (i) to reimburse municipalities for activities which occurred prior to
     5  the authorization of a municipality to collect development fees; or
     6    (ii)(1)  on  administrative  costs,  attorney  fees  or court costs to
     7  obtain a judgment of repose; (2)  to  contest  a  determination  of  the
     8  municipality's  fair share obligation; or (3) on costs of any challenger
     9  in connection to a challenge to the municipality's  obligation,  housing
    10  element, or fair share plan.
    11    (c)  (i)  A  municipality shall set aside a portion of its development
    12  fee trust fund for the purpose of providing affordability assistance  to
    13  low-  and  moderate-income  households in affordable units included in a
    14  municipal fair share plan, in accordance with rules of the division.
    15    (ii)  Affordability  assistance  programs  may  include  down  payment
    16  assistance,  security  deposit  assistance,  low-interest  loans, common
    17  maintenance expenses for units located in condominiums,  rental  assist-
    18  ance, and any other program authorized by the division.
    19    (iii) Affordability assistance to households earning thirty percent or
    20  less  of  median  income  may include buying down the cost of low-income
    21  units in a municipal fair share plan to make them affordable  to  house-
    22  holds earning thirty percent or less of median income.
    23    (d)  A  municipality  may  contract with a private or public entity to
    24  administer any part of its housing element and fair share plan,  includ-
    25  ing  the  requirement  for  affordability  assistance, or any program or
    26  activity for which the municipality expends development fee proceeds, in
    27  accordance with rules of the division.
    28    (e) Not more than twenty percent of the revenues collected from devel-
    29  opment fees shall be expended  on  administration,  in  accordance  with
    30  rules  of  the  division.  Such  administration  may include expending a
    31  portion of its affordable housing trust  fund  on  actions  and  efforts
    32  reasonably related to the determination of its fair share obligation and
    33  the  development  of its housing element and fair share plan pursuant to
    34  section seven hundred five of this article, and for  expenses  that  are
    35  reasonably  necessary  for compliance with the processes of the program,
    36  including, but not limited to, the costs to the municipality of  resolv-
    37  ing a challenge under the program.
    38    4.  The  division shall establish a time by which all development fees
    39  collected within a calendar year shall be expended;  provided,  however,
    40  that  all fees shall be committed for expenditure within four years from
    41  the date of collection. A municipality that fails to  commit  to  expend
    42  the  balance  required in the development fee trust fund by the time set
    43  forth in this section shall be required by the committee to transfer the
    44  remaining unspent balance at the end of the four-year period to the  New
    45  York  affordable  housing  trust  fund,  established pursuant to section
    46  ninety-nine-ss of the state finance law,  to  be  used  in  the  housing
    47  region  of  the transferring municipality for the authorized purposes of
    48  that fund.
    49    5. Notwithstanding any provision of this section,  or  regulations  of
    50  the  division, a municipality shall not collect a development fee from a
    51  developer whenever that developer is providing for the  construction  of
    52  affordable units, either on-site or elsewhere within the municipality.
    53    §  723.  Status  report  concerning  petitions for substantive certif-
    54  ication; housing unit information; fair share plan information.  1.  The
    55  division  shall maintain on its Internet website, and also publish on an
    56  annual basis,  an  up-to-date  municipal  status  report  based  on  its

        S. 6958                            24
 
     1  collection  and  publication  of  information  concerning  the number of
     2  affordable housing  units  actually  constructed,  construction  starts,
     3  certificates  of  occupancy  granted,  the start and expiration dates of
     4  deed  restrictions, and residential and non-residential development fees
     5  collected and expended, including purposes and amounts of such  expendi-
     6  tures,  along  with the current balance in the municipality's affordable
     7  housing trust fund.   With respect to units  actually  constructed,  the
     8  information  shall specify the characteristics of the housing, including
     9  housing type, tenure, affordability level, number of bedrooms, date  and
    10  expiration  of affordability controls, and whether occupancy is reserved
    11  for families, senior citizens, or other special populations.
    12    2. Beginning with the year first succeeding the effective date of this
    13  article, annually by February fifteenth, each municipality shall provide
    14  the division with the information necessary to comply with this section.
    15    3. The division may promulgate any rules and regulations necessary  to
    16  effectuate  the  provisions  of this section, including, but not limited
    17  to, rules and regulations to ensure that municipalities  and  developers
    18  report  any  information as may be necessary for the division to fulfill
    19  its obligations pursuant to this section.
    20    § 3. The state finance law is amended by adding a new section 99-ss to
    21  read as follows:
    22    § 99-ss. New York affordable housing trust fund.  1. There  is  hereby
    23  established in the joint custody of the comptroller and the commissioner
    24  of  housing  and  community  renewal a fund to be known as the "New York
    25  affordable housing trust fund".
    26    2. Such fund shall consist of revenues received by the state  pursuant
    27  to  section  seven  hundred twenty-two of the public housing law and all
    28  other moneys, appropriated, credited, or transferred  thereto  from  any
    29  other fund or source pursuant to law.
    30    3.  (a) The division of housing and community renewal shall be permit-
    31  ted to utilize annually up to seven and one-half percent of  the  moneys
    32  available  in  the  fund for the payment of any necessary administrative
    33  costs related to the administration of article  sixteen  of  the  public
    34  housing law.
    35    (b)  The  commissioner  shall award grants or loans from this fund for
    36  housing projects and programs in municipalities whose  housing  elements
    37  have obtained compliance certification pursuant to section seven hundred
    38  five of the public housing law.
    39    (c)  Programs  and  projects  in any municipality shall be funded only
    40  after receipt by the commissioner of a written statement in  support  of
    41  the program or project from the municipal governing body.
    42    (d)  The  commissioner shall establish rules and regulations governing
    43  the qualifications of applicants, the application  procedures,  and  the
    44  criteria  for awarding grants and loans and the standards for establish-
    45  ing the amount, terms, and conditions of each such grant or loan.
    46    4. The governing body of a municipality in which a housing project  or
    47  program  is  located, and which is awarded a grant or loan from the fund
    48  for a housing project or program, may provide, by  ordinance,  that  the
    49  units  of  affordable housing being developed or preserved pursuant to a
    50  housing project or program being funded, in whole or  in  part,  through
    51  this  fund  shall  be  exempt from real property taxation if the housing
    52  sponsor enters into an agreement with the municipality for  payments  to
    53  the  municipality  in  lieu  of  taxes  for municipal services. Any such
    54  agreement shall require the housing sponsor to pay to  the  municipality
    55  an  amount  up  to  twenty percent of the annual gross revenue from each
    56  housing project situated on such real property for each year  of  opera-

        S. 6958                            25
 
     1  tion  of the agreement following the substantial completion of the hous-
     2  ing project.  Any such agreement shall require the  housing  sponsor  to
     3  pay the municipality an amount not less than the greater of four percent
     4  of  the  annual gross revenue or the amount of the taxes attributable to
     5  the land value component of the property comprising the project site for
     6  the year preceding the recording of the mortgage, if applicable. For the
     7  purpose of this subdivision, "annual  gross  revenue"  means  the  total
     8  annual  gross  rental  or  carrying charge and other income of a housing
     9  sponsor from a housing project. If an agreement is entered into from the
    10  date of recording the mortgage on the housing project  to  the  date  of
    11  substantial completion of the housing project, the annual amount payable
    12  to  the municipality as taxes or as payments in lieu of taxes in respect
    13  of the project site shall not be in excess of the amount of taxes on the
    14  project site for the year preceding the recording of the mortgage. With-
    15  in thirty calendar days following: the effective date  of  an  ordinance
    16  adopted  by  a  municipal governing body approving a tax exemption under
    17  this subdivision, or the execution of a financial  agreement  between  a
    18  housing  sponsor and a municipality entered into pursuant to this subdi-
    19  vision, whichever is later, the  municipal  clerk  shall  electronically
    20  transmit  a  certified  copy  of  the ordinance and the agreement to the
    21  applicable tax assessor in such a manner as may  be  specified  by  such
    22  assessor.  An exemption from taxation provided pursuant to this subdivi-
    23  sion shall not extend beyond the date on which an eligible loan made for
    24  the project is paid in full.
    25    5. Notwithstanding the provisions of any  law  or  regulation  to  the
    26  contrary,  the  governing body of a municipality may agree to continue a
    27  tax exemption for a state, federally, or municipally subsidized  housing
    28  project  beyond  the date on which an eligible loan made for the project
    29  is fully paid, or beyond the date upon which a  tax  exemption  expires,
    30  for  any  period  the  project remains subject to affordability controls
    31  pursuant to:
    32    (a) project-based federal rental assistance,  authorized  pursuant  to
    33  section  8  of the United States Housing Act of 1937 (42 U.S.C. s.1437f)
    34  or other federal or state project-based assistance;
    35    (b) section four hundred twenty-one-a of the real property tax law; or
    36    (c) the rent and income limits established by the federal  Low  Income
    37  Housing Tax Credit program pursuant to section 42 of the Internal Reven-
    38  ue Code (26 U.S.C. s.42).
    39    6.  For  any  period  which  the commissioner of housing and community
    40  renewal may approve, such commissioner  may  assist  affordable  housing
    41  programs  that are located in municipalities that have a pending request
    42  for compliance certification pursuant to article sixteen of  the  public
    43  housing law; provided that such affordable housing program will meet all
    44  or  part  of  a  municipal  low-  and moderate-income housing obligation
    45  pursuant to such article.
    46    7. Amounts deposited in the fund shall be targeted to regions based on
    47  the region's percentage of the state's low- and moderate-income  housing
    48  need  as  determined  pursuant to the low- and moderate-income household
    49  growth over the prior ten  years,  as  calculated  pursuant  to  article
    50  sixteen  of the public housing law. Amounts in the fund shall be applied
    51  for the following purposes in designated neighborhoods:
    52    (a) Rehabilitation of substandard housing  units  occupied  or  to  be
    53  occupied by low- and moderate-income households;
    54    (b)  Creation  of  accessory dwelling units to be occupied by low- and
    55  moderate-income households;

        S. 6958                            26

     1    (c) Conversion  of  non-residential  space  to  residential  purposes;
     2  provided  a substantial percentage of the resulting housing units are to
     3  be occupied by low- and moderate-income households;
     4    (d) Acquisition of real property, demolition and removal of buildings,
     5  or  construction of new housing that will be occupied by low- and moder-
     6  ate-income households, or any combination thereof;
     7    (e) Grants of assistance  to  eligible  municipalities  for  costs  of
     8  necessary  studies,  surveys, plans, and permits; engineering, architec-
     9  tural, and other technical services; costs of land acquisition  and  any
    10  buildings  thereon;  and  costs  of  site  preparation,  demolition, and
    11  infrastructure  development  for  projects  undertaken  pursuant  to  an
    12  approved regional contribution agreement;
    13    (f)  Assistance  to  a  local  housing authority for rehabilitation or
    14  restoration of housing units which it administers which: (i) are  unusa-
    15  ble  or  in  a  serious  state  of disrepair; (ii) can be restored in an
    16  economically feasible and sound manner; and (iii) can be retained  in  a
    17  safe,  decent, and sanitary manner, upon completion of rehabilitation or
    18  restoration; and
    19    (g) Other housing programs for low- and  moderate-income  housing,  as
    20  defined  in section seven hundred one of the public housing law, includ-
    21  ing, without limitation, (i) infrastructure projects directly facilitat-
    22  ing the construction of low- and moderate-income housing not to exceed a
    23  reasonable percentage of the construction costs of the low-  and  moder-
    24  ate-income  housing to be provided and (ii) alteration of dwelling units
    25  occupied or to be occupied by households of low- or moderate-income  and
    26  the  common  areas of the premises in which they are located in order to
    27  make them accessible to persons with disabilities.
    28    8. Any grant or loan agreement entered into pursuant to  this  section
    29  shall  incorporate  contractual  guarantees  and procedures by which the
    30  division of housing and community renewal shall ensure that any unit  of
    31  housing  provided for low- and moderate-income households shall continue
    32  to be occupied by low- and moderate-income households for a period  that
    33  conforms  to  the  requirements of article sixteen of the public housing
    34  law following the award of the loan or grant, except that  the  division
    35  may approve a guarantee for a period of less duration where necessary to
    36  ensure project feasibility.
    37    9.  Notwithstanding  the  provisions  of any other law, rule, or regu-
    38  lation to the contrary, in making grants or loans  under  this  section,
    39  the  division  of  housing  and community renewal shall not require that
    40  tenants be certified as low-  or  moderate-income  or  that  contractual
    41  guarantees or deed restrictions be in place to ensure continued low- and
    42  moderate-income occupancy as a condition of providing housing assistance
    43  from  any  program administered by the division, when that assistance is
    44  provided for a project of moderate rehabilitation if  the  project:  (a)
    45  contains  thirty  or  fewer  rental units and (b) is located in a census
    46  tract in which the median household income is sixty percent or  less  of
    47  the  median  income  for the housing region in which the census tract is
    48  located, as determined for a three-person household by the  division  in
    49  accordance  with the latest federal decennial census. A list of eligible
    50  census tracts shall be maintained by the division of housing and  commu-
    51  nity  renewal  and  shall  be adjusted upon publication of median income
    52  figures by census tract after each federal decennial census.
    53    10. In addition to other grants or  loans  awarded  pursuant  to  this
    54  section,  and  without regard to any limitations on such grants or loans
    55  for any other purposes herein imposed, the commissioner of  housing  and
    56  community  renewal shall annually allocate such amounts as may be neces-

        S. 6958                            27
 
     1  sary in the commissioner's discretion, to fund rental assistance grants.
     2  Such rental assistance grants shall be deemed necessary  and  authorized
     3  pursuant  to article sixteen of the public housing law, in order to meet
     4  the housing needs of certain low-income households who may not be eligi-
     5  ble to occupy other housing produced pursuant to such article.
     6    11.  Moneys shall be payable from the fund on the audit and warrant of
     7  the comptroller on vouchers approved and certified by  the  commissioner
     8  of housing and community renewal.
     9    §  4.  This act shall take effect on the first of July next succeeding
    10  the date on which it shall have become a law.
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