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A06161 Summary:

BILL NOA06161
 
SAME ASNo Same As
 
SPONSORFitzpatrick (MS)
 
COSPNSRMontesano, Tague, DiPietro
 
MLTSPNSRManktelow
 
Amd 58-a, Pub Hous L
 
Authorizes the purchase of dwelling units in public housing projects by residents thereof in certain instances; provides for the availability of loans for such purchase and technical assistance to prepare resident management associations undertaking the management of such project.
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A06161 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6161
 
SPONSOR: Fitzpatrick (MS)
  TITLE OF BILL: An act to amend the public housing law, in relation to the purchase of dwelling units by residents of public housing projects   TITLE OF BILL: An act to amend the public housing law, in relation to the purchase of dwelling units by residents of public housing projects   PURPOSE: To allow tenants of public housing projects to purchase their dwelling units.   SUMMARY OF PROVISIONS: This bill would add a new subdivision (3) to § 58-a of the Public Hous- ing Law to give tenants of public housing projects the opportunity to purchase their dwelling units. Tenants could purchase their dwelling units if they have lived in public housing projects for not less than two years, have resided in their dwelling unit for not less than a year, and have been found by the Commissioner of the Department of Housing and Community Renewal to be capable of assuming the responsibilities of homeownership. In addition, for said purchase to occur, the Commissioner would have to determine that the purchase would not interfere with the right of other residents in the projects or would not harm the efficient operation f such project. Purchase of such dwelling unit would also entitle the tenant to a fixed percentage of the common elements. The price for any purchase of a dwelling unit could not exceed 25 percent of the fair market value of the property involved. The public housing authority involved would also be authorized to make a loan on the security of the property to the purchasing resident at a rate which could not exceed 70 percent of the market interest rate. If the purchas- ing tenant in turn sells the apartment before the expiration of a five year period, the purchaser would have to pay a fixed percentage of the sale price to the appropriate public housing authority. Finally, upon the purchase of all the dwelling units of a project by the tenants, the authority is authorized to turn over their management and maintenance functions to a resident management association which shall have been provided training and technical assistance by the Commissioner and by the authority to undertake the aforementioned functions.   EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill would add a new subdivision (3) to § 58-a of the Public Hous- ing Law.   JUSTIFICATION: This bill extends the idea of owning a home to low income residents of public housing projects. The residents of these projects thus acquire an equity stake in the future of their building and hence their neighbor- hood. If successful, this program could help revitalize some of New York's most blighted neighborhoods by drawing on the strengths of resi- dents to tackle the problems of their own community.   PRIOR LEGISLATIVE HISTORY: 2018 -A8198 - Held in Housing Committee 2014 - A.3219 - Held in Housing Committee 2012 - A.2570 - Held in Housing Committee 2010 - A.4262 - Held in HousingCommittee 2008 - A.4028 - Held in Housing Committee 2006 - A.9582 - Held in Housing Committee   FISCAL IMPLICATIONS:   EFFECTIVE DATE: This act shall take effect immediately.
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A06161 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6161
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 28, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  FITZPATRICK,  MONTESANO,  TAGUE, DiPIETRO --
          Multi-Sponsored by -- M. of A. MANKTELOW -- read once and referred  to
          the Committee on Housing
 
        AN  ACT  to amend the public housing law, in relation to the purchase of
          dwelling units by residents of public housing projects

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.    Section  58-a  of  the public housing law is amended by
     2  adding a new subdivision 3 to read as follows:
     3    3. (a) Subject to the approval of the commissioner in the  case  of  a
     4  state  project  or  in  the case of dwelling units operated as public or
     5  Indian housing pursuant to the provisions of the United  States  housing
     6  act  of  1937, as amended, and the local legislative body in the case of
     7  municipal projects an authority shall provide to those  residents  of  a
     8  project the opportunity to purchase dwelling units in a project provided
     9  that:
    10    (i)  the  resident has resided in public housing projects for not less
    11  than twenty-four consecutive months; and
    12    (ii) is determined by the authority to  be  capable  of  assuming  the
    13  responsibilities of homeownership; and
    14    (iii)  complies  with such additional requirements as the commissioner
    15  or the authority may establish in the case of a  state  or  a  municipal
    16  project.
    17    (b)  Any  resident  meeting  the requirements of paragraph (a) of this
    18  subdivision may purchase his or her  dwelling  unit  directly  from  the
    19  authority if the authority determines that such purchase will not inter-
    20  fere  with the rights of other residents residing in the project or harm
    21  the efficient operation of such project. Such  purchase  of  a  dwelling
    22  unit  by  a resident shall also include a fixed percentage of the common
    23  elements of the project as determined by the authority.  The  price  for
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06007-01-9

        A. 6161                             2
 
     1  any  such  purchase  shall not be more than the fair market value of the
     2  dwelling unit as determined by the authority.
     3    (c)  For  the purpose of assisting any purchase by a resident pursuant
     4  to this subdivision the authority involved or any subsidiary corporation
     5  of such authority may make a  loan  on  the  security  of  the  property
     6  involved to such purchasing resident at a rate of interest determined by
     7  the authority to be appropriate.
     8    (d)  If  any  resident  purchaser  of a dwelling unit pursuant to this
     9  subdivision sells such dwelling unit before the  expiration  of  a  five
    10  year  period,  such  purchaser shall pay the following percentage of the
    11  sale price to the authority involved:
    12    (i) seventy-five percent, if such sale occurs  during  the  first  one
    13  year period following such date;
    14    (ii)  sixty  percent,  if  such sale occurs during the second one year
    15  period following such date;
    16    (iii) forty-five percent, if such sale occurs  during  the  third  one
    17  year period following such date;
    18    (iv)  thirty  percent,  if such sale occurs during the fourth one year
    19  period following such date; and
    20    (v) fifteen percent, if such sale occurs during  the  fifth  one  year
    21  period following such date.
    22    (e)  The  authority  or  any existing tenant management corporation or
    23  association shall continue to manage the project and provide maintenance
    24  for the project until such  time  as  all  of  the  dwelling  units  are
    25  purchased  by  project  residents at which time the aforementioned func-
    26  tions shall be transferred to a resident management association or to  a
    27  private management company.
    28    (f)  The  commissioner  and  the authority involved shall provide such
    29  training, technical assistance and education  as  may  be  necessary  to
    30  prepare  the resident management association to undertake the management
    31  and maintenance of such project and to prepare  the  residents  for  the
    32  responsibility of homeownership.
    33    (g)  The commissioner shall issue such regulations as may be necessary
    34  to carry out the provisions of this subdivision.  Such  regulations  may
    35  establish any additional terms and conditions for homeownership or resi-
    36  dent  management pursuant to this subdivision that are determined by the
    37  commissioner to be appropriate.
    38    § 2. This act shall take effect immediately.
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