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A06329 Summary:

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A06329 Floor Votes:

A06329 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 2771--B                                            A. 6329--B
 
                               2009-2010 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                      March 2, 2009
                                       ___________
 
        IN  SENATE  --  Introduced  by  Sens.  BRESLIN, ESPADA -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Housing,  Construction and Community Development -- reported favorably
          from said committee and committed  to  the  Committee  on  Finance  --

          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- committee discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee
 
        IN  ASSEMBLY  -- Introduced by M. of A. CANESTRARI, McENENY -- read once
          and referred to the Committee on Housing -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee  --  reported  and  referred to the Committee on Ways and Means --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
 
        AN  ACT  authorizing a certain housing authority to sell or lease all or
          part of a certain housing project
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 

     1    Section 1. Legislative findings and declaration. The legislature finds
     2  and  declares  that  the  state  has  a  vital interest in the continued
     3  viability of public housing. It is necessary to ensure that public hous-
     4  ing continues to serve low-income individuals  and  families  who  would
     5  otherwise face homelessness or be forced into unsafe or unsanitary hous-
     6  ing.  Public  housing functions as a safety net for persons most in need
     7  of safe, decent and affordable housing. The  legislature  further  finds
     8  that  the  Albany  Housing  Authority has made, and continues to make, a
     9  concerted effort to provide public housing to individuals  and  families
    10  in  need.  A  certain  project owned by the Albany Housing Authority has
    11  suffered deterioration over time,  and  this  authority  does  not  have
    12  sufficient  resources  to  address  this  deterioration.  An infusion of

    13  private capital is necessary to ensure the continued success  and  long-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09728-06-9
        S. 2771--B                          2                         A. 6329--B
 
     1  term  viability  of  the  project.  This legislature therefore finds and
     2  declares that enactment of this legislation would  enable  redevelopment
     3  and  rehabilitation  of that certain project owned by the Albany Housing
     4  Authority,  and  the continued operation of that project for persons and
     5  families of low-income.
     6    § 2. Upon approval  by  the  commissioner  of  housing  and  community
     7  renewal  and the common council of the city of Albany, county of Albany,

     8  the Albany Housing Authority is hereby authorized to sell or  lease  all
     9  or  part of the project commonly known as "Ezra Prentice Homes", located
    10  in the city of Albany, county of Albany, upon such terms and  conditions
    11  and  in such manner as the Albany Housing Authority may deem appropriate
    12  and in compliance with the provisions of this act. The  commissioner  of
    13  the  division  of  housing  and  community  renewal shall not grant such
    14  approval unless he or she makes a finding that such sale or  lease  will
    15  enable  the  project to be redeveloped and operated in such manner as to
    16  provide decent, safe and sanitary housing within the financial reach  of
    17  persons and families of low-income.  There shall be no requirement for a
    18  finding  by  the commissioner of housing and community renewal that: (a)
    19  federal assistance will be available to the project  upon  the  sale  or

    20  lease  thereof;  or  (b) the provision has been made to pay or otherwise
    21  assure payment or retirement of all bonds, notes and  other  obligations
    22  heretofore  issued to finance the project or a portion thereof, provided
    23  that the sale or lease of the project is part of a comprehensive plan of
    24  rehabilitation and/or restructuring  which  includes  the  provision  of
    25  housing for persons and families of low-income.
    26    § 3. (a) All laws, rules, and regulations applicable to federal public
    27  housing  projects shall continue to apply to all units except those that
    28  are governed by the laws, rules, and regulations applicable to section 8
    29  rental voucher program including but not limited to all  procedural  and
    30  substantive  due  process requirements, restrictions on evictions except
    31  for just cause, the right to automatic renewals, and the right to  mean-

    32  ingful  input  in  matters  concerning tenants. The owner and the Albany
    33  Housing Authority shall be jointly and severally  obligated  to  provide
    34  and protect the rights set forth herein.
    35    (b)  One  hundred  percent  of  all  units  shall be made available to
    36  tenants (including tenants in occupancy) with household incomes of sixty
    37  percent or less of area median income. Up to five percent of  the  units
    38  of  the project may be rented to households participating in the federal
    39  section 8 rental voucher program.
    40    (c) The first units that become available for occupancy after the sale
    41  or lease shall be made available to tenants of the project.  Thereafter,
    42  no less than forty percent of new tenants will have household incomes of
    43  thirty  percent or less of area median income. Units for which a portion
    44  of the rent is paid pursuant to section 8 of the United  States  Housing

    45  Act  of  1937 may be counted to satisfy the aforementioned set aside for
    46  extremely low income tenants.
    47    (d) All tenants who resided in the housing project prior to  the  sale
    48  or  lease shall be offered their current apartments or comparable accom-
    49  modations provided that such tenant  paid  portion  of  rent,  including
    50  utilities,  shall  in  no  event  exceed thirty percent of a household's
    51  adjusted gross income.
    52    (e) All units occupied by persons of low income  shall  be  physically
    53  integrated  with all other units in the project. They shall share common
    54  means of access, services and amenities equally with all other units and
    55  shall in no way be physically or otherwise  set  apart  from  all  other
    56  units in the project.
        S. 2771--B                          3                         A. 6329--B
 

     1    (f)  All  prospective  public housing tenants shall be selected from a
     2  waiting list which shall be maintained by the Albany  Housing  Authority
     3  in  compliance  with  the  federal public housing law and all applicable
     4  rules and regulations. The authority and owner shall screen tenants  and
     5  jointly have final approval over tenant selection all in accordance with
     6  aforementioned laws, rules and regulations. All prospective public hous-
     7  ing  tenants  shall be taken from the waiting list in the order in which
     8  they applied for the size appropriate unit, subject however  to  prefer-
     9  ences  and  priorities  provided  for  in the public housing law and all
    10  applicable rules and regulations.
    11    (g) Except for tenants in occupancy as of the date of sale  or  lease,
    12  all units shall be occupied by persons or families whose income does not

    13  exceed  sixty  percent of area median income at a rent, including utili-
    14  ties, not to exceed thirty percent of  the  household's  adjusted  gross
    15  income.
    16    (h)  The  entity that controls the operation of the project or acts as
    17  the managing member or general partner following transfer of the project
    18  shall be a not-for-profit entity wholly  owned  by  the  Albany  Housing
    19  Authority and shall be established under article 11 of the private hous-
    20  ing finance law, provided, however, that the directors, members or other
    21  governing  body  of  such entity shall be composed of the chairperson of
    22  the authority and the duly appointed and elected commissioners  of  such
    23  authority.
    24    (i)  If  the  managing  member  or general partner violates any of the
    25  governing laws or covenants imposed  on  the  project  resulting  in  an

    26  adverse  effect  on  the  investment partner, the investment partner may
    27  remove the managing member or  general  partner  installed  pursuant  to
    28  subdivision  (h)  of  this  section and install a new managing member or
    29  general partner not subject to the limitations of such subdivision (h).
    30    (j) The provisions of this  section  may  be  enforced  by  any  party
    31  aggrieved by a violation of such provisions.
    32    (k)  The Albany Housing Authority, or a new managing member or general
    33  partner installed pursuant to subdivision  (i)  of  this  section  shall
    34  provide  the  commissioner  of  the  division  of  housing and community
    35  renewal, the temporary president of  the  senate,  the  speaker  of  the
    36  assembly,  the minority leader of the senate, the minority leader of the
    37  assembly, the chair of the senate housing, construction,  and  community

    38  development  committee,  and the chair of the assembly housing committee
    39  copies of the annual project activity report or any substantially  simi-
    40  lar  annual report or any substantially similar annual report that it is
    41  required to submit to the department of housing  and  urban  development
    42  that is related to the "Ezra Prentice Homes" project.
    43    (l)  In  any  case  where there is an allocation of federal low income
    44  housing tax credits in connection with a sale or lease of a project  the
    45  fee  payable  to  the  developer  shall not exceed twelve percent of the
    46  total development cost provided, however that the  fee  payable  to  the
    47  developer  may  be  increased  to the maximum percentage permitted under
    48  regulations promulgated by the division of housing and community renewal
    49  if the developer assumes additional financial risk. Such increase  shall

    50  not  be  granted  (i)  for risk the developer is customarily required to
    51  assume or guarantees which the  developer  is  customarily  required  to
    52  provide  by  industry  practice;  (ii) for any risks or guarantees which
    53  parties other than the developer would ultimately bear; or (iii) if  the
    54  cost of such risks or guarantees would be paid from governmental grants,
    55  loans,  subsidies  or other governmental funds. The foregoing limitation
        S. 2771--B                          4                         A. 6329--B
 
     1  shall not apply to any portion of the developer fee paid to the  housing
     2  authority.
     3    (m)  The  provisions  of this section shall be applicable to the "Ezra
     4  Prentice Homes" project commencing on the closing date of  the  sale  or
     5  lease of the project for a period of forty years and shall be binding on

     6  all owners and operators of the project for such period.
     7    §  4.  State subsidies available to the project referred to in section
     8  two of this act in connection with the bonds, notes or other obligations
     9  heretofore issued to finance the cost thereof  may,  subject  to  annual
    10  appropriation  and  upon  compliance  with  the  provisions of this act,
    11  continue to be used to pay the debt service  on  such  bonds,  notes  or
    12  other  obligations,  subject to such terms and conditions as the commis-
    13  sioner of housing and community renewal may deem appropriate.
    14    § 5. This act shall take effect immediately, provided,  however,  that
    15  the  provisions  of  section  four  of  this act shall apply to any debt
    16  service payments which become due after such date.