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A06593 Summary:

COSPNSRMitaynes, Mamdani, Jackson, Barron, Pichardo, Epstein, Kelles, Barnwell, Hevesi, Rosenthal L, Meeks, De La Rosa, Otis, Gonzalez-Rojas, Clark, Carroll, Forrest, Simon, Niou, Frontus, Gallagher, Cruz, Zinerman
Add Art 31 §§1280 - 1282, Priv Hous Fin L
Enacts the "Housing Our Neighbors with Dignity act" in order to provide a mechanism for the state to finance the acquisition of distressed hotels and commercial office properties by the appropriate nonprofit organizations for the purpose of maintaining or increasing affordable housing.
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A06593 Actions:

03/19/2021referred to housing
05/28/2021amend and recommit to housing
05/28/2021print number 6593a
06/06/2021amend (t) and recommit to housing
06/06/2021print number 6593b
06/08/2021reported referred to codes
06/09/2021reported referred to ways and means
06/09/2021reported referred to rules
06/09/2021rules report cal.721
06/09/2021substituted by s5257c
 05/18/2021PRINT NUMBER 5257A
 05/25/2021PRINT NUMBER 5257B
 06/06/2021PRINT NUMBER 5257C
 06/09/2021PASSED SENATE
 06/10/2021referred to codes
 06/09/2021substituted for a6593b
 06/09/2021ordered to third reading rules cal.721
 06/09/2021passed assembly
 06/09/2021returned to senate
 08/13/2021SIGNED CHAP.396
 08/13/2021APPROVAL MEMO.17
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A06593 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     March 19, 2021
        Introduced  by  M.  of  A.  REYES,  MITAYNES,  MAMDANI, JACKSON, BARRON,
          read once and referred  to  the  Committee  on  Housing  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  -- again reported from said committee with amend-
          ments, ordered reprinted as amended and recommitted to said committee
        AN ACT to amend the private housing finance law, in relation to enacting
          the "housing our neighbors with dignity 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 "housing our neighbors with dignity act".
     3    § 2. The private housing finance law is amended by adding a new  arti-
     4  cle 31 to read as follows:
     5                                ARTICLE XXXI
     7  Section 1280. Legislative findings and purpose.
     8          1281. Definitions.
     9          1282. Housing our neighbors with dignity program.
    10    §  1280.  Legislative  findings  and  purpose.  The state of New York,
    11  through the housing trust fund corporation, is empowered to finance  the
    12  purchase,  acquisition,  holding  or conversion of distressed hotels and
    13  commercial office properties for use  as  affordable  permanent  housing
    14  that  meets standards established to ensure safety, habitability, quali-
    15  ty, and access to supportive services as appropriate, to be made  avail-
    16  able to low-income households and people experiencing homelessness imme-
    17  diately prior to entering such housing. These properties shall be owned,
    18  operated  and managed by appropriate nonprofit organizations through the
    19  use of government agency funding to acquire the property.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6593--B                          2
     1    The acquired properties shall be converted into permanently affordable
     2  housing modeled as financially and operationally deemed necessary by the
     3  state or appropriate nonprofit organization for the purposes of creating
     4  supportive or permanently affordable housing units;  provided  that  the
     5  housing  shall remain affordable as defined by the term affordable hous-
     6  ing included in this article.
     7    § 1281. Definitions. For the purposes of this article,  the  following
     8  terms shall have the following meanings:
     9    1.  "Corporation" shall mean the housing trust fund corporation estab-
    10  lished pursuant to section forty-five-a of this chapter.
    11    2. "Appropriate nonprofit organization" shall  mean  a  not-for-profit
    12  organization that:
    13    (a) Has as one of such organization's primary purposes:
    14    (i)  The  provision  of housing that is affordable to low-income fami-
    15  lies; or
    16    (ii) The provision of services or housing for individuals or  families
    17  experiencing homelessness; or
    18    (b) Is otherwise considered by the state as a suitable housing manage-
    19  ment organization, by a vetting process developed by the corporation.
    20    3.  "Affordable housing" shall mean permanent housing that is afforda-
    21  ble to low and moderate-income households, such  that  the  new  housing
    22  achieves  income  averaging at or below fifty percent of the area median
    23  income, with residents'  eligibility  capped  at  a  maximum  of  eighty
    24  percent  of  the area median  income at the start of their lease. Appli-
    25  cants shall not be rejected from eligibility based on  credit  histories
    26  or credit scores.
    27    4.  "Building service employee" shall mean any person who is regularly
    28  employed at, and performs work in connection with the  care  or  mainte-
    29  nance  of,  a  converted  property  in  a  city with a population of one
    30  million or more, including but not limited to, a watchman, guard,  door-
    31  man, building cleaner, porter, handyman, janitor, gardener, groundskeep-
    32  er, elevator operator and starter, or window cleaner.
    33    5.  "Distressed"  shall  mean  an  available asset that is financially
    34  distressed as determined by the corporation.
    35    6. "Exempt supportive housing" shall mean converted property for which
    36  a nonprofit organization has:
    37    (a) entered into a regulatory agreement  with  a  federal,  state,  or
    38  local  government  entity  in a city with a population of one million or
    39  more that requires:
    40    (i) at least fifty percent of the residential units in such  converted
    41  property  be  reserved  for  homeless,  disabled individuals or homeless
    42  families with a disabled head-of-household; and
    43    (ii) the provision of on-site supportive services to the residents  of
    44  at least fifty percent of the residential units; and
    45    (b)  the  remaining  fifty  percent  of  the residential units in such
    46  converted property rented to  households  earning,  on  average,  up  to
    47  eighty percent of the area median income, adjusted for household size.
    48    7. "Experiencing homelessness" shall refer to those individuals resid-
    49  ing in shelters, transitional housing, public spaces, and other types of
    50  emergency housing.
    51    8. "Fiscal officer" shall mean the comptroller of the city of New York
    52  or other analogous officer of such city.
    53    9.  "Prevailing  wage"  shall  mean the rate of wages and supplemental
    54  benefits paid in the locality to workers in the same trade or occupation
    55  and annually determined by the fiscal officer  in  accordance  with  the
    56  provisions of section two hundred thirty-four of the labor law.

        A. 6593--B                          3
     1    10.  "Rent stabilized" shall mean collectively, the rent stabilization
     2  law of nineteen hundred sixty-nine, the rent stabilization code, and the
     3  emergency tenant protection act of  nineteen  seventy-four,  all  as  in
     4  effect  as of the effective date of the chapter of the laws of two thou-
     5  sand  twenty-one  that  added this subdivision or as amended thereafter,
     6  together with any successor statutes or regulations addressing  substan-
     7  tially the same subject matter.
     8    11. "Small converted property" shall mean a converted property project
     9  (a)  to  improve  no more than one hundred nineteen residential units in
    10  one or more buildings; and (b) which has received  financial  assistance
    11  pursuant to this article.
    12    §  1282. Housing our neighbors with dignity program. 1. Establishment.
    13  Subject to amounts available by appropriation therefor, the  corporation
    14  shall  develop a housing our neighbors with dignity program (hereinafter
    15  referred to as "the program"), which shall provide a mechanism  for  the
    16  state  to  finance  the  acquisition of distressed hotels and commercial
    17  office properties by appropriate nonprofit organizations for the purpose
    18  of maintaining or increasing affordable housing.  All affordable housing
    19  properties  produced  through  this  program  shall  remain  permanently
    20  affordable,  and all converted properties in a city with a population of
    21  one million or more, with the exception of  small  converted  properties
    22  and exempt supportive housing, shall be required to pay building service
    23  employees  the  applicable prevailing wage pursuant to subdivision one-a
    24  of this section.  Permanent affordability restrictions shall  require  a
    25  regulatory  agreement  with  the  corporation or local housing agency or
    26  other affordability restrictions in recorded documents not  specifically
    27  listed  in  this  subdivision, provided the corporation or local housing
    28  agency determines that such restrictions are enforceable and  likely  to
    29  be enforced.  Such enforcement measures shall include but not be limited
    30  to the ability to cancel or transfer the regulatory agreement or proper-
    31  ty  to  another entity for violating the terms of such regulatory agree-
    32  ment, such as failure to meet the minimum obligations set forth in  this
    33  article when such failure is not cured.
    34    1-a.  In a city with a population of one million or more, all building
    35  service employees employed by an appropriate nonprofit organization at a
    36  converted property or otherwise employed at a converted property that is
    37  not a small  converted  property  or  exempt  supportive  housing  shall
    38  receive  at least the applicable prevailing wage in such city for craft,
    39  trade, or occupation of such building  service  employee.    The  fiscal
    40  officer  shall  have  the  power  to enforce such provisions in the same
    41  manner as provided under subparagraph (iii) of paragraph (g) of subdivi-
    42  sion seventeen of section four hundred twenty-one-a of the real property
    43  tax law. In addition, the fiscal officer shall have the power to conduct
    44  an investigation and hearing and file a determination as to the  payment
    45  of wages owed by a lessee, owner, successor, or any employer of building
    46  service  employees, as provided under subdivisions one, four, five, six,
    47  eight and nine of section two hundred thirty-five of the labor law.
    48    2. Purpose. The program shall seek to:
    49    (a) Finance the acquisition of distressed hotels and commercial office
    50  properties by appropriate nonprofit organizations  for  the  purpose  of
    51  stabilizing communities and the housing market;
    52    (b)  Finance  the conversion and rehabilitation of the physical condi-
    53  tion of acquired property  by  appropriate  nonprofit  organizations  in
    54  order  to  enhance  the condition of such property for future occupants,
    55  such as habitability and environmental sustainability; and

        A. 6593--B                          4
     1    (c) Provide an appropriate, expedient and efficient manner for  owners
     2  of  such  distressed  properties to transfer ownership to an appropriate
     3  nonprofit organization so as to promote  the  state's  interest  in  the
     4  conversion of such properties to new supportive and affordable permanent
     5  housing units.
     6    3. Powers. The state may finance the purchase, acquisition and holding
     7  by appropriate nonprofit organizations of distressed hotel or commercial
     8  office properties in any part of the state, and may take such actions as
     9  may be necessary to identify such distressed properties, for the purpose
    10  of  maintaining  or  increasing the stock of affordable, stable, quality
    11  housing; provided that in the case of a  property  at  which  any  hotel
    12  workers are represented by a collective bargaining representative, prior
    13  to  the  proposed  acquisition, the collective bargaining representative
    14  shall be notified in writing of the proposed acquisition, and the  prop-
    15  erty  owner shall certify prior to the state initiating such acquisition
    16  that the collective bargaining representative has mutually agreed  in  a
    17  separate  writing  with the property owner to take the specific acquisi-
    18  tion described in the written notice.
    19    4. Converted properties. All properties converted to affordable  hous-
    20  ing pursuant to this section shall meet the minimum standards of habita-
    21  bility,  safety  and quality of life for all established housing.  Addi-
    22  tional operating expenses  shall  be  met  through  any  combination  of
    23  subsidies, vouchers, commercial rents, or other sources of income avail-
    24  able  to  the housing provider under the model the non-profit chooses to
    25  pursue. All units shall be rent stabilized as defined in this article in
    26  localities that have adopted or opted in to the rent stabilization  law.
    27  At  least  fifty  percent of all converted properties shall be set aside
    28  for individuals and families who were  experiencing  homelessness  imme-
    29  diately  prior to entering such converted affordable housing.  Each unit
    30  must contain, at a minimum, a living/sleeping  space,  private  bathroom
    31  with  bath or shower, and either a full kitchen or a kitchenette with at
    32  least a 24-inch refrigerator, sink, cooktop, microwave oven and  outlets
    33  for countertop appliances.
    34    5. Restrictions. The state shall not, in any case, facilitate the sale
    35  or  transfer  of property unless the state has entered into an agreement
    36  with the appropriate nonprofit organization to ensure that  any  actions
    37  necessary  to  bring the property into compliance with applicable build-
    38  ing, safety, health and habitability  codes  and  requirements  will  be
    39  taken before such property is occupied.
    40    6.  Tenant  protections.  Tenants  residing in properties converted to
    41  affordable housing pursuant to this  section  shall  have  full  tenancy
    42  rights, including all the tenant protections pursuant to rent stabiliza-
    43  tion as defined in this article in localities that have adopted or opted
    44  in  to  the rent stabilization laws.  Tenancy in such affordable housing
    45  shall not be restricted on the basis of sexual identity or  orientation,
    46  gender  identity  or  expression,  conviction  or  arrest record, credit
    47  history, credit score, or immigration status.
    48    § 3. Non-severability clause. If any  clause,  sentence,  subdivision,
    49  paragraph, section or part of this act shall be adjudged by any court of
    50  competent  jurisdiction to be invalid, and such decision is not reversed
    51  or is otherwise deemed to be final, such judgment shall have the  effect
    52  of rendering this act invalid, inoperative and void.
    53    §  4.  This  act  shall take effect immediately and shall be deemed to
    54  have been in full force and effect on and after April 1, 2021.
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