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A07174 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the general municipal law, in relation to urban develop- ment action areas   PURPOSE OR GENERAL IDEA OF BILL: This bill amends § 693 of the General Municipal Law to authorize expe- dited land use review for Urban Development Action Area Projects (UDAAP)   SUMMARY OF PROVISIONS: Existing provisions of Article 16 of the General Municipal Law authorize expedited land use review of Urban Development Action Area Projects (UDAAP) for low-income residential rental developments for seniors and the disabled that are funded by the federal government (commonly known as Section 202 and Section 811 housing) until June 30, 2021. This bill would continue to allow Section 202 and Section 811 housing units to be subject to the UDAAP accelerated review process until June 30, 2024.   JUSTIFICATION: This bill would strongly assist in the development of federally financed housing for low-income elderly and disabled persons by continuing to make such developments eligible for expedited land use review. Under Section 202, the Supportive Housing for the Elderly Program, and § 811, the Supportive Housing for Persons with Disabilities Program, not-for- profit sponsors purchase City-owned land and construct new multiple dwellings with financing from the United States Department of Housing and Urban Development (HUD). The completed buildings provide rental housing for elderly or disabled persons of low income and receive oper- ating subsidies from HUD. Since 2002, HUD has financed over 2,800 units of Section 202 and Section 811 housing in New York City. Over 95% of these units were allocated to the low-income elderly. As a general rule, the sale of City-owned land for such projects is subject to the Uniform Land Use Review Procedure (ULURP), which can take as long as 11 months to complete and delays the availability of affordable hous- ing for these vulnerable populations. Expedited land use review under the UDAAP provisions in Article 16 of the General Municipal Law, howev- er, can take as little as 90 days. For federally funded Section 202 and Section 811 developments, the difference between getting approval in 90 days compared to 11 months can be significant. Once the competitive funding for these HUD developments is allocated, the timeframes for completion cannot be renegotiated. A lengthy approval process can quickly result in rising costs, requiring the City to find additional funds from other sources to cover the delay-caused overruns. This, in turn, stretches out the development process even longer. Continuing to allow land use review of Section 202 and Section 811 developments to proceed under UDAAP shortens the approval process while still maintaining the City Council's full land use review authority, and will help to ensure the timely and successful completion of these important housing developments. The ability to accelerate the land use approval process of these devel- opments will sunset on June 30, 2018. This legislation extends such date until June 30, 2021. No more than 6 such developments annually will be subject to this expedited land use process and developments subject to this authority cannot exceed 90 dwelling units.   PRIOR LEGISLATIVE HISTORY: Chapter 88 of 2018   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: Immediately.
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