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A09843 Summary:

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A09843 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9843--A
 
                   IN ASSEMBLY
 
                                     April 18, 2012
                                       ___________
 
        Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
          tee   on  Housing  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the private housing finance  law,  in  relation  to  the
          funding  for contracts of neighborhood preservation companies and not-
          for-profit corporations
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section 902 of the private housing finance law is amended
     2  by adding two new subdivisions 7 and 8 to read as follows:
     3    7. "Merged company" shall mean  a  neighborhood  preservation  company
     4  maintaining  a  contract  pursuant to section nine hundred three of this
     5  article that has undergone a merger with one or more other  neighborhood
     6  preservation companies, which is also maintaining a contract pursuant to
     7  section  nine  hundred  three  of  this article, that has led the merged
     8  companies to reduce the number of contracts being  maintained  with  the
     9  division  pursuant  to  section  nine hundred three of this article to a
    10  total of one.

    11    8. "Unmerged company" shall mean a neighborhood  preservation  company
    12  that is not a merged company.
    13    §  2. Subdivision 5 of section 902 of the private housing finance law,
    14  as amended by chapter 668 of the laws of 1985, is  amended  to  read  as
    15  follows:
    16    5.   "Neighborhood  preservation  activities"  shall  mean  activities
    17  engaged in by a neighborhood preservation  company  within  a  geograph-
    18  ically  defined  neighborhood of a municipality, provided, however, that
    19  the division may fund a neighborhood preservation company to  engage  in
    20  such  activities  in  unserved and underserved areas of the municipality
    21  lying outside of its initially designated neighborhood  area,  that  are
    22  designed   (a)  to  construct,  maintain,  preserve,  repair,  renovate,

    23  upgrade, improve,  modernize,  rehabilitate  or  otherwise  prolong  the
    24  useful  life and to manage and coordinate the rehabilitation of residen-
    25  tial dwelling accommodations within such neighborhood, to restore  aban-
    26  doned and vacant as well as occupied housing accommodations to habitable
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14807-05-2
        A. 9843--A                          2
 
     1  condition;  to  demolish  structurally  unsound  or  unsafe or otherwise
     2  unsightly or unhealthy structures which no longer serve or  can  econom-
     3  ically  be made to serve a useful purpose consistent with stabilizing or
     4  improving  a  neighborhood; to seal and maintain vacant but structurally

     5  sound structures which are capable of being rehabilitated  at  a  future
     6  time  and  used  for  housing  purposes;  to acquire, where appropriate,
     7  buildings which contain housing accommodations; to facilitate the dispo-
     8  sition of buildings  containing  housing  accommodations  to  individual
     9  occupants  thereof or to cooperative groups whose members shall be occu-
    10  pants thereof; to assist owners, occupants and tenants of housing accom-
    11  modations to obtain improvements in the physical conditions thereof  and
    12  in  the maintenance and management thereof; and to manage housing accom-
    13  modations as agents for the owners thereof or administrators or  receiv-
    14  ers appointed or designated pursuant to any law of the state; and (b) to
    15  accomplish  similar  purposes  and  meet  similar  needs with respect to
    16  retail and service establishments within such neighborhoods when carried

    17  out in connection with and incidental to a program  of  housing  related
    18  activities.
    19    §  3. Subdivision 2 of section 903 of the private housing finance law,
    20  as amended by chapter 668 of the laws of 1985, is  amended  to  read  as
    21  follows:
    22    2.  Prior to entering into a contract with a neighborhood preservation
    23  company, the commissioner shall have made a finding that  the  neighbor-
    24  hood  in  which  the  activities are proposed to be conducted contains a
    25  significant amount of deteriorating or substandard housing which is  not
    26  being  adequately repaired, renovated, upgraded, modernized or rehabili-
    27  tated under existing programs so as to provide sound  housing  at  costs
    28  which the residents of such neighborhoods can afford; that the neighbor-
    29  hood  preservation  company  which proposes to contract with the commis-

    30  sioner is a bona fide organization which shall have  been  in  existence
    31  either  as  a  corporation  or as an unincorporated, organized group and
    32  performing significant neighborhood preservation activities for at least
    33  one full year prior to entering into any contract with the  commissioner
    34  and  which  shall  have  demonstrated  by its immediate past and current
    35  activities that it has the ability to preserve, repair, maintain,  reno-
    36  vate,  rehabilitate,  manage  or  operate  housing  accommodations or to
    37  engage in other neighborhood preservation activities in  such  neighbor-
    38  hood;  that  the  neighborhood  preservation  activities which are to be
    39  performed pursuant to the proposed contract are needed by the  neighbor-
    40  hood;  and  that the neighborhood preservation company possesses or will
    41  acquire or gain access to the requisite staff, office facilities  within

    42  such  neighborhood,  equipment and expertise to enable it to perform the
    43  activities which it proposes to undertake  pursuant  to  such  contract;
    44  provided,  however,  that  merged  companies'  office  facilities may be
    45  located outside such neighborhood if they are located in a  municipality
    46  wholly contained within the merged companies' neighborhood, and provided
    47  further,  however,  that  it  shall  not  be a bar to the commissioner's
    48  contracting with a neighborhood preservation company that  one  or  more
    49  organizations,  whether  pursuant  to  contract with the commissioner or
    50  not, are  conducting  neighborhood  preservation  activities  wholly  or
    51  partially within the same neighborhood.
    52    §  4.  Paragraph  (d)  of  subdivision 3 of section 903 of the private
    53  housing finance law, as added by chapter 852 of the  laws  of  1977,  is

    54  amended to read as follows:
    55    (d)  that  the neighborhood preservation company's officers, directors
    56  and members are fairly representative of the residents and other legiti-
        A. 9843--A                          3
 
     1  mate interests of the neighborhood, that they  will  carry  out  such  a
     2  contract  in a responsible manner and that [a majority] at least thirty-
     3  three percent of the directors of the neighborhood preservation  company
     4  are residents of the neighborhood;
     5    §  5. Subdivision 4 of section 903 of the private housing finance law,
     6  as amended by section 1 of part FF of chapter 57 of the laws of 2009, is
     7  amended to read as follows:
     8    4. Contracts entered into  hereunder  with  neighborhood  preservation
     9  companies  shall  be limited in duration to periods of one year, but may

    10  thereafter be renewed, extended or succeeded by new contracts from  year
    11  to year in the discretion of the commissioner; [they shall be limited in
    12  amount  to  the  sum  of  one hundred thousand dollars in a single year,
    13  provided that in any year in which the aggregate sum  of  three  hundred
    14  thousand  dollars  shall have been reached and all succeeding years, the
    15  annual contract amount shall be subject to a limit of ninety-seven thou-
    16  sand five hundred dollars per year;] they shall define with particulari-
    17  ty the neighborhood or portion thereof  within  which  the  neighborhood
    18  preservation  activities  shall  be  performed;  they  shall specify the
    19  nature of  the  neighborhood  preservation  activities  which  shall  be
    20  performed  including  the  approximate  number of buildings, residential

    21  dwelling units and local retail and service establishments  which  shall
    22  be  affected; they shall locate and describe, with as much particularity
    23  as is reasonably possible, the buildings  with  respect  to  which  such
    24  activities  shall  be performed during the contract term; and they shall
    25  specify the number of persons, salaries or rates of compensation  and  a
    26  description  of duties of those who shall be engaged by the neighborhood
    27  preservation company to perform the activities embraced by the  contract
    28  together with a schedule of other anticipated expenses.
    29    §  6.  Section  904  of  the private housing finance law is amended by
    30  adding a new subdivision 5 to read as follows:
    31    5. When disbursing funds for contracts with neighborhood  preservation
    32  companies,  pursuant  to section nine hundred three of this article, the

    33  division shall use the following criteria, formulas and tables to deter-
    34  mine the distribution of funds:
    35    (a)(i) The total unmerged company  funding  shall  equal  the  current
    36  number of unmerged company contracts multiplied by the per group award.
    37    (ii) The unmerged company funding shall equal the per group award.
    38    (iii)  The merged company funding shall equal the funding modification
    39  multiplied by the per group award.
    40    (b) Merged company funding shall be determined on an individual  basis
    41  for  each  neighborhood preservation company.  The following tables show
    42  the funding modification to be used:
    43    (i) In the case of two companies merging, the following table shall be
    44  used:

    45            Years since    Funding
    46            merger         modification
    47              1              200%
    48              2              190%
    49              3              180%
    50              4              170%
    51              5              160%
    52              6              150%
    53    (ii) In the case of three companies merging, the following table shall
    54  be used:
    55            Years since    Funding
    56            merger         modification
        A. 9843--A                          4
 
     1              1              300%

     2              2              290%
     3              3              280%
     4              4              270%
     5              5              260%
     6              6              250%
     7              7              240%
     8              8              230%
     9              9              220%
    10              10             210%
    11              11             200%
    12    (iii)  In  the  case  of four or more companies merging, the following
    13  table shall be used:
    14            Years since      Funding
    15              merger       modification

    16                1              400%
    17                2              390%
    18                3              380%
    19                4              370%
    20                5              360%
    21                6              350%
    22                7              340%
    23                8              330%
    24                9              320%
    25               10              310%
    26               11              300%
    27               12              290%
    28               13              280%
    29               14              270%

    30               15              260%
    31               16              250%
    32    (c) If a neighborhood preservation company that has undergone a merger
    33  continues to renew their contract beyond the timeframes  listed  in  the
    34  above  tables, it shall have its funding determined using the last fund-
    35  ing modification listed.
    36    (d) The merged company savings shall be determined  on  an  individual
    37  basis for each merged company. It shall be calculated by subtracting the
    38  amount  of  such  company's  merged  company funding from the amount the
    39  merged companies would have received if  they  had  maintained  separate
    40  contracts.
    41    (e)  The per group award shall equal the total funding available minus

    42  the amount for the contract with the  neighborhood  preservation  coali-
    43  tion,  which shall equal the total unmerged company funding plus the sum
    44  of the merged company  funding  plus  the  sum  of  the  merged  company
    45  savings.
    46    §  7.  The  private  housing  finance  law  is amended by adding a new
    47  section 910 to read as follows:
    48    § 910. Merged company savings fund. The division shall create  a  fund
    49  to  hold  and  shall  transfer all funds determined to be merged company
    50  savings pursuant to paragraph (d) of subdivision five  of  section  nine
    51  hundred four of this article into such fund. The division shall use such
    52  funds,  as  available,  for  entering  into  new  contracts, pursuant to

    53  section nine hundred three of this article, with neighborhood  preserva-
    54  tion companies located in areas of the state that are currently unserved
    55  by a neighborhood preservation company.
        A. 9843--A                          5
 
     1    §  8.  Section  1002  of the private housing finance law is amended by
     2  adding two new subdivisions 7 and 8 to read as follows:
     3    7.  "Merged corporation" shall mean a not-for-profit corporation main-
     4  taining a contract pursuant to section one thousand three of this  arti-
     5  cle  that  has  undergone a merger with one or more other not-for-profit
     6  corporation, which is also maintaining a contract  pursuant  to  section
     7  one thousand three of this article, that has led the merged corporations

     8  to  reduce  the  number  of contracts being maintained with the division
     9  pursuant to section one thousand three of this article  to  a  total  of
    10  one.
    11    8. "Unmerged corporation" shall mean a not-for-profit corporation that
    12  is not a merged corporation.
    13    § 9. Subdivision 2 of section 1003 of the private housing finance law,
    14  as  amended  by  chapter  625 of the laws of 1988, is amended to read as
    15  follows:
    16    2. Prior to entering into a contract with a corporation,  the  commis-
    17  sioner shall have made a finding that the region in which the activities
    18  are  proposed  to  be conducted contains a significant amount of deteri-
    19  orating or substandard housing which is not being  adequately  repaired,
    20  renovated, upgraded, modernized or rehabilitated under existing programs

    21  so  as  to  provide  sound  housing at costs which the residents of such
    22  region can afford; that the corporation which proposes to contract  with
    23  the  commissioner  is  a bona fide organization which shall have been in
    24  existence either as a corporation or  as  an  unincorporated,  organized
    25  group  and  performing  significant  housing  preservation and community
    26  renewal activities for at least one full year prior to entering into any
    27  contract with the commissioner and which shall have demonstrated by  its
    28  immediate  past  and  current  activities  that  it  has  the ability to
    29  preserve, repair, maintain, renovate, rehabilitate,  manage  or  operate
    30  housing  accommodations  or  to engage in other housing preservation and
    31  community renewal activities in such region; that the housing  preserva-
    32  tion and community renewal activities which are to be performed pursuant

    33  to  the  proposed contract are needed by the region; and that the corpo-
    34  ration possesses or will acquire or gain access to the requisite  staff,
    35  office  facilities  with  direct  access  to  such region, equipment and
    36  expertise to enable it to perform the activities which  it  proposes  to
    37  undertake  pursuant  to  such  contract;  provided, however, that merged
    38  corporations' office facilities may be located outside  such  region  if
    39  they  are  located  in a municipality wholly contained within the merged
    40  corporations' region, and provided further, however, that it  shall  not
    41  be  a  bar to the commissioner's contracting with a corporation that one
    42  or more other organizations, are  conducting  housing  preservation  and
    43  community  renewal activities wholly or partially within the same region

    44  whether or not pursuant to contract with the commissioner.
    45    § 10. Subdivision 4 of section 1003 of  the  private  housing  finance
    46  law,  as  amended  by  section 2 of part FF of chapter 57 of the laws of
    47  2009, is amended to read as follows:
    48    4. Contracts pursuant to this section shall be for a period of no more
    49  than one year, but may be renewed or extended from year  to  year[,  and
    50  shall  provide  for  payment by the division of no more than one hundred
    51  thousand dollars per year, provided that in any year in which the aggre-
    52  gate sum of three hundred thousand dollars shall have been  reached  and
    53  all  succeeding  years, the annual contract amount shall be subject to a
    54  limit of ninety-seven thousand five  hundred  dollars  per  year];  they

    55  shall  define  with  particularity  the region or portion thereof within
    56  which the housing preservation and community renewal activities shall be
        A. 9843--A                          6
 
     1  performed; they shall specify the nature of the housing preservation and
     2  community renewal activities which  shall  be  performed  including  the
     3  approximate  number  of  buildings, residential dwelling units and local
     4  retail  and  service  establishments which shall be affected; they shall
     5  locate and describe, with as much particularity as is reasonably  possi-
     6  ble,  the  buildings  with  respect  to  which  such activities shall be
     7  performed during the contract term; and they shall specify the number of
     8  persons, salaries or rates of compensation and a description  of  duties
     9  of  those  who shall be engaged by the corporation to perform the activ-

    10  ities embraced by the contract together with a schedule of other  antic-
    11  ipated expenses.
    12    §  11.  Section  1004 of the private housing finance law is amended by
    13  adding a new subdivision 5 to read as follows:
    14    5. When disbursing funds  for  contracts  with  not-for-profit  corpo-
    15  rations,  pursuant  to  section  one thousand three of this article, the
    16  division shall use the following criteria, formulas and tables to deter-
    17  mine the distribution of funds:
    18    (a) (i) The total unmerged corporation funding shall equal the current
    19  number of unmerged corporation contracts multiplied  by  the  per  group
    20  award.
    21    (ii) The unmerged corporation funding shall equal the per group award.
    22    (iii) The merged corporation funding shall equal the funding modifica-

    23  tion multiplied by the per group award.
    24    (b)  Merged  corporation  funding shall be determined on an individual
    25  basis for each not-for-profit corporation.   The following  tables  show
    26  the funding modification to be used:
    27    (i)  In  the  case  of  two  not-for-profit  corporations merging, the
    28  following table shall be used:
    29            Years since      Funding
    30              merger       modification
    31                1              200%
    32                2              190%
    33                3              180%
    34                4              170%
    35                5              160%

    36                6              150%
    37    (ii) In the case of three  not-for-profit  corporations  merging,  the
    38  following table shall be used:
    39            Years since      Funding
    40               merger      modification
    41                1             300%
    42                2             290%
    43                3             280%
    44                4             270%
    45                5             260%
    46                6             250%
    47                7             240%
    48                8             230%
    49                9             220%

    50               10             210%
    51               11             200%
    52    (iii) In the case of four or more not-for-profit corporations merging,
    53  the following table shall be used:
    54            Years since      Funding
    55               merger      modification
    56                1             400%
        A. 9843--A                          7
 
     1                2             390%
     2                3             380%
     3                4             370%
     4                5             360%
     5                6             350%

     6                7             340%
     7                8             330%
     8                9             320%
     9               10             310%
    10               11             300%
    11               12             290%
    12               13             280%
    13               14             270%
    14               15             260%
    15               16             250%
    16    (c)  If  a  not-for-profit  corporation  that  has  undergone a merger
    17  continues to renew their contract beyond the timeframes  listed  in  the
    18  above  tables, it shall have its funding determined using the last fund-

    19  ing modification listed.
    20    (d) The merged corporation savings shall be determined on an  individ-
    21  ual  basis  for  each  merged  corporation.  It  shall  be calculated by
    22  subtracting the amount of such corporation's merged corporation  funding
    23  from  the amount the merged corporations would have received if they had
    24  maintained separate contracts.
    25    (e) The per group award shall equal the total funding available  minus
    26  the  amount for the contract with the rural preservation coalition which
    27  shall equal the total unmerged company  funding  plus  the  sum  of  the
    28  merged company funding.
    29    §  12.  The  private  housing  finance  law is amended by adding a new
    30  section 1011 to read as follows:

    31    § 1011. Merged company savings fund. The division shall create a  fund
    32  to hold and shall transfer all funds determined to be merged corporation
    33  savings  pursuant  to  paragraph  (d) of subdivision five of section one
    34  thousand four of this article into such fund.  The  division  shall  use
    35  such  funds,  as available, for entering into new contracts, pursuant to
    36  section one thousand three of this article, with  not-for-profit  corpo-
    37  rations  located  in areas of the state that are currently unserved by a
    38  not-for-profit corporation that is maintaining a  contract  pursuant  to
    39  section one thousand three of this article.
    40    § 13. This act shall take effect immediately.