S00733 Summary:

BILL NOS00733
 
SAME ASSAME AS A00799
 
SPONSORMAY
 
COSPNSRSALAZAR
 
MLTSPNSR
 
Add §59-j, Priv Hous Fin L; add §99-ss, St Fin L
 
Establishes a housing project revolving loan program and housing project revolving loan fund to encourage the development of mixed income housing by providing zero-percent interest or low-interest loans.
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S00733 Actions:

BILL NOS00733
 
01/08/2025REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
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S00733 Committee Votes:

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S00733 Floor Votes:

There are no votes for this bill in this legislative session.
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S00733 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           733
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development
 
        AN  ACT  to  amend the private housing finance law and the state finance
          law, in relation to establishing  a  housing  project  revolving  loan
          program and housing project revolving loan fund
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The private housing finance law is amended by adding a  new
     2  section 59-j to read as follows:
     3    § 59-j. Housing project revolving loan program. 1. For the purposes of
     4  this section, the following terms shall have the following meanings:
     5    (a)  "Eligible  housing project" means a project to build mixed income
     6  housing where at least twenty percent of units will be rented  to  indi-
     7  viduals at or below fifty percent of the area median income.
     8    (b)  "Program" means the housing project revolving loan program estab-
     9  lished pursuant to this section.
    10    (c) "Residential housing developer" means a  for-profit  entity,  non-
    11  profit  entity, or public authority proposing to build an eligible hous-
    12  ing project.
    13    2. The agency is hereby authorized and directed to establish a housing
    14  project revolving loan program to provide zero-percent interest or  low-
    15  percent  interest  loans,  in  accordance  with subdivision four of this
    16  section, to residential housing developers to finance  eligible  housing
    17  projects.  Notwithstanding  the  provisions  of any law to the contrary,
    18  state financial assistance in the form of a loan  may  be  provided  for
    19  costs of eligible projects for capital costs related to such projects.
    20    3.  (a)  The agency shall develop a method whereby residential housing
    21  developers may apply to the agency to receive loans  under  the  program
    22  for  eligible  housing  projects. The agency, after review of the fiscal
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01304-01-5

        S. 733                              2
 
     1  needs of such eligible housing projects,  shall  make  a  determination,
     2  subject  to  any  restrictions under this section, as to the residential
     3  housing developers to be awarded state financial assistance  under  this
     4  section,  and  the  amount  of such financial assistance. In making such
     5  determinations, the agency shall consider the potential impact of eligi-
     6  ble housing projects, and the needs of the  areas  where  such  eligible
     7  housing  projects would be located, with a goal of maximizing affordable
     8  housing production.  The agency shall ensure that such financial assist-
     9  ance awards are made to  residential  housing  developers  for  eligible
    10  housing  projects  located  in  all geographic regions of the state from
    11  which applications for such financial assistance are made.
    12    (b) The agency shall be authorized to  allocate  funds  for  financial
    13  assistance to other housing finance agencies in the state, as determined
    14  by the agency, to be used for the purposes under subdivision two of this
    15  section.
    16    4.  Financial  assistance  awarded  under  subdivision  three  of this
    17  section shall be provided from the housing project revolving  loan  fund
    18  established  under section ninety-nine-ss of the state finance law. Such
    19  financial assistance shall be awarded in the form  of  a  loan,  with  a
    20  zero-interest  or  low-interest rate, to be determined on a case-by-case
    21  basis by the agency. Such loans may be in the form  of  mezzanine  debt,
    22  full  construction  financing,  or  other form deemed appropriate by the
    23  agency. In determining such interest  rates  and  loan  structures,  the
    24  agency  shall  have the goal of covering all costs related to the opera-
    25  tion of the program, without seeking to maximize additional profits.
    26    5. A residential housing developer awarded a loan under  this  section
    27  shall return the full amount of such loan and any interest due thereupon
    28  to the program upon completion of the eligible housing project for which
    29  such  loan  was  awarded.  A  residential housing developer shall obtain
    30  permanent financing for an eligible project from a source other than the
    31  program for any remaining debt after initially receiving  a  loan  under
    32  this  section.  Funds  received  by  the agency from residential housing
    33  developers under this subdivision  shall  be  returned  to  the  housing
    34  project  revolving loan fund established under section ninety-nine-ss of
    35  the state finance law.
    36    6. (a) Residential housing developers shall be authorized to pair  any
    37  funds received under the program with any other subsidies or funding for
    38  residential  housing  projects, provided, however, that such residential
    39  housing developers shall not be authorized to pair  any  funds  received
    40  under  the  program with any funds received under the federal low income
    41  housing tax credit program.
    42    (b) Notwithstanding any other provisions of this section,  residential
    43  housing  developers  receiving  funds  under  this  section shall not be
    44  precluded from charging fair market rent, as most recently published for
    45  the relevant county and unit type by the division of housing and  commu-
    46  nity  renewal,  to  individuals  using  vouchers to pay rent pursuant to
    47  section eight of the United States housing act of nineteen hundred thir-
    48  ty-seven, as amended, or any successor provision.
    49    § 2. The state finance law is amended by adding a new section 99-ss to
    50  read as follows:
    51    § 99-ss. Housing project revolving  loan  fund.  1.  There  is  hereby
    52  established  in  the  joint  custody  of  the  state comptroller and the
    53  commissioner of taxation and finance a special fund to be known  as  the
    54  "housing project revolving loan fund".
    55    2. The housing project revolving loan fund shall consist of all monies
    56  appropriated,  credited, or transferred thereto from the general fund or

        S. 733                              3
 
     1  any other source pursuant to  law,  including  the  repayment  of  loans
     2  provided under section fifty-nine-j of the private housing finance law.
     3    3.  Moneys  of  the account, when allocated, shall be available to the
     4  chair of the New York state housing finance agency to make loans  pursu-
     5  ant to section fifty-nine-j of the private housing finance law.
     6    §  3.  This  act shall take effect on the ninetieth day after it shall
     7  have become a law. Effective immediately, the addition, amendment and/or
     8  repeal of any rule or regulation necessary  for  the  implementation  of
     9  this  act  on its effective date are authorized to be made and completed
    10  on or before such effective date.
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