-  This bill is not active in this session.
 

A06593 Summary:

BILL NOA06593B
 
SAME ASSAME AS S05257-C
 
SPONSORReyes
 
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
 
MLTSPNSR
 
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:

BILL NOA06593B
 
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
06/09/2021reported
06/09/2021rules report cal.721
06/09/2021substituted by s5257c
 S05257 AMEND=C GIANARIS
 03/01/2021REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
 05/18/2021REPORTED AND COMMITTED TO FINANCE
 05/18/2021AMEND (T) AND RECOMMIT TO FINANCE
 05/18/2021PRINT NUMBER 5257A
 05/25/2021AMEND AND RECOMMIT TO FINANCE
 05/25/2021PRINT NUMBER 5257B
 06/06/2021AMEND (T) AND RECOMMIT TO FINANCE
 06/06/2021PRINT NUMBER 5257C
 06/08/2021COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/08/2021ORDERED TO THIRD READING CAL.1642
 06/09/2021PASSED SENATE
 06/09/2021DELIVERED TO ASSEMBLY
 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
 08/02/2021DELIVERED TO GOVERNOR
 08/13/2021SIGNED CHAP.396
 08/13/2021APPROVAL MEMO.17
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A06593 Committee Votes:

HOUSING Chair:Cymbrowitz DATE:06/08/2021AYE/NAY:27/0 Action: Favorable refer to committee Codes
CymbrowitzAyeFitzpatrickAye
CookExcusedSmithAye
RosenthalAyeByrnesAye
RodriguezAyeReillyAye
KimAyeSchmittAye
PichardoAyeBrownAye
WalkerAyeJensenAye
JoynerAyeLawlerAye
DilanAye
Bichotte HermelAye
DavilaAye
BarronAye
De La RosaAye
NiouAye
TaylorAye
EpsteinAye
EichensteinAye
MeeksAye
BurdickAye
RiveraAye

WAYS AND MEANS Chair:Weinstein DATE:06/09/2021AYE/NAY:32/1 Action: Favorable refer to committee Rules
WeinsteinAyeRaAye
GlickAyeFitzpatrickAye
NolanExcusedHawleyAye
PretlowAyeMontesanoAye
PerryAyeBlankenbushAye
ColtonAyeNorrisAye
CookAyeBrabenecNay
CahillAyePalmesanoAye
AubryAyeByrneAye
CusickAyeAshbyAye
BenedettoAye
WeprinAye
RodriguezAye
RamosExcused
BraunsteinAye
McDonaldAye
RozicAye
DinowitzAye
JoynerAye
MagnarelliAye
ZebrowskiAye
BronsonAye
DilanAye
SeawrightAye
HyndmanAye

CODES Chair:Dinowitz DATE:06/09/2021AYE/NAY:22/0 Action: Favorable refer to committee Ways and Means
DinowitzAyeMorinelloAye
PretlowAyeGiglioAye
CookAyeMontesanoAye
CymbrowitzAyeReillyAye
O'DonnellAyeMikulinAye
LavineAyeTannousisAye
PerryAye
AbinantiAye
WeprinAye
HevesiAye
FahyAye
SeawrightAye
RosenthalAye
WalkerAye
VanelAye
CruzAye

RULES Chair:Gottfried DATE:06/09/2021AYE/NAY:28/0 Action: Favorable
HeastieExcusedBarclayAye
GottfriedAyeHawleyAye
NolanExcusedGiglioAye
WeinsteinAyeBlankenbushAye
PretlowAyeNorrisAye
CookExcusedMontesanoAye
GlickAyeRaAye
AubryAyeBrabenecAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye
BraunsteinAye
DickensAye
DavilaAye

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A06593 Floor Votes:

There are no votes for this bill in this legislative session.
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A06593 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6593B                 Revised 6/7/2021
 
SPONSOR: Reyes
  TITLE OF BILL: An act to amend the private housing finance law, in relation to enacting the "housing our neighbors with dignity act"   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to authorize and direct financing of the acquisition and conversion of distressed hotels and commercial spaces for use as permanent affordable and supportive housing for low-income households and those experiencing homelessness.   SUMMARY OF PROVISIONS: This bill would authorize the Division of Housing & Community Renewal (DHCR), through its subsidiary, the Housing Trust Fund Corporation (HTFC), to finance the acquisition and conversion of financially distressed hotels and commercial properties by not-for-profit organiza- tions. The bill would require all units resulting from the authorized conver- sion to be permanently affordable to low- and moderate-income house- holds. Where the workforce of a hotel is represented by a union, this bill would require that the union be notified and agree, with the property owner, to the acquisition and conversion. Once converted, this bill would require occupancy of resulting units to be limited to low- or moderate-income households earning up to 80 percent of Area Median Income (AMI), with the average AMI of all house- holds in the project being below 50 percent. The bill also provides that at least 50 percent of all resulting units must be set aside for those experiencing homelessness. Affordability restrictions and other regulatory terms would be enforced through regulatory agreements, property restrictions or both. Enforce- ment mechanisms available to the HTFC would include the ability to cancel regulatory agreements or to transfer the agreement or property to another entity. The bill would further require prevailing wage to be paid to building service employees working at converted properties in New York City, except for properties of less than 120 units and those who have entered into an agreement to reserve 50 percent of units for homeless or disa- bled individuals and families, to provide on-site supportive services to 50 percent of units, and to make remaining units affordable at up to 80 percent AMI. The bill would require resulting units to contain, at a minimum: a living/sleeping space; a private bathroom with a bath or shower; and a full kitchen or kitchenette with a 24-inch refrigerator, sink, cooktop, microwave oven, and outlets for countertop appliances.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: New York State faces an ongoing financial and public health crisis related to housing. Currently, the number of homeless single adults in New York City is 13296 higher than it was ten years ago and has hit a record 20,000 people in shelters as of October 2020. Additionally, even prior to the pandemic, as many as 580,000 New Yorkers are either rent burdened, overcrowded, or living in long-term shelters according to the City Comptroller. At the same time, the pandemic has hit New York's hotel industry hard; in fact, as many as 25,000 rooms, or 2096. of New York's total, may not reopen. As a result, more than 25,000 hotel employees have been out of work for more than six months. Moreover, according to CERE Hotels Research, US lodging demand is "forecast to increase by a compound annual growth rate of 14.1% over the next four years, recovering to 2019 levels by Q3 2023." This bill puts New York on a pathway to social housing with permanent affordability. The state would also not be alone in implementing this kind of solution. Califor- nia has already taken steps to establish a policy, known as the "Home- Key" program, to convert distressed hotels to permanent housing utiliz- ing federal funds.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.   EFFECTIVE DATE: This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2021.
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A06593 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6593--B
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 19, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  REYES,  MITAYNES,  MAMDANI, JACKSON, BARRON,
          PICHARDO, EPSTEIN,  KELLES,  BARNWELL,  HEVESI,  L. ROSENTHAL,  MEEKS,
          DE LA ROSA,  OTIS,  GONZALEZ-ROJAS,  CLARK, CARROLL, FORREST, SIMON --
          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
     6                 HOUSING OUR NEIGHBORS WITH DIGNITY PROGRAM
     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.
                                                                   LBD09863-11-1

        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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