NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6494B
SPONSOR: Walker TITLE OF BILL:
An act to amend the private housing finance law, in relation to afforda-
ble housing corporation grants
PURPOSE OR GENERAL IDEA:
Relates to affordable housing corporation grants by increasing the
amount that can be granted to a high cost project.
SUMMARY OF SPECIFIC PROVISIONS:
This amendment to the Private Housing Finance Law Article XIX Section
1112 and related sections that would reflect the following changes:
Section 1. Increases subsidy availability for projects in high cost
markets from $40,000 per dwelling unit to up to $75,000/du
Section 2. Requires resale restrictions for no less than 60 years and no
more than 99 years for projects seeking more than $40,000/du through
deed restrictions, community land trusts, or limited-equity cooperative
ownership structures.
Section 3. Establishes that the corporation shall establish tiered
project funding levels based on length and depth of affordability.
Section 4. Establishes that projects in pre-development that have
already received commitments from ABC under previous guidelines shall be
granted the opportunity to request additional capital subsidies under
these revised conditions
JUSTIFICATION:
The New York State Affordable Housing Corporation ("AMC") is a public
benefit corporation, established in 1985 pursuant to Section 45-b of the
Private Housing Finance Law ("PHFL") as a subsidiary of the New York
State Housing Finance Agency ("HFA"), to administer the Affordable Home
Ownership Development Program ("Program") under PHFL Article 19. The
purpose of the Program is to promote homeownership by persons of low and
moderate income, which, in turn, fosters the development, stabilization
and preservation of neighborhoods and communities. To achieve these
goals, AHC provides financial assistance, in conjunction with other
private and public investment, for the construction, acquisition, reha-
bilitation and improvement of owner-occupied housing. This program has
not been adjusted to reflect the increased cost of construction over the
past 30 years. This bill would support affordable homeownership.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
The cost to the state and localities in lost revenues due to the special
benefits would be offset through new construction resulting in increased
income tax, partial property tax and mortgage recording tax collections.
EFFECTIVE DATE:
This act shall take effect immediately.
