Committee on
Housing

Vito J. Lopez - Chairman
Sheldon Silver - Speaker




December 15, 2005

Honorable Sheldon Silver
Speaker of the Assembly
Legislative Office Building
Albany, New York 12248

Dear Mr. Speaker:

I am pleased to present the 2005 Annual Report for the Assembly Committee on Housing highlighting the accomplishments of the past Legislative Session. It was a productive year, particularly in regards to budgetary accomplishments. Through the budget conference committee process the Assembly was able to secure $25 million in additional housing capital for existing and new programs. The Assembly was also successful in securing an additional $7.4 million to fully restore funding for the Neighborhood Preservation Corporation and Rural Preservation Corporation programs back to the 2003 levels.

Several bills were passed by the Assembly and then signed into law. The achievements of the Committee also include bills designed to facilitate the continued work of New York City’s Department of Housing, Preservation, and Development (HPD). Bills chaptered include ones to increase the amount of Article 8-B loans New York City may lend to owner-occupants of one to four unit dwellings for improvements and repairs (A.7284), and extending authorization of the ANCHOR program (A.7423-A).

In response to the continuing threat of buildings pre-paying or "buying out" of the Mitchell-Lama program, the Assembly again passed a package of bills to protect tenants. Bills passed include one that would eliminate the six percent cap on owner dividends while providing rent stabilization to tenants in buildings that buy out (A. 2454), one that would require early notification for buy-outs (A.459), extend from twenty to fifty years the period of time before limited-profit housing companies may dissolve (A.460), and bills that would extend rent stabilization to buildings occupied after 1974 (a.458 and A.2522). Unfortunately, the Senate failed to pass these bills. The Committee will continue to advance this legislation in the next session and explore additional ways to keep owners in the program.

The Committee held several public hearings in 2005. In January, the Committee held two hearings to examine the future of the Neighborhood and Rural Preservation Programs. In April, the Housing Committee joined the Real Property Tax Committee and the Cities Committee to hold a public hearing examining recent significant increases in real property tax assessments placed on rehabilitated or renovated residential dwelling units in New York City. In June the Committee convened a public hearing to discuss the state of affordable housing on Staten Island. The Housing Committee in conjunction with the Subcommittee on Retention of Homeownership and Stabilization of Affordable Housing held a public hearing in October to explore affordable housing options for senior citizens. And in December the Committee held a public hearing to explore the impact of the enacted 2005-06 New York State Budget on the availability of affordable housing throughout New York State.

Finally, the Assembly passed a bill raising the allowable annual amounts that may be given to the statewide network of Neighborhood Preservation Companies (NPCs) and Rural Preservation Companies (RPCs) (A.3526).

I am pleased with the many successes of the Committee and look forward to continuing our efforts in what is sure to be another difficult session ahead. I wish to extend my sincerest thanks to the members of the Committee, my staff, the staff of the Housing Committee, and to you, Mr. Speaker, for your commitment and support.

Sincerely,
signature
Vito J. Lopez
Chairman




2005 ANNUAL REPORT
OF THE
ASSEMBLY STANDING COMMITTEE ON HOUSING

VITO J. LOPEZ, CHAIRMAN

Members of the Committee

MAJORITY

Steven Sanders
Vivian Cook
Alexander B. Grannis
Jeffrion L. Aubry
Joan Christensen
Scott Stringer
Keith Wright
Earlene Hooper
Ruben Diaz, Jr.
Steven Cymbrowitz
Carl Heastie
Adam Clayton Powell
Annette Robinson
Jonathan L. Bing
Luis M. Diaz
Philip R. Ramos
Michael A. Benjamin
William F. Boyland, Jr.
Michael R. Benedetto
MINORITY

Michael J. Fitzpatrick,
 Ranking Minority Member

Pat M. Casale
Fred W. Thiele, Jr.
Daniel Burling
Joseph A. Errigo
Andrew P. Raia
STAFF

Jonathan Harkavy, Chief of Staff to the Chairman
Joanne Barker, Legislative Coordinator
Don Lebowitz, Committee Counsel
Linda Camoin, Legislative Analyst
Patrice Mago, Committee Clerk
Caryn S. Canfield, Committee Assistant
Kathleen Quackenbush, Program and Counsel Secretary



TABLE OF CONTENTS
  1. COMMITTEE JURISDICTION AND PURVIEW
    1. LEGISLATIVE HEARINGS
      1. The Future of the Neighborhood and Rural Preservation Programs
      2. Recent Increases in Real Property Tax Assessments
  2. 2005 LEGISLATIVE HIGHLIGHTS
    1. A. STATE OF NEW YORK MORTGAGE AGENCY (SONYMA) AND HOUSING FINANCE AGENCY (HFA)
      1. Reauthorizing the State of New York Mortgage Agency
      2. Increasing HFA’s Authority to Finance Affordable Housing
      3. Clarifying Terms of Appointment for Additional SONYMA Board Member
      4. Extending Powers of the Mortgage Insurance Fund
      5. Extending the Definition of "Rehabilitation Loan"
      6. Extending Property Tax Exemptions
      7. Revising the Definition of "Mortgage"
    2. DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT (HPD)
      1. Increasing the Housing Development Corporation“s Bonding Authority
      2. Increasing Amounts Allowed for Municipalities to Lend for Home Improvements and Repairs
      3. Extending Loan Authorization and Corridor Designation
    3. PUBLIC HOUSING
      1. Permitting the Restructuring of Albany Housing Authority Projects
    4. NEIGHBORHOOD AND RURAL PRESERVATION PROGRAMS
      1. Increasing Annual Contract Amounts
      2. Creating an NPC and RPC Administrative Advisory Committee
    5. COOPERATIVES AND CONDOMINIUMS
      1. Amending the Definition of "Qualified Leasehold Condominium"
    6. MITCHELL-LAMA HOUSING
      1. Encouraging Continuation in Mitchell-Lama via Incentives
      2. Safeguarding New York State’s Mitchell-Lama Housing
      3. Ensuring Early Notification of Mitchell-Lama Buy-Outs
      4. Extending Rent and Eviction Protections of the Rent Stabilization Law
      5. Protecting Former Mitchell-Lama Tenants
    7. LOFT LAW
      1. Insuring Continuation of Services
      2. Expanding Loft Law Coverage
      3. Providing Additional Oversight and Remedies for Loft Dwellings and Residents
    8. RENT REGULATION
      1. Urstadt Law Repeal
      2. Extending Protections to Former Section 8 Residents
      3. Reducing Percentages Allowed for Rent Increases
      4. Limiting Landlord’s Possession for Personal Use
    9. BUILDING AND MAINTENANCE CODES
      1. Increasing the Minimum Heating Requirement
    10. OTHER
      1. Providing Funding for Projects in Former Brownfield Sites
      2. Authorizing Housing Preferences for Police Officers
  3. 2005 BUDGET HIGHLIGHTS
    1. EXISTING HOUSING PROGRAM FUNDING
    2. NEW PROGRAM FUNDING
  4. OUTLOOK FOR 2006
APPENDICES
  APPENDIX A
  APPENDIX B
  APPENDIX C



I.  COMMITTEE JURISDICTION AND PURVIEW

The New York State Assembly Committee on Housing is composed of twenty-seven members (twenty majority members and seven minority members).

The Committee is responsible for legislation concerning housing development and preservation. Its purview also includes rent regulation, as well as legislation that amends the following volumes of the New York State Consolidated Laws:

• Multiple Dwelling Law, which encompasses health and safety standards for buildings with three or more families living independently of each other in New York City and Buffalo;

• Multiple Residence Law, which covers health and safety standards for buildings with three or more families living independently of each other in all localities other than New York City and Buffalo;

• Private Housing Finance Law, which governs the following State programs: Mitchell-Lama; Limited Dividend Companies; Redevelopment Companies; Housing Trust Fund; Affordable Home Ownership Development; Turnkey; Permanent Housing for Homeless Families; Infrastructure Development Demonstration; Mobile Home Cooperative Fund; Housing Development Fund; Neighborhood Preservation; Rural Preservation; Rural Area Revitalization; Rural Rental Assistance; Special Needs Housing; Urban Initiatives; Permanent Housing for Homeless Families; several New York City programs; and the administration of the State Housing Finance Agency and New York City Housing Development Corporation; and,

• Public Housing Law, which covers the safety, management, and financing of local public housing authorities throughout the State.

In addition to bills regarding these laws, the Committee has jurisdiction over legislation amending the following sections of the Unconsolidated Laws: the Emergency Housing Rent Control Law; the Local Emergency Housing Rent Control Law; the New York City Rent Stabilization Law; the Emergency Tenant Protection Act of 1974; sections of the New York City Administrative Code and the City of Buffalo Administrative Code; sections of the General Business Law that relate to the conversion of real property from rental to cooperative (co-op) or condominium (condo) status; and sections of the Executive Law, Real Property Law, Real Property Actions and Proceedings Law, and the Public Authorities Law.




A.  LEGISLATIVE HEARINGS

1.  The Future of the Neighborhood and Rural Preservation Programs

The Committee held two hearings, on January 19 in Albany and January 21 in New York City, on the future of the Neighborhood and Rural Preservation Programs (NPP and RPP). The purpose of the hearings was to address the impact of the NPP and RPP programs on local communities and the impact of the significant funding/budget cuts on their programs in 2004. Historically, core funding for the programs has been $65,000 annually per group to support operating costs, including rent, utilities, and staff. In State Fiscal Year 2004, the Executive cut the Neighborhood and Rural Preservation programs by forty-eight percent and fifty-four percent respectively and subsequently vetoed the Legislature’s restoration of the programs’ funding.

Over the two days, the Committee heard from the Executive Directors and board members of the statewide NPC and RPC Coalitions, the Commissioner of the Division of Housing and Community Renewal, executive and deputy directors of many NPCs, RPCs, Housing Development Corporations, Community Improvement Corporations, and legal services and neighborhood associations from throughout the state.

Most witnesses testified that budget cuts of those proportions are ill-advised, predicting that the cuts would lead to serious and dismantling effects, and that, if the annual appropriations were adjusted for inflation, all groups would have received an increase as opposed to a cut. The State was encouraged to continue and expand its efforts and to give high priority to community-based non-profits. The testimony stressed that the state funding provides vital operating support for salaries and other administrative expenses that cannot be covered by other sources of funding.

Several directors of not-for-profit corporations emphasized that the organizations take on large responsibilities in order to do the work that they do, and that the success of their programs rests on the community-based nature of that work. They emphasized the excellent return on investment their organizations provide for the State, and the continuum and coordination of services they offer to their communities, all of which are time- and labor-intensive activities that they could not afford to continue without a subsidy from the State. Many added that they were the only organizations in their communities providing certain services, often acting as planning and economic development departments and providing assistance not offered through any other community agency.

2.  Recent Increases in Real Property Tax Assessments

In conjunction with the Committees on Real Property Taxation, and Cities, the Housing Committee convened a hearing on April 7 in New York City to examine the recent significant increases in real property tax assessments placed on rehabilitated or renovated residential dwelling units in New York City. The Committees heard testimony from agency officials from the New York State Office of Real Property Services and the City of New York Department of Finance, local government officials, union representatives, landlords, builders, and homeowners and homeowner organizations. Agency officials explained how the tax system is designed to work and made recommendations for suggested changes. They also discussed the unique system in New York City of assessment classifications and restrictions. Several homeowners related their personal stories. All witnesses agreed that more transparency in the process in needed.

3.  The State of Affordable Housing on Staten Island

On June 3, the Committee held a public hearing on Staten Island regarding the current state of affordable housing in that borough. The purpose of the hearing was to explore ways to develop more affordable housing for the communities there. The Committee heard from local political officials, and various religious leaders, housing developers, representatives from the building industry and community organizations. There were many representatives from Project Hospitality, one of the largest service providers on Staten Island.

The shortage of low income and affordable housing combined with the increase in poverty on Staten Island were consistently mentioned as the major issue facing the residents of Staten Island. Witnesses noted that Staten Island is currently the fastest growing borough in New York City. Representatives of community groups cited overdevelopment and the policy of down-zoning, along with the major changes being made by the NYC Housing Authority as causes of the crisis.

4.  Preservation and Development of Affordable Housing for Senior Citizens

On October 27, in conjunction with the Committee on Aging and the Subcommittee on Retention of Homeownership and Stabilization of Affordable Housing, the Housing Committee convened a hearing to discuss means of allowing seniors to stay in their homes and developing more affordable housing options for seniors. The Committees heard testimony from several senior organizations and neighborhood housing organizations. There was consensus amongst the witnesses that more must be done to ensure the long term viability of homes for seniors in the communities that they have lived in for many years. Suggestions from the various witnesses included community support for mixed income housing, increased resources for rehabilitation of aging housing stock, tax relief for owners who voluntarily abide by rent stabilization for apartments leased to seniors, and more protections for seniors from unscrupulous real estate brokers presenting seniors with shady real estate deals.




II.  2005 LEGISLATIVE HIGHLIGHTS
A. State of New York Mortgage Agency (SONYMA) and Housing Finance Agency (HFA)
1. Reauthorizing the State of New York Mortgage Agency
A.8285 (Cymbrowitz); Chapter 121 of the Laws of 2005

This chapter amends Section 2407 of the Public Authorities Law to increase tax-exempt bonding authority of the State of New York Mortgage Agency (SONYMA) to a total of $7.470 billion, an increase of $300 million. This increase is expected to provide SONYMA with sufficient bonding authority to cover its activities for the next year. In addition, this chapter extends SONYMA's authority to purchase mortgages and issue tax-exempt bonds until July 16, 2006, and extends the Agency’s authority to issue taxable bonds until July 16, 2006.

2. Increasing HFA’s Authority to Finance Affordable Housing
A. 8283-A (Bing); Chapter 124 of the Laws of 2005

The New York State Housing Finance Agency (HFA) was created as a public benefit corporation in 1960 to finance the development of low income housing by providing low-cost mortgage loans to both for-profit and not-for-profit developers. In its forty year history, the Agency has issued more than three billion dollars in bonds used to finance affordable housing developments. These developments include multi-family rental housing, senior housing, staff housing for educational and medical institutions, congregate care facilities, adult homes, and other special-needs housing.

This chapter increases HFA’s tax-exempt bonding authority by $900 million from $9.28 billion to $10.18 billion. This increase will enable HFA to continue to meet the demand for below-market financing among both for-profit and not-for-profit housing developers for another year.

3. Clarifying Terms of Appointment for Additional SONYMA Board Member
A.8287 (Powell); Chapter 102 of the Laws of 2005

This chapter clarifies certain provisions of recently-enacted Banking Department legislation regarding changes to the Board of Directors of the State of New York Mortgage Agency (SONYMA).

The chapter provides that the initial term of the fourth SONYMA director will be equal to the terms of the three current at-large appointees (four years) with the term of such additional appointee ending on January 1 of the fourth year succeeding his or her appointment. The chapter also removes references to the Superintendent of Banks as a director of SONYMA.

4. Extending Powers of the Mortgage Insurance Fund
A.8288 (Reilly); Chapter 125 of the Laws of 2005

SONYMA provides mortgage insurance to and purchases residential mortgages from lenders to assist first-time home buyers who would otherwise be unable to finance the purchase of a home. SONYMA programs include low interest rate and conventional rate mortgage programs, as well as the Mortgage Insurance Program. These programs make the dream of owning a home a reality for thousands of New Yorkers each year. This chapter extends the ability of SONYMA’s Mortgage Insurance Fund (MIF) to provide mortgage pool insurance until July 16, 2007.

5. Extending the Definition of "Rehabilitation Loan"
A.8552-A (Lopez); Chapter 309 of the Laws of 2005

This chapter extends until July 23, 2008, the definition of "rehabilitation loan" within statutory authorization of the MIF to require that at least twenty percent of the loan be used for the cost of rehabilitation.

6. Extending Property Tax Exemptions
A.8286 (Lopez); Passed Assembly

This bill would authorize municipalities to enter into contracts with redevelopment companies to exempt the real property of such companies from local and municipal real property taxes for a term commensurate with the term of the mortgage on such property made by the New York State HFA instead of the current term of twenty-five years. It would also give the municipality the option of entering into a contract that will be co-terminus with the Agency’s permanent financing.

7. Revising the Definition of "Mortgage"
A.8286 (Lopez); Passed Assembly

This bill would allow SONYMA to issue and insure second mortgages for down payment and closing cost assistance to potential home owners. This bill would define the term "mortgage" to include a loan owed to a bank secured by a second lien (under certain limited circumstances) if the second lien secures a loan purchased by the agency and is made at the same time as a first lien securing a loan purchased by the agency.

B. DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT (HPD)

New York City’s housing needs are among the largest in the nation. As a result, the Housing Committee works closely with New York City's Department of Housing, Preservation, and Development (HPD) to ensure that those needs are met. The following are summaries of bills supported by HPD that were acted upon by the Assembly.

1. Increasing the Housing Development Corporation’s Bonding Authority
A.7929 ( Lopez); Chapter 170 of the Laws of 2005

This chapter allows the City of New York Housing Development Corporation ("HDC") to increase the maximum aggregate principal amounts of its outstanding notes and bonds by $800 million from $4.85 billion to $5.65 billion. HDC uses this bonding authority to refinance existing Mitchell-Lama mortgages in exchange for a commitment to remain in the program for an additional fifteen years, to restructure HUD loans used to finance the construction of low-income housing for the elderly, and to finance new construction and the conversion of non-residential buildings to housing in the Congressionally designated Liberty Zone and in other areas throughout the city.

2. Increasing Amounts Allowed for Municipalities to Lend for Home Improvements and Repairs
A.7284 (Lavelle); Chapter 479 of the Laws of 2005

This chapter increases the size of low-interest Article 8-B loans New York City may lend to low- and-moderate income owner-occupants of one-to-four unit private dwellings for improvements and repairs to those dwellings. The chapter raises the current rehabilitation loan limit of $43,000 to $60,000.

3. Extending Loan Authorization and Corridor Designation
A.7423-A (Boyland); Chapter 415 of the Laws of 2005

This chapter extends until June 30, 2009, the authorization of the New York City Department of HPD to make loans for neighborhood projects in commercial corridors, and extends until June 30, 2007, HPD’s authority to designate such commercial corridors.

C. PUBLIC HOUSING

The State of New York continues to play an important role in regulating and supporting the operation of public housing. Currently, over 18,000 units of State-regulated public housing are operated by thirty public housing authorities. In New York City alone, State-supervised public housing developments provide housing to over 30,000 people.

Despite the importance of these developments to the State’s efforts to provide affordable housing, public housing authorities desperately need additional assistance in order to make long overdue capital improvements. However, due to the inadequate level of funding provided through the State’s Public Housing Modernization program, many essential improvements and repairs continue to languish for lack of available funds. Increased funding for modernization remains one of the Committee’s top priorities.

1. Permitting the Restructuring of Albany Housing Authority Projects
A.3000-B (Canestrari); Chapter 320 of the Laws of 2005

This chapter authorizes the Albany Housing Authority to restructure its housing project known as Creighton Story Homes to ensure its continued operation as a source of housing for persons and families of low income.

D. NEIGHBORHOOD AND RURAL PRESERVATION PROGRAMS

The Neighborhood and Rural Preservation programs (NPP and RPP) provide grants to cover the administrative costs of not-for-profit community groups engaged in a variety of housing activities ranging from housing development and rehabilitation to homebuyer counseling and tenant assistance. These not-for-profits are known as neighborhood and rural preservation companies (NPCs and RPCs). Since 1990 alone, NPCs and RPCs have played an instrumental role in the creation of over 32,000 units of affordable housing. According to the New York State Division of Housing and Community Renewal (DHCR), for every dollar invested in NPCs and RPCs between $13 and $18 is leveraged from private and other public sources for affordable housing.

1. Increasing Annual Contract Amounts
A.3526 (Lopez); Passed Assembly

This bill would increase the limit that NPCs and RPCs can receive annually. A statutory increase would allow companies to receive an annual award that would compensate them for the $32,500 cut in funding they received in State Fiscal Year 2004-5 in addition to the traditional $65,000 annual contract award. This bill would increase the annual contract amount for NPCs and RPCs by $17,500, from $80,000 per year to $97,500 per year.

2. Creating an NPC and RPC Administrative Advisory Committee
A.3527-A (Lopez); Passed Assembly

This bill would create an advisory committee to identify areas of concern for Neighborhood and Rural Preservation Companies and DHCR related to the administration of the Neighborhood and Rural Preservation Programs and to propose policies to address those concerns.

E. COOPERATIVES AND CONDOMINIUMS

The purchase of a cooperative or condominium is viewed by many as an alternative to home ownership. However, buying a co-op or condo is often a complex process requiring a substantial investment of time and money on the part of the purchaser.

Upon purchase, a co-op shareholder or condo unit-owner holds an interest in the cooperative or condominium corporation and has a tremendous stake in the management of the property. But unlike owning a home, where an individual owner has the final say as to property management decisions, an elected board has these responsibilities in a co-op or condo. Condo unit-owners elect a board of managers, while co-op shareholders elect a board of directors.

1. Amending the Definition of "Qualified Leasehold Condominium"
A.7709 (Millman); Chapter 213 of the Laws of 2005

This chapter allows the creation of commercial, industrial, or residential condominium interests, or mixed-use condominium interests that include residential use in leaseholds of real property located within the Brooklyn Bridge Park.

F. MITCHELL-LAMA HOUSING

Since the 1950s, the Mitchell-Lama program has provided affordable housing to moderate-income New Yorkers. More than 400 Mitchell-Lama developments, housing approximately 150,000 families, are scattered throughout the State. The continued viability of this housing remains a critical part of New York State’s effort to ensure the availability of affordable housing for each of its citizens.

Despite this, to date owners of thousands of apartments have ended rental or sales restrictions that cover their buildings by repaying loans issued under the Mitchell-Lama guidelines. In fact, forty-three developments with 17,000 units of affordable housing have left the program. These "buy-outs" can have a devastating impact on the families living in these buildings as rents may double or triple when existing leases expire.

Since 1999, the Assembly has responded by passing packages of bills to protect Mitchell-Lama tenants. The Committee continued to pursue a package of legislation in 2005.

1. Encouraging Continuation in Mitchell-Lama via Incentives
A.2454 (Lopez); Passed Assembly

This bill would authorize municipally aided Mitchell-Lama rental developments in New York City to pay dividends or interest in excess of six percent per year. It would also provide rent stabilization protection for tenants in Mitchell-Lama developments that still choose to buy out of the program. The legislation would also exempt developments where the tenants and owner have executed a settlement agreement regarding their respective rights and obligations.

2. Safeguarding New York State’s Mitchell-Lama Housing
A.460 (Lopez); Passed Assembly

This bill would extend from twenty years to fifty years the period of time a company must continue in operation before limited-profit housing companies may dissolve and leave the Mitchell-Lama Program. This legislation would preserve Mitchell-Lama housing as an affordable housing resource for the future.

3. Ensuring Early Notification of Mitchell-Lama Buy-Outs
A.459 (Lopez); Passed Assembly

This bill would require Mitchell-Lama housing companies that intend to dissolve to provide notice of such intention to all their lease holders at least six months prior to the anticipated date of dissolution. The bill specifies certain information that must be included in the required notice.

4. Extending Rent and Eviction Protections of the Rent Stabilization Law
A.458 (Lopez); Passed Assembly

This bill would extend the rent and eviction protections of the New York City Rent Stabilization Law to Mitchell-Lama developments occupied on or after January 1, 1974.

5. Protecting Former Mitchell-Lama Tenants
A.2522 (Pretlow); Passed Assembly

This bill would provide rent and eviction protection to the tenants in former Mitchell-Lama buildings. The bill would authorize municipalities in Nassau, Westchester, and Rockland counties to declare a housing emergency for former Mitchell-Lama buildings that have voluntarily dissolved.

G. LOFT LAW

Originally passed in 1982, the Loft Law provided a mechanism for legalizing commercial lofts that had been converted for combined commercial and residential use; many of these units were occupied by artists. The law, which the legislature renewed until May 31, 2006, provides tenants who became residents of loft buildings in the early 1980’s with protections against arbitrary evictions and rent hikes. However, these tenants, long-term residents of the City who provide strong support for its prominence in artistic fields, are threatened by changing demographics and need greater protections.

Currently it is estimated that in Brooklyn alone, 10,000 people who live in buildings zoned for commercial or manufacturing use are not protected by the existing Loft Law. When the Assembly became aware of the large number of tenants threatened with eviction, it developed a package of bills to address the situation. By expanding the Loft Law, the Assembly seeks to increase the number of residents who would be covered under the existing statute and to provide important tenant protections for residents whose loft apartments are not currently covered.

1. Insuring Continuation of Services
A.2070 (Lopez); Passed Assembly

This bill would prohibit interruption of services in "would-be" interim multiple dwellings if the unit is used for residential purposes with the knowledge and consent of the owner. Essential services that have customarily been provided could only be interrupted for repairs, which would be required to be performed in a reasonably expedient manner or in the case of an emergency or by order of a court or other governmental organization. The bill would further provide that if the services have been interrupted or discontinued, the owner must restore such services for so long as residential occupancy continues.

2. Expanding Loft Law Coverage
A.3368 (Lopez); Passed Assembly

This bill would expand the existing Loft Law to people who lived in illegal lofts for a period of at least one year, from January 1, 2000, to December 31, 2003. The bill would also extend the Loft Law to May 31, 2010.

3. Providing Additional Oversight and Remedies for Loft Dwellings and Residents
A.2942-A (Glick); Passed Assembly

This bill would extend the Loft Law until 2010. It would also provide additional oversight for interim multiple dwellings, and would provide for additional remedies for residents of such dwellings. It would protect tenants who have occupied their lofts for twenty years or more from eviction due to an owner’s claim that he or she wants to use the unit or let a family member use the unit. This bill would further make additional provisions relating to the financing of such dwellings and the applicability of various provisions of the law to such dwellings.

H. RENT REGULATION

New York’s rent regulation laws provide protection to over 2.5 million tenants throughout the State. The basis for both rent control and rent stabilization is a housing emergency, defined as a vacancy rate below five percent, that still exists in many areas of the State. Due to the existence of this emergency, government intervention is critical to protect tenants from unreasonable rent increases and evictions.

1. Urstadt Law Repeal
A.4523 (Lopez); Passed Assembly

This bill would amend the Local Emergency Housing Rent Control Act by removing the provision that prohibits cities of one million or more from strengthening rent regulation laws to provide more comprehensive coverage than provided by state laws.

2. Extending Protections to Former Section 8 Residents
A.5362 (Lopez); Passed Assembly

This bill would extend rent and eviction protections, pursuant to the Emergency Tenant Protection Act of 1974, to tenants living in former Federal Section 8 projects.

3. Reducing Percentages Allowed for Rent Increases
A.4213 (Lopez); Passed Assembly

This bill would decrease from twenty percent to ten percent the amount a landlord could increase rent upon vacancy, and would prohibit a landlord from taking more than one increase in any one calendar year.

4. Limiting Landlord’s Possession for Personal Use
A.3774 (Lopez); Passed Assembly

This bill would limit a landlord's ability to take possession of units for their own primary residence to cases of immediate and compelling necessity, permit recovery of only one unit, and restrict such ability if the tenant has occupied the apartment for twenty or more years.

I. BUILDING AND MAINTENANCE CODES
1. Increasing the Minimum Heating Requirement
A.4593 (Lopez); Passed Assembly

This bill would provide that certain multiple dwellings must be heated to a minimum temperature of sixty-two degrees Fahrenheit from October 1st to May 31st between 10 pm and 6 am. The current minimum temperature requirement is fifty-five degrees Fahrenheit.

J. OTHER
1. Providing Funding for Projects in Former Brownfield Sites
A.3773 (Lopez); Passed Assembly

This directs the Commissioner of the Division of Housing and Community Renewal and the Affordable Housing Corporation to grant preference in the award of Housing Trust Fund and Affordable Homeownership Development contracts to economically feasible projects that are located on brownfield sites, provided that the brownfield site has received a certificate of completion from the Department of Environmental Conservation.

2. Authorizing Housing Preferences for Police Officers
A. 2805 (Diaz, R.); Passed Assembly

This bill would provide police officers in cities with a population of 100,000 or more an incentive to take up residency in such cities by offering preferential access to Mitchell-Lama and public housing, provided the city adopts a local law authorizing the preference and the police officers otherwise qualify for admission. The bill would also require applicants who receive awards from the Affordable Housing Corporation to provide a preference for homebuyers who are members of a police force in these same cities.

3. Ensuring Housing Protections to People with Disabilities
A.7867 (Paulin); Passed Assembly

This bill would ensure that housing protections provided to people with disabilities under Section 504 of the Federal Rehabilitation Act are also guaranteed by state law and therefore enforceable by state agencies.

4. Creating an Accessible Housing Registry
A.7868 (Paulin); Passed Assembly

This bill would create a New York State housing registry containing up-to-date information regarding accessible housing statewide for people with disabilities.




III.  2005 BUDGET HIGHLIGHTS

The Assembly negotiated a 2005 budget that will help alleviate the housing crisis in New York State. The Governor again proposed funding the Neighborhood and Rural Preservation Companies at fifty percent of their traditional level. The Assembly worked with the Senate in conference committees to pass a budget that included restorations for these important programs as well as a significant increase to housing capital programs.

A. EXISTING HOUSING PROGRAM FUNDING
  Legislative Appropriation
NEIGHBORHOOD AND RURAL PRESERVATION PROGRAMS (NPP and RPP) $15,231,500

NPP and RPP provide grants to cover the administrative costs of not-for-profits engaged in a variety of affordable housing activities. According to the Division of Housing and Community Renewal, for every dollar the State invests in NPP and RPP, between $13 and $18 is leveraged for affordable housing from other public and private sources.

The Governor originally proposed $5.465 million for NPP, and $2.355 million for RPP, both of which represented no change from SFY 2004. The Assembly was successful in adding $5,041,500 to the Neighborhood Preservation program for a total appropriation of $10,506,500, and supported the addition of $2,370,000 to the Rural Preservation Program for a total appropriation of $4,725,000 million. This amount is essential for maintaining adequate funding for all existing groups in good standing.

HOMES FOR WORKING FAMILIES $7 million

The Homes for Working Families program uses a combination of tax-exempt bonds, low-interest loans from the State, and federal Low Income Housing Tax Credits to finance the development of housing for households earning between fifty percent and sixty percent of median income. By providing developers a vehicle to access otherwise unused federal four percent Housing Tax Credits, Homes for Working Families offers an opportunity to produce high quality, affordable housing at a lower cost for New York State’s taxpayers. The $7 million enacted represents a continuation of last year’s budget appropriation.

AFFORDABLE HOUSING CORPORATION (AHC) $35 million

This program provides grants and loans of up to $35,000 per unit (plus an additional $5,000 in high-cost areas) for rehabilitation and new construction of one-to-four-family dwellings for middle-income New Yorkers. The Governor's proposed appropriation of $25 million represented no change from SFY 2004. The Assembly was successful, however, in fighting for an additional $10 million for this program.

  Legislative Appropriation
HOMELESS HOUSING ASSISTANCE PROGRAM (HHAP) $30 million

This program provides grants for emergency transitional and permanent housing for the homeless through acquisition, construction, and rehabilitation. This year’s budget appropriation is the same level as was enacted last year for the development of permanent, emergency, or transitional housing for homeless persons. The $30 million appropriation includes $5 million to be set aside for the Homeless Persons With AIDS Program.

PUBLIC HOUSING MODERNIZATION $12.8 million

This program provides funding to modernize state-aided public housing projects and to address structural problems that threaten the safety of tenants. The Executive did not propose any increased funding for this vital program.

HOPE/RESTORE $1.4 million

This program provides grants of up to $5,000 to low-income elderly homeowners in one-to-four family homes to correct conditions that threaten their lives, health, or safety and that would otherwise force them from their homes. As such, HOPE grants enable older New Yorkers to maintain their independence and avoid more costly housing alternatives. Funding for HOPE/RESTORE remained level at $400,000 in the Governor’s proposed budget, the same as the last two years. The Assembly fought in the Conference Committee process for an additional $1 million for this important program.

LOW INCOME HOUSING TRUST FUND $39 million

The Trust Fund provides funding to not-for-profits, localities, and private developers for the construction or rehabilitation of rental housing that is affordable to low-income households. Funding for this program in the Executive’s proposal was maintained at the level enacted for the previous three fiscal years. Through the Conference Committee process, the legislature was successful in adding $10 million for this program.


B. NEW PROGRAM FUNDING
  Legislative Appropriation
HOUSING CAPITAL $25,000,000

In an effort to address the affordable housing crisis that has made New York State one of the least affordable places to live in the country, the Assembly fought to infuse $25 million new capital dollars into capital programs. Additions, as noted in the text above, were made to the following existing programs.

Affordable Housing Corporation $10,000,000
HOPE/RESTORE $1,000,000
Low Income Housing Trust Fund $10,000,000

Several programs that had been funded in the past were also funded out of this infusion of capital. They include:

Rural Area Revitalization $ 1,000,000

This program was designed to provide funding for RPCs or other not-for-profit corporations working in rural areas for the purpose of creating, preserving, improving housing resources or local commercial facilities or restoring or improving public facilities.

Housing Assistance Fund New Facilities Purpose $1,500,000

This program was created to implement a senior housing demonstration project, constructing affordable multifamily rental housing for seniors at least sixty-two years of age.

Urban Initiatives $ 1,500,000

This program will provide grants and loans to community based not-for-profit organizations for the purpose of revitalizing and improving housing and local commercial and service facilities in neighborhoods consistent with those defined by the Neighborhood Preservation Program.



IV.   OUTLOOK FOR 2006

The challenge of providing safe and affordable housing in New York State is larger than ever given continued budget shortfalls. The Committee seeks to achieve this goal by developing policies that leverage private resources, encourage individual home ownership, lead to the creation of new housing opportunities, and lower the cost of affordable housing development. Despite the ever-increasing demands on state resources, the Assembly's commitment to housing remains strong.

One of the top priorities for the Housing Committee in the upcoming session will be the extension of the Loft Law beyond its sunset date of May 31, 2006. Protecting tenants who currently reside in lofts designated as interim multiple dwellings units is an important piece in the affordable housing puzzle. Thus, the Committee will seek not only to extend the existing law but also to protect long-term tenants in lofts and to expand the law to cover unprotected loft tenants in Brooklyn, Manhattan, and other areas of New York City who are not covered because they were not in residence by the date required under the Multiple Dwelling Law.

The Committee will also focus on continuing the Service Contract Obligation Revenue (SCOR) Bond program to ensure an uninterrupted flow of state resources to affordable housing development. Since 1991, the SCOR Bond program has financed the rehabilitation and/or construction of over $1 billion of affordable housing throughout New York State.

Another priority for the Committee is to ensure that both the Housing Finance Agency (HFA) and the State of New York Mortgage Agency (SONYMA) have sufficient funds available to them so that they may continue to finance affordable housing throughout New York State.

In addition, the Committee will continue to seek the establishment of a revolving loan fund to help working families purchase and rehabilitate homes. Many of these families can currently afford monthly mortgage payments, but are unable to buy a home due to high down-payment and closing costs. By assisting families with these costs, as well as the cost of necessary repairs, this initiative could make the dream of owning a home a reality for thousands of New Yorkers.

Finally, the Committee will continue to fight to ensure that the State budget provides adequate funding to assist in the development of affordable housing, the rehabilitation of existing units, and the expansion of housing opportunities for the homeless, the elderly, and those with special needs.

I look forward to my thirteenth year as chairman with enthusiasm and will make every effort to uphold the Assembly’s commitment to quality, affordable housing for all of New York State’s citizens.




APPENDICES
APPENDIX A
2005 Summary Sheet
Summary of Action on all Bills Referred to the Committee on Housing
FINAL
ACTION
ASSEMBLY
BILLS
SENATE
BILLS
TOTAL
Bills Reported With or Without Amendments      
To Floor; Not Returning to Committee
19   19
To Ways & Means
13   13
To Codes
10   10
To Rules
1   1
TOTAL
43   43
Bills Having Committee Reference Changed      
TOTAL 43   43
Senate Bills Substituted Or Recalled      
Substituted
  2 2
Recalled
     
TOTAL   2 2
Bills Defeated in Committee      
Bills Never Reported Held in Committee      
Died in Committee 192 4 196
Bills Having Enacting Clause Stricken 1   1
TOTAL BILLS IN COMMITTEE 236 6 242
Total Number Committee Meetings Held 6



APPENDIX B

Bills That Passed the Assembly

BILL # SPONSOR SUBJECT
A.458 Lopez Would extend the rent and eviction protections of the New York City Rent Stabilization Law to Mitchell-Lama developments occupied on or after January 1, 1974.
A.459 Lopez Would require Mitchell-Lama housing companies that intend to dissolve to provide notice of such intention to all their lease holders at least six months prior to the anticipated date of dissolution. The bill specifies certain information that must be included in the required notice.
A.460 Lopez Would extend from twenty years to fifty years the period of time before limited-profit housing companies may dissolve and leave the Mitchell-Lama program. This legislation would preserve the Mitchell-Lama housing as an affordable housing resource for the future.
A.2070 Lopez Would prohibit interruption of services in "would-be" interim multiple dwellings if the unit is used for residential purposes with the knowledge and consent of the owner. Essential services that have customarily been provided could only be interrupted for repairs, which would be required to be performed in a reasonably expedient manner or in the case of an emergency or by order of a court or other governmental organization. Would further provide that if the services have been interrupted or discontinued, the owner must restore such services for so long as residential occupancy continues.
A.2454 Lopez Would authorize municipally aided Mitchell-Lama rental developments in New York City to pay dividends or interest in excess of six percent per year. Would also provide rent stabilization protection for tenants in Mitchell-Lama developments that still choose to buy out of the program. The bill would also exempt developments where the tenants and owner have executed a settlement agreement regarding their respective rights and obligations.
A.2522 Pretlow Would provide rent and eviction protection to the tenants in former Mitchell-Lama buildings. The bill would authorize municipalities in Nassau, Westchester, and Rockland counties to declare a housing emergency for former Mitchell-Lama buildings that have voluntarily dissolved.
A.2805 R. Diaz Would provide police officers in cities with a population of 100,000 or more an incentive to take up residency in such cities by offering preferential access to Mitchell-Lama and public housing, provided the city adopts a local law authorizing the preference and the police officers otherwise qualify for admission. The bill would also require applicants who receive awards from the Affordable Housing Corporation to provide a preference for homebuyers who are members of a police force in these same cities.
A. 2942-A Glick Would extend the Loft Law until 2007. It would also provide additional oversight for interim multiple dwellings, and would provide for additional remedies for residents of such dwellings. This bill would make additional provisions relating to the financing of such dwellings and the applicability of various provisions of the law to such dwellings.
A.3368 Lopez Would expand the existing Loft Law to people who lived in illegal lofts for a period of at least one year, from January 2000 to January 2003. Would also extend the Loft Law to March 31, 2010.
A.3526 Lopez Would increase the limit that NPCs and RPCs can receive annually. A statutory increase would allow companies to receive an annual award that would compensate them for the $32,500 cut in funding they received in State Fiscal Year 2004-5 in addition to the traditional $65,000 annual contract award. This bill would increase the annual contract amount for NPCs and RPCs by $17,500, from $80,000 per year to $97,500 per year.
A.3527-A Lopez Would create an advisory committee to identify areas of concern for Neighborhood and Rural Preservation Companies and the Division of Housing and Community Renewal (DHCR) related to the administration of the Neighborhood and Rural Preservation Programs and to propose policies to address those concerns.
A.3773 Lopez Would direct the Commissioner of the Division of Housing and Community Renewal and the Affordable Housing Corporation to grant preference in the awarding of Housing Trust Fund and Affordable Homeownership Development contracts to economically feasible projects that are located on brownfield sites, provided that the brownfield site has received a certificate of completion from the Department of Environmental Conservation.
A.3774 Lopez Would limit a landlord’s ability to take possession of units for their own primary residence to cases of immediate and compelling necessity, permit recovery of only one unit, and restrict such ability if the tenant has occupied the apartment for twenty or more years.
A.4213 Lopez Would decrease from twenty percent to ten percent the amount a landlord could increase rent upon vacancy, and would prohibit a landlord from taking more than one increase in any one calendar year.
A.4523 Lopez Would amend the Local Emergency Housing Rent Control Act by removing the provision that prohibits cities of one million or more from strengthening rent regulation laws to provide more comprehensive coverage than provided by state laws.
A.4593 Lopez Would provide that certain multiple dwellings must be heated to a minimum temperature of sixty-two degrees Fahrenheit from October 1st to May 31st between 10 pm and 6 am. The current minimum temperature requirement is fifty-five degrees Fahrenheit.
A.5362 Lopez Would extend rent and eviction protections, pursuant to the Emergency Tenant Protection Act of 1974, to tenants living in former Federal Section 8 projects.
A.7867 Paulin Would ensure that housing protections provided to people with disabilities under Section 504 of the Federal Rehabilitation Act are also guaranteed by state law and therefore enforceable by state agencies.
A.7868 Paulin Would create a New York State housing registry containing up-to-date information regarding accessible housing statewide for people with disabilities.
A.8284 Brodsky Would authorize municipalities to enter into contracts with redevelopment companies to exempt the real property of such companies from local and municipal real property taxes for a term commensurate with the term of the mortgage on such property made by the New York State Housing Finance Agency (HFA) instead of the current term of twenty-five years. It would also give the municipality the option of entering into a contract that will be co-terminus with the Agency’s permanent financing.
A.8286 Lopez Would allow the State of New York Mortgage Agency ("SONYMA") to issue and insure second mortgages for down payment and closing cost assistance to potential home owners. Would define the term "mortgage" to include a loan owed to a bank secured by a second lien (under certain limited circumstances), if the second lien secures a loan purchased by the agency and is made at the same time as a first lien securing a loan purchased by the agency.



APPENDIX C
Bills Signed By The Governor
CHAPTER BILL and SPONSOR SUBJECT
102 A.8287
Powell
Clarifies certain provisions of recently-enacted Banking Department legislation regarding changes to the Board of Directors of the State of New York Mortgage Agency (SONYMA). The chapter provides that the initial term of the fourth SONYMA director will be equal to the terms of the three current at-large appointees (four years) with the term of such additional appointee ending on January 1 of the fourth year succeeding his or her appointment. The chapter also removes references to the Superintendent of Banks as a director of SONYMA.
121 A.8285
Cymbrowitz
Amends Section 2407 of the Public Authorities Law to increase SONYMA’s tax-exempt bonding authority to a total of $7.470 billion, an increase of $300 million. This increase is expected to provide SONYMA with sufficient bonding authority to cover its activities for the next year. In addition, this chapter extends SONYMA’s authority to purchase mortgages and issue tax-exempt bonds until July 16, 2006, and extends the Agency’s authority to issue taxable bonds until July 16, 2006.
124 A.8283-A
Bing
Increases HFA’s tax-exempt bonding authority by $900 million from $9.28 billion to $10.18 billion. This increase will enable HFA to continue to meet the demand for below-market financing among both for-profit and not-for-profit housing developers for another year.
125 A.8288
Reilly
SONYMA provides mortgage insurance and purchases residential mortgages from lenders to assist first-time home buyers who would otherwise be unable to finance the purchase of a home. SONYMA programs include low interest rate and conventional rate mortgage programs, as well as the Mortgage Insurance Program. These programs make the dream of owning a home a reality for thousands of New Yorkers each year. This chapter extends the ability of SONYMA’s Mortgage Insurance Fund MIF to provide mortgage pool insurance until July 16, 2007.
170 A.7929
Lopez
Allows the City of New York Housing Development Corporation ("HDC") to increase the maximum aggregate principal amounts of its outstanding notes and bonds by $800 million from $4.85 billion to $5.65 billion. HDC uses this bonding authority to refinance existing Mitchell-Lama mortgages in exchange for a commitment to remain in the program for an additional fifteen years, to restructure HUD loans used to finance the construction of low income housing for the elderly, and to finance new construction and the conversion of non-residential buildings to housing in the Congressionally designated Liberty Zone and in other areas throughout the city.
213 A.7709
Millman
Allows the creation of commercial, industrial, or residential condominium interests, or mixed-use condominium interests that include residential use in leaseholds of real property located within the Brooklyn Bridge Park.
309 A.8552-A
Lopez
Extends until July 23, 2008, the definition of "rehabilitation loan" within statutory authorization of the Mortgage Insurance Fund to require that at least twenty percent of the loan be used for the cost of rehabilitation. This extension continues to permit SONYMA’s insurance product to match more closely the needs of some of its primary users without negatively affecting the programmatic or financial integrity of the Mortgage Insurance Fund.
320 A.3000-B
Canestrari
Authorizes the Albany Housing Authority to restructure its housing projects to ensure its continued operation as a source of housing for persons and families of low income.
415 A.7423-A
Boyland
Extends until June 30, 2009, the authorization of the New York City Department of Housing Preservation and Development (HPD) to make loans for neighborhood projects in commercial corridors, and extends until June 30, 2007, HPD’s authority to designate such commercial corridors. Eligible neighborhood projects include commercial and community facilities.
479 A.7284
Lavelle
Increases the amount of Article 8-B loans New York City may lend to low and moderate income owner-occupants of one-to-four unit private dwellings for improvements and repairs to those dwellings. The chapter raises the current rehabilitation loan limit of $43,000 to $60,000.


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