S 733: 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.

  
  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.