NY Pub Hsg L § 402-B (2021)
2021 New York Laws PBG - Public Housing Article 13 - Municipal Housing Authorities, Created Title 1 - New York City Housing Authority 402-B - Power of Authority to Enter Into Mixed-Finance Transactions to Continue Viability of Public Housing.

§  402-b.  Power of authority to enter into mixed-finance transactions to continue viability of public housing.  1.  Legislative  findings  and declaration.  The  legislature  finds  and declares that the state has a vital interest in the continued  viability  of  public  housing.  It  is necessary  to  ensure  that public housing continues to serve low-income individuals and families who would otherwise  face  homelessness  or  be forced  into unsafe or unsanitary housing. Public housing functions as a safety net for persons most in  need  of  safe,  decent  and  affordable housing.  The  legislature  further finds that the New York city housing authority has made, and continues to make, a concerted effort to provide public housing to individuals and families  in  need.  Certain  projects owned by the New York city housing authority have suffered deterioration over  time, and the housing authority does not have sufficient resources to address  this  deterioration.  An  infusion  of  private  capital  is necessary  to  ensure  the  continued success and long term viability of these projects.  The  legislature  further  finds  that  bringing  state financed  public housing operated by the New York city housing authority within the public housing  subsidized  by  the  federal  government,  by utilizing  the  federal  American Recovery and Reinvestment Act of 2009, will allow the New York city  housing  authority  to  enter  into  mixed finance  transactions,  which will result in receiving new operating and capital subsidies from the federal government and preserve the units  as public  housing.  The  legislature also finds that tenants living in the projects that have been financed by the city of New York, commonly known as Marble  Hill  Houses,  St.  Mary's  Park  Houses,  Bay  View  Houses, Boulevard  Houses,  Linden Houses and Samuel Houses, located in the city of New York, counties of  Bronx,  Kings  and  New  York,  will,  through multiple  contracts  and  agreements  among  the  New  York city housing authority, investment partners and the federal government,  be  afforded the  same  protections  as  tenants  living  in  the  projects listed in subdivision two of this section. The  legislature  therefore  finds  and declares  that  enactment of this section would enable redevelopment and rehabilitation of those  certain  New  York  state  and  New  York  city financed  projects owned by the New York city housing authority, and the continued operation of said projects for persons  and  families  of  low income.   2.  Upon  approval  by the commissioner of the division of housing and community renewal,  the  New  York  city  housing  authority  is  hereby authorized  to  sell  or  lease all or part of the residential buildings within the projects commonly known as Marlboro Houses,  Chelsea  Houses, Castle  Hill  Houses, 344 East 28th Street, Amsterdam Addition, Bushwick Houses, Stephen Wise Towers, Arthur H. Murphy Houses, Baychester Houses, Jonathan Williams  Plaza,  Drew-Hamilton  Houses,  Independence  Towers, Rutgers  Houses,  Stapleton Houses and Manhattanville Houses, located in the city of New York, counties of Bronx, Kings, New York  and  Richmond, upon  such  terms and conditions and in such manner as the New York city housing authority may  deem  appropriate  and  in  compliance  with  the provisions  of this section. The commissioner of the division of housing and community renewal shall not grant such approval  unless  he  or  she makes  a  finding that such sale or lease will enable the projects to be redeveloped and operated in such manner as to provide decent,  safe  and sanitary  housing  within the financial reach of persons and families of low income  and  a  further  finding  that  new  federal  assistance  is significantly more likely to be available to the projects listed in this section if such approval is granted. There shall be no requirement for a finding  by  the  commissioner  of the division of housing and community renewal that provisions have  been  made  to  pay  or  otherwise  assure payment  or  retirement  of  all  bonds,  notes  and  other  obligations  heretofore issued to finance the projects or a portion thereof, provided that the sale or lease of the projects is part of a  comprehensive  plan of  rehabilitation  and/or restructuring which includes the provision of housing for persons and families of low income. The sale or lease of all or  part  of the residential buildings within the projects enumerated in this section shall be made subject to all pertinent  federal  statutory, executive  orders,  consent orders and regulatory requirements, as those requirements may be  amended  from  time  to  time,  and  contracts  and agreements  which shall be recorded against and which shall run with the land, including a regulatory and operating agreement and  a  declaration of restrictive covenants requiring the operation and maintenance of such residential  projects  in  compliance  with  federal  requirements,  and amendments to a certain  mixed-finance  amendment  to  the  consolidated annual   contributions  contract  between  the  New  York  city  housing authority  and  the  United  States  department  of  housing  and  urban developmentcollectively,    the    "applicable    public    housing requirements").   3. (a)  All  applicable  public  housing  requirements  pertaining  to federal  public  housing  projects shall apply to the projects listed in subdivision two of this  section,  including  but  not  limited  to  all procedural  and  substantive  due  process requirements, restrictions on evictions except for just cause, the  right  to  automatic  renewals  of leases, and the right to meaningful input in matters concerning tenants; Section  8  units shall be subject to the voluntary conversion agreement and management plan approved by the United States department of  housing and  urban development on September eleventh, two thousand eight, and as it may be amended from time to time. The public housing  and  Section  8 leases of tenants in occupancy of the projects listed in subdivision two of  this  section  on  the  date of sale or lease of such projects shall remain in effect, except as such leases may be modified or  assigned  to reflect  changes in the ownership of project buildings. Each such tenant shall enjoy the same rights and obligations as other tenants with public housing leases occupying dwelling units in the  housing  projects  owned and  operated by the New York city housing authority that are not listed in subdivision two of this section, or  pursuant  to  Section  8  leases supported  by Section 8 vouchers, except as provided by paragraph (b) of this subdivision. Each project owner  and  the  New  York  city  housing authority  shall  be  jointly  and  severally  obligated  to provide and protect the rights set forth herein.  (b) All units in projects listed in subdivision two  of  this  section where  there  has  been  an allocation of federal low-income housing tax credits, during  the  required  federal  regulatory  compliance  periods applicable  to  such  federal low-income housing tax credits, shall upon vacancy be rented by persons or families whose income  does  not  exceed sixty  percent of area median income at a rent, including utilities, not to exceed thirty percent of the household's adjusted gross  income.  All other  units  shall  upon vacancy be rented by persons or families whose income does not exceed eighty percent of area median income at  a  rent, including  utilities,  not  to  exceed thirty percent of the household's adjusted gross income.  All  income  guidelines  applicable  to  federal public  housing  projects  shall apply to projects listed in subdivision two of this section. Each such tenant shall enjoy the  same  rights  and obligations  as  other  tenants  with  public  housing  leases occupying dwelling units in the housing projects owned and  operated  by  the  New York  city  housing  authority that are not listed in subdivision two of this section, or pursuant to Section 8 leases  supported  by  Section  8 vouchers, except as provided by this paragraph.  (c)  All  tenants  who  reside  in  the  housing  projects  listed  in subdivision two of this section prior to  the  sale  or  lease  of  such project  shall  be  entitled  to  remain  in  their  current apartments, provided  that  such  tenant  or  tenants  comply  with  the  terms  and conditions  of  their  leases  and  meet  all  applicable federal income guidelines. Each such tenant shall enjoy the same rights and obligations as other tenants with public housing leases occupying dwelling units  in the  housing  projects  owned  and operated by the New York city housing authority that are not listed in subdivision two  of  this  section,  or pursuant  to Section 8 leases supported by Section 8 vouchers, except as provided by paragraph (b) of this subdivision.  (d) For each project listed in subdivision two of  this  section,  all units  occupied  by persons of low income shall be physically integrated with all other units in the project. They shall share  common  means  of access, services and amenities equally with all other units and shall in no  way be physically or otherwise set apart from all other units in the project.  (e) All prospective public housing and  Section  8  tenants  shall  be selected  from  a waiting list which shall be maintained by the New York city housing authority in compliance with the federal public housing and Section 8 laws and all applicable rules and regulations.  The  New  York city  housing  authority  and each respective project owner shall screen tenants and jointly have final approval over  tenant  selection  all  in accordance   with   aforementioned  laws,  rules  and  regulations.  All prospective public housing tenants shall be taken from the waiting  list in  the  order  in  which  they  applied  for the size appropriate unit, subject however to preferences and priorities provided for in the public housing law and all applicable rules and regulations.  (f) The entity that acts as the managing member or general partner  of the  respective  owner of each project listed in subdivision two of this section following transfer of such project, shall  at  all  times  be  a not-for-profit  housing development fund corporation wholly owned by the New York city housing authority and shall be established  under  article eleven  of  the  private  housing finance law. The board of directors of such housing development fund  corporation  shall  be  composed  of  the chairperson  of  the  New  York  city  housing  authority  and  the duly appointed members of such authority.  (g) The entity that owns any project or assists in the  management  of any project may include an entity exempt from federal income taxes under section  501(c)3 of the Internal Revenue Code of 1986 as amended, or its wholly owned subsidiary.  (h) The provisions of this  section  may  be  enforced  by  any  party aggrieved by a violation of such provisions.  (i)  In  the  case  where there is an allocation of federal low income housing tax credits in connection with a sale or lease of  the  project, the fee payable to the project developer shall not exceed twelve percent of the total development cost, provided however, that the fee payable to such  developer  may  be  increased  to the maximum percentage permitted under regulations promulgated by the division of housing  and  community renewal  if  the  developer  assumes  additional  financial  risk.  Such increase shall not be granted (i) for risk the developer is  customarily required  to  assume  or  guarantees  which the developer is customarily required to  provide  by  industry  practice,  (ii)  for  any  risks  or guarantees which parties other than the developer would ultimately bear, or  (iii)  if  the  cost  of such risks or guarantees would be paid from governmental grants, loans, subsidies or other governmental  funds.  The foregoing  limitation  shall not apply to any portion of a developer fee paid to the housing authority.  (j) The provisions of this section shall be applicable to each of  the projects delineated in subdivision two of this section commencing on the closing  date  of  the  sale  or  lease  of  each  respective project in compliance with applicable law and shall be binding on  all  owners  and operators of such project.   4. State subsidies available to the projects listed in subdivision two of this section in connection with the bonds, notes or other obligations heretofore  issued  to  finance  the cost thereof may, subject to annual appropriation and upon compliance with the provisions of  this  section, continue  to  be  used  to  pay the debt service on such bonds, notes or other  obligations,  subject  to  such  terms  and  conditions  as   the commissioner  of  the division of housing and community renewal may deem appropriate.   5. The New York city housing authority shall be  required  to  develop and  circulate a notice to all tenants of public housing projects listed in subdivisions one and two of this section. The  notice  shall  contain information  regarding  the transfer and federalization process, as well as notice that tenants'  rights  to  occupancy  and  due  process  shall continue as they existed prior to the transfer.   6. The New York city housing authority, shall provide the commissioner of  the  division  of  housing and community renewal, the speaker of the assembly, the temporary president of the senate, the minority leader  of the  assembly,  the  minority  leader  of  the  senate, the chair of the assembly housing  committee,  and  the  chair  of  the  senate  housing, construction,  and  community development committee copies of the annual project activity report or any substantially similar annual report  that it  is required to submit to the United States department of housing and urban development that is related to the projects listed in subdivisions one and two of this section.