NY Town L § 64-K (2021)
2021 New York Laws TWN - Town Article 4 - Town Boards 64-K - Peconic Bay Region Community Housing Fund.

§  64-k. Peconic Bay region community housing fund. 1. Definitions. As used in this section, the following  words  and  terms  shall  have  the following meanings:  (a)  "Peconic  Bay region" means the towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold.  (b) "Community housing" means a primary residential  property  for  an eligible  individual  that  does not exceed one hundred fifty percent of the purchase price limits established by the state of New York  mortgage agency  low  interest  rate  loan  program  in non-target categories for Suffolk county in effect on the contract  date  for  the  sale  of  such property.  (c)  "Board"  means the advisory board created pursuant to subdivision six of this section.  (d) "Fund" means the community housing  fund  authorized  pursuant  to subdivision two of this section.  (e)  "First-time  homebuyer"  means an eligible individual who has not owned a primary residential property and is not married to a person  who has  owned  a residential property during the three-year period prior to his or her purchase of the primary residential property,  and  who  does not own a vacation or investment home.  (f)  "Primary residential property" means any one or two family house, townhouse, or condominium.  (g) "Eligible individual" means a household with an income  that  does not  exceed  one  hundred percent of the income limits as established by the state of New York mortgage agency low interest rate loan program  in non-target  categories for Suffolk county in effect on the contract date for the sale of such property.   2. Fund authorized. The town board of any  town  in  the  Peconic  Bay region is authorized to establish by local law a community housing fund, pursuant  to  the provisions of this section. Deposits into the fund may include revenues of the local government from whatever source, including but not limited to: (a) all revenues from the supplemental  real  estate transfer  tax  authorized by subdivision two of section fourteen hundred forty-nine-bb of the tax law; (b) all proceeds from any indebtedness  or obligations  issued  pursuant  to  the  local  finance law for community housing opportunity purposes as authorized in subdivision three of  this section;  (c)  general  fund  balances  or  surpluses;  (d) any proceeds received by the local government from the sale or  rental  of  community housing  produced  from  revenues  of the fund; (e) the repayment of any loans issued from proceeds of the fund; (f) any gifts  of  interests  in land  or funds; and (g) any state or federal grants received by the town for providing affordable homes.   3. Purposes of the fund. The proceeds of the fund established pursuant to subdivision two of this section shall be utilized for  the  following purposes:  (a) the provision of financial assistance to first-time homebuyers who are  residents  of  the  town  for  the  purchase  of a first home. Such financial assistance may be in the form of a grant or a loan.  (1) A town may provide financial assistance  for  the  purchase  of  a first  home  to  a first-time homebuyer who is a resident of the town or who is employed in the town. A resident of  the  town  shall  include  a person who is currently a resident of the town or a non-resident who has been a resident within the past five years.  (2)  Such  financial  assistance shall not exceed fifty percent of the purchase price of the home.  (3) If such financial assistance is in the form of a loan,  such  loan shall  be  repayable to the town pursuant to the terms agreed to between  the recipient and the town, provided that any loan shall be fully repaid by the recipient upon the resale of the home.  (4)  For  the  purposes  of  calculating  town  tax liability for such property, only, the dollar amount of any financial  assistance  for  the purchase of a first home made by the town pursuant to this section shall be subtracted from the full equalized assessed value of such property.  (5)  All  revenues  received  by the town from the repayment of a loan shall be deposited in the fund.  (6) A town may provide financial assistance for community  housing  in conjunction  with  a  public/private  partnership  for employer assisted housing.  (b) the actual production of community housing for  sale  to  eligible individuals by the town;  (c)  the  actual  production of community housing for sale to eligible individuals in conjunction with a public/private partnership, where  the private  partner  agrees to comply with the profit guidelines of the New York state affordable housing corporation and  the  provisions  of  this section;  (d)  the  actual  production  and maintenance of community housing for rental to eligible individuals either by the town or  the  town  housing authority;  or  in  conjunction with a public/private partnership, where the private partner agrees to comply with the profit guidelines  of  the New York state affordable housing corporation and the provisions of this section;  (e)  the  rehabilitation  of  existing buildings and structures in the town for the purpose of conversion to  community  housing  for  sale  or rental to eligible individuals;  (f)  the acquisition of interests in real property in existing housing units, which will result in the production of community housing for sale or rental to eligible individuals; and  (g) the provision of housing  counseling  services  by  not-for-profit corporations  who  are  authorized  by  the  United States department of housing and urban development to provide such services.   4. Fund management. Interest accrued by monies deposited into the fund shall be credited to the fund. In no event shall monies  deposited  into the  fund be transferred to any other account. Nothing contained in this section shall be construed to prevent the financing in whole or in part, pursuant to the local finance law, of any purpose authorized pursuant to this section. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the  local  finance  law  consistent with effectuating the purposes of this section.   5.  Eligible  expenses.  For  the  purposes  of this section, eligible expenses relating  to  the  production  of  community  housing  and  the rehabilitation of existing buildings and structures under the fund shall include  but  not be limited to land acquisition, planning, engineering, construction costs, and other hard and soft costs  directly  related  to the construction, rehabilitation, purchase or rental of housing pursuant to  this  section.  All  revenues  received by the town from the sale or rental of community homes, or the repayment of loans shall be  deposited in the fund.   6.  Advisory  board  established.  The  town  board of any town in the Peconic Bay region  which  has  established  a  community  housing  fund pursuant  to  this  section shall create an advisory board to review and make  recommendations  regarding  the  town's  community  housing   plan required  by subdivision seven of this section. Such board shall consist of not less than seven nor more than  fifteen  legal  residents  of  the municipality  who  shall  serve  without  compensation. No member of the local legislative body shall serve on the board. The board shall include  a representative of: (a) the construction industry; (b) the real  estate industry;  (c)  the banking industry; and three representatives of local housing advocacy or human services organizations.  Where  a  village  or villages,  located  within  the town, have elected to participate in the fund, as provided in subdivision seven of this section, the board  shall include  at  least  one resident of a participating village or villages. Where an Indian nation is located within the boundaries of a  town,  the board  shall  include  at  least  one member from such nation. The board shall act in an advisory capacity to the town board.   7. Adoption of housing plan. (a) Before a  town  in  the  Peconic  Bay region  may  expend  any  funds pursuant to this section, the town board shall  first  adopt  a  town   housing   plan   which   establishes   an implementation plan for the provision of community housing opportunities by  the  fund.  Said plan shall be adopted by local law. Such plan shall adhere to the following smart growth principles:  (1) Public investment. To account for and minimize  social,  economic, and  environmental  costs  of  new development, including infrastructure costs such as transportation, sewers, and wastewater  treatment,  water, schools, recreation, and loss of open space and agricultural land;  (2)   Development.   To   encourage   development   in   areas   where transportation,  water,  and  sewage  infrastructure  are  available  or practical;  (3)  Conservation.  To  protect,  preserve,  and  enhance  the state's resources,  including  agricultural  land,  forests,   surface   waters, groundwater,  recreation  and  open space, scenic areas, and significant historic and archeological sites;  (4)  Coordination.  To  promote  coordination  of  state   and   local government  decisions  and  cooperation among communities to work toward the most efficient, planned and cost-effective  delivery  of  government services  by,  among  other  means,  facilitating cooperative agreements among  adjacent  communities,  and  to  coordinate  planning  to  ensure compatibility   of  one's  community  development  with  development  of neighboring communities;  (5) Community design. To strengthen  communities  through  development and  redevelopment strategies that include integration of all income and age groups,  mixed  land  uses,  and  compact  development,  traditional neighborhood   development,   planned   unit   development,  open  space districts, downtown revitalization, brownfield  redevelopment,  enhanced beauty  in  public  spaces,  and  diverse and community housing in close proximity  to  places  of   employment,   recreation,   and   commercial development;  (6)  Transportation.  To  provide  transportation  choices,  including increasing public transit and alternative modes  of  transportation,  in order   to   reduce   automobile  dependency,  traffic  congestion,  and automobile pollution;  (7) Consistency. To ensure predictability in  building  and  land  use codes; and  (8)  Community  collaboration.  To  provide  for  and  encourage local governments to develop, through a collaborative community-based  effort, smart   growth  plans  that  include  long  term  land  use  and  permit predictability and coordination, efficient decision making and  planning implementation.  (b)  Such  plan  may  include  the establishment of a map or maps that delineate the housing implementation  recommendations  proposed  by  the town.  (c) Such plan shall be updated at least once every five years.  (d)  The  town  housing  plan  shall  be  an  element  of  the  town's comprehensive plan.  (e) Such plan shall ensure that all community housing created pursuant to this  section  remains  affordable.  Subsequent  purchasers  of  such community  housing  shall  have at the time of purchase, pursuant to the definition "eligible individual", an income that  does  not  exceed  one hundred  percent of the income limits as established by the state of New York mortgage agency  low  interest  rate  loan  program  in  non-target categories for Suffolk county.  (f)  Such  plan  shall  provide  for  the  equitable  distribution  of community housing opportunities among all the communities of  the  town. The  plan  shall  ensure that no community has an undue concentration of community housing  opportunities  that  would  substantially  alter  the character  of  the  community.  In determining equitable distribution of community   housing   opportunities,    existing    community    housing opportunities in a community shall be considered.   8.  Village participation. (a) The participation of any village in the production of community housing authorized by this section shall  be  at the option of the village. In order to participate, a village shall pass a resolution opting into the program and shall submit said resolution to the town board.  (b)  Where a village opts to participate pursuant to this subdivision, an intergovernmental agreement shall be  executed  pursuant  to  article five-G of the general municipal law or other applicable legal authority, in order to establish the rights and responsibilities of each government regarding community housing opportunities.  (c)  Regardless  of  whether  a  village  participates  in the program authorized by this section, properties in the village shall  be  subject to  the  supplemental real estate transfer tax authorized by subdivision two of section fourteen hundred forty-nine-bb of the tax law.