2023 New York Laws › PVH - Private Housing Finance › Article 32 - New York Housing for the Future Homeownership and Rental Housing Programs › 1290 - New York Housing for the Future Homeownership Program.

§  1290.  New  York  housing  for the future homeownership program. 1.
Program  establishment.  Within  amounts   appropriated   or   otherwise
available  therefor,  the division of housing and community renewal, the
housing trust fund corporation, or  the  housing  finance  agency  shall
develop  and  administer a program which shall provide assistance in the
form of payments, grants and loans for the formation of  limited  equity
cooperative housing utilizing funding appropriated for such a purpose as
well  as  any other funding source or sources which the commissioner may
determine is suitable to  support  such  a  program.  Such  program  may
utilize any appropriate site, including, but not limited to, state owned
sites,  municipally  owned  sites,  or  sites  owned by a not-for-profit
corporation or community land trust for the purpose of providing housing
pursuant  to  this  section.  Real  property  may  be  acquired   by   a
municipality  for  the purpose of such program as authorized pursuant to
section five hundred seventy-six-a of this chapter,  provided,  however,
that  any  acquisitions  or transfers undertaken to further the goals of
this article pursuant to such  section  shall  not  be  required  to  be
transferred  to  a  housing  development  fund  company incorporated and
organized  pursuant  to  section  five  hundred  seventy-three  of  this
chapter.  Such  program shall provide (a) housing for households with an
income up to one hundred and thirty percent of area median income at the
time of purchase, provided further that households  that  are  initially
eligible  for  the  program  at  the time of purchase but realize income
gains subsequent to purchase may be  required  to  pay  a  surcharge  as
determined  by  the  division  of housing and community renewal or other
supervising agency,  as  the  case  may  be,  (b)  a  process  in  which
households  shall  have  the ability to accrue equity over time, and (c)
that housing units created pursuant to this section remain affordable in
perpetuity. The commissioner may also assist prospective  homebuyers  to
identify  funding sources that provide low interest loans to prospective
homebuyers.
2. Additional responsibilities. The division of housing and  community
renewal,  the  housing  trust  fund  corporation, or the housing finance
agency shall have  the  power  to  issue  regulations,  plans,  guidance
documents,  or  set  terms  in  regulatory  agreements to implement such
program and the process for:
(a)  homebuyers  obtaining  a  new  unit  which  shall  include   both
confirming income qualifications as well as a restriction on the maximum
amount of assets any qualified homebuyer may have;
(b)   selling  shares  in  the  cooperative  in  such  a  way  as  the
affordability of the cooperative is maintained while allowing households
to gain equity over time;
(c) prohibiting the use of a fixed percentage appreciation cap for the
purposes of determining an allowable  sales  price  for  shares  in  the
cooperative;
(d)  selecting  new  households eligible to purchase housing which has
been vacated by a previous owner; and
(e) the creation of  boards  of  directors  for  such  limited  profit
housing  companies  established  by  this chapter, provided however that
such boards shall have the powers and  be  subject  to  the  limitations
contained  in  the not-for-profit corporation law in the same manner and
subject to the same exceptions as set forth in section thirteen-a of the
this chapter.
3.  Management.  All  such   housing   projects   shall   be   managed
independently  of  the  residents  of  the  project  by a corporation or
not-for-profit corporation  determined  qualified  by  the  division  of
housing  and  community renewal or other supervising agency, as the case
may  be,  provided  further  that  the  board  of  the  limited   equity

cooperative housing corporation shall have oversight over such qualified
corporation  or  not-for-profit corporation in accordance with standards
or guidelines set by the division of housing and  community  renewal  or
other  supervising  agency, as the case may be. Any regulatory agreement
that is executed for such  program  shall  include  a  requirement  that
resident  maintenance  fees increase by a minimum percentage annually to
ensure that such housing continues to be in good repair.
4. Tax exemptions. Housing for such program shall be eligible for  tax
exemptions  in  the same manner as projects under article eleven of this
chapter.
5. Wage requirements. Notwithstanding any law, rule, or regulation  to
the  contrary, any project constructed pursuant to this section shall be
subject to prevailing wage requirements in accordance with sections  two
hundred  twenty  and  two  hundred  twenty-b of the labor law; provided,
however,  such  requirements  shall  not  apply  to  construction   work
performed  under  a  pre-hire collective bargaining agreement between an
owner or developer and a bona fide building and construction trade labor
organization which has established itself and/or its affiliates  as  the
collective  bargaining  representative  for all persons who will perform
work on such a project, and which provides  that  only  contractors  and
subcontractors  who  sign  a  pre-negotiated  agreement  with  the labor
organization can perform work on such a project.