New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter XXXV - New York State Housing Finance Agency › Subchapter B - Affordable Home Ownership Development Program › Part 2163 - Program Requirements › Section 2163.2 - Minimum program requirements

Current through Register Vol. 46, No. 28, July 10, 2024
Grants can only be made to selected eligible applicants who
					 have submitted an application which contains a plan that will enable the
					 corporation to determine that:
(a) The
				  proposed project or program will make home ownership or home improvement
				  affordable to persons who cannot afford to purchase or improve homes by relying
				  upon the ordinary, unaided operation of private enterprise.
(b) There are criteria, satisfactory to the
				  corporation, which provide for maximum income limitations or a system of income
				  targeting designed to ensure that persons who purchase or improve homes which
				  benefit from financial assistance provided pursuant to the act, are persons
				  who, through the ordinary, unaided operation of private enterprise, would be
				  unable to purchase or improve homes.
(c) There are criteria, satisfactory to the
				  corporation, to ensure to the maximum extent feasible, that rental units in
				  two- to four-unit structures (other than the unit to be occupied by the
				  homeowner) will be affordable to persons or families who otherwise could not
				  afford to rent these new, rehabilitated or improved units if produced by the
				  ordinary, unaided operation of private enterprise.
(d) The payments, grants and loans provided
				  by grantees pursuant to the act will be supplemented by private or other public
				  investment and the payments, grants and loans provided by the grantee are the
				  least necessary to make home ownership or home improvement affordable to the
				  income group to be served by the proposed project or program.
(e) In the event that the proposed project(s)
				  or program activities are undertaken by other than not-for-profit corporations
				  or municipalities, then the individuals, partnerships or corporations
				  undertaking those activities will agree to limit their profit in accordance
				  with a formula, satisfactory to the corporation, which has been established by
				  the grantee.
(f) The proposed
				  project or program will provide assistance in an area which is blighted,
				  deteriorated or deteriorating, or has a blighting influence on the surrounding
				  area, or is in danger of becoming a slum or a blighted area because of the
				  existence of substandard, insanitary, deteriorating or deteriorated conditions,
				  an aged housing stock or vacant nonresidential property, or other factors
				  indicating an inability or unwillingness of the private sector unaided to cause
				  the construction, rehabilitation or home improvement for which payments, grants
				  and loans under this program are provided.
(g) Except as provided in subdivision (h) of
				  this section in the case of home improvement, funds will be recaptured if the
				  home buyer does not occupy the home as his/her principal place of residence for
				  a minimum of 10 years or for the period specified under the terms and
				  conditions of a formula established by the eligible applicant as approved by
				  the corporation. At a minimum, the grantee will require home buyers to agree,
				  in such form as the corporation may require (including, a mortgage and note
				  secured by the home) that in the event the home buyer does not occupy his/her
				  home for the minimum 10-year period, the home buyer will pay the corporation
				  the following sum (unless the corporation approves a different formula proposed
				  by the eligible applicant):
(1) if the home
				  buyer occupies his/her home for less than five years, then the home buyer must
				  pay the full amount of the assistance provided under the act attributable to
				  the home buyer's home; or
(2) if
				  the home buyer occupies his/her home for at least 5 years but less than 10
				  years, then the home buyer must pay that portion of the assistance provided
				  under the act attributable to the home buyer's home reduced by 20 percent for
				  each year that the home buyer occupied his/her home beyond 5 years and less
				  than 10 years. For purposes of this paragraph, occupancy during six months or
				  more in any year will be deemed to be a full year of occupancy, and therefore,
				  the amount payable will be reduced accordingly for such year; and occupancy of
				  four months to under six months in any year will be deemed to be occupancy for
				  one half of a year, and therefore, one half of the amount payable per year will
				  be payable for that year.
The amount to be repaid as provided in this subdivision may
					 be reduced by the amount that the home buyer has previously paid to the
					 corporation on the principal amount of any loan provided under the act
					 attributable to the home buyer's home. In addition, if the resale price is less
					 than the home buyer's original purchase price plus the cost of any capital
					 improvements made by the home buyer, other than capital improvements for which
					 assistance was provided in whole or in part under the act, or in the event of
					 severe hardship such as death of the owner, financial or natural disaster, the
					 grantee may propose a modification of the home buyer's agreement hereunder
					 which will be subject to the corporation's approval.