BILL NUMBER: S1685A
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to estab-
lishing the small rental housing development initiative
 
PURPOSE OF THE BILL:
The purpose of the bill is to codify the Small Rental Housing Develop-
ment Initiative and set eligibility and define parameters for the
program's implementation.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends the private housing finance law by adding
a new Article 17-C that provides a statement of legislative findings and
purpose, defines key terms, and provides certain parameters for the
implementation of the Small Rental Housing Development Initiative.
Section 2 of the bill sets the effective date.
 
JUSTIFICATION:
The Small Rental Housing Development Initiative is a sorely needed fund-
ing source to develop affordable rental housing of 20 units or less in
rural communities throughout the state. The FY 2022-23 budget provided
$7M in funding to the initiative, but it failed to provide detailed
parameters addressing eligibility requirements and implementation. Rural
communities, like many other parts of the country, face an affordable
housing shortage, plus they face additional hurdles in developing rental
projects scaled appropriately for the size of their communities. Many
rural communities lack the water and sewer infrastructure needed to
support larger rental housing developments, the type that receive fund-
ing from a variety of sources, including federal, state, and private
investment (through low income housing tax credits). For that reason,
funding sources for rural community developments are fewer. This Small
Rental Housing Development Initiative was specifically created to fill
an unmet need for rural communities, as it can meet the dual needs of
creating affordable housing for current residents and attracting and
retaining workers for employers looking to expand or relocate into rural
communities. This bill targets funding to eligible projects located in
towns or cities with a population of thirty thousand or less.
 
PRIOR LEGISLATIVE HISTORY
05/31/22 S9356A - PRINT NUMBER 9356A
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.