BILL NUMBER: S9413
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend chapter 449 of the laws of 1986, amending the private
housing finance law relating to establishing initial rents in respect of
certain loans to owners of existing multiple dwellings, in relation to
the effectiveness thereof
 
SUMMARY OF PROVISIONS::
This bill extends the existing authority of the local housing agency in
the City of New York to restructure rents in residential buildings that
have received low-interest, municipally-financed rehabilitation loans
under Article 8 of the Private Housing Finance Law ("PHFL"). Currently,
the ability to restructure rents expires on June 30, 2024. This exten-
der would be effective for loans closed on or before June 30, 2027.
 
REASONS FOR SUPPORT::
Chapter 133 of the Laws of 2006 extended the ability of the local hous-
ing agency in the City of New York, the Department of Housing Preserva-
tion and Development ("HPD"), to restructure rents in dwelling units
rehabilitated after June 30. 2002. This authority expires on June 30,
2024. This legislation extends this authority to June 30, 2027, thereby
allowing HPD to continue to effectively utilize Article 8 of the PHFL as
an essential tool for the rehabilitation of affordable housing in New
York City.
The extension of this rent restructuring authority is crucial in allow-
ing for the payment of a building's monthly operating costs and debt
service and for multiple dwellings receiving Article 8 rehabilitation
loans to be preserved as affordable housing.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.