BILL NUMBER: S9414
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend chapter 84 of the laws of 1993, amending the private
housing finance law relating to establishment of initial rents in hous-
ing accommodations rehabilitated with loans to housing development
companies, in relation to extending the effectiveness thereof
 
SUMMARY OF PROVISIONS::
This bill extends the existing authority of the local housing agency in
the City of New York, the Department of Housing Preservation and Devel-
opment ("HPD"), to restructure rents for housing development fund compa-
nies that have purchased and are rehabilitating occupied multiple dwell-
ings pursuant to Article XI of the Private Housing Finance Law ("PHFL").
Currently, the ability to restructure rents expires on June 30, 2024.
This legislation extends such authority to June 30, 2027.
 
REASONS FOR SUPPORT::
Many residential buildings proposed for acquisition and rehabilitation
by housing development fund companies are not economically viable with-
out a restructuring of the rents. Rent restructuring authority is essen-
tial to ensure that the rents are adequate to cover the monthly operat-
ing costs of the building and the debt service of the low interest
rehabilitation loans. Rent restructuring authority exists in other stat-
utes utilized by HPD, such as Articles 8, 8-A and 15 of the PHFL and
Article 16 of the General Municipal Law. Such authority has been essen-
tial in rehabilitating existing multiple dwellings and providing afford-
able housing for New York City residents.
Extending the rent restructuring authority of Article XI will signif-
icantly enhance the City of New York's ability to provide permanent
housing for low-income families and individuals that reside in buildings
owned and rehabilitated by housing development fund companies.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.