BILL NUMBER: S9453
SPONSOR: JACKSON
TITLE OF BILL:
An act to amend chapter 613 of the laws of 1996, amending the general
municipal law relating to buildings that are part of urban development
action area projects and are rehabilitated with municipal loans, in
relation to extending the effectiveness thereof
SUMMARY OF PROVISIONS:
This bill would amend section two of chapter 613 of the laws of 1996, as
amended by chapter 140 of the laws of 2021, to extend the sunset
provision of § 696-a of the General Municipal Law ("GML"), which grants
municipalities the authority to restructure the rents of dwelling units
in municipally-owned buildings that have been rehabilitated with the aid
of a loan made pursuant to the above section. This legislation would
extend this authority until June 30, 2027.
REASONS FOR SUPPORT:
Municipalities are currently authorized to restructure existing rents in
dwelling units in residential buildings owned by the private sector or
by housing development fund companies that have received rehabilitation
loans and have completed rehabilitation pursuant to Articles 8, 8A, 11
and 15 of the Private Housing Finance Law. Since 1996, section 696-a of
the GML has also authorized rehabilitation loans for the development of
affordable housing in municipally owned multiple dwellings and the
restructuring of rents following rehabilitation. The ability to restruc-
ture rents is necessary for the operation of an affordable housing
development program.
In order to create sufficient building income to pay the building's
maintenance and operating costs and debt service on private or City
financing, the ability to restructure rents is essential. Rent restruc-
turing authority in Article 16 of the GML has been indispensable to the
development of permanent affordable housing in the City of New York.
The legislation will significantly enhance the City's ability to contin-
ue to provide affordable housing following rehabilitation of City-owned
municipal dwellings.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.