BILL NUMBER: S595A
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 taw by adding a
new Article 33 that:
*Provides a statement of legislative findings and purpose (new private
housing finance Law section 1300);
*Defines key terms (1301); and
*Provides parameters for the implementation of the Small Rental Housing
Development Initiative (1302), including:
*applicants' eligibility for zero percent interest loans for
construction of small rental hpusing;
*rules regarding sate of properties during the period of affordability;
* conditions of awards; and
*notification processes for unsuccessful applicants.
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 Small Rental Housing Devel-
opment Initiative received $7M in annual funding in each of the FY 2022,
2023, and 2024 budgets, but the appropriation does not provide detailed
parameters addressing eligibility requirements and implementation. Rural
communities face an affordable housing shortage, plus they face addi-
tional hurdles in developing rental projects scaled appropriately for
the size of their communities. Many rural communities tack the water and
sewer infrastructure needed to support larger rental housing develop-
ments, the type that receive funding from a variety of sources, includ-
ing federal, state, and private investment (through low income housing
tax credits.)
For that reason, funding sources for rural community developments are
fewer, including that the Small Rental Development Initiative has
disproportionately funded developments in more urban areas. SRDI was
specifically created to fill an unmet need for rural communities, as it
can meetthe dual needs of creating affordable housing for current resi-
dents and attracting and retaining workers for employers looking to
expand or relocate into rural communities. This bill therefore targets a
dedicated percentage of SRDI funding to eligible projects located in
towns or cities with a population of thirty thousand or less.
 
PRIOR LEGISLATIVE HISTORY:
2022 - S9356A referred to Rules / A10517 referred to Housing
2023 - S1685A referred to Finance / A2956 referred to Housing
2024 - S1685A referred to Rules / A2956 referred to Housing
2025 S595 passed Senate / A489 referred to Housing
 
FISCAL IMPLICATIONS:
None. This is existing funding for which the bill codifies the program
and sets parameters.
 
EFFECTIVE DATE:
This act shall take effect immediately.