BILL NUMBER: S595
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 (new private
housing finance law section 1060);
*Defines key terms (1061); and
*Provides parameters for the implementation of the Small Rental Housing
Development Initiative (1062), including:
*applicants' eligibility for zero percent interest loans for
construction of small rental housing;
*notification processes for unsuccessful applicants; and
*review of applicant performance by Department of Housing and Community
Renewal (1062.)
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 Development Initiative received $7M in annual
funding in each of the FY 2022, 2023, and 2024 budgets, but the appro-
priation does not provide detailed parameters addressing eligibility
requirements and implementation. Rural communities 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 tack 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:
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
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.