BILL NUMBER: S5674
SPONSOR: CLEARE
 
TITLE OF BILL:
An act in relation to creating a public benefit corporation for the
construction, acquisition, and rehabilitation of permanently affordable
housing; and making an appropriation therefor
 
PURPOSE OR GENERAL IDEA OF BILL:
To create a new state authority with the mandate to build, acquire,
rehabilitate, and preserve permanently affordable housing statewide.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one contains the short title.
Section two contains the legislative findings and declaration. Section
three contains the definitions.
Section four creates the New York State Social Housing Development
Authority and outlines the composition of its corporate board.
Section five describes the powers of the corporation.
Section six requires the issuance of rules and regulations within one
year of the creation of the corporation and adherence to the state
administrative procedure act.
Section seven describes the procedures by which the authority may
acquire land and property.
Section eight requires the creation of a website, online portal, and
clearinghouse for projects and opportunities for residents, property
owners, and third parties.
Section nine describes the procedures by which the authority can exer-
cise a right of first refusal on the disposition of distressed proper-
ties containing three or more units in the state.
Section ten describes tenants' rights and protections in properties
owned by the corporation.
Section eleven requires that the corporation create programs for the
construction of new, permanently affordable residential projects, the
conversion of acquisitions into permanently affordable projects, and the
construction of special housing projects.
Section twelve describes the corporation's powers with respect to local
planning laws and ordinances.
Section thirteen requires the creation of procedures for the creation of
elected resident councils.
Section fourteen outlines standards for contracting with the corpo-
ration, including provisions requiring prevailing wages or project labor
agreements.
Section fifteen outlines alternative project delivery contracts, such as
best-value, design-build, and other types of project delivery.
Section sixteen creates an office of technical assistance.
Section seventeen requires the creation of annual reports and evalu-
ations.
Section eighteen permits the creation of wholly-owned subsidiaries for
the purposes of project management.
Section nineteen regulates monies of the corporation.
Section twenty regulates bonds of the corporation.
Section twenty one requires the creation of debt service reserve funds.
Section twenty two provides for the dissolution of the corporation.
Section twenty three provides for court proceedings involving the corpo-
ration.
Section twenty four includes provisions for actions against the corpo-
ration.
Section twenty five provides for limited liability of the corporation
and its employees.
Section twenty six designates the corporation as a public employer.
Section twenty seven requires to the greatest degree possible that mate-
rials for construction are acquired from manufacturers based in the
state or the United States, in that order, unless neither option is
available.
Section twenty eight provides for public access to records and meetings
of the board.
Section twenty nine designates the authority as tax exempt, but provides
that the authority may agree to pay sums in lieu of taxes.
Section thirty requires the construction of the act liberally so as to
effectuate its purposes, being necessary for the welfare of the state
and its inhabitants.
Section thirty one supersedes inconsistent provisions of other laws.
Section thirty two requires the severability of any particular provision
found invalid by a court of competent jurisdiction from the remainder of
the act's provisions.
Section thirty three appropriates sixty million dollars for operating
expenses.
Section thirty four contains the effective date.
 
JUSTIFICATION:
New York state has a long and proud history of social housing. Hundreds
of thousands of units in limited-equity cooperatives, limited-profit
housing, and public housing were constructed throughout the twentieth
century, much of which was built with state assistance. This robust
social housing system has formed an essential part of New York's urban
fabric, helping millions of families affordably launch careers, raise
families, and retire in the Empire State.
Unfortunately, New York state has not significantly invested in the
construction of new forms of social housing since the demise of the
Mitchell-Lama program in the 1970s, and the state now confronts a hous-
ing affordability crisis that drives thousands of New Yorkers into home-
lessness every year. Thousands more are forced to leave the state for
want of affordable housing, and the dream of homeownership or stable
housing is inconceivable for many who remain.
This bill proposes the creation of a new state authority charged with
building new, high-quality, permanently affordable social housing in the
form of both rentals and cooperatives. By partnering with tenant organ-
izations who wish to purchase their accommodations and convert them to
cooperatives, or by acquiring and rehabilitating existing distressed
housing, the authority can also keep people in their homes and perma-
nently preserve affordability where it already exists.
The housing crisis now faced by our state requires not only bold action
but durable solutions. The proposed Social Housing Development Authority
(SHDA) can complement existing affordable housing programs while offer-
ing unique benefits and paying long-term dividends. A state authority
can streamline and fast-track developments by incorporating all neces-
sary powers and functions under one roof, eliminating unnecessary
expenses and bureaucratic delays; it can muster the capital necessary to
take on large projects or acquisitions; it can cross-subsidize across
its portfolio; it can act as a public land bank or trust; it can under-
take projects with external organizations seeking to invest in social
housing, for example pension funds; and it can partner with non-profits,
land trusts, and community benefit organizations seeking to manage
affordable housing. Over time, the existence of a public developer like
the SHDA would steadily expand the portfolio of permanently affordable
social housing in New York, stabilizing the explosive growth in rents
and land values and making New York a more livable state for present and
future residents.
 
PRIOR LEGISLATIVE HISTORY:
A0988 (2024, died in committee).
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Sixty million dollars for initial operating expenses. Other fiscal
implications to be determined.
 
EFFECTIVE DATE:
This bill is effective immediately.