STATE OF NEW YORK ________________________________________________________________________ 4399 2023-2024 Regular Sessions IN ASSEMBLY February 14, 2023 ___________ Introduced by M. of A. FITZPATRICK -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to creating a demonstration program establishing a system of community improvement grants to be administered by and through neighborhood citizens' participation committees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The private housing finance law is amended by adding a new 2 article 6-B to read as follows: 3 ARTICLE 6-B 4 DEMONSTRATION PROGRAM: CITIZENS' PARTICIPATION COMMITTEES 5 Section 270. Legislative intent. 6 271. Definitions. 7 272. Community improvement grants. 8 273. General and administrative provisions. 9 § 270. Legislative intent. The legislature hereby finds and declares 10 that in certain regions of the state a supply of housing stock in excess 11 of that needed by the population of those regions has accumulated in 12 recent years, much of which is old, deteriorated, substandard, unmarket- 13 able, and often abandoned. 14 The legislature further finds that this excess housing has had a 15 blighting effect upon the communities in which it is located, reduces 16 the value of other residential properties in the surrounding neighbor- 17 hoods, and may cause persons, families, and businesses to abandon those 18 municipalities containing an overabundance of excess and blighted hous- 19 ing stock. 20 The legislature further finds that it is in the public interest to 21 encourage persons, families, and businesses to locate or remain in those 22 municipalities, in order to both utilize existing building stock and to 23 preserve the open spaces of the state, and that improving the quality of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08421-01-3
A. 4399 2 1 life within those municipalities is a most effective method of accom- 2 plishing this goal. In addition, declining home values in these munici- 3 palities discourages home ownership by adversely affecting the ability 4 of families of moderate income to build and/or maintain equity in their 5 homes. 6 The legislature further finds that the residents of a community are 7 often in the best position to know and understand the needs of their 8 community, and have the greatest stake in the future of their community. 9 The legislature further finds that no state program presently exists 10 with the primary purpose of supporting and funding the identification 11 and demolition of surplus housing stock or for disposing of the real 12 estate upon which that housing stock is located. 13 The legislature hereby determines that such a program is in the 14 public's interest. 15 § 271. Definitions. As used in this article, the following words and 16 phrases shall have the following meanings: 17 1. "Commissioner" shall mean the commissioner of the state division of 18 housing and community renewal. 19 2. "Division" shall mean the state division of housing and community 20 renewal. 21 3. "Municipality" shall mean any city, town, or village within the 22 state with a population of less than one million persons. 23 4. "Grant" shall mean a community improvement grant as defined in this 24 article. 25 5. "Committee" shall mean a citizens' participation committee as 26 defined in this article. 27 § 272. Community improvement grants. 1. There is created under the 28 direction of the commissioner the community improvement grant program. 29 Within the limit of funds available in the community improvement grant 30 program, the commissioner is authorized to offer state financial assist- 31 ance to municipalities with a population of under one million persons in 32 the form of community improvement grants. 33 2. Prior to the award of a grant, the commissioner shall have made a 34 finding that the municipality requesting a grant contains neighborhoods 35 that contain a significant number of vacant residential housing units 36 that are in excess of the needs of the current population, and that many 37 of these residential housing units are deteriorated, substandard, or 38 obsolete. The municipality shall demonstrate to the division as part of 39 the grant application process that it is eligible to receive grant funds 40 under the provisions of this section and according to the rules and 41 regulations promulgated by the division. 42 3. Municipalities receiving community improvement grants shall cause 43 to be established citizens' participation committees, which are to be 44 representative of the neighborhoods in which these grant funds are to be 45 expended. The geographic boundaries of the neighborhood represented by 46 each committee shall be determined by the municipality. The committees 47 shall direct all aspects of the expenditure of grants, subject to the 48 provisions of this article. No member of a committee shall receive any 49 compensation for this service, nor shall such member personally profit 50 financially from the proceeds of any grant monies received. Membership 51 in a committee shall consist of representatives of local charitable, 52 not-for-profit, social service, faith-based, business and community 53 organizations with an interest in housing or development issues within 54 the affected neighborhood desiring to participate, as well as any inter- 55 ested local citizens desiring to be involved. Committees are to be self- 56 governing, and shall establish rules and regulations concerning voting
A. 4399 3 1 and other procedures, provided that such rules and regulations are 2 constructed in such a manner as to ensure the broadest and most equita- 3 ble participation practicable by all concerned, and that such committees 4 are democratically organized. All proceedings of a committee shall be 5 subject to all provisions of article seven of the public officers law. 6 The municipality shall be responsible for the general oversight of its 7 committees, is to ensure that the committees conduct their business in 8 general conformity with the provisions of this article, and that the 9 organization of each committee is democratic and inclusive of all eligi- 10 ble organizations and individuals. The municipality shall distribute 11 grant monies received to the committees, which shall then expend those 12 funds according to the comprehensive plan developed by such committee. 13 The municipality shall also be responsible for the conduct of periodic 14 financial audits to ensure that all grant monies distributed to the 15 committees are properly accounted for and utilized in conformity with 16 this article. The municipality shall provide to each committee such 17 other technical, legal, and administrative assistance as is required to 18 fulfill the purposes of this article. 19 4. Each committee shall develop a comprehensive neighborhood plan 20 before commencing the expenditure of funds upon other authorized items 21 as defined in subdivision five of this section. The plan shall identify 22 short and long-term goals and objectives that are both consistent with 23 the intent of this article and that shall contribute significantly to 24 improving the quality of life for the citizens living in the neighbor- 25 hood. This plan shall be subject to review and general oversight by the 26 municipality. 27 5. Grant monies received by the committees may be expended upon the 28 following items, subject to the limits indicated: 29 (a) Acquisition of property - not limited. 30 (b) Demolition of structures - not limited. 31 (c) Selective rehabilitation - up to twenty-five percent. Selective 32 rehabilitation may be used to convert suitable multi-family homes into 33 single family homes, if such conversion is consistent with the intent 34 and purposes of this article. 35 (d) Neighborhood beautification - up to twenty percent. 36 (e) Administration - up to ten percent, to be used for expenses such 37 as legal costs, title searches, office supplies, and other miscellaneous 38 support as may be appropriate to assist the efforts of the citizens' 39 participation committees. 40 (f) Property improvement mini-grants - up to twenty percent, with no 41 individual mini-grant to exceed one thousand dollars. These mini-grants 42 are to be offered to individual property owners in order to improve 43 vacant and vacated land as defined in subdivision eight of this section. 44 (g) Planning and market study - up to ten percent, to be utilized by 45 citizens' participation committees in preparing the comprehensive neigh- 46 borhood plan. 47 6. Grant funds may be used by the municipality to acquire tax delin- 48 quent, vacant, and abandoned properties or properties owned by the 49 federal department of Housing and Urban Development, but are not author- 50 ized to acquire properties through eminent domain. Upon municipal acqui- 51 sition of a property, the committee shall assess its condition to deter- 52 mine whether salvaging property is both feasible and consistent with the 53 plans and objectives of the committee. The committee is authorized to 54 direct the demolition of structures when the committee deems this the 55 most appropriate course of action in furthering the improvement of the 56 neighborhood.
A. 4399 4 1 7. Residential properties acquired through grant funds that are deemed 2 salvageable may only be conveyed to individuals if they contain no more 3 than four dwelling units, and those individuals agree to maintain their 4 primary residence at that property for not less than two years. 5 8. The committees are authorized to request that the municipality 6 transfer vacant land acquired through grant funds to eligible individual 7 homeowners or not-for-profit agencies for the sum of one dollar. In 8 disposing of vacant land, preference shall be given to transferring 9 portions of that land to the owners of adjoining residential properties, 10 provided that those owners are also occupants of the adjoining residen- 11 tial properties. The committee is authorized to award mini-grants of up 12 to one thousand dollars to these homeowners for the purpose of improving 13 this vacant property. In the event that disposition of vacant land to 14 adjoining individual homeowners is impossible or impractical according 15 to the determination of the committee, this land may be disposed of in 16 such other manner as will inure to the benefit of the community in 17 general and its inhabitants, by providing open public space, parkland or 18 parking spaces as is deemed best by the committee. 19 9. The municipality shall review any request by a committee for the 20 disposition of a property under the provisions of this article, and may 21 deny this request if such disposition is deemed improper or clearly 22 contrary to the intent of this article. 23 § 273. General and administrative provisions. 1. The commissioner 24 shall issue and promulgate rules and regulations for the administration 25 of this article. The rules and regulations shall include, but not be 26 limited to: eligibility for grants under this article; funding criteria 27 and the funding determination process; supervision and evaluation of 28 grantees; reporting and record keeping requirements; and other matters 29 not inconsistent with the purposes and provisions of this article as the 30 commissioner shall deem necessary or appropriate. 31 2. The commissioner shall provide for the periodic financial review of 32 the grantee's conformity to the purposes and provisions of this article. 33 § 2. This act shall take effect immediately.