- Consolidated Laws - Private Housing Finance
ARTICLE XVII-A
RENTAL ASSISTANCE PROGRAM FOR RURAL AREAS
Section 1020. Legislative findings and statement of policy.
1021. Definitions.
1022. Rural housing assistance fund.
1023. Rural housing assistance contracts.
1024. Payments pursuant to contracts.
1025. Administrative provisions.
S 1020. Legislative findings and statement of policy. The legislature
hereby finds that in certain rural areas of the state significant
numbers of low income residents are unable to obtain decent housing. The
normal operation of the private market has not addressed their needs.
The elderly and families are especially affected by the lack of
housing in rural areas. Elderly persons are frequently forced to choose
between continuing to live in homes which have become too large to care
for and use well or leaving their communities to live elsewhere.
Families, particularly those just beginning, are often faced with either
substandard, unsafe housing, living with relatives in overcrowded
conditions, or leaving their communities. The ensuing social and
economic disruption has profoundly adverse effects on the rural
communities as well as the residents.
Numerous housing programs have been initiated by the federal
government to provide housing for those of low income. For the most
part, these programs have worked best in areas of high population
density, thus effectively, although unintentionally, failing to fulfill
their intent in rural areas.
The legislature further finds that locally based housing providers can
effectively serve the needs of low and moderate income persons in rural
areas. Their efforts have been severely limited, however, by the
contemporary high cost of financing, inflation and massive retrenchment
in federal housing assistance programs.
The legislature further finds it to be in the best interests of the
people of New York state to assist local housing providers in meeting
the needs of low income occupants in rural areas by supplementing
federal assistance programs with a program of state rental assistance
payments similar to the federal Farmer`s Home Administration Program.
S 1021. Definitions. As used in this article, any term defined in
article seventeen of this chapter shall have the same meaning herein as
set forth therein and the following terms shall have the following
meanings:
1. "Federal assistance" means assistance from the Farmer`s Home
Administration pursuant to title five of the United States Housing Act
of 1949.
2. "Eligible sponsor" means either a corporation organized pursuant to
the not-for-profit corporation law, a public housing authority as
defined pursuant to subdivision two of section three of the public
housing law, or an eligible borrower as defined in Title V of the United
States Housing Act of 1949.
3. "Eligible project" means a housing project located in a rural area
which is to be owned or operated by an eligible sponsor and which has
received (or which the sponsor has demonstrated to the satisfaction of
the commissioner will receive) federal assistance.
S 1022. Rural housing assistance fund. There is hereby created within
the division of housing and community renewal in the custody of the
commissioner a special fund to be known as the "rural housing assistance
fund". There shall be paid into such fund any moneys appropriated and
made available by the state for the purposes of this article and any
other moneys which may become available for such purposes from any other
source. Any income or interest earned by, or increment to, the rural
housing assistance fund shall be credited to such fund and available for
such purposes.
S 1023. Rural housing assistance contracts. 1. The commissioner may
enter into contracts with eligible sponsors for the provision, in
eligible projects, of housing for persons of low income. Such contracts
shall provide for the payment by the division to the sponsor of periodic
rental assistance payments with respect to the housing accommodations
occupied by such persons.
2. Such contracts may, subject to the availability of moneys in the
rural housing assistance fund, commit the division to make such payments
for a period of up to five years from the date of completion of the
eligible project. Any such contract shall provide that the sponsor shall
not withdraw the project, or any units therein, from the program during
such period except for good cause as provided therein. Notwithstanding
any provision of this chapter, all contracts shall terminate after five
years or when the actual dollar amount as stipulated in the contract has
been expended, whichever is sooner. For any application for such a
contract under this article, the division shall provide the applicant
with a list of conditions that must be met prior to entering into a
contract pursuant to this article. Within fifteen working days of
receipt by the division of all documents in satisfaction of the list,
the division shall notify the applicant of the sufficiency or
insufficiency of the documents. After satisfaction by the applicant of
all conditions required by the division prior to entering into a
contract the division shall enter into the contract within forty-five
working days of satisfaction of such conditions.
S 1024. Payments pursuant to contracts. 1. Payments shall be made
monthly or on such other periodic basis as may be provided in the
contract. Each such payment shall equal, for each unit in the project
covered by the contract, the difference between the project rent
established pursuant to subdivision two of this section and the tenant
rent payment established pursuant to subdivision three of this section.
2. The project rent shall be: (a) in the case of a housing company
regulated by the state pursuant to this chapter, the current maximum
lawful rent for the unit; (b) in the case of a housing company regulated
by a municipality pursuant to this chapter, the current maximum lawful
rent for the unit, subject to such additional limitations and conditions
as the commissioner may prescribe by contract; or (c) in the case of any
other sponsor, the rent established or approved by the commissioner as
prescribed in the contract.
3. The tenant rent payment shall be an amount computed pursuant to the
regulations of the commissioner, which regulations shall prescribe a
formula substantially similar to that currently provided pursuant to
title five of the United States Housing Act of 1949, as amended.
S 1025. Administrative provisions. 1. The commissioner shall provide,
by regulations, for the administration of the provisions of this
article. Such regulations shall include, but need not be limited to,
provisions for operation of the project by the sponsor in a manner
consistent with the intent of this article.
2. Every contract entered into pursuant to this article shall obligate
the sponsor not to charge or collect from any tenant of a unit covered
by such contract a rent higher than the tenant rent payment established
pursuant to section one thousand twenty-four of this article.
3. Rental assistance payments pursuant to this article may be pledged
by the sponsor in connection with the financing or refinancing of a
project, subject to any conditions prescribed in the housing assistance
contract, but no such pledge shall create any obligation or liability on
the part of the state or any agency or instrumentality thereof other
than that prescribed in the contract.
4. Nothing in this article shall prevent any sponsor from seeking or
accepting any other form of governmental subsidy or assistance, but any
contract pursuant to this article shall provide for appropriate
adjustments in the rental assistance payments to reflect such other
subsidy or assistance.
