N.Y. Town Law § 64-k: Peconic Bay region community housing fund

§ 64-k. Peconic Bay region community housing fund. 1. Definitions. As

used in this section, the following words and terms shall have the

following meanings:

(a) "Peconic Bay region" means the towns of East Hampton, Riverhead,

Shelter Island, Southampton, and Southold.

(b) "Community housing" means a primary residential property for an

eligible individual that does not exceed one hundred fifty percent of

the purchase price limits established by the state of New York mortgage

agency low interest rate loan program in non-target categories for

Suffolk county in effect on the contract date for the sale of such

property.

(c) "Board" means the advisory board created pursuant to subdivision

six of this section.

(d) "Fund" means the community housing fund authorized pursuant to

subdivision two of this section.

(e) "First-time homebuyer" means an eligible individual who has not

owned a primary residential property and is not married to a person who

has owned a residential property during the three-year period prior to

his or her purchase of the primary residential property, and who does

not own a vacation or investment home.

(f) "Primary residential property" means any one or two family house,

townhouse, or condominium.

(g) "Eligible individual" means a household with an income that does

not exceed one hundred percent of the income limits as established by

the state of New York mortgage agency low interest rate loan program in

non-target categories for Suffolk county in effect on the contract date

for the sale of such property.

2. Fund authorized. The town board of any town in the Peconic Bay

region is authorized to establish by local law a community housing fund,

pursuant to the provisions of this section. Deposits into the fund may

include revenues of the local government from whatever source, including

but not limited to: (a) all revenues from the supplemental real estate

transfer tax authorized by subdivision two of section fourteen hundred

forty-nine-bb of the tax law; (b) all proceeds from any indebtedness or

obligations issued pursuant to the local finance law for community

housing opportunity purposes as authorized in subdivision three of this

section; (c) general fund balances or surpluses; (d) any proceeds

received by the local government from the sale or rental of community

housing produced from revenues of the fund; (e) the repayment of any

loans issued from proceeds of the fund; (f) any gifts of interests in

land or funds; and (g) any state or federal grants received by the town

for providing affordable homes.

3. Purposes of the fund. The proceeds of the fund established pursuant

to subdivision two of this section shall be utilized for the following

purposes:

(a) the provision of financial assistance to first-time homebuyers who

are residents of the town for the purchase of a first home. Such

financial assistance may be in the form of a grant or a loan.

(1) A town may provide financial assistance for the purchase of a

first home to a first-time homebuyer who is a resident of the town or

who is employed in the town. A resident of the town shall include a

person who is currently a resident of the town or a non-resident who has

been a resident within the past five years.

(2) Such financial assistance shall not exceed fifty percent of the

purchase price of the home.

(3) If such financial assistance is in the form of a loan, such loan

shall be repayable to the town pursuant to the terms agreed to between

the recipient and the town, provided that any loan shall be fully repaid

by the recipient upon the resale of the home.

(4) For the purposes of calculating town tax liability for such

property, only, the dollar amount of any financial assistance for the

purchase of a first home made by the town pursuant to this section shall

be subtracted from the full equalized assessed value of such property.

(5) All revenues received by the town from the repayment of a loan

shall be deposited in the fund.

(6) A town may provide financial assistance for community housing in

conjunction with a public/private partnership for employer assisted

housing.

(b) the actual production of community housing for sale to eligible

individuals by the town;

(c) the actual production of community housing for sale to eligible

individuals in conjunction with a public/private partnership, where the

private partner agrees to comply with the profit guidelines of the New

York state affordable housing corporation and the provisions of this

section;

(d) the actual production and maintenance of community housing for

rental to eligible individuals either by the town or the town housing

authority; or in conjunction with a public/private partnership, where

the private partner agrees to comply with the profit guidelines of the

New York state affordable housing corporation and the provisions of this

section;

(e) the rehabilitation of existing buildings and structures in the

town for the purpose of conversion to community housing for sale or

rental to eligible individuals;

(f) the acquisition of interests in real property in existing housing

units, which will result in the production of community housing for sale

or rental to eligible individuals; and

(g) the provision of housing counseling services by not-for-profit

corporations who are authorized by the United States department of

housing and urban development to provide such services.

4. Fund management. Interest accrued by monies deposited into the fund

shall be credited to the fund. In no event shall monies deposited into

the fund be transferred to any other account. Nothing contained in this

section shall be construed to prevent the financing in whole or in part,

pursuant to the local finance law, of any purpose authorized pursuant to

this section. Monies from the fund may be utilized to repay indebtedness

or obligations incurred pursuant to the local finance law consistent

with effectuating the purposes of this section.

5. Eligible expenses. For the purposes of this section, eligible

expenses relating to the production of community housing and the

rehabilitation of existing buildings and structures under the fund shall

include but not be limited to land acquisition, planning, engineering,

construction costs, and other hard and soft costs directly related to

the construction, rehabilitation, purchase or rental of housing pursuant

to this section. All revenues received by the town from the sale or

rental of community homes, or the repayment of loans shall be deposited

in the fund.

6. Advisory board established. The town board of any town in the

Peconic Bay region which has established a community housing fund

pursuant to this section shall create an advisory board to review and

make recommendations regarding the town's community housing plan

required by subdivision seven of this section. Such board shall consist

of not less than seven nor more than fifteen legal residents of the

municipality who shall serve without compensation. No member of the

local legislative body shall serve on the board. The board shall include

a representative of: (a) the construction industry; (b) the real estate

industry; (c) the banking industry; and three representatives of local

housing advocacy or human services organizations. Where a village or

villages, located within the town, have elected to participate in the

fund, as provided in subdivision seven of this section, the board shall

include at least one resident of a participating village or villages.

Where an Indian nation is located within the boundaries of a town, the

board shall include at least one member from such nation. The board

shall act in an advisory capacity to the town board.

7. Adoption of housing plan. (a) Before a town in the Peconic Bay

region may expend any funds pursuant to this section, the town board

shall first adopt a town housing plan which establishes an

implementation plan for the provision of community housing opportunities

by the fund. Said plan shall be adopted by local law. Such plan shall

adhere to the following smart growth principles:

(1) Public investment. To account for and minimize social, economic,

and environmental costs of new development, including infrastructure

costs such as transportation, sewers, and wastewater treatment, water,

schools, recreation, and loss of open space and agricultural land;

(2) Development. To encourage development in areas where

transportation, water, and sewage infrastructure are available or

practical;

(3) Conservation. To protect, preserve, and enhance the state's

resources, including agricultural land, forests, surface waters,

groundwater, recreation and open space, scenic areas, and significant

historic and archeological sites;

(4) Coordination. To promote coordination of state and local

government decisions and cooperation among communities to work toward

the most efficient, planned and cost-effective delivery of government

services by, among other means, facilitating cooperative agreements

among adjacent communities, and to coordinate planning to ensure

compatibility of one's community development with development of

neighboring communities;

(5) Community design. To strengthen communities through development

and redevelopment strategies that include integration of all income and

age groups, mixed land uses, and compact development, traditional

neighborhood development, planned unit development, open space

districts, downtown revitalization, brownfield redevelopment, enhanced

beauty in public spaces, and diverse and community housing in close

proximity to places of employment, recreation, and commercial

development;

(6) Transportation. To provide transportation choices, including

increasing public transit and alternative modes of transportation, in

order to reduce automobile dependency, traffic congestion, and

automobile pollution;

(7) Consistency. To ensure predictability in building and land use

codes; and

(8) Community collaboration. To provide for and encourage local

governments to develop, through a collaborative community-based effort,

smart growth plans that include long term land use and permit

predictability and coordination, efficient decision making and planning

implementation.

(b) Such plan may include the establishment of a map or maps that

delineate the housing implementation recommendations proposed by the

town.

(c) Such plan shall be updated at least once every five years.

(d) The town housing plan shall be an element of the town's

comprehensive plan.

(e) Such plan shall ensure that all community housing created pursuant

to this section remains affordable. Subsequent purchasers of such

community housing shall have at the time of purchase, pursuant to the

definition "eligible individual", an income that does not exceed one

hundred percent of the income limits as established by the state of New

York mortgage agency low interest rate loan program in non-target

categories for Suffolk county.

(f) Such plan shall provide for the equitable distribution of

community housing opportunities among all the communities of the town.

The plan shall ensure that no community has an undue concentration of

community housing opportunities that would substantially alter the

character of the community. In determining equitable distribution of

community housing opportunities, existing community housing

opportunities in a community shall be considered.

8. Village participation. (a) The participation of any village in the

production of community housing authorized by this section shall be at

the option of the village. In order to participate, a village shall pass

a resolution opting into the program and shall submit said resolution to

the town board.

(b) Where a village opts to participate pursuant to this subdivision,

an intergovernmental agreement shall be executed pursuant to article

five-G of the general municipal law or other applicable legal authority,

in order to establish the rights and responsibilities of each government

regarding community housing opportunities.

(c) Regardless of whether a village participates in the program

authorized by this section, properties in the village shall be subject

to the supplemental real estate transfer tax authorized by subdivision

two of section fourteen hundred forty-nine-bb of the tax law.