Honorable Sheldon Silver
Speaker of the Assembly
Legislative Office Building, Room 932
Albany, NY 12248

Dear Speaker Silver:

I am pleased to present the 2001 Annual Report for the Assembly Committee on Housing highlighting the accomplishments of the past Legislative Session. The achievements of the Committee include:

• extending the existing Loft Law until March 31, 2002. In addition, two other bills were passed by the Assembly to further protect tenants who reside in illegal lofts in New York City. One such bill (A.5578) would prohibit the interruption of services in "would-be" interim multiple dwellings if the unit is used for residential purposes with the knowledge and consent of the owner. The other bill (A.5580) would expand the existing Loft Law to protect people who have lived in illegal lofts for a period of at least one year, from January 2000 to January 2001. The bill would also extend the Loft Law to March 31, 2007. Unfortunately the Senate did not act on this legislation, leaving thousands of tenants in danger of eviction from units they have resided in for years. The Committee will again push for agreement on this expansion in the upcoming legislative session;

• passing legislation that would eliminate the $80,000 yearly cap on companies that have reached an aggregate amount of $300,000 in funding. The legislation (A.1252) would potentially make more funding available to these groups, up to $100,000 annually. Increased funding for NPCs and RPCs would help the community-based groups funded under these programs to meet ever expanding affordable housing needs. The Senate did not take up this bill; however, the Assembly Housing Committee will pursue this legislation again next session.

In response to the threat of buildings pre-paying or "buying out" of the Mitchell-Lama program, the Assembly again passed a package of bills to protect tenants. Unfortunately, the Senate failed to respond in kind. The Committee will continue to advance this legislation in future sessions.

In addition, the Committee held two public hearings. One hearing investigated the need to expand the Loft Law to buildings not currently covered by the existing statute, many of which are in Brooklyn. Scores of tenants came out to express their support for such action, and the Assembly subsequently passed two bills addressing their concerns, as mentioned above. A second hearing was held to explore new ways to access and combine affordable housing capital dollars and child care dollars to create a new model of developing mixed use housing.

Finally, the Assembly took action on numerous measures seeking to protect the rights of tenants living in multiple dwellings and manufactured housing communities, as well as those tenants living in condominiums and cooperatives that are undergoing conversions.

I am pleased with the many successes of the Committee and look forward to continuing our efforts in what is sure to be a difficult session ahead. I wish to extend my sincerest thanks to the members of the Committee, my staff, the staff of the Housing Committee, and to you, Mr. Speaker, for your commitment and support.

Sincerely,


Vito J. Lopez
Chairman

2001 ANNUAL REPORT

OF THE

ASSEMBLY STANDING COMMITTEE ON HOUSING

VITO J. LOPEZ, CHAIRMAN


Members of the Committee

MAJORITY

Steven Sanders
William F. Boyland
Gloria Davis
Nettie Mayersohn
Stephen B. Kaufman
Vivian Cook
Alexander B. Grannis
Jeffrion L. Aubry
Joan Christensen
Scott Stringer
Keith Wright
Jeffrey Klein
Earlene Hooper
Ruben Diaz, Jr.
Michael Cohen
Steven Cymbrowitz
Carl Heastie
Adam Clayton Powell

MINORITY

Kathleen Murray,
        Ranking Minority Member
Will Stephens
Robert Warner
Jay J. Dinga
Daniel J. Burling
Howard D. Mills,III

STAFF

Jonathan L.M. Harkavy, Legislative Aide to the Chairman
Joanne Barker, Legislative Coordinator
Don Lebowitz, Committee Counsel
Linda Camoin, Legislative Analyst
Oliver Medina, Committee Clerk
Caryn S. Canfield, Committee Assistant
Kathleen Quackenbush, Program and Counsel Secretary

TABLE OF CONTENTS

The New York State Assembly Committee on Housing is composed of 25 members (19 majority members and 6 minority members).

The Committee is responsible for legislation concerning housing development and preservation. Its purview also includes jurisdiction over rent regulation as well as all legislation that amends the following volumes of the New York State Consolidated Laws:

• Multiple Dwelling Law, which encompasses health and safety standards for buildings with three or more families living independently of each other in New York City and Buffalo;

• Multiple Residence Law, which covers health and safety standards for buildings with three or more families living independently of each other in all localities other than New York City and Buffalo;

• Private Housing Finance Law, which governs the following State programs: Mitchell-Lama, Limited Dividend Companies, Redevelopment Companies, Housing Trust Fund, Affordable Home Ownership Development, Turnkey, Permanent Housing for Homeless Families, Infrastructure Development Demonstration, Mobile Home Cooperative Fund, Housing Development Fund, Neighborhood Preservation, Rural Preservation, Rural Area Revitalization, Rural Rental Assistance, Special Needs Housing, Urban Initiatives, Permanent Housing for Homeless Families, several New York City programs, and the administration of the State Housing Finance Agency and New York City Housing Development Corporation; and,

• Public Housing Law, which covers the safety, management, and financing of local public housing authorities throughout the State.

In addition to legislation regarding these laws, the Committee has jurisdiction over legislation amending those sections of the Unconsolidated Laws that constitute the Emergency Housing Rent Control Law; the Local Emergency Housing Rent Control Law; the New York City Rent Stabilization Law; the Emergency Tenant Protection Act of 1974; sections of the New York City Administrative Code and the City of Buffalo Administrative Code; sections of the General Business Law that relate to the conversion of real property from rental to cooperative (co-op) or condominium (condo) status; and, sections of the Executive Law, Real Property Law, Real Property Actions and Proceedings Law, and the Public Authorities Law.

1. LEGISLATIVE HEARINGS
   1. Legalization of Loft Buildings--Protecting Artists' Lofts in Brooklyn

   A public hearing was held in February regarding the legalization of loft buildings. The hearing was prompted in part by the eviction in December 2000 of approximately 80 residents of an illegally converted factory building in Brooklyn due to violations of New York City Fire codes. City officials were also investigating 120 other sites in Brooklyn.

   Over 200 people came to express their support for the expansion of existing Loft Law provisions to loft buildings in Brooklyn that were occupied after the date established in the Multiple Dwelling Law. It has been stated that as many as 10,000 people live in Brooklyn in buildings zoned for commercial or manufacturing use. Similar to what happened in SOHO in the 1970's, industrial firms abandoned many parts of Brooklyn in the 1970's and 1980's, so owners started to rent space to young people seeking affordable housing. The new tenants have typically done renovations themselves, rebuilding entire neighborhoods in the process.

   As a result of the hearing, legislation was introduced to protect tenants, which the Assembly passed.

   2. New York State's Affordable Housing and Day Care Crises

   The Committee held a public hearing in April to explore ways to maximize state capital dollars for building affordable housing units in conjunction with child care centers. The hearing allowed the Housing Committee to hear overwhelming support for the idea and testimony from witnesses ranged from builders and non-profits to local elected officials who are concerned about the future of affordable housing in New York State. Many witnesses called for joining forces with private lending facilities, investing funds earmarked for economic development, creating a child care tax credit, and redesigning lending products to be more attractive.

   Witnesses also advocated for a loan guarantee fund or some equivalent, and testified to the value of using experienced community based housing groups to develop child care facilities in conjunction with affordable housing. The financial advantages of this type of joint development were pointed out, and it was recommended that the state provide incentives to housing developers that include child care centers in the projects. The testimony provided at the hearing will be invaluable to the Housing Committee as it continues its work on these important issues during the upcoming session.

   
   

1. PUBLIC AUTHORITIES
   1. Extending Financing and Tax Exemption Authority
   
   A.8762 Rules(Lopez); Chapter 80 of the Laws of 2001

   This Chapter extends the Housing Finance Agency's and the Housing Development Corporation's authority to finance housing developments and extends local government's authority to grant exemptions from local taxation until June 30, 2003.

   2. Extending Mortgage Pool Insurance
   
   A.8764-A Rules(Gianaris); Chapter 110 of the Laws of 2001

   The State of New York Mortgage Agency (SONYMA) provides mortgage insurance and purchases residential mortgages from lenders to assist first-time home buyers who would otherwise be unable to finance the purchase of a home. SONYMA programs include both low interest rate and conventional rate mortgage programs, as well as the Mortgage Insurance Program. These programs make the dream of owning a home a reality for thousands of New Yorkers each year.

   This Chapter extends the ability of SONYMA's Mortgage Insurance Fund (MIF) to provide mortgage pool insurance until July 16, 2003.

   3. Reauthorizing the State of New York Mortgage Agency
   
   A.8763-A Rules(DelMonte); Chapter 111 of the Laws of 2001

   This Chapter amends Section 2407 of the Public Authorities Law to increase SONYMA's tax-exempt bonding authority to a total of $6.645 billion, an increase of $250 million. This increase is expected to provide SONYMA with sufficient bonding authority to cover its activities for the next year. In addition, this Chapter extends SONYMA's authority to purchase mortgages and issue tax-exempt bonds until July 16, 2002, and extends the Agency's authority to issue taxable bonds until July 16, 2002.

   4. Increasing HFA's Authority to Finance Affordable Housing
   
   A.8761 Rules(Heastie); Chapter 363 of the Laws of 2001

   The New York State Housing Finance Agency (HFA) was created as a public benefit corporation in 1960 to finance the development of low income housing by providing low-cost mortgage loans to both for-profit and not-for-profit developers. In its 40 year history, the Agency has issued more than $3 billion in bonds used to finance affordable housing developments. These developments include multi-family rental housing, senior housing, staff housing for educational and medical institutions, congregate care facilities, adult homes and other special needs housing.

   This Chapter increases HFA's tax-exempt bonding authority by $500 million from $5.03 billion to $5.53 billion. This increase will enable HFA to continue to meet the demand for below market financing among both for-profit and not-for-profit housing developers for another year.

   5. Extending Property Tax Exemptions
   
   A.656 (Brodsky); Passed Assembly

   This bill would authorize municipalities to enter into contracts with redevelopment companies to exempt the real property of such companies from local and municipal real property taxes for a term commensurate with the term of the mortgage on such property made by the New York State Housing Finance Agency (HFA) instead of the current term of 25 years.

2. MANUFACTURED HOMES

   Manufactured homes serve as a primary residence for more than 195,000 people living in more than 2,090 manufactured housing communities throughout the State. Counties with the highest concentration (75 or more) of these communities include Saratoga, Dutchess, Ulster, Oneida, and Oswego, while those with the lowest concentration (five or less) include Westchester, Nassau, Schenectady, and Hamilton.

   Since manufactured home owners usually own their homes but not the land on which they are placed, these owners are faced with a number of unique problems. First, the monetary investment involved in purchasing a manufactured home is substantial, with prices ranging from $9,000 to $150,000. Second, once purchased and placed in a community, a manufactured home is extremely difficult to move. Besides the obvious problems involved in moving such a large structure, other difficulties arise since porches and outside attachments cannot be moved without the threat of damage. Third, the cost of moving is prohibitively expensive, generally exceeding a few thousand dollars. Finally, in many areas of the State, relocating to another community is extremely difficult due to a shortage of available lots and zoning laws that restrict the placement of manufactured homes.

   Given these problems, the Assembly passed several bills designed to assist and protect the rights of manufactured home owners. While the Senate failed to take action on many of these measures, the Committee will continue to work toward enacting these important initiatives in the upcoming session.

   1. Preventing Fee Increases in Leases
   
   A.570 (John); Passed Assembly

   This bill would provide that lease offers made to manufactured home tenants list fees, charges, and assessments in force as of the date the lease offer is required to be made and would prevent the increase thereof until the expiration of the tenant's lease or after 90 days have elapsed, whichever is later. This bill would also provide for the pass-along of increases or decreases in charges for goods or services provided by third parties and would require that tenants without leases be charged at the same rate for fees, charges, etc., as tenants with leases for comparable lots and services.

   2. Establishing Rights for Manufactured Home Park Residents
   
   A.4789< (John); Passed Assembly

   This bill would require the owner of a manufactured home park to deliver written notice of any offer for the sale of the park to the manufactured homeowners' association stating the price, terms and conditions of such offer for sale. It would also provide that the homeowners' association shall have the right of first refusal to purchase such property, and would set forth guidelines for the right of first refusal.

3. DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT (HPD)

   New York City's housing needs are among the greatest in the nation. As a result, the Housing Committee works closely with New York City's Department of Housing, Preservation and Development to ensure that those needs are met. The following are summaries of bills supported by HPD that were acted upon by the Assembly.

   1. Transforming Abandoned Buildings into Housing
   
   A.3995-B (Lopez); Chapter 40 of the Laws of 2001

   This Chapter extends the City of New York's authority to "evaporate" liens on Article 7-A properties for municipally financed repairs.

   This Chapter allows the City to continue to transform effectively abandoned buildings, often in dangerous disrepair, into a source of permanent affordable housing. The Chapter also repeals provisions allowing owners of Article 7-A properties to restructure rents prior to any rehabilitation of these properties.

   2. Continuing Tax Exemptions for Penn South Coop Project
   
   A.6641-B (Gottfried)/ A.9367 (Rules);
   Chapter 118 of the Laws of 2001

   This Chapter extends the City of New York's authority to "evaporate" liens on Article 7-A properties for municipally financed repairs.

   This chapter extends the phase-in period for property taxes for the Penn South coop project. Tenants voted previously to extend the cap on rents in exchange for the extended tax exemption period.

   This chapter permits the local legislative body to authorize an enhanced tax exemption for the final eleven years remaining in the contract, and permits the local legislative body to extend the period for such exemption for a period up to 25 years from the date of expiration of the initial tax exemption.

   3. Extending Authorization to Restructure Rents
   
   A.3996 (Lopez); Chapter 85 of the Laws of 2001

   This chapter extends New York City's ability to restructure rents of dwelling units in municipally-owned buildings that have been rehabilitated with the aid of urban development action area project loans. This chapter enhances the City's ability to continue to provide affordable housing following rehabilitation of City-owned multiple dwellings.

4. PUBLIC HOUSING

   The State of New York continues to play an important role in regulating and supporting the operation of public housing. Currently, over 18,000 units of State-regulated public housing are operated by 30 public housing authorities. In New York City alone, State-supervised public housing developments provide housing to over 30,000 people.

   Despite the importance of these developments in the State's efforts to provide affordable housing, public housing authorities desperately need additional assistance in order to make long overdue capital improvements. However, due to the inadequate level of funding provided through the State's Public Housing Modernization program, many essential improvements and repairs continue to languish for lack of available funds. Increased funding for modernization remains one of the Committee's top priorities.

   1. Increasing Housing Authority Board Membership
   
   A.5282-A (Nortz); Chapter 311 of the Laws of 2001

   This Chapter increases the membership of the Village of West Carthage Housing Authority from five members to seven members to include tenant representation, as required by recent changes in HUD regulations.

   2. Extending Housing Authorities Tax Exemptions
   
   A.6976 (Cymbrowitz); Chapter 352 of the Laws of 2001

   This Chapter provides an additional sixty year tax exemption from local and municipal taxes imposed on certain housing authorities by state and local governments. The additional period of tax exemption enables the projects to continue operating and providing a valuable resource for housing the state's low-income population.

   3. Expanding the Rights of Public Housing Tenants
   
   A.6314 (Wright); Passed Assembly

   This bill would allow public housing tenants to conduct meetings free of charge in common areas owned by their housing authority.

5. NEIGHBORHOOD AND RURAL PRESERVATION PROGRAMS

   The Neighborhood and Rural Preservation programs (NPP and RPP) provide grants to cover the administrative costs of not-for-profit community groups engaged in a variety of housing activities ranging from housing development and rehabilitation to homebuyer counseling and tenant assistance. These not-for-profits are known as neighborhood and rural preservation companies (NPCs and RPCs). Since 1990 alone, NPCs and RPCs have played an instrumental role in the creation of over 32,000 units of affordable housing. According to the New York State Division of Housing and Community Renewal, for every dollar invested in NPCs and RPCs, between $13 and $18 is leveraged from private and other public sources for affordable housing.

   1. Raising NPC/RPC Annual Caps
   
   A.1252 (Lopez); Passed Assembly

   This bill would adjust the annual monetary limitation on Division of Housing and Community Renewal (DHCR) contracts with Neighborhood and Rural Preservation Companies (NPCs and RPCs) and not-for-profit corporations for housing preservation and community renewal activities. Currently there is an $80,000 annual contract cap placed on NPCs and RPCs when they reach the aggregate funding amount of $300,000. This bill would allow preservation companies to receive up to $100,000 annually.

6. COOPERATIVES AND CONDOMINIUMS

   The purchase of a cooperative or condominium is viewed by many as an alternative to home ownership. However, buying a coop or condo is often a complex process requiring a substantial investment of time and money on the part of the purchaser.

   Upon purchase, a co-op shareholder or condo unit-owner holds an interest in the cooperative or condominium corporation and has a tremendous stake in the management of the property. But unlike owning a home, where an individual owner has the final say as to property management decisions, an elected board has these responsibilities in a co-op or condo. Condo unit-owners elect a board of managers, while co-op shareholders elect a board of directors.

   Many of the financial problems associated with cooperatives and condominiums resulted from the tremendous conversion boom that took place in the 1980s. As the economy declined, a soft real estate market hurt both the sponsors who had invested huge sums of money to convert buildings and the shareholders who had purchased shares in troubled buildings.

   Because a rental building can be converted with as little as 15 percent of the tenants wishing to purchase, many sponsors converted under less than ideal financial circumstances. Trouble resulted when sponsors had difficulty selling vacant units. Unable to meet mortgage payments and sustain building services, some sponsors defaulted on bank loans, souring the investment for shareholders and placing building residents at risk.

   The Assembly passed several pieces of legislation this year that would alleviate problems in the cooperative and condo housing market and protect this invaluable source of housing.

   1. Permitting Additional Needed Condos
   
   A.8615 Rules(Nolan); Chapter 354 of the Laws of 2001

   This Chapter permits the creation of residential condominium interests, or mixed use condominium interests, in leaseholds of real property located within the Hunters Point (Queens West) Waterfront Development Land Use Improvement area. This development now conforms with other publicly-sponsored mixed-use development in New York City and provides Queens West with greater flexibility in meeting market demands for new residential development.

   2. Protecting Tenants During Conversions
   
   A.57 (Sanders); Passed Assembly

   This bill would repeal provisions requiring the filing of eviction plans with the Attorney General in coop/condo conversions. Under this bill, only non-eviction plans would be allowed for conversions. This bill would also prohibit landlords of condominium and cooperative residential conversions from evicting tenants refusing to purchase such cooperatives or condominiums.

   3. Curing Code Violations Prior to Plan Filing
   
   A.140(Seddio); Passed Assembly

   This bill would require the sponsor of a conversion plan to cure all serious violations of record of any local or state law with respect to the building and grounds which are the subject of such cooperative or condominium offering.

   4. Ensuring Compliance with Zoning, Building, and Health Laws
   
   A.381 (Kaufman); Passed Assembly

   This bill would authorize the Attorney General to refuse to issue a letter stating that an offering plan has been filed unless the plan provides that all units that are being offered conform to local zoning, building, and health laws, including the terms of any certificate of occupancy issued.

   5. Preventing Senior Citizen Evictions in Coop/Condo Conversions
   
   A.675 (Sanders); Passed Assembly

   This bill would protect persons sixty-two years of age or older, who are tenants of a dwelling unit located in a building located in New York City and who are threatened with eviction because their building is subject to a cooperative or condominium conversion plan. These tenants would be entitled to remain in occupancy of their dwelling unit.

   6. Terminating Self-Dealing Contracts
   
   A.4390 (Grannis); Passed Assembly

   This bill would strengthen the rights of cooperative shareholders and condominium owners by requiring sponsors of conversion plans to notify tenants of their right to terminate a self-dealing contract. Self-dealing contracts are contracts entered into for the management or maintenance of the coop or condominium between the conversion sponsor and itself or an affiliate of the sponsor.

   7. Opening Meetings to Unit Owners
   
   A.7391 (Robach); Passed Assembly

   This bill would require that all regular meetings of a Board of Managers of a condominium be open to all unit owners who shall be permitted to attend and listen to the deliberations and proceedings. The unit owners may not participate in any deliberations unless expressly authorized by a majority vote of a quorum of the Board of Managers.

7. MITCHELL-LAMA HOUSING

   Since the 1950s, the Mitchell-Lama program has provided affordable housing to moderate-income New Yorkers. More than 400 Mitchell-Lama developments, housing approximately 150,000 families, are scattered throughout the State. The continued viability of this housing remains a critical part of New York State's effort to ensure the availability of affordable housing for each of its citizens.

   Despite this, the 1999 session started with the disturbing news that the owners of three Mitchell-Lama housing complexes had started the process of pre-paying or "buying-out" their government-subsidized mortgages. "Buy-outs" can have a devastating impact on the families living in these buildings as rents may double or triple when existing leases expire.

   The Assembly responded early in 1999 by passing a package of bills to protect Mitchell-Lama tenants. The Committee continued to pursue this package of legislation in 2001. Unfortunately, the Senate again failed to respond.

   1. Ensuring Early Notification of Mitchell-Lama Buy-Outs
   
   A.1255 (Lopez); Passed Assembly

   This legislation would require Mitchell-Lama housing companies that intend to dissolve to provide notice of such intention to all their lease holders at least six months prior to the anticipated date of dissolution. The bill specifies certain information that must be included in the required notice.

   2. Protecting Mitchell-Lama Tenants from Drastic Rent Increases
   
   A.1284 (Lopez); Passed Assembly

   This bill would stabilize the rents of all Mitchell-Lama buildings first occupied after January 1, 1974, upon the completion of a "buy-out". In doing so, tenants would be protected from the dramatic rent increases that often result when buildings leave the Mitchell-Lama program. Tenants living in Mitchell-Lama buildings first occupied prior to January 1, 1974, already have this vital protection.

   3. Guaranteeing Services and Safe Living Conditions
   
   A.1434 (Kaufman); Passed Assembly

   This bill would ensure the delivery of essential services (as defined) in Mitchell-Lama housing by conditioning DHCR approval of rent increase applications on the delivery of those services and the correction of any hazardous conditions that might exist.

   4. Safeguarding New York State's Mitchell-Lama Housing
   
   A.1445 (Lopez); Passed Assembly

   This bill would extend from 20 years to 50 years the period of time before limited-profit housing companies may dissolve and leave the Mitchell-Lama Program. This legislation would preserve Mitchell-Lama housing as an affordable housing resource for the future.

   5. Protecting Housing Provisions for Artists
   
   A.8593-A Rules(Millman); Passed Assembly

   This bill would require that before a Mitchell-Lama housing company could voluntarily dissolve, it would have to fully satisfy any pre-existing legal obligations to provide housing for artists.

8. RENT REGULATION

   New York's rent regulation laws provide protection to over 2.5 million tenants throughout the State. The basis for both rent control and rent stabilization is a housing emergency, defined as a vacancy rate below five percent, that still exists in many areas of the State. Due to the existence of this emergency, government intervention is critical to protect tenants from unreasonable rent increases and evictions.

   1. Insuring Continuation of Services
   
   A.5578 (Lopez); Passed Assembly

   This bill would prohibit interruption of services in "would-be" interim multiple dwellings if the unit is used for residential purposes with the knowledge and consent of the owner. Essential services that have customarily been provided may only be interrupted for repairs, which shall be performed in a reasonably expedient manner or in the case of an emergency or by order of a court or other governmental organization.

   The bill would further provide that if the services have been interrupted or discontinued, the owner must restore such services for so long as residential occupancy continues.

   2. Continuing Loft Law Protections
   
   A.5579 (Glick); Passed Assembly

   This bill would extend the Loft Law until 2007. It would also provide additional oversight for interim multiple dwellings, and would provide for additional remedies for residents of such dwellings. This bill would further make additional provisions relating to the financing of such dwellings and the applicability of various provisions of the law to such dwellings.

   3. Expanding Loft Law Coverage
   
   A.5580-A (Lopez); Passed Assembly

   This bill would expand the existing Loft Law to people who lived in illegal lofts for a period of at least one year, from January 2000 to January 2001. The bill would also extend the Loft Law to March 31, 2007.

   4. Improving the Operations of Rent Guideline Boards
   
   A.657 (Brodsky); Passed Assembly

   This bill provides for the appointment of three alternates on rent guideline boards. Under this legislation, one of the alternates would be a representative of tenants, another would represent owners, and the third would be a public representative. Alternates would be permitted to participate in all proceedings of the board as non-voting members and would participate as voting members when a member representing the same interest as the alternate is unable to fulfill his or her duties.

   5. Extending Rent Regulations to Section 8 Tenants
   
   A.1281 (Lopez); Passed Assembly

   This bill would extend rent and eviction protections, pursuant to the Emergency Tenant Protection Act of 1974, to tenants living in former Section 8 projects.

   6. Urstadt Law Repeal
   
   A.1307 (Lopez); Passed Assembly

   This bill would amend the Local Emergency Housing Rent Control Act by removing the provision that prohibits cities of one million or more from strengthening rent regulation laws to provide more comprehensive coverage than provided by state laws.

   7. Reforming Major Capital Improvement Rent Increases
   
   A.2641-A (Sanders); Passed Assembly

   This bill would reform the method by which owners of rent regulated buildings are compensated for major capital improvements (MCIs). In addition to improving the methodology for determining MCI rent increases, this bill would require that rent increases associated with MCIs be treated as a surcharge that would not become part of the legal regulated rent by which annual rent increases are calculated. This bill would also require that rent surcharges authorized for major capital improvements cease once the cost of the improvement has been recovered.

   8. Preventing the Eviction of Victims of Domestic Violence
   
   A.7747 (Weinstein); Passed Assembly

   This bill would prevent owners from evicting tenants who are forced to flee their rent regulated units to escape domestic violence. Specifically, this legislation provides that victims of domestic violence, as defined by Section 459-A of the Social Services Law, would be deemed to occupy their rent-regulated unit as their primary residence if they have been forced to leave the unit because of such violence and if they assert an intent to return.

9. ADDITIONAL TENANT PROTECTIONS
   1. Adjusting Floor Area Ratios for Improved Quality of Life
   
   A.676 (Sanders); Passed Assembly

   This bill would decrease the allowable floor area ratio within dwellings for purposes of regulating the dimensions of open spaces in such dwellings.

Due to several unfortunate circumstances, the Assembly and Senate did not come together this year in conference committees to negotiate a state budget. The Legislature passed a base-line budget in August 2001, funding housing programs at levels proposed by the Governor, therefore not including increases that in the past several years have benefitted from Assembly adds in the conference committee process. The Legislature hoped to come together to negotiate a supplemental budget to increase funding to specific programs, but as a result of September 11, no additional spending for specific housing programs was identified in the supplemental budget passed in October.

NPP received $11.75 million in this year's budget, an decrease of $1.9 million, and RPP received $4.86 million, a decrease of $729,000 over the 2000 budget.

In the supplemental budget which passed in October 2001, $2.18 million was dedicated to existing housing programs. The Housing Committee identified the following programs for receipt of this additional funding.

NEIGHBORHOOD PRESERVATION PROGRAM (NPP) - $1.5 million

URBAN HOMEOWNERSHIP ASSISTANCE PROGRAM (UHAP) - $440,000

RURAL PRESERVATION PROGRAM (RPP) - $90,000

LEAD PAINT POISONING DEMONSTRATION PROJECT - $150,000

The challenge of providing safe and affordable housing in New York State is more tremendous than ever given the looming budget shortfall. The Committee seeks to achieve this goal by developing policies that leverage private resources, encourage individual home ownership, and lead to the creation of new housing opportunities. Despite the ever-increasing demands on state resources, the Assembly's commitment to housing remains strong.

In the upcoming session, the Committee will focus on continuing the Service Contract Obligation Revenue (SCOR) Bond program to ensure an uninterrupted flow of state resources to affordable housing development. Since 1991, the SCOR Bond program has financed the rehabilitation and/or construction of over $1 billion of affordable housing throughout New York State.

Another priority for the Committee is to ensure that both the Housing Finance Agency (HFA) and the State of New York Mortgage Agency (SONYMA) have sufficient funds available to them so that they may continue to finance affordable housing throughout New York State.

Protecting all loft tenants is also a priority for the upcoming session. The Committee will again seek to expand the existing Loft Law to unprotected loft tenants in Brooklyn, Manhattan and other areas of New York City who are not covered because they were not in residence by the date required under the Multiple Dwelling Law.

In addition, the Committee will continue to seek the establishment of a revolving loan fund to help working families purchase and rehabilitate homes. Many of these families can currently afford monthly mortgage payments, but are unable to buy a home due to high down payment and closing costs. By assisting families with these costs, as well as the cost of necessary repairs, this initiative could make the dream of owning a home a reality for thousands of New Yorkers.

Finally, the Committee will continue its fight to ensure that the State budget provides adequate funding to assist in the development of affordable housing, the rehabilitation of existing units, and the expansion of housing opportunities for the homeless, the elderly, and those with special needs.

I look forward to my ninth year as chairman with enthusiasm and will make every effort to uphold the Assembly's commitment to quality, affordable housing for all of New York State's citizens.