Bill > A00489

This bill establishes the Small Rental Housing Development Initiative to provide funding for constructing affordable rental housing in rural areas of New York state. The initiative will offer zero-interest, deferred payment loans to eligible not-for-profit housing organizations for developing small rental housing developments with two to twenty units in communities with populations under 30,000. Eligible applicants can receive loans for acquisition, rehabilitation, and construction costs, with a maximum per-unit subsidy determined by the commissioner. Loans have a 20-year payback period and may be forgiven if the recipient complies with all program requirements during the "period of affordability." Developers can receive up to a 15% fee, and at least 60% of annual funds must be allocated to rural area projects. Qualifying households must have incomes up to 120% of the area median income. The program aims to address the substantial need for affordable rental housing in small communities by supporting locally-based not-for-profit organizations in developing compact, community-appropriate housing solutions.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A489