New York S 7703: Relates to creating the community development revolving loan program

Bill Text

STATE OF NEW YORK
________________________________________________________________________
7703
IN SENATE
February 9, 2018
___________
Introduced by Sen. HAMILTON -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the New York state urban development corporation act, in
relation to creating the community development revolving loan program
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting
2 the New York state urban development corporation act, is amended by
3 adding a new section 16-dd to read as follows:
4 § 16-dd. Community development revolving loan program. 1. Defi-
5 nitions. As used in this section, the following terms shall have the
6 following meanings:
7 (a) "Community development financial institution" means an organiza-
8 tion whose principal office is located in this state, which has been
9 certified as a community development financial institution by the feder-
10 al community development financial institutions fund, as established
11 pursuant to 12 U.S.C. § 4701, et seq.
12 (b) "Investment area" means a geographic area which:
13 (i) Is economically distressed as defined in section sixteen-d of this
14 act; and
15 (ii) Has significant unmet needs for loans or is located in a feder-
16 ally designated empowerment zone or enterprise community as established
17 pursuant to title XIII of the federal omnibus budget reconciliation act
18 of 1993 (Public Law 103-66).
19 (c) "Low income" means having an income, adjusted for family size, of
20 not more than:
21 (i) For metropolitan areas, eighty percent of the area median income;
22 or
23 (ii) For non-metropolitan areas, the greater of eighty percent of the
24 area median income of the statewide non-metropolitan area median income.
25 (d) "Targeted population" means individuals or an identifiable group
26 of individuals including, but not limited to, minority and women-owned
EXPLANATION--Matter in (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD14306-02-8

S. 7703 2
1 business enterprises who are low income or otherwise lack adequate
2 access to loans.
3 (e) "Target market" means a defined service area which serves one or
4 more investment areas or targeted population.
5 2. The community development revolving loan program is hereby created
6 to provide low interest loans or loan guarantees to a targeted market,
7 where it is underserved and otherwise difficult to obtain regular bank
8 financing. Such loans or loan guarantees shall be made by a community
9 development financial institution and shall be made in target markets
10 for purposes of small businesses, microbusinesses, small farm busi-
11 nesses, residential mortgages, commercial mortgages, housing rehabili-
12 tation, home improvement, not-for-profit community based organizations
13 and for such other purposes as permitted by the corporation.
14 3. A community development financial institution desiring to partic-
15 ipate in the program shall execute an agreement in such form as the
16 corporation may prescribe and shall contain such terms and provisions as
17 the corporation or its agent may deem as necessary and appropriate.
18 4. The corporation is hereby authorized to administer the program
19 created in subdivision two of this section or alternatively, to do the
20 following:
21 (a) Enter into a contract with a third party to act as the agent of
22 the corporation with respect to the administration of such program,
23 pursuant to a competitive process;
24 (b) Conduct an annual review and assessment of the performance of the
25 third party in its capacity as agent for the corporation to determine
26 whether the contract referenced in paragraph (a) of this subdivision
27 should be renewed for an additional two year period. The review shall be
28 based on whether the third party agent has satisfactorily met the terms
29 and conditions of the contract;
30 (c) Promulgate rules and regulations with respect to the implementa-
31 tion of the community development revolving loan program established by
32 this section and any other rules and regulations necessary to fulfill
33 the purposes of this section, in accordance with the state administra-
34 tive procedure act.
35 (d) Any contract entered into pursuant to paragraph (a) of this subdi-
36 vision shall:
37 (i) Be for a period of two years and shall be renewed for an addi-
38 tional two year period subject to requirements of paragraph (b) of this
39 subdivision; and
40 (ii) Provide for compensation for expenses incurred by the third party
41 agent in connection with its services as agent and for such other
42 services as the corporation may deem appropriate including, but not
43 limited to the use of the premises, personnel and personal property of
44 the third party agent.
45 5. The corporation is author