S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 317                                                     A. 33
                              2015-2016 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2015
                                      ___________
       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed, and when printed to be committed to the Committee on Local Govern-
         ment
       IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
         to the Committee on Local Governments
       AN ACT to amend the town law, in relation to authorizing  certain  towns
         in  the  Peconic Bay region to establish community housing opportunity
         funds, provided that such towns adopt a housing plan adhering to smart
         growth principles in conjunction with the creation of  such  community
         housing opportunity fund
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative findings. The  legislature  hereby  finds  that
    2  chapter  114  of  the laws of 1998 enacted provisions of law relating to
    3  Peconic Bay region community preservation funds. Such chapter  permitted
    4  the  five  towns of the Peconic Bay region to establish a dedicated fund
    5  for the acquisition of interests in real property for  the  purposes  of
    6  open  space,  farmland,  and  historic preservation, as well as park and
    7  recreation purposes. The revenue for such fund was derived  from  a  two
    8  percent  real  estate transfer tax. Community preservation funds in each
    9  of the five Peconic Bay region towns  were  approved  overwhelmingly  by
   10  public referendum.
   11    The  enactment  of  this  land  preservation  has  been  an incredible
   12  success.  The program has received national recognition for its  innova-
   13  tive and creative approach to community preservation.
   14    Just  as critical to the future of the Peconic Bay region is the human
   15  need to protect community stability by providing for an adequate  supply
   16  of  community  housing opportunities for all segments of the Peconic Bay
   17  community. The availability  of  affordable  housing  opportunities  for
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00813-01-5
       S. 317                              2                              A. 33
    1  moderate  income  and  working  class  residents  is in critically short
    2  supply.
    3    The  adverse  impacts  from this shortage of housing opportunities are
    4  critical. For  example,  local  employers  have  difficulty  hiring  and
    5  retaining  employees  because  of  housing costs and availability. Local
    6  volunteer emergency services agencies experience difficulty in  recruit-
    7  ment  and  retention.  Long time residents are forced to leave the area.
    8  Traffic congestion is exacerbated by the importation of labor from areas
    9  with lower housing costs. Other land  uses  such  as  motels  are  being
   10  converted  to  emergency  and  permanent housing.   Finally, the lack of
   11  affordable housing is resulting in residents being  forced  to  live  in
   12  substandard, illegal conditions.
   13    Unique  demographics  and  economics  in the Peconic Bay region, and a
   14  lack of affordable dwelling units, are creating this  housing  shortage.
   15  The combination of the Peconic Bay region's attractiveness, proximity to
   16  the  dense population of the New York metropolitan region, and proximity
   17  to that region's extraordinary wealth, makes the Peconic  Bay  region  a
   18  prime location for seasonal and luxury homes.
   19    While this combination of extraordinary attractiveness, population and
   20  wealth has created a strong local economy for the Peconic Bay region, it
   21  has resulted in housing problems for local families.
   22    In  summary,  the  demand  of  land  for luxury and seasonal homes and
   23  seasonal rentals has left a short supply of  housing  opportunities  for
   24  moderate  income  and  working  class  local  residents. The Peconic Bay
   25  region needs a balanced housing policy where there exists a  variety  of
   26  housing types and opportunities across the region's economic spectrum.
   27    The  Peconic  Bay  region  requires the same creativity, planning, and
   28  community consensus that resulted in the community preservation fund  in
   29  order  to  address  the issue of housing opportunity. Further, increased
   30  housing opportunities must be accomplished in the  context  of  rational
   31  long term planning.
   32    It is the purpose of this legislation, to give the towns of the Pecon-
   33  ic  Bay region the authority and resources needed to establish community
   34  housing opportunities. Specifically, this legislation would permit  each
   35  town  to  establish  a  dedicated  community housing opportunity fund to
   36  increase housing  opportunities  in  the  region.  Such  fund  shall  be
   37  financed  by  a  combination  of  state and local funds. Further, a town
   38  housing plan adhering to smart growth principles would be required to be
   39  approved and implemented to insure that these new housing  opportunities
   40  are  enacted  in  the context of a comprehensive plan. The fund shall be
   41  enacted by local law subject to a mandatory referendum.
   42    S 2. This act shall be known and may be  cited  as  the  "Peconic  Bay
   43  region community housing opportunity act".
   44    S  3.  The town law is amended by adding a new section 64-k to read as
   45  follows:
   46    S 64-K. PECONIC BAY REGION COMMUNITY HOUSING  OPPORTUNITY  FUND.    1.
   47  DEFINITIONS.  AS  USED  IN  THIS  SECTION, THE FOLLOWING WORDS AND TERMS
   48  SHALL HAVE THE FOLLOWING MEANINGS:
   49    (A) "PECONIC BAY REGION" MEANS THE TOWNS OF EAST  HAMPTON,  RIVERHEAD,
   50  SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD.
   51    (B)  "COMMUNITY  HOUSING"  SHALL  BE DEFINED AS HOUSING FOR HOUSEHOLDS
   52  WITH INCOMES AT OR BELOW THE MEDIAN INCOME  FOR  EACH  TOWN  WITHIN  THE
   53  PECONIC BAY REGION.
   54    (C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT TO THIS SECTION.
   55    (D)  "FUND"  MEANS  THE  COMMUNITY HOUSING OPPORTUNITY FUND AUTHORIZED
   56  PURSUANT TO THIS SECTION.
       S. 317                              3                              A. 33
    1    (E) "EDUCATION IMPACT PAYMENT" MEANS A PAYMENT MADE FROM THE  FUND  TO
    2  SCHOOL  DISTRICTS NOT TO EXCEED AN AMOUNT EQUAL TO THE ADDITIONAL ANNUAL
    3  COST OF EDUCATING THE NUMBER OF STUDENTS THAT WILL BE ADDED TO A  SCHOOL
    4  DISTRICT  AS A RESULT OF THE PRODUCTION OF COMMUNITY HOUSING PURSUANT TO
    5  THE FUND.
    6    2.  FUND  AUTHORIZED.  THE  TOWN  BOARD OF ANY TOWN IN THE PECONIC BAY
    7  REGION IS AUTHORIZED TO ESTABLISH  BY  LOCAL  LAW  A  COMMUNITY  HOUSING
    8  OPPORTUNITY  FUND,  PURSUANT TO THE PROVISIONS OF THIS SECTION. DEPOSITS
    9  INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
   10  SOURCE, INCLUDING BUT NOT LIMITED TO:  (A) ALL PROCEEDS FROM ANY INDEBT-
   11  EDNESS OR OBLIGATIONS ISSUED PURSUANT  TO  THE  LOCAL  FINANCE  LAW  FOR
   12  COMMUNITY  HOUSING  OPPORTUNITY  PURPOSES AS PROVIDED FOR IN SUBDIVISION
   13  THREE OF THIS SECTION; (B) GENERAL FUND BALANCES OR SURPLUSES; (C) FUNDS
   14  RECEIVED BY THE TOWN FROM THE APPORTIONMENT OF MORTGAGE RECORDING  TAXES
   15  RECEIVED  FROM THE COUNTY PURSUANT TO ARTICLE ELEVEN OF THE TAX LAW; (D)
   16  FUNDS RECEIVED BY THE TOWN FROM THE SALE OF DEVELOPMENT  RIGHTS  FROM  A
   17  CENTRAL  BANK  CREATED PURSUANT TO SECTION SIXTY-FOUR-E OF THIS ARTICLE;
   18  (E) ANY PROCEEDS RECEIVED BY THE  LOCAL  GOVERNMENT  FROM  THE  SALE  OF
   19  AFFORDABLE HOUSING PRODUCED FROM REVENUES OF THE FUND; (F) THE REPAYMENT
   20  OF  ANY  LOANS ISSUED FROM PROCEEDS OF THE FUND; (G) ANY GIFTS OF INTER-
   21  ESTS IN LAND OR FUNDS; (H) ANY STATE OR FEDERAL GRANTS RECEIVED  BY  THE
   22  TOWN  FOR PROVIDING AFFORDABLE HOMES; AND (I) FUNDS RECEIVED BY THE TOWN
   23  FROM FEES PAID TO THE TOWN PURSUANT TO AN INCLUSIONARY ZONING LAW  WHERE
   24  AUTHORIZED BY THE LEGISLATURE. INTEREST ACCRUED BY MONIES DEPOSITED INTO
   25  THE FUND SHALL BE CREDITED TO THE FUND.  IN NO EVENT SHALL MONIES DEPOS-
   26  ITED  INTO  THE  FUND  BE  TRANSFERRED  TO  ANY  OTHER  ACCOUNT. NOTHING
   27  CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN
   28  WHOLE OR IN PART, PURSUANT TO THE LOCAL FINANCE LAW, OF ANY  PROJECT  OR
   29  PURPOSE  AUTHORIZED  PURSUANT TO THIS SECTION.  MONIES FROM THE FUND MAY
   30  BE UTILIZED TO REPAY INDEBTEDNESS OR OBLIGATIONS  INCURRED  PURSUANT  TO
   31  THE  LOCAL FINANCE LAW CONSISTENT WITH EFFECTUATING THE PURPOSES OF THIS
   32  SECTION.
   33    3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
   34  TO SUBDIVISION TWO OF THIS SECTION SHALL BE UTILIZED FOR  THE  FOLLOWING
   35  PURPOSES:
   36    (A)  THE  PROVISION  OF  NO-INTEREST OR LOW-INTEREST LOANS TO ELIGIBLE
   37  RESIDENTS OF THE TOWN FOR THE PURCHASE OF A FIRST HOME;
   38    (B) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR  SALE  TO  ELIGIBLE
   39  INDIVIDUALS BY THE TOWN;
   40    (C)  THE  ACTUAL  PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
   41  INDIVIDUALS IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE  THE
   42  PRIVATE  PARTNER  AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF THE NEW
   43  YORK STATE AFFORDABLE HOUSING CORPORATION;
   44    (D) THE ACTUAL PRODUCTION AND MAINTENANCE OF RENTAL HOUSING  FOR  RENT
   45  TO  ELIGIBLE INDIVIDUALS EITHER BY THE TOWN, THE TOWN HOUSING AUTHORITY,
   46  OR IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE  THE  PRIVATE
   47  PARTNER  AGREES  TO  COMPLY  WITH  THE PROFIT GUIDELINES OF THE NEW YORK
   48  STATE AFFORDABLE HOUSING CORPORATION;
   49    (E) THE REHABILITATION OF EXISTING BUILDINGS  AND  STRUCTURES  IN  THE
   50  TOWN  FOR  THE  PURPOSE  OF  CONVERSION TO COMMUNITY HOUSING FOR SALE OR
   51  RENTAL TO ELIGIBLE INDIVIDUALS;
   52    (F) THE PROVISION OF HOUSING  COUNSELING  SERVICES  BY  NOT-FOR-PROFIT
   53  CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
   54  ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES; AND
   55    (G)  THE PROVISION OF EDUCATION IMPACT PAYMENTS TO SCHOOL DISTRICTS AS
   56  DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
       S. 317                              4                              A. 33
    1    FOR THE PURPOSES OF THIS SUBDIVISION, ELIGIBLE  EXPENSES  RELATING  TO
    2  THE  PRODUCTION  OF COMMUNITY HOUSING AND THE REHABILITATION OF EXISTING
    3  BUILDINGS AND STRUCTURES UNDER THE FUND SHALL INCLUDE BUT NOT BE LIMITED
    4  TO LAND ACQUISITION,  PLANNING,  ENGINEERING,  CONSTRUCTION  COSTS,  AND
    5  OTHER HARD AND SOFT COSTS DIRECTLY RELATED TO THE CONSTRUCTION, REHABIL-
    6  ITATION,  PURCHASE  OR  RENTAL OF HOUSING PURSUANT TO THIS SECTION.  ALL
    7  REVENUES RECEIVED BY THE TOWN FROM  THE  SALE  OR  RENTAL  OF  COMMUNITY
    8  HOMES, OR THE REPAYMENT OF LOANS SHALL BE DEPOSITED IN THE FUND.
    9    4.  ADVISORY  BOARD  ESTABLISHED.  THE  TOWN  BOARD OF ANY TOWN IN THE
   10  PECONIC BAY REGION WHICH HAS ESTABLISHED A COMMUNITY HOUSING OPPORTUNITY
   11  FUND PURSUANT TO THIS SECTION SHALL CREATE AN ADVISORY BOARD  TO  REVIEW
   12  AND MAKE RECOMMENDATIONS REGARDING THE TOWN'S COMMUNITY HOUSING PROGRAM.
   13  SUCH  BOARD  SHALL  CONSIST OF NOT LESS THAN SEVEN NOR MORE THAN FIFTEEN
   14  LEGAL RESIDENTS OF THE MUNICIPALITY  WHO  SHALL  SERVE  WITHOUT  COMPEN-
   15  SATION.  NO  MEMBER  OF  THE  LOCAL  LEGISLATIVE BODY SHALL SERVE ON THE
   16  BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE OF:   (A)  THE  BUILDING
   17  INDUSTRY;  (B)  THE  REAL ESTATE INDUSTRY; (C) THE BANKING INDUSTRY; AND
   18  THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR HUMAN SERVICES ORGAN-
   19  IZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED  WITHIN  THE  TOWN,  HAVE
   20  ELECTED  TO  PARTICIPATE  IN THE FUND, AS PROVIDED IN SUBDIVISION SIX OF
   21  THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT OF A PARTIC-
   22  IPATING VILLAGE OR VILLAGES. WHERE AN INDIAN NATION  IS  LOCATED  WITHIN
   23  THE  BOUNDARIES  OF  A TOWN, THE BOARD SHALL INCLUDE AT LEAST ONE MEMBER
   24  FROM SUCH NATION. THE BOARD SHALL ACT IN AN  ADVISORY  CAPACITY  TO  THE
   25  TOWN BOARD.
   26    5. ADOPTION OF HOUSING PLAN. (A) BEFORE A TOWN MAY ESTABLISH THE FUND,
   27  THE  TOWN  BOARD SHALL FIRST ADOPT A TOWN HOUSING PLAN WHICH ESTABLISHES
   28  AN IMPLEMENTATION PLAN FOR THE PROVISION OF COMMUNITY  HOUSING  OPPORTU-
   29  NITIES  BY  THE  FUND, AND A LOCAL LAW IMPLEMENTING SAID PLAN. SUCH PLAN
   30  SHALL ADHERE TO THE FOLLOWING SMART GROWTH PRINCIPLES:
   31    (1) PUBLIC INVESTMENT. TO ACCOUNT FOR AND MINIMIZE  SOCIAL,  ECONOMIC,
   32  AND  ENVIRONMENTAL  COSTS  OF  NEW DEVELOPMENT, INCLUDING INFRASTRUCTURE
   33  COSTS SUCH AS TRANSPORTATION, SEWERS, AND WASTEWATER  TREATMENT,  WATER,
   34  SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
   35    (2)  DEVELOPMENT.  TO ENCOURAGE DEVELOPMENT IN AREAS WHERE TRANSPORTA-
   36  TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
   37    (3) CONSERVATION.  TO  PROTECT,  PRESERVE,  AND  ENHANCE  THE  STATE'S
   38  RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
   39  WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
   40  AND ARCHEOLOGICAL SITES;
   41    (4)  COORDINATION.  TO PROMOTE COORDINATION OF STATE AND LOCAL GOVERN-
   42  MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
   43  EFFICIENT, PLANNED AND COST-EFFECTIVE DELIVERY  OF  GOVERNMENT  SERVICES
   44  BY,  AMONG  OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS AMONG ADJA-
   45  CENT COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY  OF
   46  ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
   47    (5)  COMMUNITY  DESIGN.  TO STRENGTHEN COMMUNITIES THROUGH DEVELOPMENT
   48  AND REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME  AND
   49  AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
   50  BORHOOD  DEVELOPMENT,  PLANNED  UNIT  DEVELOPMENT, OPEN SPACE DISTRICTS,
   51  DOWNTOWN REVITALIZATION, BROWNFIELD REDEVELOPMENT,  ENHANCED  BEAUTY  IN
   52  PUBLIC  SPACES,  AND DIVERSE AND COMMUNITY HOUSING IN CLOSE PROXIMITY TO
   53  PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
   54    (6)  TRANSPORTATION.  TO  PROVIDE  TRANSPORTATION  CHOICES,  INCLUDING
   55  INCREASING  PUBLIC  TRANSIT  AND ALTERNATIVE MODES OF TRANSPORTATION, IN
       S. 317                              5                              A. 33
    1  ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION,  AND  AUTOMO-
    2  BILE POLLUTION;
    3    (7)  CONSISTENCY.  TO  INSURE  PREDICTABILITY IN BUILDING AND LAND USE
    4  CODES;
    5    (8) COMMUNITY  COLLABORATION.  TO  PROVIDE  FOR  AND  ENCOURAGE  LOCAL
    6  GOVERNMENTS  TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED EFFORT,
    7  SMART GROWTH PLANS THAT INCLUDE LONG TERM LAND USE AND  PERMIT  PREDICT-
    8  ABILITY  AND COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLE-
    9  MENTATION.
   10    (B) SUCH PLAN MAY INCLUDE THE ESTABLISHMENT OF  A  MAP  OR  MAPS  THAT
   11  DELINEATE  THE  HOUSING  IMPLEMENTATION  RECOMMENDATIONS PROPOSED BY THE
   12  TOWN.
   13    (C) THE PLAN AND THE LOCAL LAW IMPLEMENTING  THE  PLAN  SHALL  NOT  BE
   14  ADOPTED  UNTIL  AFTER  A PUBLIC HEARING HAS BEEN HELD BY THE TOWN BOARD.
   15  SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS. SUCH PLAN AND
   16  LOCAL LAW SHALL BE ADOPTED AT LEAST  SIXTY  DAYS  BEFORE  THE  MANDATORY
   17  REFERENDUM REQUIRED BY SUBDIVISION SEVEN OF THIS SECTION.
   18    (D) THE TOWN HOUSING PLAN SHALL BE AN ELEMENT OF THE TOWN'S COMPREHEN-
   19  SIVE PLAN.
   20    (E)  SUCH  HOUSING PLAN SHALL ALSO PROVIDE FOR INCOME AND OTHER ELIGI-
   21  BILITY REQUIREMENTS FOR COMMUNITY  HOUSING,  INCLUDING  ANY  ELIGIBILITY
   22  PREFERENCE  THAT  MAY  BE  GIVEN BASED UPON RESIDENCY OR OTHER CRITERIA.
   23  SUCH PLAN SHALL ALSO PROVIDE  FOR  THE  LEGAL  MECHANISM  THAT  WILL  BE
   24  EMPLOYED  TO MAINTAIN THE HOUSING STOCK CREATED PURSUANT TO THIS SECTION
   25  AT COMMUNITY LEVELS. THE RESALE OF COMMUNITY HOUSING TO THE  PUBLIC  FOR
   26  OCCUPANCY CREATED PURSUANT TO THIS SECTION TO OTHER THAN INCOME ELIGIBLE
   27  HOUSEHOLDS SHALL BE PROHIBITED.
   28    (F)  SUCH  HOUSING  PLAN SHALL ALSO PROVIDE FOR THE EQUITABLE DISTRIB-
   29  UTION OF COMMUNITY HOUSING  OPPORTUNITIES  AMONG  ALL  THE  HAMLETS  AND
   30  COMMUNITIES  OF THE TOWN. THE PLAN SHALL INSURE THAT NO HAMLET OR COMMU-
   31  NITY IS SITED FOR AN UNDUE CONCENTRATION OF COMMUNITY  HOUSING  OPPORTU-
   32  NITIES  THAT  WOULD  SUBSTANTIALLY  ALTER THE CHARACTER OF THE HAMLET OR
   33  COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION  OF  COMMUNITY  HOUSING
   34  OPPORTUNITIES,  EXISTING  COMMUNITY HOUSING OPPORTUNITIES IN A HAMLET OR
   35  COMMUNITY SHALL BE CONSIDERED.
   36    6. VILLAGE AND INDIAN NATION PARTICIPATION. (A) THE  PARTICIPATION  OF
   37  ANY  VILLAGE  OR  INDIAN  NATION  IN  THE  COMMUNITY HOUSING OPPORTUNITY
   38  PROGRAM AUTHORIZED BY THIS SECTION SHALL BE AT THE OPTION OF THE VILLAGE
   39  OR INDIAN NATION. IN ORDER TO PARTICIPATE, A VILLAGE  OR  INDIAN  NATION
   40  SHALL  PASS  A  RESOLUTION OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID
   41  RESOLUTION TO THE TOWN BOARD.
   42    (B) WHERE A VILLAGE OR INDIAN NATION OPTS TO PARTICIPATE  PURSUANT  TO
   43  THIS  SUBDIVISION,  AN  INTERGOVERNMENTAL  AGREEMENT  SHALL  BE EXECUTED
   44  PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER  APPLI-
   45  CABLE LEGAL AUTHORITY, IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBIL-
   46  ITIES OF EACH GOVERNMENT REGARDING COMMUNITY HOUSING OPPORTUNITIES.
   47    7.  MANDATORY  REFERENDUM.  THE LOCAL LAW OR LAWS ADOPTING THE HOUSING
   48  PLAN AND ESTABLISHING THE COMMUNITY HOUSING OPPORTUNITY  FUND  SHALL  BE
   49  SUBJECT  TO  A  MANDATORY  REFERENDUM. SUCH LOCAL LAW OR LAWS SHALL ONLY
   50  BECOME EFFECTIVE UPON THE ADOPTION OF SAID REFERENDUM BY THE ELECTORS OF
   51  THE TOWN.
   52    S 4. Subdivision 10 of section 64-e of the town  law,  as  amended  by
   53  chapter 373 of the laws of 2008, is amended to read as follows:
   54    10.  [Rights]  EXCEPT  AS  PROVIDED FOR HEREIN, RIGHTS or interests in
   55  real property acquired with monies from such fund  shall  not  be  sold,
   56  leased,  exchanged,  donated, or otherwise disposed of or used for other
       S. 317                              6                              A. 33
    1  than the purposes permitted by this section without the express authori-
    2  ty of an act of the legislature, which shall  provide  for  the  substi-
    3  tution of other lands of equal environmental value and fair market value
    4  and reasonably equivalent usefulness and location to those to be discon-
    5  tinued,  sold  or  disposed  of, and such other requirements as shall be
    6  approved by the legislature.  Nothing in this section shall  preclude  a
    7  town,  by  local  law,  from establishing additional restrictions to the
    8  alienation of lands acquired pursuant to this section. This  subdivision
    9  shall  not  apply  to  the sale of development rights by a town acquired
   10  pursuant to this section, where said sale is  made  by  a  central  bank
   11  created  by a town, pursuant to a transfer of development rights program
   12  established by a town pursuant to section  two  hundred  sixty-one-a  of
   13  this  chapter,  provided,  however  (a)  that  the lands from which said
   14  development rights were acquired shall remain preserved in perpetuity by
   15  a permanent conservation easement or  other  instrument  that  similarly
   16  preserves the community character referenced in subdivision four of this
   17  section,  and  (b) the proceeds from such sale shall be deposited in the
   18  community preservation fund OR THE COMMUNITY  HOUSING  OPPORTUNITY  FUND
   19  PURSUANT TO SECTION SIXTY-FOUR-K OF THIS ARTICLE.
   20    S  5.  Applicability.  Nothing shall preclude a town from transferring
   21  development rights acquired after the effective date of chapter  114  of
   22  the  laws  of  1998 but before the effective date of this section into a
   23  central bank.
   24    S 6. Severability clause. If any provision of this act or  application
   25  thereof  shall  for  any  reason  be  adjudged by any court of competent
   26  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
   27  invalidate the remainder of the act, but shall be confined in its opera-
   28  tion  to  the  provision thereof directly involved in the controversy in
   29  which the judgment shall have been rendered.
   30    S 7. This act shall take effect immediately.