NY A10517

Creates a new Small Rental Housing Development Initiative to provide state funding for affordable rental housing developments of 20 units or less in rural areas.

Eligible applicants are non-profit housing agencies (such as rural preservation or neighborhood companies) building in towns or cities with populations of 30,000 or less for households earning up to 120 percent of area median income.

Provides zero percent interest deferred loans with payback periods of 10-20 years, with loans subject to forgiveness if applicants remain compliant with program requirements throughout the affordability period.

Loans are due on sale of the property, and rental management requirements run with the property regardless of ownership changes; the Division of Housing and Community Renewal must conduct annual performance reviews.

Requires the Division to notify all rejected applicants in writing of reasons for denial, including any design, underwriting, legal, or program deficiencies.