NY A02956

Establishes the Small Rental Housing Development Initiative within New York's private housing finance law to provide state funding for affordable rental housing of twenty units or less in rural areas.

Provides eligible non-profit housing agencies with zero percent interest deferred loans for construction in towns or cities with populations of 30,000 or less, with repayment periods of ten to twenty years.

Loans may be forgiven if the eligible applicant remains in compliance with all program requirements for the entire affordability period, with the mortgage lien satisfied upon forgiveness.

Rental management requirements and affordability restrictions run with the property throughout the affordability period regardless of ownership changes, governed by regulatory agreements including rent-setting provisions.

Requires the Division of Housing and Community Renewal to notify rejected applicants of specific reasons for denial and conduct annual performance reviews of funded projects, with authority to terminate agreements for substantial nonperformance.