Section 699-B. Long Island workforce housing program

1. When a local
  government approves a subdivision plat or site plan  for  five  or  more
  residential  units  or a mixed-use development that incorporates five or
  more residential units, except as otherwise provided in subdivision  two
  of  this  section,  the applicant shall receive a density bonus or other
  incentive pursuant to a written agreement between the applicant and  the
  local  government  and  such  local  government  shall  require  of  the
  applicant:
    (a) the set aside of at least ten percent of such units for affordable
  workforce housing on site; or
    (b) the provision of other land and the construction of  the  required
  affordable  workforce housing units that are not part of the applicant's
  current subdivision plat or site plan but are to be provided on  another
  site within the same local government; or
    (c)  the  payment  of a fee equal to two times the median income for a
  family of four for the Nassau-Suffolk primary  metropolitan  statistical
  area  as  defined  by  the  federal  Department  of  Housing  and  Urban
  Development, for each additional  unit  which  results,  or  would  have
  resulted, from the density bonus or, when such fee exceeds the appraised
  value of each lot resulting from such density bonus, then such fee shall
  be  equal  to  the appraised value of the lot or lots, or the equivalent
  thereof, for each additional unit created by the density bonus. All fees
  collected by the local government as provided in this section shall,  at
  the sole discretion of the local government, be:
    (i)  deposited  in  a single trust fund under the control of the local
  government to be kept in trust and separate and  apart  from  all  other
  monies   of   such   local  government,  for  the  specific  purpose  of
  constructing  affordable  workforce  housing,  acquiring  land  for  the
  purpose  of  providing  affordable  workforce  housing or rehabilitating
  structures for the purpose of providing  affordable  workforce  housing.
  Pending  expenditures  from  such  trust  fund,  monies  therein  may be
  invested in the manner provided by law. Any interest earned  or  capital
  gain realized on the monies so deposited shall accrue to and become part
  of such trust fund; or
    (ii)  paid  to another local government within the county within which
  the local government paying such  monies  is  located,  pursuant  to  an
  intermunicipal  agreement,  to  be  kept in trust and separate and apart
  from all other monies of such other local government, for  the  specific
  purpose of constructing affordable workforce housing, acquiring land for
  the  purpose of providing affordable workforce housing or rehabilitating
  structures for the purpose of  providing  affordable  workforce  housing
  within such other local government. Pending expenditures from such trust
  fund,  monies therein may be invested in the manner provided by law. Any
  interest earned or capital gain realized  on  the  monies  so  deposited
  shall accrue to and become part of such trust fund; or
    (iii)  paid  into  a  single  trust fund under the control of the Long
  Island Housing Partnership to be kept in trust and  separate  and  apart
  from  all other monies of such partnership, fifty percent of which shall
  be used for the specific purpose of  constructing  affordable  workforce
  housing,   acquiring  land  for  the  purpose  of  providing  affordable
  workforce housing  or  rehabilitating  structures  for  the  purpose  of
  providing  affordable  workforce  housing within the county within which
  the local government paying such monies is located. The remaining  fifty
  percent of such funds shall be used to provide downpayment assistance to
  eligible  homebuyers  who  qualify  for the existing employer assistance
  housing  benefit  program  administered   by   such   partnership.   The
  downpayment  assistance funds shall be secured by a note and mortgage on
  the property purchased with such funds and shall be fully repaid to  the

  fund by the recipient upon the sale or refinancing of the aforementioned
  property.
    2.  The  provisions  of this article shall not apply when an applicant
  elects a  lesser  percentage  than  the  maximum  allowable  residential
  density,  or  floor area ratio if part of a mixed-use development, under
  the applicable zoning ordinance and comprehensive plan in effect  as  of
  the date of the application by the applicant to the local government.
    3.  Local  governments  shall ensure that all affordable housing units
  created  pursuant  to  this  article   remain   affordable.   Subsequent
  purchasers of such units shall have at the time of purchase, pursuant to
  the  definition of "affordable workforce housing", an income at or below
  one hundred thirty percent of the median income for  the  Nassau-Suffolk
  primary statistical area as defined by the federal Department of Housing
  and Urban Development.
    4. Within six months of the establishment of a trust fund as set forth
  in  subparagraphs  (i)  and  (ii) of paragraph (c) of subdivision one of
  this section, the local government shall issue guidelines  and  policies
  which shall govern the expenditure of trust fund monies. Any monies that
  are  not  expended  by the local government three years from the date of
  such monies being collected shall be paid into a single trust fund under
  the control of the Long Island Housing  Partnership,  as  set  forth  in
  subparagraph (iii) of paragraph (c) of subdivision one of this section.
    5.  A  local  government may enter into intermunicipal agreements with
  any local government within the same county to meet the purposes of this
  article.