Section 1805. Establishment of affordable housing trust fund

1.  Notwithstanding  any  provision  of  law  to  the  contrary and in
  addition to the functions, powers and duties that the  commissioner  may
  exercise  or  delegate  pursuant to section eighteen hundred two of this
  chapter, the commissioner shall be authorized to establish or  cause  to
  be established an affordable housing trust fund.
    2.  Such  fund  may  be  established  through  agreement with a public
  benefit corporation authorized pursuant to the private  housing  finance
  law to finance the development and rehabilitation of affordable housing.
    3.  The  sole  purpose of the fund established pursuant to subdivision
  one of this section shall be to fund affordable housing outside  of  the
  areas  set  forth  in  paragraphs two through four of subdivision (a) of
  section 11-245 of the administrative code of the city of New York.
    4.  Payments  from  such  fund  shall  be  subject  to  the  following
  requirements:
    (a)  Priority  shall be given first to projects in the ten sub-borough
  areas, as established by the  United  States  census  bureau,  with  the
  highest  percentage  of  households  below the poverty line based on the
  most recent United States census bureau data, with  a  target  of  forty
  percent  of  the total amount of the fund as initially funded to be used
  in such areas; and then to projects in the next five sub-borough  areas,
  as  established  by  the  United  States census bureau, with the highest
  percentage of households below the poverty line based on the most recent
  United States census bureau data, with a target of  fifteen  percent  of
  the  total  amount  of  the  fund as initially funded to be used in such
  areas.
    (b) Priority shall be given to projects that  will  create  affordable
  housing  for persons of low income as defined in rules of the department
  in effect on the date of enactment of the  local  law  that  added  this
  paragraph.
    (c)  Priority shall be given to projects in which the developer agrees
  to maintain the affordability of the housing  significantly  beyond  the
  period of the governmental assistance.
    (d)  Payments  from such fund shall be made in accordance with subsidy
  guidelines, including, but not limited  to,  guidelines  concerning  the
  maximum amount of subsidy per dwelling unit and per project, established
  by  the  commissioner  or established in the agreement, if any, with the
  public benefit corporation pursuant to subdivision two of  this  section
  provided  however,  that  no  project may receive a subsidy in excess of
  twenty million dollars.
    (e) The aggregate  payments  from  such  fund  in  any  calendar  year
  beginning  on  or  after  January first, two thousand seven shall not be
  less than five percent of the total amount  of  the  fund  as  initially
  funded,  provided,  however,  that  in  no  calendar year shall a lesser
  amount be spent other than pursuant  to  the  written  approval  of  the
  mayor.
    5.  On  or  before  February  first,  two thousand eight and each year
  thereafter, the commissioner shall report to the council on the payments
  from the fund. Such report shall include a description of  each  project
  funded, including location, number of units, affordability requirements,
  status  of  the  project  and amount of funding for each project. Within
  forty-five days of receipt of such report the council  shall  conduct  a
  hearing on such report and such fund created pursuant to this section.