ALBANY – The state Senate on Wednesday approved a bill sponsored by Sen. Betty Little that would establish a home replacement program for mobile and manufactured homes.

The bill was sent to the state Assembly, where Assemblyman Kevin Cahill sponsors companion legislation.

Little, R-Queensbury, said the legislation would improve affordable home options by funding the replacement of older, dilapidated mobile and manufactured homes with new, affordable and energy-efficient manufactured, modular or site-built homes.

“In many communities, mobile and manufactured homes are an affordable option,” Little said in a press release Wednesday. “But investments to maintain and improve these properties are sometimes cost-prohibitive for lower-income New Yorkers and rarely result in a structure that has longevity and is energy efficient.”

Eligible local government units and nonprofit organizations would apply to the New York State Housing Trust Fund Corporation to administer a local Mobile and Manufactured Home Replacement Program of up to $500,000.

Property owners would be eligible if they have a total household income not exceeding 80 percent of their area’s median income.

Eligible applicants would work through a local program for funding of up to $100,000 for replacement of their dilapidated mobile or manufactured home. The press release said a portion of the award could be used for relocation, demolition and disposal of the dilapidated home.

Property owners could not have liens on the land after closing the grant other than the new home financing and currently existing mortgage or mortgages. All property taxes and insurance must also be current, the press release said.

Recipients would be required to live in the replaced home for 10 years, or recapture terms would apply and recipients would have to complete a homeownership training program, which includes household budgeting, home maintenance, predatory lending and post-purchase counseling.

Little added the program would have a multiplier effect for the area as local contractors, labor and building materials are used.

Little is the chair of the Senate Housing, Construction and Community Development Committee. The state’s enacted budget for 2016-17 appropriated $2 million for the program.