A06706 Summary:

BILL NO    A06706 

SAME AS    Same as S 2171

SPONSOR    Bing (MS)

COSPNSR    Lopez V, Espaillat, Barron, Lancman, O'Donnell, Jaffee, Benjamin,
           Cook, Castro, Spano, Camara, Titone, Wright, Robinson, Jeffries,
           Rosenthal

MLTSPNSR   Farrell, Glick, Gottfried, Mayersohn, Meng, Scarborough, Titus

Amd SS35, 96 & 123, Priv Hous Fin L

Authorizes the state division of housing and community renewal to study housing
programs for low and middle income families, and provides for a moratorium on
the voluntary dissolution of limited profit, limited dividend and redevelopment
housing companies.

A06706 Actions:

BILL NO    A06706 

03/11/2009 referred to housing
01/06/2010 referred to housing

A06706 Votes:

A06706 Memo:

BILL NUMBER:A6706

TITLE  OF BILL:  An act authorizing the New York state division of hous-
ing and community renewal to  study  state  and  locally  aided  housing
programs  and  make recommendations for the preservation, modernization,
and increase in the supply of such housing; to amend the private housing
finance law, in relation to providing  a  moratorium  on  the  voluntary
dissolution  of limited profit, limited dividend and redevelopment hous-
ing companies; and providing for the repeal of certain  provisions  upon
the expiration thereof

PURPOSE  OR  GENERAL  IDEA  OF  BILL: This legislation would establish a
temporary moratorium, expiring at the end of 2010, on the dissolution of
any state or locally aided housing company, without  the  consent.  This
moratorium  would  enable  the  NYS  Division  of  Housing and Community
Renewal (DHCR) to complete its work and make recommendations.

SUMMARY OF SPECIFIC PROVISIONS: Sections 2, 3 and  4  requires  DHCR  to
conduct  a study of state and locally funded low and middle income hous-
ing programs. The DHCR is required to report back to  the  Governor  and
the  Legislature  within  one  year  with  its findings, conclusions and
recommendations and propose legislation  to  implement  its  recommenda-
tions.

Section 5 amends Section 35 of the private housing finance law by adding
a new subdivision 5 which provides that notwithstanding any provision of
this  section,  no  company  shall  be voluntarily dissolved without the
consent of the commissioner or supervising agency, as the case  may  be,
until December 31, 2010.

Section 6 amends Section 96 of the private housing finance law by adding
subdivision  3  which provides that notwithstanding any other provisions
of this section, no company shall be  voluntarily  dissolved  or  termi-
nated, without the consent of the commissioner until December 31, 2010.

Section  7  amends  Section  96  of  the  private housing finance law to
provide that notwithstanding any other provision  of  this  section,  no
company  shall be voluntarily dissolved or terminate without the consent
of the local legislative body until December 31, 2010.

JUSTIFICATION: New York State is in the midst of an  affordable  housing
crisis,  with  the  unmet  need for affordable housing presently greater
than at any time in the state's history. Among other factors fueling the
erosion of our affordable housing stock is the fact  that  thousands  of
Mitchell-Lama  and other state and locally aided, limited equity cooper-
ative and rental apartments are facing extinction.

For more than a half a century, New York State and its  localities  have
invested  in  the  creation  of low and middle income housing to benefit
those most in need, as well as to benefit state and local economies.

However, in many cases, such housing has fallen  into  disrepair  or  is
being  rendered unaffordable due to statutory provisions allowing owners
to dissolve such housing companies without  reimbursing  the  government
for the enhanced value made possible by its contributions.

This legislation would establish a temporary moratorium, expiring at the
end  of  2010,  on the dissolution of any state or locally aided housing
company, without governmental consent. This moratorium would enable  the
DHCR to complete its work and make recommendations to the Legislature.

When  the  moratorium it establishes expires, New York State will have a
blueprint for the preservation, modernization,  and  expansion  of  such
affordable developments now and into the future.

LEGISLATIVE HISTORY:;

New Bill.

FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE:; Immediately.