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A03980 Summary:

BILL NOA03980
 
SAME ASNo Same As
 
SPONSORWright
 
COSPNSR
 
MLTSPNSR
 
Amd S28, add S35-a, Priv Hous Fin L
 
Relates to limited-profit housing companies; authorizes certain companies to pay dividends or interest in excess of six percent per annum; relates to the dissolution of certain rental housing companies.
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A03980 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3980
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 28, 2015
                                       ___________
 
        Introduced by M. of A. WRIGHT -- read once and referred to the Committee
          on Housing
 
        AN  ACT  to amend the private housing finance law, in relation to limit-
          ed-profit housing companies in a city with a population of one million
          or more
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 28 of the private housing finance law is amended by
     2  adding a new subdivision 4 to read as follows:
     3    4.  (a)  Notwithstanding any inconsistent provision of this article or
     4  of any other provision of general,  special  or  local  law,  a  company
     5  (other  than a mutual company) that operates a municipally-aided project
     6  in a city with a population of one million or more and that is otherwise
     7  authorized to pay dividends upon its shares or interest upon its  income
     8  debentures  may,  with  the approval of the supervising agency, pay such
     9  dividends or interest in excess of six percent per annum.
    10    (b) On and after the date of the approval of such excess  dividend  or
    11  interest  by  the  supervising  agency pursuant to paragraph (a) of this
    12  subdivision, the provisions of section thirty-one of this article relat-
    13  ing to the variation of rental rates of dwelling units in  such  munici-
    14  pally-aided  project  shall not apply and rental rates of dwelling units
    15  may be increased annually by such company,  without  public  hearing  or
    16  further  approval by the supervising agency, in the amount authorized by
    17  the rent guidelines board established pursuant to the rent stabilization
    18  law of nineteen hundred sixty-nine for rent stabilized dwelling units.
    19    (c) This subdivision shall not apply to a company with a mortgage loan
    20  insured or held by the federal government.
    21    § 2. The private housing finance  law  is  amended  by  adding  a  new
    22  section 35-a to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05353-01-5

        A. 3980                             2
 
     1    §  35-a.  Dissolution  of certain rental housing companies. 1. For the
     2  purposes of this section, the following terms shall  have  the  meanings
     3  set forth below:
     4    (a)  "Affected  development"  shall  mean  housing  accommodations (i)
     5  located in a city with a population of one  million  or  more,  (ii)  in
     6  buildings  completed  or buildings substantially rehabilitated as family
     7  units on or after January  first,  nineteen  hundred  seventy-four,  and
     8  (iii)  operated  prior  to  the dissolution date as a rental development
     9  pursuant to this article.
    10    (b) "Affected dwelling unit" shall mean housing in an affected  devel-
    11  opment.
    12    (c)  "Affected  housing  company"  shall mean a limited-profit housing
    13  company with an affected development.
    14    (d) "Dissolution date" shall mean, with respect to any affected devel-
    15  opment, the date of the dissolution or reconstitution  of  the  affected
    16  housing company with such affected development pursuant to section thir-
    17  ty-five of this article.
    18    (e)  "Voucher  recipient"  shall mean a tenant in an affected dwelling
    19  unit who receives enhanced voucher assistance pursuant  to  the  voucher
    20  act for such period as such tenant receives such assistance.
    21    (f) "Voucher unit" shall mean an affected dwelling unit that is at any
    22  time  occupied  by a voucher recipient, for such period as such affected
    23  dwelling unit is occupied by a voucher recipient.
    24    (g) "Market unit" shall mean an affected  dwelling  unit  that  is  no
    25  longer  subject to the rent stabilization law of nineteen hundred sixty-
    26  nine and the emergency tenant protection act  of  nineteen  seventy-four
    27  because it has been decontrolled pursuant to the terms of applicable law
    28  or pursuant to subdivision three of this section.
    29    (h)  "Vacated unit" shall mean an affected dwelling unit, other than a
    30  voucher unit or a market unit, that is no longer occupied by the  tenant
    31  who  occupied such unit on the dissolution date or by the lawful succes-
    32  sors in interest of such tenant.
    33    (i) "Fully taxable units" shall mean, with respect to  any  tax  year,
    34  all  affected  units  that  were  voucher units, market units or vacated
    35  units on the taxable status date of such tax year.
    36    (j) "Partially taxable units" shall mean,  with  respect  to  any  tax
    37  year, all affected units which were not fully taxable units on the taxa-
    38  ble status date of such tax year.
    39    (k) "Voucher act" shall mean section 8(t) of the United States housing
    40  act  of nineteen thirty-seven, as amended, or any successor statute, and
    41  any regulations promulgated thereunder.
    42    2. Notwithstanding any provision to the  contrary  contained  in  this
    43  article,  and  notwithstanding the provisions of any general, special or
    44  local law, after the dissolution date, affected dwelling units shall  be
    45  fully  subject  to the provisions of the rent stabilization law of nine-
    46  teen hundred sixty-nine and the emergency tenant protection act of nine-
    47  teen seventy-four.
    48    (a) The initial legal regulated rent for any  affected  dwelling  unit
    49  following the dissolution date shall be the last rent authorized for the
    50  affected  dwelling  unit before the dissolution date, which shall not be
    51  subject to adjustment pursuant to subdivision a of section 26-513 of the
    52  administrative code of the city of New York or subdivision a of  section
    53  nine  of section four of the emergency tenant protection act of nineteen
    54  seventy-four.
    55    (b) Notwithstanding any provision of this section to the contrary, the
    56  legal regulated rent for a voucher unit shall be equal  to  the  maximum

        A. 3980                             3
 
     1  rent  authorized  and approved in connection with the federal assistance
     2  provided to the voucher recipient occupying such  voucher  unit.  If  an
     3  affected  dwelling  unit which was a voucher unit ceases to be a voucher
     4  unit  at  any time or for any reason, except for those reasons specified
     5  in subdivision three of this section, the initial legal  regulated  rent
     6  for such affected dwelling unit following such change in status shall be
     7  equal  to the sum of (i) the last rent authorized before the dissolution
     8  date, plus (ii) any adjustments to such rent authorized by  law  between
     9  the  dissolution  date  and the date upon which such unit ceased to be a
    10  voucher unit.
    11    3. Notwithstanding any provision of  this  section  to  the  contrary,
    12  where an affected development contains dwelling units which are eligible
    13  for and receive enhanced voucher assistance pursuant to the voucher act,
    14  any  such  dwelling unit in such affected development shall be deemed to
    15  be a market unit and not subject to the rent stabilization law of  nine-
    16  teen hundred sixty-nine and the emergency tenant protection act of nine-
    17  teen  seventy-four  for  the duration of such tenancy if: (a) the tenant
    18  residing in such dwelling unit as  of  the  dissolution  date  fails  to
    19  submit all of the required documentation for the initial application for
    20  enhanced  voucher  assistance pursuant to the voucher act, (b) a voucher
    21  recipient residing in such dwelling unit fails to  submit  the  required
    22  documentation for recertification for enhanced voucher assistance pursu-
    23  ant  to  the  voucher  act,  or (c) a voucher recipient residing in such
    24  dwelling unit violates, through action or inaction, the requirements  of
    25  the  voucher  act.  Upon  the first vacancy of an affected dwelling unit
    26  which becomes a market rate unit  pursuant  to  this  subdivision,  such
    27  affected  dwelling  unit shall be fully subject to the provisions of the
    28  rent stabilization law of nineteen hundred sixty-nine and the  emergency
    29  tenant  protection  act  of nineteen seventy-four, and the initial legal
    30  regulated rent for such affected dwelling unit following such change  in
    31  status  shall be equal to the sum of (i) the last rent authorized before
    32  the dissolution date, plus (ii) any adjustments to such rent  authorized
    33  by  law  between  the dissolution date and the date upon which such unit
    34  ceases to be a market unit.
    35    4. Notwithstanding any provision to the  contrary  contained  in  this
    36  article,  and  notwithstanding the provisions of any general, special or
    37  local law, after the dissolution date, any partial exemption  from  real
    38  property  taxation  granted to the real property in an affected develop-
    39  ment pursuant to section thirty-three of  this  article  shall  continue
    40  with respect to any partially taxable units, but any fully taxable units
    41  shall be subject to full real property taxation.
    42    5. This section shall not apply to an affected development if: (a) the
    43  owner  and  a  duly  recognized  tenants  association  execute a written
    44  settlement agreement on or before the dissolution  date,  and  (b)  such
    45  written  settlement  agreement specifies the respective rights and obli-
    46  gations of the tenants and owner subsequent to the dissolution date.
    47    § 3. If any clause, sentence, paragraph, section or part of  this  act
    48  shall  be adjudged by any court of competent jurisdiction to be invalid,
    49  such judgment shall not affect,  impair,  or  invalidate  the  remainder
    50  thereof, but shall be confined in its operation to the clause, sentence,
    51  paragraph,  section or part thereof directly involved in the controversy
    52  in which judgment shall have been rendered.
    53    § 4. This act shall take effect immediately; provided,  however,  that
    54  section  two  of this act shall apply to any affected development with a
    55  dissolution date on or after the effective date of this act.
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