A09114 Summary:

BILL NO    A09114 

SAME AS    No same as 

SPONSOR    Wright

COSPNSR    Rodriguez, Mosley

MLTSPNSR   Farrell

Add S35-a, Priv Hous Fin L

Initiates a four-year moratorium on the dissolution of any urban rental
Mitchell-Lama company and establishes a Mitchell-Lama housing program study.
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A09114 Actions:

BILL NO    A09114 

03/17/2014 referred to housing
05/28/2014 reported referred to ways and means
06/10/2014 reported referred to rules
06/11/2014 reported 
06/11/2014 rules report cal.186
06/11/2014 ordered to third reading rules cal.186
06/17/2014 passed assembly
06/17/2014 delivered to senate
06/17/2014 REFERRED TO RULES
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A09114 Votes:

A09114 06/17/2014 95/39
AbbateYCorwinNOGlickYLavineYNolanYRozicYTitusY
AbinantYCrespoYGoldfedYLentolYOaksNORussellYWalterNO
ArroyoYCrouchNOGoodellNOLiftonYO'DonneYRyanYWeinsteY
AubryYCurranNOGottfriYLopezNOOrtizYSaladinNOWeisenbER
BarclayNOCusickYGrafNOLupardoYOtisYSantabaYWeprinY
BarrettYCymbrowYGuntherYLupinacNOPalmesaNOScarborYWrightY
BenedetYDavilaYHawleyNOMageeYPalumboNOSchimelYZebrowsY
BlankenNODenDekkYHeastieYMagnareYPaulinYSchimmiNOMr SpkrY
BorelliNODinowitYHennessYMalliotNOPeoplesYSepulveY
BraunstYDiPietrNOHevesiYMarkeyYPerryYSimanowER
BrennanYDupreyNOHikindYMayerYPichardYSimotasY
BrindisYEnglebrYHooperYMcDonalYPretlowYSkartadY
BronsonYFahyYJacobsYMcDonouNOQuartYSkoufisY
Brook-KYFarrellYJaffeeYMcKevitNORaNOSolagesY
BuchwalYFinchABJohnsNOMcLaughNORaiaERStecNO
ButlerNOFitzpatNOKatzNOMillerYRamosYSteckY
CahillYFriendNOKavanagYMillmanYRiveraYStirpeY
CamaraYGalefYKearnsYMontesaNORobertsYSweeneyY
CerettoNOGanttYKellnerABMorelleYRobinsoYTediscoNO
ClarkYGarbariNOKimYMosleyYRodriguYTenneyER
ColtonYGiglioNOKolbNOMoyaYRosaYThieleY
CookYGjonajNOLalorNONojayNORosenthYTitoneY

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A09114 Memo:

BILL NUMBER:A9114

TITLE OF BILL:  An act to amend the private housing finance law, in
relation to initiating a four-year moratorium on the dissolution of
any urban rental Mitchell-Lama company, and in relation to
establishing the implementation of a Mitchell-Lama housing program
study; and providing for the repeal of certain provisions upon
expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to institute a four year moratorium
on the ability of rental Mitchell-Lama company to dissolve in order to
allow New York State Homes and Community Renewal to study the
preservation, sustainability, reform, and growth of the Mitchell-Lama
housing program.

SUMMARY OF SPECIFIC PROVISIONS:

Section one of this bill would prevent any rental Mitchell-Lama,
otherwise eligible to voluntarily dissolve, from such dissolution.

Section two of this bill would:

*require New York State Homes and Community Renewal (HCR), in
consultation with the New York City Department of Housing Preservation
(HPD), to execute a study on the preservation, sustainability, reform,
and growth of the Mitchell-Lama housing program;

*require HCR to submit a preliminary and final report to the Governor,
the Speaker and Minority Leader of the Assembly, and the Temporary
President and Minority Leader of the Senate. The preliminary report,
submitted within two years of the enactment date, would contain with
findings concerning the Mitchell-Lama housing program. The final
report, submitted within four years of the enactment date, would
contain additional findings and recommendations respecting the
Mitchell-Lama housing program study; and

*permit HCR and HPD to reasonably request and receive, and utilize and
be provided with such facilities, resources; and data from any State
or municipal court, agency, or office.

JUSTIFICATION:

Since 1955, the Mitchell-Lama housing program (Private Housing Finance
Law, Article 2) has expanded the development and building of
affordable housing, both rental and co-operatively owned, for
moderate-income residents in New York, In exchange for low-interest
mortgage loans and real property tax exemptions, the law puts a
limitation on rental and co-op company profits, tenant income
thresholds, and program supervision by HCR. Developments are only
eligible to withdraw ("buy-out") from the program after 20 years, or
after 35 if the development was built prior to May 1, 1959.

From 1955-1978, developers built 269 Mitchell-Lama developments,
comprised of 105,000 apartments. These developments have created some
of the most ethnically and economically diverse communities in the


State, providing affordable housing to hundreds of thousands of New
Yorkers.

In the years since the first development was built, social and
economic changes have altered New York's housing market, and within
these changes, legislators have long-been focused on addressing the
cost and shortage of affordable housing. Currently, both the
state-wide and New York City rental vacancy rates are below the five
percent emergency housing threshold. As many Mitchel-Lama developments
have exited the program and no new development has been built since
1978 -thus decreasing the supply of affordable, middle-income
housing-the viability of the Mitchell-Lama program has become
increasingly important.

Given the effectiveness of the Mitchell-Lama housing program, the
Legislature needs to assess the preservation, sustainability, and
growth of the program, and understand potential ways in which the
program may be reformed to better address the housing needs of New
Yorkers. To achieve these goals, the Legislature requires both a
temporary moratorium on the ability of rental Mitchell-Lama
developments to exit the program, and the execution of a comprehensive
study of the entire Mitchell-Lama housing program.

PRIOR LEGISLATIVE HISTORY:

This is a new legislation.

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect immediately, provided, however, that the
provisions of section one shall expire and be deemed repealed four
years after this act shall have become law.
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A09114 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         9114

                                 I N  A S S E M B L Y

                                    March 17, 2014
                                      ___________

       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 initiat-
         ing  a  four-year  moratorium  on  the dissolution of any urban rental
         Mitchell-Lama company, and in relation to establishing the implementa-
         tion of a Mitchell-Lama housing program study; and providing  for  the
         repeal of certain provisions upon expiration thereof

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. The private housing finance law is amended by adding a  new
    2  section 35-a to read as follows:
    3    S 35-A. MORATORIUM ON VOLUNTARY DISSOLUTION. NOTWITHSTANDING ANY OTHER
    4  PROVISION  OF  LAW,  ANY  URBAN  RENTAL COMPANY CREATED PURSUANT TO THIS
    5  ARTICLE AND OTHERWISE  ELIGIBLE  TO  VOLUNTARILY  DISSOLVE  PURSUANT  TO
    6  SECTION  THIRTY-FIVE  OF  THIS  ARTICLE  SHALL  BE  PROHIBITED FROM SUCH
    7  DISSOLUTION.
    8    S 2. 1. Mitchell-Lama housing program study. New York State Homes  and
    9  Community  Renewal, in consultation with the New York City Department of
   10  Housing  Preservation,  shall  execute  a  study  on  the  preservation,
   11  sustainability, reform, and growth of the Mitchell-Lama housing program,
   12  including, but not limited to:
   13    a.  recommendations  for  the  expansion  of the Mitchell-Lama housing
   14  program to address the affordable housing needs of  New  York's  growing
   15  population;
   16    b.  taxation  and  financing models to encourage housing developers to
   17  participate in the Mitchell-Lama housing program;
   18    c. adjusting the amount of time a company must  remain  in  the  Mitc-
   19  hell-Lama housing program before it may voluntarily dissolve;
   20    d.  an  analysis  of  current family income criteria used to determine
   21  access to low- and middle-income housing;
   22    e. a determination of geographic areas of the  state  to  best  locate
   23  potential Mitchell-Lama housing;

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14406-02-4
       A. 9114                             2

    1    f. policy initiative responsive to the present and future needs of the
    2  Mitchell-Lama housing program and of Mitchell-Lama developments owned by
    3  urban rental or mutual companies;
    4    g.  the feasibility of methods to preserve and expand the inventory of
    5  Mitchell-Lama housing relative to and within New York's other  low-  and
    6  middle-income housing programs.
    7    2. Preliminary and final study report. New York State Homes and Commu-
    8  nity  Renewal shall submit to the governor, the speaker and the minority
    9  leader of the assembly, and the temporary  president  and  the  minority
   10  leader  of  the senate a preliminary report with findings concerning the
   11  Mitchell-Lama housing program within two years of the effective date  of
   12  this  section.  Four years after the effective date of this section, New
   13  York State Homes and Community Renewal shall submit to the governor, the
   14  speaker and minority leader of the assembly, and the temporary president
   15  and minority leader of the senate a final  report  with  recommendations
   16  respecting the Mitchell-Lama housing program study.
   17    3.  Assistance.  To  the maximum extent possible, New York State Homes
   18  and Community Renewal shall be entitled  to  request  and  receive,  and
   19  shall  utilize and be provided with such facilities, resources, and data
   20  from any state court, department, division, board,  bureau,  commission,
   21  agency,  or  political  subdivision  that they may reasonably request to
   22  properly execute their responsibilities pursuant to this act.
   23    S 3. This act shall take effect immediately, provided,  however,  that
   24  the  provisions  of  section  one of this act shall expire and be deemed
   25  repealed four years after this act shall have become a law.
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