Requires annual inspections of Mitchell-Lama buildings; requires the appointment of housing management representatives to perform such inspections; requires notification of violations to housing companies; requires such housing companies to certify correction of violations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5401
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the private housing finance law, in relation to requir-
ing housing owned by limited-profit housing companies to be inspected on
an annual basis by a housing management representative
PURPOSE:
This bill will require annual physical inspections of Mitchell-Lama
buildings and ensure that building violations are addressed in a timely
manner.
SUMMARY OF SPECIFIC PROVISIONS:
Section one adds a new subdivision 15 to section 32-a of the private
housing finance law.
Section two establishes the effective date.
JUSTIFICATION:
The Mitchell-Lama program was signed into law in 1955, creating afforda-
ble rental and homeownership opportunities for moderate-to-middle income
New Yorkers across the state. There are approximately 150,000 affordable
Mitchell-Lama units that are either supervised by the New York State
Department of Housing and Community Renewal (HCR) or the New York City
Department of Housing Preservation and Development (HPD). However, over
the years, many of those developments and the individual apartments
within have fallen into a state of physical disrepair.
In September 2024, New York State Comptroller Thomas DiNapoli audited
the physical conditions of three HPD-supervised Mitchell-Lama develop-
ments. The investigation found that hazardous conditions, such as
collapsed walls, the presence of mold, non-closing fire doors and more,
pervaded those Mitchell-Lamas. A similar audit conducted by the State
Comptroller DiNapoli in 2023 found similar conditions in HCR-supervised
Mitchell-Lama developments.
New York State must preserve its existing affordable housing stock.
This legislation directs supervising agencies to conduct annual physical
inspections of Mitchell-Lama developments and requires the agency to
notify management companies of violations within five business days of
an inspection, or within 24 hour if the violation is deemed hazardous.
Agencies will inspect all buildings in the development, the grounds,
common facilities and central systems to determine if the buildings are
up to the uniform physical condition standards set by the Department of
Housing and Urban Development. This bill would also require management
companies to certify that the violation was corrected within a certain
time frame and post inspection results online.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5401
2025-2026 Regular Sessions
IN ASSEMBLY
February 13, 2025
___________
Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to amend the private housing finance law, in relation to requir-
ing housing owned by limited-profit housing companies to be inspected
on an annual basis by a housing management representative
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 32-a of the private housing finance law is amended
2 by adding a new subdivision 15 to read as follows:
3 15. (a) Direct their department or the supervising agency to appoint a
4 housing management representative to each company to perform an annual
5 inspection of each building owned or maintained by a housing company
6 pursuant to this article and shall notify the housing company of any
7 violations found as a result of such inspection within five business
8 days of such inspection; provided, however, that if any violation found
9 as a result of such inspection presents hazardous conditions and
10 requires an immediate response then such notification shall be provided
11 to the housing company immediately. The department or supervising agency
12 shall require that the housing company certify correction of such
13 violation within a reasonable timeframe, as determined by the commis-
14 sioner or the supervising agency; provided, however, that a reasonable
15 timeframe shall be no longer than: (i) ninety days for a non-hazardous
16 condition, including, but not limited to, missing peepholes, failure to
17 place street numbers on the front of the dwelling, and improper seats on
18 toilets; (ii) thirty days for a hazardous condition, including, but not
19 limited to, leaks, small holes, inadequate lighting for stairs, missing
20 smoke detectors, or unlawful bars on windows; (iii) twenty-one days for
21 a lead-based paint or window guard violation; and (iv) twenty-four hours
22 for any immediately hazardous condition, including, but not limited to,
23 inadequate heat or hot water supply, rodents, broken or defective plumb-
24 ing fixtures, defective plaster and defective faucets. The department or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08351-01-5
A. 5401 2
1 supervising agency shall post the results of such inspections and any
2 ensuing certification of correction of violation on the department or
3 supervising agency's website.
4 (b) Each development shall have a housing management representative
5 assigned to them by the department or supervising agency that oversees
6 such development. Such housing management representative shall be
7 responsible for monitoring and evaluating the development's managements
8 as outlined in Title 9 of the New York Codes, Rules & Regulations.
9 Housing management representatives shall conduct the annual on-site
10 inspection of the development and provide the results of the inspection,
11 including recommendations, in a written report to the development and
12 housing company. The department or supervising agency shall require the
13 development's board of directors or managing agent to respond to the
14 report within thirty days, detailing the housing company's plan for
15 corrective action.
16 (c) An inspection may include, but is not limited to: a physical
17 inspection of all buildings in the development, the grounds, common
18 facilities and central systems for general construction; a review of all
19 records the agency or supervising authority deems relevant; interviews
20 of shareholders, board members, housing company employees and management
21 company employees and any other information which the department or
22 supervising agency deems relevant.
23 (d) The department or supervising agency shall review any local
24 health, safety or building code violations reports or notices retained
25 by the housing company and shall determine whether the buildings and
26 units satisfy the uniform physical conditions standards established by
27 HUD (24 CFR 5.703). The HUD physical condition standards shall not
28 supersede or preempt local health, safety and building codes.
29 § 2. This act shall take effect immediately.
