Modifies certain eligibility requirements; extends the time period for the payment of arrears for certain taxes; places limitations on housing development fund company regulatory agreements.
STATE OF NEW YORK
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10714
IN ASSEMBLY
September 18, 2024
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to the
payment of arrears for certain taxes and placing limitations on hous-
ing development fund company regulatory agreements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 1 and subparagraphs 1 and 9 of
2 paragraph (b) of subdivision 2 of section 577-b of the private housing
3 finance law, paragraph (b) of subdivision 1 as amended by chapter 225 of
4 the laws of 2004 and subparagraphs 1 and 9 of paragraph (b) of subdivi-
5 sion 2 as added by chapter 315 of the laws of 2002, are amended and
6 paragraph (b) of subdivision 2 is amended by adding a new subparagraph
7 4-a to read as follows:
8 (b) [on January first, two thousand two, had] has outstanding munici-
9 pal real estate taxes relating to any prior period [prior to January
10 first, two thousand one].
11 (1) a term of [thirty] forty years;
12 (4-a) that suspended arrears shall be subordinated to any loan
13 obtained by the housing development fund corporation for allowable
14 purposes;
15 (9) that the company shall be required to increase maintenance charges
16 by a minimum of two percent per year or impose assessments to insure
17 that the company can provide for its obligations.
18 § 2. Section 576 of the private housing finance law is amended by
19 adding a new subdivision 4 to read as follows:
20 4. Notwithstanding any provision of law, rule or regulation to the
21 contrary, a regulatory agreement pursuant to this section shall not:
22 a. Include a requirement for a monitor approved by the commissioner or
23 supervising agency, as the case may be;
24 b. Place any limitations that would restrict the ability of a housing
25 development fund company to obtain a mortgage or comply with the
26 provisions of this chapter, including but not limited to, imposing sales
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00048-02-3
A. 10714 2
1 caps on the sale of dwelling units within a housing development fund
2 company project;
3 c. Require a housing development fund company to hire a management
4 company from a list of companies approved by the commissioner or super-
5 vising agency, as the case may be;
6 d. Where a shareholder of a housing development fund company inherits
7 residential property within one hundred miles of the municipality where
8 the housing development fund company project, require such shareholder
9 to either vacate their dwelling unit in the housing development fund
10 company project or sell such inherited property;
11 e. Limit the assets of a shareholder of a housing development fund
12 company to one hundred seventy-five percent or less of the area median
13 income for a family of four for the county in which a project is located
14 as calculated by the United States department of housing and urban
15 development;
16 f. Require a shareholder to demonstrate he or she resides in the hous-
17 ing development fund company project dwelling unit more than one hundred
18 eighty-three days a year; or
19 g. Require the sale of a dwelling unit in a housing development fund
20 company project to be administered through a housing portal of the
21 commissioner or supervising agency, as the case may be.
22 § 3. This act shall take effect immediately.
