A00932 Summary:

BILL NOA00932
 
SAME ASSAME AS S01917
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd §35, Priv Hous Fin L
 
Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company.
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A00932 Actions:

BILL NOA00932
 
01/14/2019referred to housing
01/08/2020referred to housing
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A00932 Committee Votes:

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A00932 Floor Votes:

There are no votes for this bill in this legislative session.
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A00932 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           932
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 14, 2019
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Housing
 
        AN ACT to amend the private housing finance law, in relation to windfall
          profits on the dissolution or first sale of rental companies  and  the
          dissolution and/or reconstitution of mutual companies

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 2 of section 35 of the private housing  finance
     2  law,  as  amended by chapter 229 of the laws of 1989, is amended to read
     3  as follows:
     4    2. A company aided by a loan made after May  first,  nineteen  hundred
     5  fifty-nine,  may  voluntarily  be  dissolved,  sold and/or reconstituted
     6  without the consent of the commissioner or of the supervising agency, as
     7  the case may be, not less than twenty years  after  the  occupancy  date
     8  upon  the  payment  in  full  of  the remaining balance of principal and
     9  interest due and unpaid upon the mortgage or mortgages [and], of any and
    10  all expenses incurred in effecting such voluntary dissolution and  of  a
    11  transfer  fee  equal to seventy-five percent of the fair market value in
    12  the case of dissolution or sales price on the first  sale  of  a  rental
    13  project, or, in the case of a mutual company seventy-five percent of the
    14  sales  price on each first sale thereafter for market value by a selling
    15  shareholder. The proceeds of the transfer fees are to  be  paid  into  a
    16  fund  held  by the New York city housing development corporation and the
    17  New York state housing finance agency for the following purposes:
    18    (a) to continue to subsidize  the  development  for  as  long  as  the
    19  purchaser of a rental development remains in the Mitchell-Lama program;
    20    (b)  for  the city or state to purchase the land and to lease the land
    21  to the tenants and convert the project to a limited profit mutual compa-
    22  ny, with a ninety-nine year lease;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03238-01-9

        A. 932                              2
 
     1    (c) for repair loans at zero percent interest to fund necessary  capi-
     2  tal improvements for as long as the company remains in the Mitchell-Lama
     3  program;
     4    (d)  for each year that the company remains as a limited profit compa-
     5  ny, to forgive one-thirtieth of the principal of any  repair  loan  each
     6  year;
     7    (e)  for  the subsidization of other limited profit housing companies;
     8  and
     9    (f) for the development of other affordable housing.
    10    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    11  have become a law.
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