Requires a Mitchell-Lama cooperative seeking to dissolve to offer cooperators who may not be able to afford the increased carrying charges the opportunity to sell.
STATE OF NEW YORK
________________________________________________________________________
1857
2021-2022 Regular Sessions
IN ASSEMBLY
January 11, 2021
___________
Introduced by M. of A. L. ROSENTHAL, BENEDETTO, COOK -- Multi-Sponsored
by -- M. of A. GLICK, PERRY -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the private housing finance law, in relation to mutual
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 35 of the private housing finance law is amended by
2 adding a new subdivision 5 to read as follows:
3 5. Notwithstanding any inconsistent provision of this article or of
4 any other provision of general, special or local law, a mutual company
5 that operates a project in a city with a population of one million or
6 more, must, at least ninety days before the date of its dissolution or
7 reconstitution pursuant to this section, make an offer to all of its
8 shareholders to repurchase their shares in such mutual company. A share-
9 holder who elects to sell his or her shares back to such mutual company
10 shall be offered a one-year or a two-year lease for his or her dwelling
11 unit to commence upon the date of such dissolution or reconstitution,
12 and such dwelling unit shall be fully subject to the provisions of the
13 rent stabilization law of nineteen hundred sixty-nine and the emergency
14 tenant protection act of nineteen seventy-four. The initial legal regu-
15 lated rent for any such dwelling unit following the dissolution date
16 shall be the last carrying charges authorized for such dwelling unit
17 before the dissolution date, including surcharges, if any, and shall not
18 be subject to adjustment pursuant to subdivision a of section 26-513 of
19 the administrative code of the city of New York. Any such dwelling unit
20 which is subject to rent regulation solely by virtue of this subdivision
21 shall be decontrolled upon the first vacancy thereof.
22 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00681-01-1
