Provides that upon dissolution and prior to reconstitution to cooperative or condominium ownership, a Mitchell-Lama housing company aided by a loan made after May 1, 1959 must escrow 20% of the total of all accrued taxes for which an exemption was granted to make loans to eligible shareholders who are senior citizens, disabled or low and moderate income families in an amount equal to the increase in maintenance costs and other charges attributable to reconversion to be repaid, with interest, upon sale of the unit.
STATE OF NEW YORK
________________________________________________________________________
5477
2009-2010 Regular Sessions
IN ASSEMBLY
February 13, 2009
___________
Introduced by M. of A. V. LOPEZ, COOK, DINOWITZ, GREENE -- Multi-Spon-
sored by -- M. of A. BRENNAN, CLARK, GLICK, GOTTFRIED, JACOBS, PRET-
LOW, WRIGHT -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to the
dissolution and reconstitution of housing companies
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. (a) Upon such dissolution and prior to reconstitution to cooper-
4 ative or condominium ownership, a company aided by a loan made after May
5 first, nineteen hundred fifty-nine shall escrow a sum equal to twenty
6 percent of the total of all accrued taxes for which tax exemption was
7 granted and received pursuant to section thirty-three of this article.
8 Upon reconstitution, the board of directors or board of managers of such
9 company shall make available to eligible shareholders a loan equal to
10 the increase in the total annual carrying charges and any special
11 assessments attributable to the dissolution including but not limited to
12 the loss of the tax exemptions, the mortgage refinancing, the termi-
13 nation of surcharges, the escrow fund and any other costs associated
14 with dissolution and reconstitution. Upon sale of their units, eligible
15 shareholders shall pay into the escrow fund a sum equal to the total
16 loan provided to them, plus compounded interest at the prevailing inter-
17 est rate for each calendar year of the loan as determined by a certified
18 public accountant employed by the cooperative corporation or condomin-
19 ium.
20 (b) Eligible shareholders shall be limited to the following residents
21 of the housing company:
22 (1) Any shareholder who is sixty-two years of age or older on the
23 date of dissolution.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08699-01-9
A. 5477 2
1 (2) Any shareholder who has an impairment which results from anatom-
2 ical, physiological or psychological conditions, other than addiction to
3 alcohol, gambling or any controlled substance, which are demonstrated by
4 medically acceptable clinical and laboratory acceptable techniques, and
5 which prevent the shareholder from engaging in any substantial gainful
6 employment on the date of dissolution.
7 (3) Any shareholder-household where the combined income of all
8 members of the household on the date of dissolution and recertified to
9 at the commencement of each calendar year is less than or equal to one
10 hundred twenty percent of the median income of the standard statistical
11 area as defined by the United States census bureau.
12 (c) All eligible shareholders shall provide to the company's board of
13 directors or board of managers by certified mail notice of election.
14 Notice of election shall be made on forms promulgated by the division of
15 housing and community renewal and shall be made available to tenants by
16 the board of directors or managers. Eligible shareholders shall receive
17 said loans no later than ninety days after the date of dissolution.
18 (d) Within sixty days after the end of each calendar year, repayment
19 of all loans plus interest and any surplus principal and interest in the
20 fund as determined by the certified public accountant employed by the
21 cooperative corporation or condominium shall be paid to a fund desig-
22 nated by the state or municipality for the construction of and/or reha-
23 bilitation of low and moderate income housing.
24 § 2. The commissioner of housing or the supervising agency, as the
25 case may be, shall be authorized to adopt, promulgate, amend, and
26 rescind rules and regulations in order to implement the provisions of
27 this act.
28 § 3. This act shall take effect on the one hundred twentieth day
29 after it shall have become a law. Effective immediately, the addition,
30 amendment or repeal of any rule or regulation necessary for the imple-
31 mentation of the foregoing sections of this act on their effective date
32 are authorized to be made on or before such effective date.
