Directs the department of housing preservation and development of the city of New York to promulgate rules and regulations regarding mutual housing companies considering dissolution and/or reconstitution.
STATE OF NEW YORK
________________________________________________________________________
9720--A
IN ASSEMBLY
February 6, 2020
___________
Introduced by M. of A. L. ROSENTHAL, PHEFFER AMATO -- read once and
referred to the Committee on Housing -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the private housing finance law, in relation to direct-
ing the department of housing preservation and development of the city
of New York to promulgate rules and regulations regarding mutual hous-
ing companies considering dissolution and/or reconstitution
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The private housing finance law is amended by adding a new
2 section 35-a to read as follows:
3 § 35-a. Rules and regulations regarding dissolution. The commissioner
4 or supervising agency shall promulgate rules and regulations regarding
5 mutual housing companies considering dissolution and/or reconstitution
6 pursuant to section thirty-five of this article. Such rules and regu-
7 lations shall at a minimum include:
8 1. A requirement that any vote for dissolution of the company, or for
9 authorization of a feasibility study, a preliminary offering plan which
10 may be referred to as a red herring, a final offering plan which may be
11 referred to as a black book, a proxy statement, or to send a notice of
12 intent to dissolve to the commissioner or supervising agency shall
13 require the approval of eighty percent of all dwelling units, both occu-
14 pied and unoccupied, owned by the mutual housing company.
15 2. A requirement that no funds from the operating budget of the mutual
16 housing company shall be used for the preparation or distribution of a
17 feasibility study, a preliminary offering plan or red herring, a final
18 offering plan or black book, a proxy statement, or a notice of intent to
19 dissolve; or to pay for any services related to evaluation of, prepara-
20 tion for, or execution of dissolution and/or reconstitution pursuant to
21 section thirty-five of this article, including but not limited to legal
22 services.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14536-03-0
A. 9720--A 2
1 3. No vote under subdivision one of this section, shall occur within
2 five years following a vote under subdivision one of this section that
3 failed.
4 § 2. This act shall take effect immediately and shall be applicable to
5 all votes and activities pursuant to section 35-a of the private housing
6 finance law that take place on or after such date on which it shall have
7 become a law.