Bill Text: NY A02933 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the private housing finance law, in relation to limited-profit housing companies in a city with a population of one million or more
Spectrum: Partisan Bill (Democrat 34-1)
Status: (Engrossed - Dead) 2010-04-12 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [A02933 Detail]
Download: New_York-2009-A02933-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2933
2009-2010 Regular Sessions
I N A S S E M B L Y
January 21, 2009
___________
Introduced by M. of A. V. LOPEZ, CYMBROWITZ, WRIGHT, ORTIZ, ROBINSON,
O'DONNELL, PERRY, MAYERSOHN, COLTON, BROOK-KRASNY, SCHROEDER, ROSEN-
THAL, LANCMAN, MAISEL, KAVANAGH, P. RIVERA, JEFFRIES, TITONE, TITUS,
CAMARA, SPANO, BARRON -- Multi-Sponsored by -- M. of A. BENJAMIN,
BING, DINOWITZ, FARRELL, GLICK, GOTTFRIED, HEASTIE, HEVESI, JACOBS,
MILLMAN, PHEFFER, TOWNS -- read once and referred to the Committee on
Housing
AN ACT to amend the private housing finance law, in relation to limit-
ed-profit housing 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 28 of the private housing finance law is amended by
2 adding a new subdivision 4 to read as follows:
3 4. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS ARTICLE OR
4 OF ANY OTHER PROVISION OF GENERAL, SPECIAL OR LOCAL LAW, A COMPANY
5 (OTHER THAN A MUTUAL COMPANY) THAT OPERATES A MUNICIPALLY-AIDED PROJECT
6 IN A CITY WITH A POPULATION OF ONE MILLION OR MORE AND THAT IS OTHERWISE
7 AUTHORIZED TO PAY DIVIDENDS UPON ITS SHARES OR INTEREST UPON ITS INCOME
8 DEBENTURES MAY, WITH THE APPROVAL OF THE SUPERVISING AGENCY, PAY SUCH
9 DIVIDENDS OR INTEREST IN EXCESS OF SIX PERCENT PER ANNUM.
10 (B) ON AND AFTER THE DATE OF THE APPROVAL OF SUCH EXCESS DIVIDEND OR
11 INTEREST BY THE SUPERVISING AGENCY PURSUANT TO PARAGRAPH (A) OF THIS
12 SUBDIVISION, THE PROVISIONS OF SECTION THIRTY-ONE OF THIS ARTICLE RELAT-
13 ING TO THE VARIATION OF RENTAL RATES OF DWELLING UNITS IN SUCH MUNICI-
14 PALLY-AIDED PROJECT SHALL NOT APPLY AND RENTAL RATES OF DWELLING UNITS
15 MAY BE INCREASED ANNUALLY BY SUCH COMPANY, WITHOUT PUBLIC HEARING OR
16 FURTHER APPROVAL BY THE SUPERVISING AGENCY, IN THE AMOUNT AUTHORIZED BY
17 THE RENT GUIDELINES BOARD ESTABLISHED PURSUANT TO THE RENT STABILIZATION
18 LAW OF NINETEEN HUNDRED SIXTY-NINE FOR RENT STABILIZED DWELLING UNITS.
19 (C) THIS SUBDIVISION SHALL NOT APPLY TO A COMPANY WITH A MORTGAGE LOAN
20 INSURED OR HELD BY THE FEDERAL GOVERNMENT.
21 S 2. The private housing finance law is amended by adding a new
22 section 35-a to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A LBD05737-01-9
A. 2933 2
1 S 35-A. DISSOLUTION OF CERTAIN RENTAL HOUSING COMPANIES. 1. FOR THE
2 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE MEANINGS
3 SET FORTH BELOW:
4 (A) "AFFECTED DEVELOPMENT" SHALL MEAN HOUSING ACCOMMODATIONS (I)
5 LOCATED IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, (II) IN
6 BUILDINGS COMPLETED OR BUILDINGS SUBSTANTIALLY REHABILITATED AS FAMILY
7 UNITS ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-FOUR, AND
8 (III) OPERATED PRIOR TO THE DISSOLUTION DATE AS A RENTAL DEVELOPMENT
9 PURSUANT TO THIS ARTICLE.
10 (B) "AFFECTED DWELLING UNIT" SHALL MEAN A DWELLING UNIT IN AN AFFECTED
11 DEVELOPMENT.
12 (C) "AFFECTED HOUSING COMPANY" SHALL MEAN A LIMITED-PROFIT HOUSING
13 COMPANY WITH AN AFFECTED DEVELOPMENT.
14 (D) "DISSOLUTION DATE" SHALL MEAN, WITH RESPECT TO ANY AFFECTED DEVEL-
15 OPMENT, THE DATE OF THE DISSOLUTION OR RECONSTITUTION OF THE AFFECTED
16 HOUSING COMPANY WITH SUCH AFFECTED DEVELOPMENT PURSUANT TO SECTION THIR-
17 TY-FIVE OF THIS ARTICLE.
18 (E) "VOUCHER RECIPIENT" SHALL MEAN A TENANT IN AN AFFECTED DWELLING
19 UNIT WHO RECEIVES ENHANCED VOUCHER ASSISTANCE PURSUANT TO THE VOUCHER
20 ACT FOR SUCH PERIOD AS SUCH TENANT RECEIVES SUCH ASSISTANCE.
21 (F) "VOUCHER UNIT" SHALL MEAN AN AFFECTED DWELLING UNIT THAT IS AT ANY
22 TIME OCCUPIED BY A VOUCHER RECIPIENT, FOR SUCH PERIOD AS SUCH AFFECTED
23 DWELLING UNIT IS OCCUPIED BY A VOUCHER RECIPIENT.
24 (G) "MARKET UNIT" SHALL MEAN AN AFFECTED DWELLING UNIT THAT IS NO
25 LONGER SUBJECT TO THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-
26 NINE AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
27 BECAUSE IT HAS BEEN DECONTROLLED PURSUANT TO THE TERMS OF APPLICABLE LAW
28 OR PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
29 (H) "VACATED UNIT" SHALL MEAN AN AFFECTED DWELLING UNIT, OTHER THAN A
30 VOUCHER UNIT OR A MARKET UNIT, THAT IS NO LONGER OCCUPIED BY THE TENANT
31 WHO OCCUPIED SUCH UNIT ON THE DISSOLUTION DATE OR BY THE LAWFUL SUCCES-
32 SORS IN INTEREST OF SUCH TENANT.
33 (I) "FULLY TAXABLE UNITS" SHALL MEAN, WITH RESPECT TO ANY TAX YEAR,
34 ALL AFFECTED UNITS THAT WERE VOUCHER UNITS, MARKET UNITS OR VACATED
35 UNITS ON THE TAXABLE STATUS DATE OF SUCH TAX YEAR.
36 (J) "PARTIALLY TAXABLE UNITS" SHALL MEAN, WITH RESPECT TO ANY TAX
37 YEAR, ALL AFFECTED UNITS WHICH WERE NOT FULLY TAXABLE UNITS ON THE TAXA-
38 BLE STATUS DATE OF SUCH TAX YEAR.
39 (K) "VOUCHER ACT" SHALL MEAN SECTION 8(T) OF THE UNITED STATES HOUSING
40 ACT OF NINETEEN THIRTY-SEVEN, AS AMENDED, OR ANY SUCCESSOR STATUTE, AND
41 ANY REGULATIONS PROMULGATED THEREUNDER.
42 2. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY CONTAINED IN THIS
43 ARTICLE, AND NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR
44 LOCAL LAW, AFTER THE DISSOLUTION DATE, AFFECTED DWELLING UNITS SHALL BE
45 FULLY SUBJECT TO THE PROVISIONS OF THE RENT STABILIZATION LAW OF NINE-
46 TEEN HUNDRED SIXTY-NINE AND THE EMERGENCY TENANT PROTECTION ACT OF NINE-
47 TEEN SEVENTY-FOUR.
48 (A) THE INITIAL LEGAL REGULATED RENT FOR ANY AFFECTED DWELLING UNIT
49 FOLLOWING THE DISSOLUTION DATE SHALL BE THE LAST RENT AUTHORIZED FOR THE
50 AFFECTED DWELLING UNIT BEFORE THE DISSOLUTION DATE, WHICH SHALL NOT BE
51 SUBJECT TO ADJUSTMENT PURSUANT TO SUBDIVISION A OF SECTION 26-513 OF THE
52 ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
53 (B) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, THE
54 LEGAL REGULATED RENT FOR A VOUCHER UNIT SHALL BE EQUAL TO THE MAXIMUM
55 RENT AUTHORIZED AND APPROVED IN CONNECTION WITH THE FEDERAL ASSISTANCE
56 PROVIDED TO THE VOUCHER RECIPIENT OCCUPYING SUCH VOUCHER UNIT. IF AN
A. 2933 3
1 AFFECTED DWELLING UNIT WHICH WAS A VOUCHER UNIT CEASES TO BE A VOUCHER
2 UNIT AT ANY TIME OR FOR ANY REASON, EXCEPT FOR THOSE REASONS SPECIFIED
3 IN SUBDIVISION THREE OF THIS SECTION, THE INITIAL LEGAL REGULATED RENT
4 FOR SUCH AFFECTED DWELLING UNIT FOLLOWING SUCH CHANGE IN STATUS SHALL BE
5 EQUAL TO THE SUM OF (I) THE LAST RENT AUTHORIZED BEFORE THE DISSOLUTION
6 DATE, PLUS (II) ANY ADJUSTMENTS TO SUCH RENT AUTHORIZED BY LAW BETWEEN
7 THE DISSOLUTION DATE AND THE DATE UPON WHICH SUCH UNIT CEASED TO BE A
8 VOUCHER UNIT.
9 3. NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY,
10 WHERE AN AFFECTED DEVELOPMENT CONTAINS DWELLING UNITS WHICH MAY BE
11 ELIGIBLE FOR ENHANCED VOUCHER ASSISTANCE PURSUANT TO THE VOUCHER ACT,
12 ANY DWELLING UNIT IN SUCH AFFECTED DEVELOPMENT SHALL BE DEEMED TO BE A
13 MARKET UNIT AND NOT SUBJECT TO THE RENT STABILIZATION LAW OF NINETEEN
14 HUNDRED SIXTY-NINE AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
15 SEVENTY-FOUR FOR THE DURATION OF SUCH TENANCY IF: (A) THE TENANT RESID-
16 ING IN SUCH DWELLING UNIT AS OF THE DISSOLUTION DATE FAILS TO SUBMIT ALL
17 OF THE REQUIRED DOCUMENTATION FOR THE INITIAL APPLICATION FOR ENHANCED
18 VOUCHER ASSISTANCE PURSUANT TO THE VOUCHER ACT, (B) A VOUCHER RECIPIENT
19 RESIDING IN SUCH DWELLING UNIT FAILS TO SUBMIT THE REQUIRED DOCUMENTA-
20 TION FOR RECERTIFICATION FOR ENHANCED VOUCHER ASSISTANCE PURSUANT TO THE
21 VOUCHER ACT, OR (C) A VOUCHER RECIPIENT RESIDING IN SUCH DWELLING UNIT
22 VIOLATES, THROUGH ACTION OR INACTION, THE REQUIREMENTS OF THE VOUCHER
23 ACT. UPON THE FIRST VACANCY OF AN AFFECTED DWELLING UNIT WHICH BECOMES A
24 MARKET RATE UNIT PURSUANT TO THIS SUBDIVISION, SUCH AFFECTED DWELLING
25 UNIT SHALL BE FULLY SUBJECT TO THE PROVISIONS OF THE RENT STABILIZATION
26 LAW OF NINETEEN HUNDRED SIXTY-NINE AND THE EMERGENCY TENANT PROTECTION
27 ACT OF NINETEEN SEVENTY-FOUR, AND THE INITIAL LEGAL REGULATED RENT FOR
28 SUCH AFFECTED DWELLING UNIT FOLLOWING SUCH CHANGE IN STATUS SHALL BE
29 EQUAL TO THE SUM OF (I) THE LAST RENT AUTHORIZED BEFORE THE DISSOLUTION
30 DATE, PLUS (II) ANY ADJUSTMENTS TO SUCH RENT AUTHORIZED BY LAW BETWEEN
31 THE DISSOLUTION DATE AND THE DATE UPON WHICH SUCH UNIT CEASES TO BE A
32 MARKET UNIT.
33 4. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY CONTAINED IN THIS
34 ARTICLE, AND NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR
35 LOCAL LAW, AFTER THE DISSOLUTION DATE, ANY PARTIAL EXEMPTION FROM REAL
36 PROPERTY TAXATION GRANTED TO THE REAL PROPERTY IN AN AFFECTED DEVELOP-
37 MENT PURSUANT TO SECTION THIRTY-THREE OF THIS ARTICLE SHALL CONTINUE
38 WITH RESPECT TO ANY PARTIALLY TAXABLE UNITS, BUT ANY FULLY TAXABLE UNITS
39 SHALL BE SUBJECT TO FULL REAL PROPERTY TAXATION.
40 5. THIS SECTION SHALL NOT APPLY TO AN AFFECTED DEVELOPMENT IF: (A) THE
41 OWNER AND A DULY RECOGNIZED TENANTS ASSOCIATION EXECUTE A WRITTEN
42 SETTLEMENT AGREEMENT ON OR BEFORE THE DISSOLUTION DATE, AND (B) SUCH
43 WRITTEN SETTLEMENT AGREEMENT SPECIFIES THE RESPECTIVE RIGHTS AND OBLI-
44 GATIONS OF THE TENANTS AND OWNER SUBSEQUENT TO THE DISSOLUTION DATE.
45 S 3. If any clause, sentence, paragraph, section or part of this act
46 shall be adjudged by any court of competent jurisdiction to be invalid,
47 such judgment shall not affect, impair, or invalidate the remainder
48 thereof, but shall be confined in its operation to the clause, sentence,
49 paragraph, section or part thereof directly involved in the controversy
50 in which judgment shall have been rendered.
51 S 4. This act shall take effect immediately; provided, however, that
52 section two of this act shall apply to any affected development with a
53 dissolution date on or after the effective date of this act.
