Bill Text: NY S01917 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S01917 Detail]

Download: New_York-2019-S01917-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1917
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 17, 2019
                                       ___________
        Introduced  by  Sens.  KRUEGER,  BAILEY,  HOYLMAN,  MONTGOMERY, SERRANO,
          STAVISKY -- read twice and ordered printed, and  when  printed  to  be
          committed  to  the  Committee  on  Housing, Construction and Community
          Development
        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
        S. 1917                             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.