Bill Text: NY S03688 | 2009-2010 | General Assembly | Introduced
Bill Title: Relates to limited-profit housing companies; authorizes certain companies to pay dividends or interest in excess of six percent per annum; relates to the dissolution of certain rental housing companies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S03688 Detail]
Download: New_York-2009-S03688-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3688 2009-2010 Regular Sessions I N S E N A T E March 27, 2009 ___________ Introduced by Sen. SAMPSON -- 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 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. LBD05737-01-9 S. 3688 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 S. 3688 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.