Bill Text: NY S08132 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2020-03-25 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S08132 Detail]

Download: New_York-2019-S08132-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8132

                    IN SENATE

                                     March 25, 2020
                                       ___________

        Introduced  by Sen. KAVANAGH -- 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 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.
    23    3. No vote under subdivision one of this section, shall  occur  within
    24  five  years  following a vote under subdivision one of this section that
    25  failed.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14536-04-0

        S. 8132                             2

     1    § 2. This act shall take effect immediately and shall be applicable to
     2  all votes and activities pursuant to section 35-a of the private housing
     3  finance law that take place on or after such date on which it shall have
     4  become a law.
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