S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         1005

                              2011-2012 Regular Sessions

                                   I N  S E N A T E

                                      (PREFILED)

                                    January 5, 2011
                                      ___________

       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.
                                                                  LBD04993-01-1

       S. 1005                             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. 1005                             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.