S28-2013 Actions

• Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S28-2013 Memo

BILL NUMBER:S28

TITLE OF BILL:
An act
to amend the private housing financing law, in relation to the
dissolution of certain limited-profit housing companies

PURPOSE OR GENERAL IDEA OF BILL:
To require that, whenever the dissolution of a limited-profit housing
company is proposed, the vote taken may not be done by proxy.

SUMMARY OF SPECIFIC PROVISIONS:
Section one amends section 35 of the private housing finance law by
adding a new subdivision 5 that says that no mutual company may be
dissolved except by affirmative vote of 2/3 or more of the holders of
all outstanding shares of the company and that no person who has a
right to cast a vote may do so by proxy or by any other means except
in person.

An exception is made for persons who are certified by a physician as
unable to cast a vote by reason of illness or disability.

JUSTIFICATION:
The bill prevents the dissolution of certain limited-profit housing
companies when persons who have a right to vote cannot be present to
vote in person. It allows for such voting to be carried out only in
person, and not by proxy vote. This will ensure that persons who have
a right to take such vote, crucial to the future of their homes'
existence, will be voting in person.

PRIOR LEGISLATIVE HISTORY:
2004: S.7666 (Duane), Died in Rules; A,,11745 (Sanders), Died in
      Housing
2005: S.2573 (Duane), Died in Housing
2006: S 2573 (Duane), Died in Housing
2007: S.1877 (Duane), Died in Housing
2008: S.1877 (Duane), Died in Housing
2009: S.1342 (Duane), Died in Housing
2010: S.1342 (Duane), Died in Housing

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
Immediately.

S28-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          28
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced by Sen. ESPAILLAT -- 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 financing law, in  relation  to  the
 dissolution of certain limited-profit housing companies
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

Section 35 of the private housing finance law is amended by
 adding a new subdivision 5 to read as follows:

 5. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION  OR  ANY
 OTHER PROVISION OF ANY GENERAL, SPECIAL, OR LOCAL LAW, NO MUTUAL COMPANY
 MAY  BE DISSOLVED EXCEPT UPON THE AFFIRMATIVE VOTE OF TWO-THIRDS OR MORE
 OF THE HOLDERS OF ALL OUTSTANDING SHARES  OF  SUCH  COMPANY.  NO  PERSON
 HAVING  THE  RIGHT  TO CAST A VOTE MAY DO SO BY PROXY OR ANY MEANS OTHER
 THAN IN PERSON, UNLESS SUCH PERSON IS CERTIFIED BY A PHYSICIAN  LICENSED
 TO  PRACTICE MEDICINE IN THIS STATE AS UNABLE TO CAST SUCH PERSON'S VOTE
 IN PERSON BY REASON OF ILLNESS OR DISABILITY.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01830-01-3

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