Bill S508-2013

Authorizes study of housing programs for low and middle income families

Authorizes the state division of housing and community renewal to study housing programs for low and middle income families, and provides for a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies.

Details

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  • Jan 8, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

BILL NUMBER:S508

TITLE OF BILL: An act authorizing the New York state division of housing and community renewal to study state and locally aided housing programs and make recommendations for the preservation, modernization, and increase in the supply of such housing; to amend the private housing finance law, in relation to providing a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies; and providing for the repeal of certain provisions upon the expiration thereof

PURPOSE: This legislation would establish a temporary moratorium, expiring at the end of 2013, on the dissolution of any state or locally aided housing company, without the consent. This moratorium would enable the NYS Division of Housing and Community Renewal (DHCR) to complete its work and make recommendations

SUMMARY OF PROVISIONS: Sections 2, 3 and 4 requires DHCR to conduct a study of state and locally funded low and middle income housing programs. The DHCR is required to report back to the Governor and the Legislature within one year with its findings, conclusions and recommendations and propose legislation to implement its recommendations. Including those that currently allow housing companies to withdraw from programs.

Section 5 amends Section 35 of the private housing finance law by adding a new subdivision 5 which provides that notwithstanding any provision of this section, no company shall be voluntarily dissolved without the consent of the commissioner or supervising agency, as the case may be, until December 31, 2013.

Section 6 amends Section 96 of the private housing finance law by adding subdivision 3 which provides that notwithstanding any other provisions of this section, no company shall be voluntarily dissolved or terminated, without the consent of the commissioner until December 31, 2013.

Section 7 amends Section 123 of the private housing finance law by adding subsection 8 which provides that notwithstanding any other provision of this section, no redevelopment company shall dissolve or terminate without the consent of the local legislative body until December 31, 2013.

JUSTIFICATION: New York State is in the throes of an affordable housing crisis, with the unmet need for affordable housing presently greater than at any time in the state's history. Among other factors fueling the erosion of our affordable housing stock is the fact that thousands of Mitchell-Lama and other state and locally aided, limited equity cooperative and rental apartments are facing extinction.

For more than a half a century, New York State and its localities have invested in the creation of low and middle income housing to benefit those most in need, as well as to benefit state and local economies. However, in many cases, such housing has fallen into disrepair or is being rendered unaffordable due to statutory provisions allowing owners to dissolve such housing companies without reimbursing the government for the enhanced value made possible by its contributions.

This legislation would establish a temporary moratorium, expiring at the end of 2012, on the dissolution of any state or locally aided housing company, without governmental consent. This moratorium would enable the DHCR to complete its work and make recommendations to the Legislature.

When the moratorium it establishes expires, New York State will have a blueprint for the preservation, modernization, and expansion of such affordable developments now and into the future.

LEGISLATIVE HISTORY: 2010: S.2171/A.9969 (Died in Senate Housing/Died in Assembly Housing) 2009: S.2171/A.6706 (Died in Senate Rules/Died in Assembly Housing)

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately, with provisions


Text

STATE OF NEW YORK ________________________________________________________________________ 508 2013-2014 Regular Sessions IN 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 authorizing the New York state division of housing and community renewal to study state and locally aided housing programs and make recommendations for the preservation, modernization, and increase in the supply of such housing; to amend the private housing finance law, in relation to providing a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies; and providing for the repeal of certain provisions upon the expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. New York state and its localities have invested for more than a half century in the creation of low and middle income housing to benefit those most in need and to the general benefit of state and local economies. In many cases such housing has fallen into disrepair or is being lost as affordable housing due to statutory provisions allowing owners to dissolve housing companies. The unmet need for affordable housing is presently greater than at any time in the state's history. A temporary moratorium on the dissolution of any housing company is neces- sary for the New York state division of housing and community renewal to complete its work and make recommendations. S 2. The division of housing and community renewal shall undertake a comprehensive study of the present status of state and locally aided low and middle income housing programs and make recommendations with respect to the preservation, modernization, and expansion of the number of hous- ing units provided by such programs. Such recommendations shall include, but not be limited to, methods that may be employed by state and local governments to retain and expand the existing inventory of state and
locally aided low and middle income housing so as to preserve such inventory of affordable housing for the persons and families such hous- ing is designed to serve. S 3. The division of housing and community renewal shall make a report to the governor and the legislature of its findings, conclusions and recommendations no later than one year after the effective date of this act and shall submit with its report such legislative proposals as it deems necessary to implement its recommendations. S 4. To the maximum extent feasible, the division of housing and community renewal shall be entitled to request and receive and shall utilize and be provided with such facilities, resources and data of any court, department, division, board, bureau, commission or agency of the state or any political subdivision thereof as it may reasonably request to carry out properly its responsibilities pursuant to this act. S 5. Section 35 of the private housing finance law is amended by adding a new subdivision 5 to read as follows: 5. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COMPANY SHALL BE VOLUNTARILY DISSOLVED, WITHOUT THE CONSENT OF THE COMMISSIONER OR SUPERVISING AGENCY, AS THE CASE MAY BE, ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. S 6. Section 96 of the private housing finance law is amended by adding a new subdivision 3 to read as follows: 3. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO COMPANY SHALL BE VOLUNTARILY DISSOLVED OR TERMINATED, WITHOUT THE CONSENT OF THE COMMISSIONER, ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. S 7. Section 123 of the private housing finance law is amended by adding a new subdivision 8 to read as follows: 8. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO REDEVELOP- MENT COMPANY SHALL DISSOLVE OR TERMINATE, WITHOUT THE CONSENT OF THE LOCAL LEGISLATIVE BODY, ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVI- SION. S 8. This act shall take effect immediately; provided, that sections five, six and seven of this act shall expire and be deemed repealed December 31, 2014. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made on or before such effective date.

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