Relates to the permitted voluntary dissolution of a mutual company.
TITLE OF BILL: An act to amend the private housing finance law, in relation to when the voluntary dissolution of a mutual company shall be permitted
To prohibit the dissolution and/or reconstitution of any mutual company, organized under Article II of the PHFL, until after its municipal tax exemption and any grant of an extension thereof shall have expired
SUMMARY OF PROVISIONS:
Section One amends subdivision 2 of section 35 of the private housing finance law
Section Two sets forth the effective date.
There is currently a severe shortage of affordable housing in New York and this situation is projected to continue well into the future. Along with vacancy decontrol, the privatization of projects organized under the PHFL is contributing to the further loss of affordable, rent-regulated apartments.
Under current provisions of the PHFL, shareholders in mutual companies, i.e., co-ops organized under Article II, can vote to withdraw from the Mitchell-Lama program at the expiration of any restrictive covenants or 20 years, whichever is greater.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6916 IN SENATE March 31, 2014 ___________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 finance law, in relation to when the voluntary dissolution of a mutual company shall be permitted THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 35 of the private housing finance law, as amended by chapter 229 of the laws of 1989, is amended to read as follows: 2. A company, OTHER THAN A MUTUAL COMPANY, aided by a loan made after May first, nineteen hundred fifty-nine, may voluntarily be dissolved, without the consent of the commissioner or of the supervising agency, as the case may be, not less than twenty years after the occupancy date upon the payment in full of the remaining balance of principal and interest due and unpaid upon the mortgage or mortgages and of any and all expenses incurred in effecting such voluntary dissolution. IN THE CASE OF A MUTUAL COMPANY AIDED BY A LOAN MADE AFTER MAY FIRST, NINETEEN HUNDRED FIFTY-NINE, VOLUNTARY DISSOLUTION WITHOUT THE CONSENT OF THE COMMISSIONER OR OF THE SUPERVISING AGENCY IS PERMITTED ONLY AFTER ITS MUNICIPAL TAX EXEMPTION, AND ANY GRANT OF AN EXTENSION THEREOF, SHALL HAVE EXPIRED. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13256-01-3