S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6488
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                May 3, 2021
                                ___________
 
 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 the
   supervision 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. Subdivision 7 of section 32 of the private housing finance
 law, as amended by chapter 550 of the laws of 1968, is amended  to  read
 as follows:
   7.  Whenever the commissioner, in the case of a company undertaking or
 otherwise operating a state-aided project, or the supervising agency, in
 the case of a company undertaking or otherwise operating a  municipally-
 aided  project,  shall be of the opinion that such company is failing or
 omitting, or is about to fail or omit to do anything required of  it  by
 law  or  by  order  of  the  commissioner  or is doing or is about to do
 anything, or permitting anything, or is about to permit anything  to  be
 done, contrary to and in violation of law or of any order, regulation or
 directive of the commissioner or the supervising agency, as the case may
 be,  or  which  is  improvident  or  prejudicial  to the interest of the
 public, the lienholders, the stockholders, or the tenants,  the  commis-
 sioner  or the supervising agency, as the case may be, [may, in addition
 to such other remedies as may be available, commence]  SHALL  TAKE  SUCH
 STEPS,  AS MAY BE NECESSARY AND PROPER TO EFFECT SUCH REMEDIES AS MAY BE
 AVAILABLE. SUCH REMEDY MAY INCLUDE COMMENCING an action or proceeding in
 the supreme court of the state of New York in the name  of  the  commis-
 sioner or the supervising agency, as the case may be, for the purpose of
 having  such  violations or threatened violations stopped and prevented,
 and in such action or proceeding the court may appoint  a  temporary  or
 permanent receiver or both. Such action or proceeding shall be commenced
 by a petition to the supreme court, alleging the violation complained of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00789-01-1

 S. 6488                             2
 
 and  praying  for  appropriate relief. It shall thereupon be the duty of
 the court to specify the time, not exceeding twenty days  after  service
 of  a  copy of the petition, within which the company complained of must
 answer  the  petition.  In case of any default or after answer the court
 shall immediately inquire into  the  facts  and  circumstances  in  such
 manner  as the court shall direct without other or formal pleadings, and
 without respect to any technical requirements.  Such  other  persons  or
 corporations  as  it shall seem to the court necessary or proper to join
 as parties in order to make its order  or  judgment  effective,  may  be
 joined  as  parties. The final judgment in any such action or proceeding
 shall either dismiss the action or proceeding or direct that an order or
 an injunction, or both, issue, or  provide  for  the  appointment  of  a
 receiver  as  prayed for in the petition, and grant such other relief as
 the court may deem appropriate.
   § 2. This act shall take effect immediately.