Initiates a four year moratorium on privatization voting by Mitchell-Lama building shareholders

BILL NUMBER:A11156

Title of bill

An act to amend the private housing finance law, in relation to initiating a four-year moratorium on privatization voting by Mitchell-Lama building shareholders

Purpose or general idea of bill

The purpose of this legislation is to institute a four Year moratorium in between failed voluntary dissolution votes within limited-profit housing companies.

Summary of specific provisions

This bill would add subdivision 5 of section 35 of the private housing finance law.

Justification

Privatization votes in Mitchell-Lama developments can be contentious ordeals, and many tenants have complained of being harassed and intimidated during the voting period. The damage inflicted by this is compounded when shareholders are subject to repeated dissolution votes within short duration. These additional attempts undertaken with- out justifiable change in shareholder composition or situational context only serve to undermine the original decision that the corporation has reached and create relentless year-round pressure, A modest four year moratorium between voluntary dissolution votes would provide an appro- priate respite and lead to a better electoral process and more hospita- ble climate for tenants and shareholders.

Prior legislative history

None

Fiscal implications

None.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law.