Authorizes study of housing programs for low and middle income families; provides for a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies

8 Co-sponsors

• Carl Kruger
• Pedro Espada Jr.
• Ruth Hassell-Thompson
• José Peralta
• Diane J. Savino
• Eric T. Schneiderman
• José M. Serrano
• Martin Malavé Dilan

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 2010, 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, 2010.

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, 2010.

Section 7 amends Section 96 of the private housing finance law to provide that notwithstanding any other provision of this section, no company shall be voluntarily dissolved or terminate without the consent of the local legislative body until December 31, 2010.

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 2010, 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

New bill.

Fiscal implications

None.

Local fiscal implications

None.

Effective date

This act shall take effect immediately.