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History
- Substituted by A2361
- Ordered to third reading cal.1428
- Committee discharged and committed to rules
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires companies aided by loans under Mitchell-Lama to notify tenants of buy out from mortgage options and a report by the commissioner or supervising agency
Senate Floor Calendar · Sponsor Vito Lopez
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to notification of tenants of pending "buy out" from mortgages by Mitchell-Lama building owners
Purpose or general idea of bill
This bill would require any housing company aided by a loan after May 1, 1959, under the auspices of the Private Housing Finance Act, to provide notice that after a certain date the law does allow the housing company to "buy-out" its mortgage and the building can revert to private ownership. Notice must be given NOT less than six months prior to the date of dissolution.
Summary of specific provisions
§35 of the Private Housing Finance Law is amended by adding a new subdivision 4.
Justification
The Limited Profit Housing Act was established to provide low-interest mortgages to builders to create affordable middle class housing. As Mitchell-Lama legislation evolved, allowances were made for these owners to "buy-out" these mortgages twenty years after initial occupancy.
Today, over one-half of all Mitchell-Lama developments have reached or are reaching this "buy-out" date which would remove them from the protective legislation that the State has established to insure that this housing stock remain affordable housing for the middle class.
Currently, the housing company can payoff the balance of its mortgage and remove itself from the program with no legal requirement to inform the tenants. This bill would require an issuance of notice allowing the tenants to address what would be a change in their rental status.
Fiscal implications
None to the state.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.