Authorizes the amendment of a contract with a neighborhood preservation company or not-for-profit company for compelling public purposes

BILL NUMBER:S5258

Title of bill

An act to amend the private housing finance law, in relation to payments by neighborhood preservation companies and not-for-profit corporations for housing preservation and community renewal, for compelling public purposes

Purpose

To allow neighborhood preservation companies and rural preservation companies to merge and provide most effective and cost effective services.

Summary of provisions

The bill amends sections 902 of the private housing finance law to provides a definition of "compelling public purpose" which encompasses the merger or consolidation of two or more neighborhood preservation companies which results in more efficient and cost effective delivery of services or the expansion of preservation activities to a an under served area. section 1002 of the private housing finance law is also amended to provide a definition of "compelling public purpose" which encompasses the merger or consolidation of two or more rural preservation companies when the newly created preservation company engages in preservation or renewal activities to under served areas lying outside the company's preexisting region. Authorizes the Division of Housing to develop regulations to implement these provisions.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

120th day after becoming law, with provisions.