What's happening
The bill restricts mutual housing companies from dissolving without oversight until after their municipal tax exemptions have expired.
Why it matters
Prevents mutual housing companies from dissolving on their own terms while still benefiting from municipal tax exemptions. , ensuring that these companies cannot exit oversight while receiving public financial support.
Closes a potential loophole that could allow mutual companies to dissolve and convert to market-rate housing. , which could lead to loss of affordable housing stock before their public benefit period (tax exemption) fully expires.
Strengthens government oversight over the fate of affordable housing. , particularly in cases where residents’ interests and long-term community affordability could be at risk if dissolution occurs prematurely.
Aligns the dissolution process for mutual companies with public investment timelines. , making sure that public subsidies (in the form of tax breaks) are fully realized before companies can make major structural changes.
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Who cares
Headline styles
Limit Mutual Company Dissolution
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
1 Multi-sponsor
History
- Referred to housing
- Referred to housing
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.
Tighten Mutual Company Dissolution
In Senate Committee · Housing, Construction And Community Development · Sponsor Marisol Alcantara
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4148
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
Introduced by M. of A. ROSENTHAL, MOSLEY, GOTTFRIED, DAVILA -- Multi- Sponsored by -- M. of A. FARRELL, ORTIZ -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to when the voluntary dissolution of a mutual company shall be permitted
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 35 of the private housing finance law, as amended by chapter 229 of the laws of 1989, is amended to read as follows:
2. A company, other than a mutual company, aided by a loan made after May first, nineteen hundred fifty-nine, may voluntarily be dissolved, without the consent of the commissioner or of the supervising agency, as the case may be, not less than twenty years after the occupancy date upon the payment in full of the remaining balance of principal and interest due and unpaid upon the mortgage or mortgages and of any and all expenses incurred in effecting such voluntary dissolution. In the case of a mutual company aided by a loan made after May first, nineteen hundred fifty-nine, voluntary dissolution without the consent of the commissioner or of the supervising agency is permitted only after its municipal tax exemption, and any grant of an extension thereof, shall have expired.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05483-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.