What's happening
This bill requires mutual housing companies in New York City to offer to repurchase shareholders' shares before dissolution and provides rent-stabilized leases to those who sell.
Why it matters
Provides an exit option for shareholders. By requiring mutual housing companies to offer to repurchase shares before dissolution, the bill gives residents a chance to cash out their investment, potentially offering financial stability or flexibility during a major change.
Protects tenants' housing stability. Residents who sell their shares are guaranteed a rent-stabilized lease (for one or two years), helping to prevent sudden displacement and preserving affordability in a volatile housing market.
Limits future rent increases. The law sets the initial rent for these new leases at the prior carrying charges (plus surcharges, if any), rather than allowing landlords to set new, potentially higher rents, thereby shielding tenants from immediate rent hikes.
Ensures long-term affordability only for current residents. Units become deregulated after the first vacancy, meaning these protections apply only to the original shareholder-occupants, not to future tenants, which may have implications for long-term affordability in the building.
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Who cares
New York City mutual housing companies
The bill would require them to offer to repurchase all shareholders’ shares at least 90 days before dissolution or reconstitution.
Shareholders who sell their shares back
They would be offered a one- or two-year lease with rent-stabilization protections and an initial regulated rent equal to their last authorized carrying charges, including any surcharges.
Rent-regulated housing advocates
The bill would extend rent regulation to these apartments but end those protections at the first vacancy if the bill is their sole basis for regulation.
Headline styles
Protect NYC Mutual Shareholders
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
3 Multi-sponsors
History
- Referred to housing
- Referred to housing
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5195
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
Introduced by M. of A. ROSENTHAL, BENEDETTO, COOK, JAFFEE -- Multi-Sponsored by -- M. of A. FARRELL, GLICK, PERRY, TITONE -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to mutual companies in a city with a population of one million or more
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 35 of the private housing finance law is amended by adding a new subdivision 5 to read as follows:
5. Notwithstanding any inconsistent provision of this article or of any other provision of general, special or local law, a mutual company that operates a project in a city with a population of one million or more, must, at least ninety days before the date of its dissolution or reconstitution pursuant to this section, make an offer to all of its shareholders to repurchase their shares in such mutual company. A shareholder who elects to sell his or her shares back to such mutual company shall be offered a one-year or a two-year lease for his or her dwelling unit to commence upon the date of such dissolution or reconstitution, and such dwelling unit shall be fully subject to the provisions of the rent stabilization law of nineteen hundred sixty-nine and the emergency tenant protection act of nineteen seventy-four. The initial legal regulated rent for any such dwelling unit following the dissolution date shall be the last carrying charges authorized for such dwelling unit before the dissolution date, including surcharges, if any, and shall not be subject to adjustment pursuant to subdivision a of section 26-513 of the administrative code of the city of New York. Any such dwelling unit which is subject to rent regulation solely by virtue of this subdivision shall be decontrolled upon the first vacancy thereof.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05088-01-7
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.