What's happening
This bill creates a four-year moratorium on new privatization votes for Mitchell-Lama buildings after a failed dissolution vote.
Why it matters
Protects stability for tenants. By imposing a four-year waiting period after a failed privatization vote, the bill gives residents of Mitchell-Lama buildings greater security and predictability, reducing repeated attempts that can destabilize communities and create uncertainty about their housing future.
Limits pressure on shareholders. Frequent privatization votes can lead to ongoing campaigns and pressure on shareholders—often seniors and low-income residents—to change their votes. This moratorium helps shield them from repeated lobbying and decision fatigue.
Allows for stronger local protections. The bill specifically permits cities, towns, and villages to enact even stricter rules if they choose, enabling local governments to respond to their specific housing needs and concerns.
Does not weaken other legal safeguards. The language clarifies that this new rule is in addition to, not a replacement for, any existing legal requirements, ensuring continued protection under other relevant housing laws.
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Headline styles
Pause Privatization Votes Four Years
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Pause Privatization Votes Four Years
In Assembly Committee · Housing · Sponsor Linda Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2338
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. ALCANTARA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the private housing finance law, in relation to initiating a four-year moratorium on privatization voting by Mitchell-Lama building shareholders
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. (a) In the event of a failed voluntary dissolution vote by a company subject to this article, there shall be a four-year moratorium on voluntary dissolution voting by such company.
(b) Any city, town or village may enact local laws, ordinances, resolutions or regulations not less restrictive than those provided in this subdivision.
(c) The provisions of this subdivision shall not diminish the requirements of any other law which may apply to such action.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05427-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to initiating a four-year moratorium on privatization voting by Mitchell-Lama building shareholders
Purpose or general idea of bill
The purpose of this legislation is to institute a four Year moratorium in between failed voluntary dissolution votes within limited-profit housing companies.
Summary of specific provisions
This bill would add subdivision 5 of section 35 of the private housing finance law.
Justification
Privatization votes in Mitchell-Lama developments can be contentious ordeals, and many tenants have complained of being harassed and intimidated during the voting period. The damage inflicted by this is compounded when shareholders are subject to repeated dissolution votes within short duration. These additional attempts undertaken without justifiable change in shareholder composition or situational context only serve to undermine the original decision that the corporation has reached and create relentless year-round pressure, A modest four year moratorium between voluntary dissolution votes would provide an appropriate respite and lead to a better electoral process and more hospitable climate for tenants and shareholders.
Prior legislative history
2015-2016: Referred to housing, construction and community development A.11156 of 2010
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.