What's happening
This bill restricts mutual housing companies from dissolving without consent until after their municipal tax exemptions have expired.
Why it matters
Protects long-term housing affordability. By preventing mutual housing companies from dissolving before their municipal tax exemptions expire, the bill aims to preserve affordability for residents who benefit from these exemptions, limiting the risk of sudden rent increases or displacement.
Ensures public investment yields intended benefits. The restriction helps guarantee that public subsidies, like property tax exemptions, achieve their full intended purpose over their entire term, rather than allowing companies to dissolve early and potentially convert properties to market-rate use.
Adds oversight and community stability. Requiring mutual housing companies to wait until tax benefits end (unless they obtain official consent) introduces a layer of oversight, which can discourage speculative conversions and promote housing stability for existing tenants.
Distinguishes between company types. The bill creates a meaningful legal distinction between mutual and non-mutual housing companies, signaling that mutual companies—often resident-controlled—have added responsibilities to maintain affordability tied to public support.
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Who cares
Headline styles
Allow Mutual Company Dissolution
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to housing
- Referred to housing
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1172
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. L. ROSENTHAL, MOSLEY, GOTTFRIED, DAVILA -- Multi-Sponsored by -- M. of A. 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.
LBD03131-01-9
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.