What's happening
This bill requires mutual housing companies in New York City to offer to repurchase shares from shareholders before dissolution and provide rent-stabilized leases for those units.
Why it matters
Protects residents from sudden displacement. By requiring mutual housing companies to offer to repurchase shares and provide rent-stabilized leases before dissolution, the bill gives shareholders more time and options, reducing the risk of immediate loss of housing in New York City’s high-cost market.
Locks in initial rent levels. The initial rent for affected units is set at the last “carrying charge” (the monthly maintenance fee paid by co-op shareholders) before dissolution, preventing sudden rent hikes and offering financial predictability for those opting into the rent-stabilized lease.
Creates a pathway out of rent regulation. The rent-stabilized status for these units ends upon the first vacancy, balancing tenant protection with eventual market-rate turnover and addressing concerns about the permanent expansion of regulated housing stock.
Influences future housing conversions. The legislation could set a precedent for how other limited-equity co-ops or affordable housing programs handle dissolution, potentially affecting investor decision-making and the landscape of affordable housing preservation efforts in NYC.
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Who cares
Headline styles
Protect Mutual Housing Shareholders
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
2 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
734
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. L. ROSENTHAL, BENEDETTO, COOK, JAFFEE -- Multi- Sponsored by -- M. of A. GLICK, PERRY -- 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.
LBD04619-01-9
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.