What's happening
This bill requires a 75% transfer fee on certain Mitchell-Lama housing sales or dissolutions, using proceeds to support affordable housing and related subsidies.
Why it matters
Targets windfall profits from Mitchell-Lama housing transitions. by imposing a substantial 75% transfer fee, which could significantly deter speculative sales and prioritize long-term affordability over short-term gain.
Creates a dedicated fund for affordable housing efforts. , ensuring that money from these transfer fees is reinvested directly into supporting Mitchell-Lama developments, repair loans, and broader affordable housing initiatives.
Provides mechanisms to keep developments affordable. , such as subsidizing ongoing participation in the Mitchell-Lama program, offering zero-interest repair loans, and incentivizing limited-profit models with loan forgiveness tied to continued affordability.
Empowers public entities (NYC Housing Development Corporation and NYS Housing Finance Agency). to steward these funds, potentially increasing government oversight and strategic investment in preserving and expanding affordable housing options.
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Tax Windfall Housing Sales
Plain English, a few words. Used as the page title.
Sponsors
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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.
Tax Windfall Rental Sales
In Senate Committee · Housing, Construction And Community Development · Sponsor Liz Krueger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
932
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to windfall profits on the dissolution or first sale of rental companies and the dissolution and/or reconstitution of mutual companies
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 aided by a loan made after May first, nineteen hundred fifty-nine, may voluntarily be dissolved, sold and/or reconstituted 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 and of a transfer fee equal to seventy-five percent of the fair market value in the case of dissolution or sales price on the first sale of a rental project, or, in the case of a mutual company seventy-five percent of the sales price on each first sale thereafter for market value by a selling shareholder. The proceeds of the transfer fees are to be paid into a fund held by the New York city housing development corporation and the New York state housing finance agency for the following purposes:
(a) to continue to subsidize the development for as long as the purchaser of a rental development remains in the Mitchell-Lama program;
(b) for the city or state to purchase the land and to lease the land to the tenants and convert the project to a limited profit mutual company, with a ninety-nine year lease;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03238-01-9
A. 932 2
(c) for repair loans at zero percent interest to fund necessary capital improvements for as long as the company remains in the Mitchell-Lama program;
(d) for each year that the company remains as a limited profit company, to forgive one-thirtieth of the principal of any repair loan each year;
(e) for the subsidization of other limited profit housing companies; and
(f) for the development of other affordable housing.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
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.