What's happening
This bill allows housing development fund companies to have certain public entities as their sole member, composed of their leadership.
Why it matters
Enables public entities—such as housing authorities or municipal corporations—to be the sole member of a housing development fund company. , provided the entity’s leadership (the chair and commissioners or directors) make up the company’s membership. This could streamline governance and align the fund company more closely with public housing goals.
Bypassing the usual three-person minimum membership rule for these specific public-entity-sponsored housing companies could make it easier for local governments or public agencies to create and control affordable housing initiatives. , without the need to involve outside individuals or organizations as members.
Could result in more efficient decision-making and oversight for housing projects developed by these entities. , since the same officials who lead the public corporation or authority would directly control the housing development fund company, potentially improving accountability and coherence in project management.
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Who cares
Housing development fund companies and corporations
Those incorporated under section 573 of the Private Housing Finance Law could have a qualifying public entity or housing company as their sole member under a new exception to existing membership rules.
Federal and state housing authorities
They could serve as sole members of these housing development fund entities if the entities are composed of the authority’s chair and duly appointed and elected commissioners or directors.
Public corporations, municipal corporations and housing companies
They would also be eligible to serve as sole members, subject to the same requirement that their chair and commissioners or directors compose the housing development fund entity.
Headline styles
Let Agencies Run Housing Boards
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
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.
Allow Public Housing as Sole Member
In Senate Committee · Rules · Sponsor Anna Kaplan
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9711
IN ASSEMBLY
February 6, 2020
Introduced by M. of A. LAVINE -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the not-for-profit corporation law, in relation to the corporate membership of housing development fund companies and corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of section 601 of the not-for-profit corporation law, as amended by chapter 411 of the laws of 2018, is amended to read as follows:
(a) A corporation shall have one or more classes of members, or, in the case of a charitable corporation, may have no members, in which case any such provision for classes of members or for no members shall be set forth in the certificate of incorporation or the by-laws. Corporations, joint-stock associations, unincorporated associations and partnerships, as well as any other person without limitation, may be members, provided however, that effective July first, two thousand nineteen, no corporation except a corporation that has no members, shall have a membership comprised of fewer than three persons. A corporation may have a corporation, joint-stock association, unincorporated association or partnership as a sole member, if such corporation, joint-stock association, unincorporated association or partnership is owned or controlled by no fewer than three persons. Notwithstanding any other provision of law set forth in this paragraph, a housing development fund company or corporation incorporated pursuant to section five hundred seventy-three of the private housing finance law may have a public corporation, authority (whether federal or state housing authority), municipal corporation or housing company as its sole member, provided such housing development fund company or corporation is composed of the chair and the duly appointed and elected commissioners or directors of such public corporation, authority, municipal corporation or housing company.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14202-01-9
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.