What's happening
This bill directs a study on state and local low- and middle-income housing programs and temporarily halts voluntary dissolution of certain housing companies.
Why it matters
Addresses urgent loss of affordable housing. The bill responds to a growing crisis in New York’s affordable housing stock, noting that existing low- and middle-income units are increasingly at risk of being lost due to owner-initiated dissolutions, which threatens housing access for vulnerable populations.
Creates a pause to enable policy review. By instituting a two-year moratorium on the voluntary dissolution of limited profit, limited dividend, and redevelopment housing companies, the bill prevents further erosion of affordable housing while policymakers assess the situation.
Mandates a comprehensive study and actionable recommendations. The Division of Housing and Community Renewal is tasked not just to study the condition and effectiveness of state and local housing programs, but also to propose concrete legislative changes to preserve, modernize, and expand affordable housing.
Ensures inter-agency cooperation. The bill compels all relevant state and local agencies to share data and resources with the Division of Housing and Community Renewal, aiming for a thorough and well-informed analysis that can drive effective policy solutions.
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Who cares
Headline styles
Study State Housing Programs
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
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1126
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to direct the division of housing and community renewal to study state and locally aided housing programs and make recommendations for the preservation, modernization and increase in the supply of such housing; to amend the private housing finance law, in relation to providing a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies; and providing for the repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative intent. New York state and its localities have invested for more than a half century in the creation of low and middle income housing to benefit those most in need and to the general benefit of state and local economies. In many cases such housing has fallen into disrepair or is being lost as affordable housing due to statutory provisions allowing owners to dissolve housing companies. The unmet need for affordable housing is presently greater than at any time in the state's history. A temporary moratorium on the dissolution of any housing company is necessary for the division of housing and community renewal to complete its work and make recommendations.
§ 2. The division of housing and community renewal shall undertake a comprehensive study of the present status of state and locally aided low and middle income housing programs and make recommendations with respect to the preservation, modernization and expansion of the number of housing units provided by such programs. Such recommendations shall include, but not be limited to, methods that may be employed by state and local governments to retain and expand the existing inventory of state and locally aided low and middle income housing so as to preserve such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06076-01-9
S. 1126 2
inventory of affordable housing for the persons and families such housing is designed to serve.
§ 3. The division of housing and community renewal shall make a report to the governor and the legislature of its findings, conclusions and recommendations no later than one year after the effective date of this act and shall submit with its report such legislative proposals as it deems necessary to implement its recommendations.
§ 4. To the maximum extent feasible, the division of housing and community renewal shall be entitled to request and receive and shall utilize and be provided with such facilities, resources and data of any court, department, division, board, bureau, commission or agency of the state or any political subdivision thereof as it may reasonably request to carry out properly its responsibilities pursuant to this act.
§ 5. Section 35 of the private housing finance law is amended by adding a new subdivision 5 to read as follows:
5. Notwithstanding any other provision of this section, no company shall be voluntarily dissolved, without the consent of the commissioner or supervising agency, as the case may be.
§ 6. Section 96 of the private housing finance law is amended by adding a new subdivision 3 to read as follows:
3. Notwithstanding any other provision of this section, no company shall be voluntarily dissolved or terminated, without the consent of the commissioner.
§ 7. Section 123 of the private housing finance law is amended by adding a new subdivision 8 to read as follows:
8. Notwithstanding any other provision of this section, no redevelopment company shall dissolve or terminate, without the consent of the local legislative body.
§ 8. This act shall take effect immediately; provided, that sections five, six and seven of this act shall expire and be deemed repealed twenty-four months after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to direct the division of housing and community renewal to study state and locally aided housing programs and make recommendations for the preservation, modernization and increase in the supply of such hous- ing; to amend the private housing finance law, in relation to providing a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies; and providing for the repeal of certain provisions upon expiration thereof
Purpose
This legislation would establish a temporary moratorium of twenty-four months, on the dissolution of any state or locally aided housing compa- ny, without the consent. This moratorium would enable the NYS Division of Housing and Community Renewal (DHCR) to complete its work and make recommendations
Summary of provisions
Sections 2, 3 and 4 require DHCR to conduct a study of state and locally funded low and middle income housing programs. The DHCR is required to report back to the Governor and the Legislature within one year with its findings, conclusions and recommendations and propose legislation to implement its recommendations. Including those that currently allow housing companies to withdraw from programs.
Section 5 amends Section 35 of the private housing finance law by adding a new subdivision 5 which provides that notwithstanding any provision of this section, no company shall be voluntarily dissolved without the consent of the commissioner or supervising agency, as the case may be, for twenty-four months.
Section 6 amends Section 96 of the private housing finance law by adding subdivision 3 which provides that notwithstanding any other provisions of this section, no company shall be voluntarily dissolved or termi- nated, without the consent of the commissioner for twenty-four months.
Section 7 amends Section 123 of the private housing finance law by adding subsection 8 which provides that notwithstanding any other provision of this section, no redevelopment company shall dissolve or terminate without the consent of the local legislative body for twenty- four months.
Justification
New York State is in the throes of an affordable housing crisis, with the unmet need for affordable housing presently greater than at any time in the state's history. Among other factors fueling the erosion of our affordable housing stock is the fact that thousands of Mitchell-Lama and other state and locally aided, limited equity cooperative and rental apartments are facing extinction.
For more than a half a century, New York State and its localities have invested in the creation of low and middle income housing to benefit those most in need, as well as to benefit state and local economies. However, in many cases, such housing has fallen into disrepair or is being rendered unaffordable due to statutory provisions allowing owners to dissolve such housing companies without reimbursing the government for the enhanced value made possible by its contributions.
This legislation would establish a temporary moratorium, expiring at the end of 2012, on the dissolution of any state or locally aided housing company, without governmental consent. This moratorium would enable the DHCR to complete its work and make recommendations to the Legislature.
When the moratorium it establishes expires, New York State will have a blueprint for the preservation, modernization, and expansion of such affordable developments now and into the future.
Legislative history
2017-18: S.802 2015-2016: S.3611 2010: S.2171/A.9969 2009: S.2171/A.6706
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take effect immediately, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.