What's happening
This bill amends the private housing finance law to update rules on municipal tax arrears, loan subordination, and maintenance charge increases for certain housing development fund corporations.
Why it matters
Expands eligibility for certain payment plans. by allowing more housing development fund corporations with outstanding municipal tax arrears—regardless of when the arrears originated—to access relief, not just those with debts before January 1, 2001.
Extends the payment plan period from 30 to 40 years. , reducing annual financial pressure and potentially improving long-term stability for affordable housing developments.
Allows tax arrears to be subordinated to new loans. , making it easier for these corporations to secure additional financing for repairs, improvements, or other allowable purposes, which could help preserve and upgrade affordable housing stock.
Mandates a minimum annual increase of 2% in maintenance charges or assessments. , ensuring that housing companies maintain sufficient revenue to meet their financial obligations and reducing the risk of future arrears or underfunding.
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Who cares
Headline styles
Extend Tax Payment Terms
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
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.
Make Tax Arrears Easier
In Assembly Committee · Housing · Sponsor Harvey Epstein
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5279
2019-2020 Regular Sessions
IN SENATE
April 23, 2019
Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the private housing finance law, in relation to the payment of arrears for certain taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 and subparagraphs 1 and 9 of paragraph (b) of subdivision 2 of section 577-b of the private housing finance law, paragraph (b) of subdivision 1 as amended by chapter 225 of the laws of 2004 and subparagraphs 1 and 9 of paragraph (b) of subdivision 2 as added by chapter 315 of the laws of 2002, are amended and paragraph (b) of subdivision 2 is amended by adding a new subparagraph 4-a to read as follows:
(b) [on January first, two thousand two, had] has outstanding municipal real estate taxes relating to any prior period [prior to January first, two thousand one].
(1) a term of [thirty] forty years;
(4-a) that suspended arrears shall be subordinated to any loan obtained by the housing development fund corporation for allowable purposes;
(9) that the company shall be required to increase maintenance charges by a minimum of two percent per year or impose assessments to insure that the company can provide for its obligations.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10645-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the private housing finance law, in relation to the payment of arrears for certain taxes
Purpose or general idea of bill
This bill will subordinate any real estate tax arrears to a loan obtained by the HDFC. The company is required to increase maintenance by a minimum of 2% per year or impose assessments which ensures that the company can pay its financial obligations.
Summary of provisions
Section 1 amends the private housing finance law to: expand eligibility for tax forgiveness to Housing Development Fund Corporations that have outstanding municipal real estate taxes;
-subordinate suspended arrears to any loan obtained by the HDFC
-require the HDFC to increase maintenance charges by a minimum of 2% each year so it can meet its obligations
Section 2 provides the effective date.
Justification
HPD reduced the number of city owned residential buildings and created homes as shareholder-owned for persons and families of low-income. Housing Development Fund Corporations (HDFCs) are multiple dwellings located in a city with a population of one million or more and which acquired the title to the building from the city of New York. Many have fallen in tax arrears.
HPD is the Supervising Agency and requires the HDFC company that owns the eligible property to sign a regulatory agreement to pay out standing real estate taxes, including interest and penalties. These charges will be suspended and eliminated if the company complies with the require- ments of the regulatory agreement and pays all new municipal charges in a timely fashion. This bill is needed to assist HDFC cooperatives that have fallen behind in paying their real estate taxes.
Legislative history
New bill.
Fiscal implications for state and local governments
To be determined.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.