What's happening
This bill allows certain housing development fund companies to have a public entity as their sole corporate member under specific conditions.
Why it matters
Enables greater public oversight and involvement. by allowing housing development fund companies to be solely governed by public entities, such as housing authorities or municipal corporations, which are accountable to voters and residents.
Could streamline affordable housing development. since public entities acting as sole members may align decision-making with public housing goals, potentially speeding up project approvals or prioritizing community needs.
Provides a legal workaround to membership requirements. for certain housing corporations, making it easier for publicly-controlled entities to establish or maintain housing development fund companies without needing additional private members.
May increase transparency and stability. in the governance of housing developments, as board members (commissioners or directors) of public corporations would also oversee these housing companies, potentially reducing conflicts of interest seen in private or mixed membership structures.
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Who cares
Headline styles
Allow Public Housing as Sole Member
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.212
- 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.
Let Agencies Run Housing Boards
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Charles Lavine
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7019
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed 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.
Sponsor's memo
Title of bill
An act to amend the not-for-profit corporation law, in relation to the corporate membership of housing development fund companies and corpo- rations
Purpose or general idea of bill
Seeks to correct unintended change that prevents a housing development fund corporation from being the only member of a charitable nonprofit corporation.
Summary of provisions
Section 1 amends Paragraph (a) of section 601 of the not-for-profit law, as amended by chapter 411 of the laws of 2018 to clarify that a housing development fund company or corporation incorporated pursuant to section 573 of the private housing finance law may have a public corporation, authority, or housing company as its sole member, provided it is composed of the chair and duly appointed and elected commissioners or directors of such body.
Section 2 is the effective date.
Justification
When the original law was enacted its goal was to prevent sole individ- uals from being the only member of a charitable nonprofit corporation, this was intended to prevent an unscrupulous individual from preventing an individual member of a not for profit from using a charity for their personal benefit. Unfortunately, the drafting of this new law did not take into account housing authorities.
In order for housing authorities to take advantage of tax credits, it must form a not for profit housing development fund company organized under article XI of the Private Housing Finance Law. This not for profit status is important for the sales tax exemption. DHCR reviews proper documentation, disclosures and deliverables, reviews and at its discretion approves the formation of a specific housing development fund corporation. This formation is necessary for the successful creation and implementation of affordable housing statewide.
The existence of these charitable nonprofit corporations, was not considered under the passage of Chapter 411 of the Laws of 2018, and as such this fix is needed to protect these entities.
Prior legislative history
New Bill.
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.