Notify Tenants of Mortgage Buyouts

Section 1. Section 35 of the private housing finance law is amended by adding three new subdivisions 5, 6 and 7 to read as follows:

5. (a) Any company which intends to dissolve or otherwise take any action which would cause the company to no longer be subject to supervision of the commissioner or the supervising agency shall provide to every person that currently has a lease for housing in the project of such company, notice not less than twelve months prior to the anticipated date of such action containing the following information in plain language:

(i) the nature of the action which the company intends to take;

(ii) the date on which such action is anticipated to take place;

(iii) the provisions of law or regulation pursuant to which such action is authorized; and

(iv) a summary of the potential consequences of such action, including, but not limited to, its effect on the following:

(1) ownership of the project;

(2) supervision of the project;

(3) expenses of the project, which shall include but not be limited to taxes and other municipal charges;

(4) rents; and

(5) any governmental approvals or authorization, if any, necessary for such action to occur, including information setting forth the governmental body that would need to issue such approval or authorization and the dates by which such approval or authorization would be required.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD04464-01-5

(b) Any city, town or village may enact local laws, ordinances, resolutions or regulations provided that such enactments are more stringent or restrictive than those provided in this subdivision.

(c) The provisions of this subdivision shall not diminish the requirements of any other law which may apply to such action.

6. Within three months of receipt of a notice of intent to buy out as provided in subdivision five of this section, the commissioner or supervising agency shall prepare and make available to all tenants of the project and to their designated representative a report which provides the following information relating to the tenants of the project. The information shall be presented in an easily understandable summary format and shall be broken down according to household probable aggregate annual income in five thousand dollar intervals (e.g. $0 - $4,999: $5,000 - $9,999: etc.) and shall include:

(a) The total number of dwellings and tenants in each income range;

(b) The number of dwellings in each income range occupied by a tenant or tenants who are sixty-two years of age or older and the number of such tenants;

(c) The number of dwellings in each income range occupied by a tenant or tenants who receive any form of rental assistance, the type of assistance and number of tenants receiving such assistance; and

(d) The number of dwellings in each income range occupied by a tenant or tenants who have an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent the tenant from engaging in any substantial gainful employment and the number of such tenants.

7. Any company that serves a notice pursuant to subdivision five of this section shall provide the commissioner or supervising agency with all available information to enable the commissioner or supervising agency to prepare the foregoing report. Such information shall be annexed to the notice served upon the commissioner or supervising agency. A notice shall not be deemed effective if it does not include the available required information.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.