What's happening
This bill requires mutual housing companies to wait until their municipal tax exemptions expire before they can dissolve without agency consent.
Why it matters
Ensures continued affordability. By requiring mutual housing companies to maintain their municipal tax exemptions before they can dissolve without agency consent, the bill helps keep these properties affordable for residents for a longer period.
Prevents premature privatization. The amendment closes a loophole that might have allowed mutual companies to dissolve and convert to market-rate housing while still benefiting from public tax breaks, protecting public investment in affordable housing.
Strengthens oversight and accountability. By tying dissolution to the expiration of tax benefits, the measure reinforces the role of state and municipal agencies in overseeing the transition of these properties, helping prevent sudden changes that could harm tenants.
Protects public resources. The bill ensures that mutual housing projects provide the public benefits (like affordable housing) intended in exchange for their tax exemptions for the full duration of those exemptions, preventing potential losses to the community.
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Who cares
Headline styles
Tighten Mutual Company Dissolution Rules
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to housing
- Referred to housing
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
881
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. ROSENTHAL, DAVILA, EPSTEIN -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to when the voluntary dissolution of a mutual company shall be permitted
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 35 of the private housing finance law, as amended by chapter 229 of the laws of 1989, is amended to read as follows:
2. A company, other than a mutual company, aided by a loan made after May first, nineteen hundred fifty-nine, may voluntarily be dissolved, without the consent of the commissioner or of the supervising agency, as the case may be, not less than twenty years after the occupancy date upon the payment in full of the remaining balance of principal and interest due and unpaid upon the mortgage or mortgages and of any and all expenses incurred in effecting such voluntary dissolution. In the case of a mutual company aided by a loan made after May first, nineteen hundred fifty-nine, voluntary dissolution without the consent of the commissioner or of the supervising agency is permitted only after its municipal tax exemption, and any grant of an extension thereof, shall have expired.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03221-01-5
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.