S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   859

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A. BING, V. LOPEZ, BRODSKY, BENEDETTO, KAVANAGH,
  MILLMAN,  O'DONNELL,  ROSENTHAL,   REILLY,   GREENE,   CAMARA,   DIAZ,
  J. RIVERA,  BOYLAND,  CLARK, BROOK-KRASNY, TITONE, ESPAILLAT -- Multi-
  Sponsored by -- M. of A. BRENNAN, CHRISTENSEN, DINOWITZ, GLICK,  GOTT-
  FRIED,  JOHN,  KELLNER,  MARKEY,  MAYERSOHN, PHEFFER, TOWNS, WRIGHT --
  read once and referred to the Committee on Housing

AN ACT to amend the private housing finance  law,  in  relation  to  the
  supervision of certain limited profit housing companies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 7 of section 32 of the private housing  finance
law,  as  amended by chapter 550 of the laws of 1968, is amended to read
as follows:
  7. Whenever the commissioner, in the case of a company undertaking  or
otherwise operating a state-aided project, or the supervising agency, in
the  case of a company undertaking or otherwise operating a municipally-
aided project, shall be of the opinion that such company is  failing  or
omitting,  or  is about to fail or omit to do anything required of it by
law or by order of the commissioner or  is  doing  or  is  about  to  do
anything,  or  permitting anything, or is about to permit anything to be
done, contrary to and in violation of law or of any order, regulation or
directive of the commissioner or the supervising agency, as the case may
be, or which is improvident  or  prejudicial  to  the  interest  of  the
public,  the  lienholders, the stockholders, or the tenants, the commis-
sioner or the supervising agency, as the case may be, [may, in  addition
to  such  other  remedies as may be available, commence] SHALL TAKE SUCH
STEPS AS MAY BE NECESSARY AND PROPER TO EFFECT SUCH REMEDIES AS  MAY  BE
AVAILABLE. SUCH REMEDY MAY INCLUDE COMMENCING an action or proceeding in
the  supreme  court  of the state of New York in the name of the commis-
sioner or the supervising agency, as the case may be, for the purpose of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD03082-01-9

A. 859                              2

having such violations or threatened violations stopped  and  prevented,
and  in  such  action or proceeding the court may appoint a temporary or
permanent receiver or both. Such action or proceeding shall be commenced
by a petition to the supreme court, alleging the violation complained of
and  praying  for  appropriate relief. It shall thereupon be the duty of
the court to specify the time, not exceeding twenty days  after  service
of  a  copy of the petition, within which the company complained of must
answer the petition. In case of any default or after  answer  the  court
shall  immediately  inquire  into  the  facts  and circumstances in such
manner as the court shall direct without other or formal pleadings,  and
without  respect  to  any  technical requirements. Such other persons or
corporations as it shall seem to the court necessary or proper  to  join
as  parties  in  order  to  make its order or judgment effective, may be
joined as parties. The final judgment in any such action  or  proceeding
shall either dismiss the action or proceeding or direct that an order or
an  injunction,  or  both,  issue,  or  provide for the appointment of a
receiver as prayed for in the petition, and grant such other  relief  as
the court may deem appropriate.
  S 2. This act shall take effect immediately.