S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    592
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation to windfall
   profits on the dissolution or first sale of rental companies  and  the
   dissolution and/or reconstitution of mutual companies

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, 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 aided by a loan made after May  first,  nineteen  hundred
 fifty-nine,  may  voluntarily  be  dissolved,  SOLD AND/OR RECONSTITUTED
 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 AND  OF  A
 TRANSFER  FEE  EQUAL TO SEVENTY-FIVE PERCENT OF THE FAIR MARKET VALUE IN
 THE CASE OF DISSOLUTION OR SALES PRICE ON THE FIRST  SALE  OF  A  RENTAL
 PROJECT, OR, IN THE CASE OF A MUTUAL COMPANY SEVENTY-FIVE PERCENT OF THE
 SALES  PRICE ON EACH FIRST SALE THEREAFTER FOR MARKET VALUE BY A SELLING
 SHAREHOLDER. THE PROCEEDS OF THE TRANSFER FEES ARE TO  BE  PAID  INTO  A
 FUND  HELD  BY THE NEW YORK CITY HOUSING DEVELOPMENT CORPORATION AND THE
 NEW YORK STATE HOUSING FINANCE AGENCY FOR THE FOLLOWING PURPOSES:
   (A) TO CONTINUE TO SUBSIDIZE  THE  DEVELOPMENT  FOR  AS  LONG  AS  THE
 PURCHASER OF A RENTAL DEVELOPMENT REMAINS IN THE MITCHELL-LAMA PROGRAM;
   (B)  FOR  THE CITY OR STATE TO PURCHASE THE LAND AND TO LEASE THE LAND
 TO THE TENANTS AND CONVERT THE PROJECT TO A LIMITED PROFIT MUTUAL COMPA-
 NY, WITH A NINETY-NINE YEAR LEASE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00873-01-3
 A. 592                              2
 
              

   (C) FOR REPAIR LOANS AT ZERO PERCENT INTEREST TO FUND NECESSARY  CAPI-
 TAL IMPROVEMENTS FOR AS LONG AS THE COMPANY REMAINS IN THE MITCHELL-LAMA
 PROGRAM;
   (D)  FOR EACH YEAR THAT THE COMPANY REMAINS AS A LIMITED PROFIT COMPA-
 NY, TO FORGIVE ONE-THIRTIETH OF THE PRINCIPAL OF ANY  REPAIR  LOAN  EACH
 YEAR;
   (E)  FOR  THE SUBSIDIZATION OF OTHER LIMITED PROFIT HOUSING COMPANIES;
 AND
   (F) FOR THE DEVELOPMENT OF OTHER AFFORDABLE HOUSING.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.