S T A T E   O F   N E W   Y O R K
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                                  5477

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by  M. of A. V. LOPEZ, COOK, DINOWITZ, GREENE -- Multi-Spon-
  sored by -- M. of A.  BRENNAN, CLARK, GLICK, GOTTFRIED, JACOBS,  PRET-
  LOW, WRIGHT -- read once and referred to the Committee on Housing

AN  ACT  to  amend  the  private housing finance law, in relation to the
  dissolution and reconstitution of housing companies

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

  Section 1. Section 35 of the private housing finance law is amended by
adding a new subdivision 5 to read as follows:
  5.   (A)  UPON SUCH DISSOLUTION AND PRIOR TO RECONSTITUTION TO COOPER-
ATIVE OR CONDOMINIUM OWNERSHIP, A COMPANY AIDED BY A LOAN MADE AFTER MAY
FIRST, NINETEEN HUNDRED FIFTY-NINE SHALL ESCROW  A SUM EQUAL  TO  TWENTY
PERCENT  OF  THE  TOTAL OF ALL ACCRUED TAXES FOR WHICH TAX EXEMPTION WAS
GRANTED AND RECEIVED PURSUANT TO SECTION THIRTY-THREE OF  THIS  ARTICLE.
UPON RECONSTITUTION, THE BOARD OF DIRECTORS OR BOARD OF MANAGERS OF SUCH
COMPANY  SHALL  MAKE  AVAILABLE TO ELIGIBLE SHAREHOLDERS A LOAN EQUAL TO
THE INCREASE IN THE  TOTAL  ANNUAL  CARRYING  CHARGES  AND  ANY  SPECIAL
ASSESSMENTS ATTRIBUTABLE TO THE DISSOLUTION INCLUDING BUT NOT LIMITED TO
THE  LOSS  OF  THE  TAX EXEMPTIONS, THE MORTGAGE REFINANCING, THE TERMI-
NATION OF SURCHARGES, THE ESCROW FUND AND  ANY  OTHER  COSTS  ASSOCIATED
WITH DISSOLUTION AND RECONSTITUTION.  UPON SALE OF THEIR UNITS, ELIGIBLE
SHAREHOLDERS  SHALL  PAY  INTO  THE ESCROW FUND A SUM EQUAL TO THE TOTAL
LOAN PROVIDED TO THEM, PLUS COMPOUNDED INTEREST AT THE PREVAILING INTER-
EST RATE FOR EACH CALENDAR YEAR OF THE LOAN AS DETERMINED BY A CERTIFIED
PUBLIC ACCOUNTANT EMPLOYED BY THE COOPERATIVE CORPORATION  OR  CONDOMIN-
IUM.
  (B)  ELIGIBLE SHAREHOLDERS SHALL BE LIMITED TO THE FOLLOWING RESIDENTS
OF THE HOUSING COMPANY:
  (1)  ANY SHAREHOLDER WHO IS SIXTY-TWO YEARS OF AGE  OR  OLDER  ON  THE
DATE OF DISSOLUTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08699-01-9

              

A. 5477                             2

  (2)   ANY SHAREHOLDER WHO HAS AN IMPAIRMENT WHICH RESULTS FROM ANATOM-
ICAL, PHYSIOLOGICAL OR PSYCHOLOGICAL CONDITIONS, OTHER THAN ADDICTION TO
ALCOHOL, GAMBLING OR ANY CONTROLLED SUBSTANCE, WHICH ARE DEMONSTRATED BY
MEDICALLY ACCEPTABLE CLINICAL AND LABORATORY ACCEPTABLE TECHNIQUES,  AND
WHICH  PREVENT  THE SHAREHOLDER FROM ENGAGING IN ANY SUBSTANTIAL GAINFUL
EMPLOYMENT ON THE DATE OF DISSOLUTION.
  (3)   ANY SHAREHOLDER-HOUSEHOLD  WHERE  THE  COMBINED  INCOME  OF  ALL
MEMBERS  OF  THE HOUSEHOLD ON THE DATE OF DISSOLUTION AND RECERTIFIED TO
AT THE COMMENCEMENT OF EACH CALENDAR YEAR IS LESS THAN OR EQUAL  TO  ONE
HUNDRED  TWENTY PERCENT OF THE MEDIAN INCOME OF THE STANDARD STATISTICAL
AREA  AS DEFINED BY THE UNITED STATES CENSUS BUREAU.
  (C)  ALL ELIGIBLE SHAREHOLDERS SHALL PROVIDE TO THE COMPANY'S BOARD OF
DIRECTORS OR BOARD OF MANAGERS BY CERTIFIED  MAIL  NOTICE  OF  ELECTION.
NOTICE OF ELECTION SHALL BE MADE ON FORMS PROMULGATED BY THE DIVISION OF
HOUSING  AND COMMUNITY RENEWAL AND SHALL BE MADE AVAILABLE TO TENANTS BY
THE BOARD OF DIRECTORS OR MANAGERS.  ELIGIBLE SHAREHOLDERS SHALL RECEIVE
SAID LOANS NO LATER THAN NINETY DAYS AFTER THE DATE OF DISSOLUTION.
  (D)  WITHIN SIXTY DAYS AFTER THE END OF EACH CALENDAR YEAR,  REPAYMENT
OF ALL LOANS PLUS INTEREST AND ANY SURPLUS PRINCIPAL AND INTEREST IN THE
FUND  AS  DETERMINED  BY THE CERTIFIED PUBLIC ACCOUNTANT EMPLOYED BY THE
COOPERATIVE CORPORATION OR CONDOMINIUM SHALL BE PAID TO  A  FUND  DESIG-
NATED  BY THE STATE OR MUNICIPALITY FOR THE CONSTRUCTION OF AND/OR REHA-
BILITATION OF LOW AND MODERATE INCOME HOUSING.
  S 2.  The commissioner of housing or the supervising  agency,  as  the
case  may  be,  shall  be  authorized  to  adopt, promulgate, amend, and
rescind rules and regulations in order to implement  the  provisions  of
this act.
  S  3.    This  act  shall take effect on the one hundred twentieth day
after it shall have become a law. Effective immediately,  the  addition,
amendment  or  repeal of any rule or regulation necessary for the imple-
mentation of the foregoing sections of this act on their effective  date
are authorized to be made on or before such effective date.