NY State Senate Bill 2009-S4455

Senate Bill S4455

2009-2010 Legislative Session

Limits voluntary dissolution of Mitchell-Lama company to after expiration of full term of the mortgage

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Apr 23, 2009	referred to housing, construction and community development

2009-S4455 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §35, Priv Hous Fin L

2009-S4455 (ACTIVE) - Summary

Limits voluntary dissolution of Mitchell-Lama company (limited profit housing projects) after expiration of full term of the mortgage.

2009-S4455 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4455

 TITLE OF BILL :
An act to amend the private housing finance law,  in relation to
voluntary dissolution of a limited-profit housing company


 PURPOSE :
To safeguard residents of limited profit housing projects by providing
that voluntary dissolution may occur only when the full term of the
mortgage has expired.

 SUMMARY OF PROVISIONS :
Subdivision 2 of Section 35 of the Private Housing Finance Law is
amended to prohibit a mortgage buyout or dissolution of the company
before the full term of the mortgage has expired.

 JUSTIFICATION :
In enacting the Mitchell-Lama program, the Legislature attempted to
remedy a serious shortage of decent housing by providing affordable
rental or cooperative housing for persons in the state whose incomes
were too high for public housing but not high enough to afford housing
developed through private enterprise.

Currently, there are many Mitchell-Lama buildings, with several
thousand apartments where the owners claim the right to "buyout" their

mortgages, dissolve the Mitchell-Lama company and remove the buildings
from Mitchell-Lama and its regulations -- this under a current
provision of law which allows mortgage "buyouts" after 20 years of
occupancy. The tenants in these buildings fear that if such events
were to occur, the landlords might try to raise the rents to
insupportable levels. As a result, thousands of tenants may be forced
to either pay the price demanded for the apartment or seek new homes
outside their neighborhoods. Should this situation occur, the original
purpose of the Mitchell-Lama housing would be defeated. This
legislation is necessary to protect and maintain the program's
original purpose to create decent homes and stable neighborhoods.
Prohibiting the mortgage buyout or dissolution of the company before
the full term of the mortgage (usually 40 years) would certainly
provide security for Mitchell-Lama residents.

 LEGISLATIVE HISTORY :
2006: Referred to Housing, Construction and Community Development
2007: Referred to Housing, Construction and Community Development
2008: Referred to Housing, Construction and Community Development

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S4455 (ACTIVE) - Bill Text download pdf

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

                                  4455

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 23, 2009
                               ___________

Introduced  by  Sen. SCHNEIDERMAN -- read twice and ordered printed, and
  when printed to be committed to the Committee on Housing, Construction
  and Community Development

AN ACT to amend the private housing finance law,  in relation to  volun-
  tary dissolution of a limited-profit housing company

  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, 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 BUT NOT BEFORE THE FULL TERM OF THE MORTGAGE
HAS EXPIRED.
  S 2.  This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11345-01-9

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