Assembly Bill A1222

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

                                  1222

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of  A. BING, V. LOPEZ, BENEDETTO, KAVANAGH, MILLMAN,
  ROSENTHAL, REILLY, CAMARA, J. RIVERA,  BOYLAND,  CLARK,  BROOK-KRASNY,
  TITONE,  SPANO,  GIBSON, CASTRO, BARRON, PHEFFER -- Multi-Sponsored by
  -- M. of A. AUBRY, BRENNAN, COOK, DINOWITZ, FARRELL, GLICK, GOTTFRIED,
  KELLNER, MARKEY, MAYERSOHN, M. MILLER, ORTIZ, PERRY, 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.
              

                                                           LBD00649-01-1

A. 1222                             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.