senate Bill S508

2013-2014 Legislative Session

Authorizes study of housing programs for low and middle income families

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to housing, construction and community development
Jan 09, 2013 referred to housing, construction and community development

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S508 - Bill Details

See Assembly Version of this Bill:
A616
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Private Housing Finance Law
Laws Affected:
Amd §§35, 96 & 123, Priv Hous Fin L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1309A, A1890
2009-2010: S2171, A9969

S508 - Bill Texts

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Authorizes the state division of housing and community renewal to study housing programs for low and middle income families, and provides for a moratorium on the voluntary dissolution of limited profit, limited dividend and redevelopment housing companies.

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BILL NUMBER:S508

TITLE OF BILL:
An act
authorizing the New York state division of housing and community
renewal
to study state and locally aided
housing programs and make recommendations for the preservation,
modernization, and increase in the supply of such housing; to amend the
private housing finance law, in relation to providing a moratorium on
the voluntary dissolution of limited profit, limited dividend
and redevelopment housing
companies; and
providing for the repeal of certain provisions upon the expiration
thereof

PURPOSE:
This legislation would establish a temporary moratorium, expiring at
the end of 2013, on the dissolution of any state or locally aided
housing company, without the consent. This moratorium would enable
the NYS Division of Housing and Community Renewal (DHCR) to complete
its work and make recommendations

SUMMARY OF PROVISIONS:
Sections 2, 3 and 4 requires DHCR to conduct a study of state and
locally funded low and middle income housing programs. The DHCR is
required to report back to the Governor and the Legislature within
one year with its findings, conclusions and recommendations and
propose legislation to implement its recommendations. Including those
that currently allow housing companies to withdraw from programs.

Section 5 amends Section 35 of the private housing finance law by
adding a new subdivision 5 which provides that notwithstanding any
provision of this section, no company shall be voluntarily dissolved
without the consent of the commissioner or supervising agency, as the
case may be, until December 31, 2013.

Section 6 amends Section 96 of the private housing finance law by
adding subdivision 3 which provides that notwithstanding any other
provisions of this section, no company shall be voluntarily dissolved
or terminated, without the consent of the commissioner until December
31, 2013.

Section 7 amends Section 123 of the private housing finance law by
adding subsection 8 which provides that notwithstanding any other
provision of this section, no redevelopment company shall dissolve or
terminate without the consent of the local legislative body until
December 31, 2013.

JUSTIFICATION:
New York State is in the throes of an affordable housing crisis, with
the unmet need for affordable housing presently greater than at any
time in the state's history. Among other factors fueling the erosion
of our affordable housing stock is the fact that thousands of
Mitchell-Lama and other state and locally aided, limited equity
cooperative and rental apartments are facing extinction.


For more than a half a century, New York State and its localities have
invested in the creation of low and middle income housing to benefit
those most in need, as well as to benefit state and local economies.
However, in many cases, such housing has fallen into disrepair or is
being rendered unaffordable due to statutory provisions allowing
owners to dissolve such housing companies without reimbursing the
government for the enhanced value made possible by its contributions.

This legislation would establish a temporary moratorium, expiring at
the end of 2012, on the dissolution of any state or locally aided
housing company, without governmental consent. This moratorium would
enable the DHCR to complete its work and make recommendations to the
Legislature.

When the moratorium it establishes expires, New York State will have a
blueprint for the preservation, modernization, and expansion of such
affordable developments now and into the future.

LEGISLATIVE HISTORY:
2010: S.2171/A.9969 (Died in Senate Housing/Died in Assembly Housing)
2009: S.2171/A.6706 (Died in Senate Rules/Died in Assembly Housing)

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions

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

                                   508

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT authorizing the New York state division of housing and  community
  renewal  to  study  state  and locally aided housing programs and make
  recommendations for the preservation, modernization, and  increase  in
  the  supply of such housing; to amend the private housing finance law,
  in relation to providing a moratorium on the voluntary dissolution  of
  limited  profit, limited dividend and redevelopment housing companies;
  and providing for the repeal of certain provisions upon the expiration
  thereof

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

  Section  1.  New  York state and its localities have invested for more
than a half century in the creation of low and middle income housing  to
benefit those most in need and to the general benefit of state and local
economies.  In  many  cases such housing has fallen into disrepair or is
being lost as affordable housing due to  statutory  provisions  allowing
owners  to  dissolve  housing  companies.  The unmet need for affordable
housing is presently greater than at any time in the state's history.  A
temporary moratorium on the dissolution of any housing company is neces-
sary for the New York state division of housing and community renewal to
complete its work and make recommendations.
  S  2.  The division of housing and community renewal shall undertake a
comprehensive study of the present status of state and locally aided low
and middle income housing programs and make recommendations with respect
to the preservation, modernization, and expansion of the number of hous-
ing units provided by such programs. Such recommendations shall include,
but not be limited to, methods that may be employed by state  and  local
governments  to  retain  and  expand the existing inventory of state and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02543-01-3

S. 508                              2

locally aided low and middle income  housing  so  as  to  preserve  such
inventory  of affordable housing for the persons and families such hous-
ing is designed to serve.
  S 3. The division of housing and community renewal shall make a report
to  the  governor  and  the legislature of its findings, conclusions and
recommendations no later than one year after the effective date of  this
act  and  shall  submit with its report such legislative proposals as it
deems necessary to implement its recommendations.
  S 4. To the maximum extent  feasible,  the  division  of  housing  and
community  renewal  shall  be  entitled to request and receive and shall
utilize and be provided with such facilities, resources and data of  any
court,  department, division, board, bureau, commission or agency of the
state or any political subdivision thereof as it may reasonably  request
to carry out properly its responsibilities pursuant to this act.
  S  5.  Section  35  of  the  private housing finance law is amended by
adding a new subdivision 5 to read as follows:
  5. NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SECTION,  NO  COMPANY
SHALL  BE VOLUNTARILY DISSOLVED, WITHOUT THE CONSENT OF THE COMMISSIONER
OR SUPERVISING AGENCY, AS THE CASE MAY BE, ON  OR  AFTER  THE  EFFECTIVE
DATE OF THIS SUBDIVISION.
  S  6.  Section  96  of  the  private housing finance law is amended by
adding a new subdivision 3 to read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SECTION,  NO  COMPANY
SHALL BE VOLUNTARILY DISSOLVED OR TERMINATED, WITHOUT THE CONSENT OF THE
COMMISSIONER, ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S  7.  Section  123  of  the private housing finance law is amended by
adding a new subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO  REDEVELOP-
MENT  COMPANY  SHALL  DISSOLVE  OR TERMINATE, WITHOUT THE CONSENT OF THE
LOCAL LEGISLATIVE BODY, ON OR AFTER THE EFFECTIVE DATE OF THIS  SUBDIVI-
SION.
  S  8.  This act shall take effect immediately; provided, that sections
five, six and seven of this act shall  expire  and  be  deemed  repealed
December  31,  2014.    Effective  immediately,  the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date is authorized to be made on or  before
such effective date.

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