S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1297
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2019
                                ___________
 
 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  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02604-01-9

 A. 1297                             2
 
 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.
   § 2. This act shall take effect immediately.