S T A T E O F N E W Y O R K
________________________________________________________________________
56
2023-2024 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 4, 2023
___________
Introduced by M. of A. L. ROSENTHAL, SEAWRIGHT, SIMON, REYES, COOK --
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00965-01-3
A. 56 2
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.
§ 2. This act shall take effect immediately.