NY State Senate Bill 2023-S4965

Senate Bill S4965

2023-2024 Legislative Session

Relates to the payment of arrears for certain taxes and placing limitations on housing development fund company regulatory agreements

download bill text pdf

Current 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 03, 2024	referred to housing, construction and community development
Feb 17, 2023	referred to housing, construction and community development

2023-S4965 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§577-b & 576, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5279
2021-2022: S2015

2023-S4965 (ACTIVE) - Summary

Modifies certain eligibility requirements; extends the time period for the payment of arrears for certain taxes; places limitations on housing development fund company regulatory agreements.

2023-S4965 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4965

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to the
payment of arrears for certain taxes and placing limitations on housing
development fund company regulatory agreements

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will subordinate any real estate tax arrears to a loan
obtained by the HDFC. The company is required to increase maintenance by
a minimum of 2% per year or impose assessments which ensures that the
company can pay its financial obligations.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Private Housing Finance Law to: expand eligibility
for tax forgiveness to Housing Development Fund Corporations that have
outstanding municipal real estate taxes; subordinate suspended arrears
to any loan obtained by the HDFC; and require the HDFC to increase main-

tenance charges by a minimum of 2% each year so it can meet its obli-
gations

Section 2 is the effective date.

 
JUSTIFICATION:

HPD reduced the number of city owned residential buildings and created
homes as shareholder-owned for persons and families of low-income.
Housing Development Fund Corporations (HDFCs) are multiple dwellings
located in a city with a population of one million or more and which
acquired the title to the building from the city of New York. Many have
fallen in tax arrears.

HPD is the Supervising Agency and requires the HDFC company that owns
the eligible property to sign a regulatory agreement to pay outstanding
real estate taxes, including interest and penalties.  These charges will
be suspended and eliminated if the company complies with the require-
ments of the regulatory agreement and pays all new municipal charges in
a timely fashion. This bill is needed to assist HDFC cooperatives that
have fallen behind in paying their real estate taxes.

 
LEGISLATIVE HISTORY:

2021-2022: S.2015-A - Referred to Housing, Construction and Community
Development

2019-2020: S.5279 - Referred to Housing, Construction and Community
Development/A.6992 Referred to Housing

 
STATE AND LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S4965 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4965
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 17, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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 the
   payment of arrears for certain taxes and placing limitations on  hous-
   ing development fund company regulatory agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 and subparagraphs 1 and 9 of
 paragraph (b) of subdivision 2 of section 577-b of the  private  housing
 finance law, paragraph (b) of subdivision 1 as amended by chapter 225 of
 the  laws of 2004 and subparagraphs 1 and 9 of paragraph (b) of subdivi-
 sion 2 as added by chapter 315 of the laws  of  2002,  are  amended  and
 paragraph  (b)  of subdivision 2 is amended by adding a new subparagraph
 4-a to read as follows:
   (b) [on January first, two thousand two, had] HAS outstanding  munici-
 pal  real  estate  taxes  relating to any PRIOR period [prior to January
 first, two thousand one].
   (1) a term of [thirty] FORTY years;
   (4-A) THAT  SUSPENDED  ARREARS  SHALL  BE  SUBORDINATED  TO  ANY  LOAN
 OBTAINED  BY  THE  HOUSING  DEVELOPMENT  FUND  CORPORATION FOR ALLOWABLE
 PURPOSES;
   (9) that the company shall be required to increase maintenance charges
 BY A MINIMUM OF TWO PERCENT PER YEAR or  impose  assessments  to  insure
 that the company can provide for its obligations.
   §  2.  Section  576  of  the private housing finance law is amended by
 adding a new subdivision 4 to read as follows:
   4. NOTWITHSTANDING ANY PROVISION OF LAW, RULE  OR  REGULATION  TO  THE
 CONTRARY, A REGULATORY AGREEMENT PURSUANT TO THIS SECTION SHALL NOT:
   A. INCLUDE A REQUIREMENT FOR A MONITOR APPROVED BY THE COMMISSIONER OR
 SUPERVISING AGENCY, AS THE CASE MAY BE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00048-02-3

 S. 4965                             2
 
   B.  PLACE ANY LIMITATIONS THAT WOULD RESTRICT THE ABILITY OF A HOUSING
 DEVELOPMENT FUND COMPANY  TO  OBTAIN  A  MORTGAGE  OR  COMPLY  WITH  THE
 PROVISIONS OF THIS CHAPTER, INCLUDING BUT NOT LIMITED TO, IMPOSING SALES
 CAPS  ON  THE  SALE  OF DWELLING UNITS WITHIN A HOUSING DEVELOPMENT FUND
 COMPANY PROJECT;
   C.  REQUIRE  A  HOUSING  DEVELOPMENT FUND COMPANY TO HIRE A MANAGEMENT
 COMPANY FROM A LIST OF COMPANIES APPROVED BY THE COMMISSIONER OR  SUPER-
 VISING AGENCY, AS THE CASE MAY BE;
   D.  WHERE A SHAREHOLDER OF A HOUSING DEVELOPMENT FUND COMPANY INHERITS
 RESIDENTIAL PROPERTY WITHIN ONE HUNDRED MILES OF THE MUNICIPALITY  WHERE
 THE  HOUSING  DEVELOPMENT FUND COMPANY PROJECT, REQUIRE SUCH SHAREHOLDER
 TO EITHER VACATE THEIR DWELLING UNIT IN  THE  HOUSING  DEVELOPMENT  FUND
 COMPANY PROJECT OR SELL SUCH INHERITED PROPERTY;
   E.  LIMIT  THE  ASSETS  OF A SHAREHOLDER OF A HOUSING DEVELOPMENT FUND
 COMPANY TO ONE HUNDRED SEVENTY-FIVE PERCENT OR LESS OF THE  AREA  MEDIAN
 INCOME FOR A FAMILY OF FOUR FOR THE COUNTY IN WHICH A PROJECT IS LOCATED
 AS  CALCULATED  BY  THE  UNITED  STATES  DEPARTMENT OF HOUSING AND URBAN
 DEVELOPMENT;
   F. REQUIRE A SHAREHOLDER TO DEMONSTRATE HE OR SHE RESIDES IN THE HOUS-
 ING DEVELOPMENT FUND COMPANY PROJECT DWELLING UNIT MORE THAN ONE HUNDRED
 EIGHTY-THREE DAYS A YEAR; OR
   G. REQUIRE THE SALE OF A DWELLING UNIT IN A HOUSING  DEVELOPMENT  FUND
 COMPANY  PROJECT  TO  BE  ADMINISTERED  THROUGH  A HOUSING PORTAL OF THE
 COMMISSIONER OR SUPERVISING AGENCY, AS THE CASE MAY BE.
   § 3. This act shall take effect immediately.

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