NY State Senate Bill 2025-S7181

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 03, 2025	referred to housing, construction and community development

2025-S7181 (ACTIVE) - Details

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 Other Legislative Sessions:: 2009-2010: S2171
2011-2012: S1309
2013-2014: S508
2015-2016: S3611
2017-2018: S802
2019-2020: S1126
2021-2022: S580, S8100
2023-2024: S5063

2025-S7181 (ACTIVE) - Summary

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

2025-S7181 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7181

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to direct the 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 hous-
ing; 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 expiration thereof

 
PURPOSE:

This legislation would establish a temporary moratorium of twenty-four
months, on the dissolution of any state or locally aided housing compa-
ny, 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 require 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,
for twenty-four months.

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 termi-
nated, without the consent of the commissioner for twenty-four months.

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 for twenty-
four months.

 
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:

2017-18: S.802

2015-2016: S.3611

2010: S.2171/A.9969

2009: S.2171/A.6706

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None

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

2025-S7181 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7181
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 3, 2025
                                ___________
 
 Introduced  by  Sen.  CLEARE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT to direct the 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 expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent.  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 hous-
 ing company is necessary for  the  division  of  housing  and  community
 renewal to complete its work and make recommendations.
   §  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
 locally  aided  low  and  middle  income  housing so as to preserve such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11517-01-5
 S. 7181                             2

 
 inventory of affordable housing for the persons and families such  hous-
 ing is designed to serve.
   § 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.
   § 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.
   §  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.
   § 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.
   § 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.
   §  8.  This act shall take effect immediately; provided, that sections
 five, six and seven of this act shall  expire  and  be  deemed  repealed
 twenty-four months after it shall have become a law.

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Senate Bill S7181

Sponsored By

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

2025-S7181 (ACTIVE) - Details

2025-S7181 (ACTIVE) - Summary

2025-S7181 (ACTIVE) - Sponsor Memo

2025-S7181 (ACTIVE) - Bill Text download pdf

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Sponsored By

Cordell Cleare

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

2025-S7181 (ACTIVE) - Details

2025-S7181 (ACTIVE) - Summary

2025-S7181 (ACTIVE) - Sponsor Memo

2025-S7181 (ACTIVE) - Bill Text download pdf

Comments