Bill Text: NY A05477 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the private housing finance law, in relation to the dissolution and reconstitution of housing companies

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2010-01-06 - referred to housing [A05477 Detail]

Download: New_York-2009-A05477-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5477
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 13, 2009
                                      ___________
       Introduced  by  M. of A. V. LOPEZ, COOK, DINOWITZ, GREENE -- Multi-Spon-
         sored by -- M. of A.  BRENNAN, CLARK, GLICK, GOTTFRIED, JACOBS,  PRET-
         LOW, WRIGHT -- read once and referred to the Committee on Housing
       AN  ACT  to  amend  the  private housing finance law, in relation to the
         dissolution and reconstitution of housing companies
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 35 of the private housing finance law is amended by
    2  adding a new subdivision 5 to read as follows:
    3    5.   (A)  UPON SUCH DISSOLUTION AND PRIOR TO RECONSTITUTION TO COOPER-
    4  ATIVE OR CONDOMINIUM OWNERSHIP, A COMPANY AIDED BY A LOAN MADE AFTER MAY
    5  FIRST, NINETEEN HUNDRED FIFTY-NINE SHALL ESCROW  A SUM EQUAL  TO  TWENTY
    6  PERCENT  OF  THE  TOTAL OF ALL ACCRUED TAXES FOR WHICH TAX EXEMPTION WAS
    7  GRANTED AND RECEIVED PURSUANT TO SECTION THIRTY-THREE OF  THIS  ARTICLE.
    8  UPON RECONSTITUTION, THE BOARD OF DIRECTORS OR BOARD OF MANAGERS OF SUCH
    9  COMPANY  SHALL  MAKE  AVAILABLE TO ELIGIBLE SHAREHOLDERS A LOAN EQUAL TO
   10  THE INCREASE IN THE  TOTAL  ANNUAL  CARRYING  CHARGES  AND  ANY  SPECIAL
   11  ASSESSMENTS ATTRIBUTABLE TO THE DISSOLUTION INCLUDING BUT NOT LIMITED TO
   12  THE  LOSS  OF  THE  TAX EXEMPTIONS, THE MORTGAGE REFINANCING, THE TERMI-
   13  NATION OF SURCHARGES, THE ESCROW FUND AND  ANY  OTHER  COSTS  ASSOCIATED
   14  WITH DISSOLUTION AND RECONSTITUTION.  UPON SALE OF THEIR UNITS, ELIGIBLE
   15  SHAREHOLDERS  SHALL  PAY  INTO  THE ESCROW FUND A SUM EQUAL TO THE TOTAL
   16  LOAN PROVIDED TO THEM, PLUS COMPOUNDED INTEREST AT THE PREVAILING INTER-
   17  EST RATE FOR EACH CALENDAR YEAR OF THE LOAN AS DETERMINED BY A CERTIFIED
   18  PUBLIC ACCOUNTANT EMPLOYED BY THE COOPERATIVE CORPORATION  OR  CONDOMIN-
   19  IUM.
   20    (B)  ELIGIBLE SHAREHOLDERS SHALL BE LIMITED TO THE FOLLOWING RESIDENTS
   21  OF THE HOUSING COMPANY:
   22    (1)  ANY SHAREHOLDER WHO IS SIXTY-TWO YEARS OF AGE  OR  OLDER  ON  THE
   23  DATE OF DISSOLUTION.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08699-01-9
       A. 5477                             2
    1    (2)   ANY SHAREHOLDER WHO HAS AN IMPAIRMENT WHICH RESULTS FROM ANATOM-
    2  ICAL, PHYSIOLOGICAL OR PSYCHOLOGICAL CONDITIONS, OTHER THAN ADDICTION TO
    3  ALCOHOL, GAMBLING OR ANY CONTROLLED SUBSTANCE, WHICH ARE DEMONSTRATED BY
    4  MEDICALLY ACCEPTABLE CLINICAL AND LABORATORY ACCEPTABLE TECHNIQUES,  AND
    5  WHICH  PREVENT  THE SHAREHOLDER FROM ENGAGING IN ANY SUBSTANTIAL GAINFUL
    6  EMPLOYMENT ON THE DATE OF DISSOLUTION.
    7    (3)   ANY SHAREHOLDER-HOUSEHOLD  WHERE  THE  COMBINED  INCOME  OF  ALL
    8  MEMBERS  OF  THE HOUSEHOLD ON THE DATE OF DISSOLUTION AND RECERTIFIED TO
    9  AT THE COMMENCEMENT OF EACH CALENDAR YEAR IS LESS THAN OR EQUAL  TO  ONE
   10  HUNDRED  TWENTY PERCENT OF THE MEDIAN INCOME OF THE STANDARD STATISTICAL
   11  AREA  AS DEFINED BY THE UNITED STATES CENSUS BUREAU.
   12    (C)  ALL ELIGIBLE SHAREHOLDERS SHALL PROVIDE TO THE COMPANY'S BOARD OF
   13  DIRECTORS OR BOARD OF MANAGERS BY CERTIFIED  MAIL  NOTICE  OF  ELECTION.
   14  NOTICE OF ELECTION SHALL BE MADE ON FORMS PROMULGATED BY THE DIVISION OF
   15  HOUSING  AND COMMUNITY RENEWAL AND SHALL BE MADE AVAILABLE TO TENANTS BY
   16  THE BOARD OF DIRECTORS OR MANAGERS.  ELIGIBLE SHAREHOLDERS SHALL RECEIVE
   17  SAID LOANS NO LATER THAN NINETY DAYS AFTER THE DATE OF DISSOLUTION.
   18    (D)  WITHIN SIXTY DAYS AFTER THE END OF EACH CALENDAR YEAR,  REPAYMENT
   19  OF ALL LOANS PLUS INTEREST AND ANY SURPLUS PRINCIPAL AND INTEREST IN THE
   20  FUND  AS  DETERMINED  BY THE CERTIFIED PUBLIC ACCOUNTANT EMPLOYED BY THE
   21  COOPERATIVE CORPORATION OR CONDOMINIUM SHALL BE PAID TO  A  FUND  DESIG-
   22  NATED  BY THE STATE OR MUNICIPALITY FOR THE CONSTRUCTION OF AND/OR REHA-
   23  BILITATION OF LOW AND MODERATE INCOME HOUSING.
   24    S 2.  The commissioner of housing or the supervising  agency,  as  the
   25  case  may  be,  shall  be  authorized  to  adopt, promulgate, amend, and
   26  rescind rules and regulations in order to implement  the  provisions  of
   27  this act.
   28    S  3.    This  act  shall take effect on the one hundred twentieth day
   29  after it shall have become a law. Effective immediately,  the  addition,
   30  amendment  or  repeal of any rule or regulation necessary for the imple-
   31  mentation of the foregoing sections of this act on their effective  date
   32  are authorized to be made on or before such effective date.