Bill Text: NY S06488 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to the supervision of certain limited profit housing companies.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2022-06-03 - COMMITTED TO RULES [S06488 Detail]

Download: New_York-2021-S06488-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6488

                               2021-2022 Regular Sessions

                    IN SENATE

                                       May 3, 2021
                                       ___________

        Introduced  by Sen. KAVANAGH -- 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
          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:

     1    Section  1. Subdivision 7 of section 32 of the private housing finance
     2  law, as amended by chapter 550 of the laws of 1968, is amended  to  read
     3  as follows:
     4    7.  Whenever the commissioner, in the case of a company undertaking or
     5  otherwise operating a state-aided project, or the supervising agency, in
     6  the case of a company undertaking or otherwise operating a  municipally-
     7  aided  project,  shall be of the opinion that such company is failing or
     8  omitting, or is about to fail or omit to do anything required of  it  by
     9  law  or  by  order  of  the  commissioner  or is doing or is about to do
    10  anything, or permitting anything, or is about to permit anything  to  be
    11  done, contrary to and in violation of law or of any order, regulation or
    12  directive of the commissioner or the supervising agency, as the case may
    13  be,  or  which  is  improvident  or  prejudicial  to the interest of the
    14  public, the lienholders, the stockholders, or the tenants,  the  commis-
    15  sioner  or the supervising agency, as the case may be, [may, in addition
    16  to such other remedies as may be available, commence]  shall  take  such
    17  steps,  as may be necessary and proper to effect such remedies as may be
    18  available. Such remedy may include commencing an action or proceeding in
    19  the supreme court of the state of New York in the name  of  the  commis-
    20  sioner or the supervising agency, as the case may be, for the purpose of
    21  having  such  violations or threatened violations stopped and prevented,
    22  and in such action or proceeding the court may appoint  a  temporary  or
    23  permanent receiver or both. Such action or proceeding shall be commenced
    24  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.
                                                                   LBD00789-01-1
        S. 6488                             2

     1  and  praying  for  appropriate relief. It shall thereupon be the duty of
     2  the court to specify the time, not exceeding twenty days  after  service
     3  of  a  copy of the petition, within which the company complained of must
     4  answer  the  petition.  In case of any default or after answer the court
     5  shall immediately inquire into  the  facts  and  circumstances  in  such
     6  manner  as the court shall direct without other or formal pleadings, and
     7  without respect to any technical requirements.  Such  other  persons  or
     8  corporations  as  it shall seem to the court necessary or proper to join
     9  as parties in order to make its order  or  judgment  effective,  may  be
    10  joined  as  parties. The final judgment in any such action or proceeding
    11  shall either dismiss the action or proceeding or direct that an order or
    12  an injunction, or both, issue, or  provide  for  the  appointment  of  a
    13  receiver  as  prayed for in the petition, and grant such other relief as
    14  the court may deem appropriate.
    15    § 2. This act shall take effect immediately.