New York A 1715: Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company

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A01715 Summary:

BILL NOA01715 

&nbsp

SAME ASSAME AS S00560

&nbsp

SPONSORRosenthal

&nbsp

COSPNSRReyes

&nbsp

MLTSPNSR

&nbsp

Amd §35, Priv Hous Fin L

&nbsp

Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company.

Go to top A01715 Actions:

BILL NOA01715 

&nbsp

01/14/2025referred to housing

01/07/2026referred to housing

Go to topA01715 Committee&nbspVotes:

Go to topA01715 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA01715 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1715

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 14, 2025
 ___________

 Introduced by M. of A. ROSENTHAL -- read once and referred to the
 Committee on Housing

 AN ACT to amend the private housing finance law, in relation to windfall
 profits on the dissolution or first sale of rental companies and the
 dissolution and/or reconstitution of mutual companies

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision 2 of section 35 of the private housing finance
 2 law, as amended by chapter 229 of the laws of 1989, is amended to read
 3 as follows:
 4 2. A company aided by a loan made after May first, nineteen hundred
 5 fifty-nine, may voluntarily be dissolved, sold and/or reconstituted
 6 without the consent of the commissioner or of the supervising agency, as
 7 the case may be, not less than twenty years after the occupancy date
 8 upon the payment in full of the remaining balance of principal and
 9 interest due and unpaid upon the mortgage or mortgages [and], of any and
 10 all expenses incurred in effecting such voluntary dissolution and of a
 11 transfer fee equal to seventy-five percent of the fair market value in
 12 the case of dissolution or sales price on the first sale of a rental
 13 project, or, in the case of a mutual company seventy-five percent of the
 14 sales price on each first sale thereafter for market value by a selling
 15 shareholder. The proceeds of the transfer fees are to be paid into a
 16 fund held by the New York city housing development corporation and the
 17 New York state housing finance agency for the following purposes:
 18 (a) to continue to subsidize the development for as long as the
 19 purchaser of a rental development remains in the Mitchell-Lama program;
 20 (b) for the city or state to purchase the land and to lease the land
 21 to the tenants and convert the project to a limited profit mutual compa-
 22 ny, with a ninety-nine year lease;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01716-01-5

 A. 1715 2

 1 (c) for repair loans at zero percent interest to fund necessary capi-
 2 tal improvements for as long as the company remains in the Mitchell-Lama
 3 program;
 4 (d) for each year that the company remains as a limited profit compa-
 5 ny, to forgive one-thirtieth of the principal of any repair loan each
 6 year;
 7 (e) for the subsidization of other limited profit housing companies;
 8 and
 9 (f) for the development of other affordable housing.
 10 § 2. This act shall take effect on the sixtieth day after it shall
 11 have become a law.

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