New York S 560: 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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S00560 Summary:

BILL NOS00560 

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SAME ASSAME AS A01715

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SPONSORKRUEGER

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COSPNSRBAILEY, HOYLMAN-SIGAL, LIU, SERRANO, STAVISKY

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MLTSPNSR

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Amd §35, Priv Hous Fin L

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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 S00560 Actions:

BILL NOS00560 

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01/08/2025REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

01/07/2026REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

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 STATE OF NEW YORK
 ________________________________________________________________________

 560

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. KRUEGER, BAILEY, HOYLMAN-SIGAL, LIU, SERRANO, STAVI-
 SKY -- read twice and ordered printed, and when printed to be commit-
 ted to the Committee on Housing, Construction and Community Develop-
 ment

 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;

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

 S. 560 2

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

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