S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3508
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the private housing finance law, in relation  to  limit-
   ed-profit housing companies in a city with a population of one million
   or more
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 28 of the private housing finance law is amended by
 adding a new subdivision 4 to read as follows:
   4. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS  ARTICLE  OR
 OF  ANY  OTHER  PROVISION  OF  GENERAL,  SPECIAL OR LOCAL LAW, A COMPANY
 (OTHER THAN A MUTUAL COMPANY) THAT OPERATES A MUNICIPALLY-AIDED  PROJECT
 IN A CITY WITH A POPULATION OF ONE MILLION OR MORE AND THAT IS OTHERWISE
 AUTHORIZED  TO PAY DIVIDENDS UPON ITS SHARES OR INTEREST UPON ITS INCOME
 DEBENTURES MAY, WITH THE APPROVAL OF THE SUPERVISING  AGENCY,  PAY  SUCH
 DIVIDENDS OR INTEREST IN EXCESS OF SIX PERCENT PER ANNUM.
   (B)  ON  AND AFTER THE DATE OF THE APPROVAL OF SUCH EXCESS DIVIDEND OR
 INTEREST BY THE SUPERVISING AGENCY PURSUANT TO  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION, THE PROVISIONS OF SECTION THIRTY-ONE OF THIS ARTICLE RELAT-
 ING  TO  THE VARIATION OF RENTAL RATES OF DWELLING UNITS IN SUCH MUNICI-
 PALLY-AIDED PROJECT SHALL NOT APPLY AND RENTAL RATES OF  DWELLING  UNITS
 MAY  BE  INCREASED  ANNUALLY  BY SUCH COMPANY, WITHOUT PUBLIC HEARING OR
 FURTHER APPROVAL BY THE SUPERVISING AGENCY, IN THE AMOUNT AUTHORIZED  BY
 THE RENT GUIDELINES BOARD ESTABLISHED PURSUANT TO THE RENT STABILIZATION
 LAW OF NINETEEN HUNDRED SIXTY-NINE FOR RENT STABILIZED DWELLING UNITS.
   (C) THIS SUBDIVISION SHALL NOT APPLY TO A COMPANY WITH A MORTGAGE LOAN
 INSURED OR HELD BY THE FEDERAL GOVERNMENT.
   §  2.  The  private  housing  finance  law  is amended by adding a new
 section 35-a to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07754-01-1

              

 A. 3508                             2
 
   § 35-A. DISSOLUTION OF CERTAIN RENTAL HOUSING COMPANIES.  1.  FOR  THE
 PURPOSES  OF  THIS  SECTION, THE FOLLOWING TERMS SHALL HAVE THE MEANINGS
 SET FORTH BELOW:
   (A)  "AFFECTED  DEVELOPMENT"  SHALL  MEAN  HOUSING  ACCOMMODATIONS (I)
 LOCATED IN A CITY WITH A POPULATION OF ONE  MILLION  OR  MORE,  (II)  IN
 BUILDINGS  COMPLETED  OR BUILDINGS SUBSTANTIALLY REHABILITATED AS FAMILY
 UNITS ON OR AFTER JANUARY  FIRST,  NINETEEN  HUNDRED  SEVENTY-FOUR,  AND
 (III)  OPERATED  PRIOR  TO  THE DISSOLUTION DATE AS A RENTAL DEVELOPMENT
 PURSUANT TO THIS ARTICLE.
   (B) "AFFECTED DWELLING UNIT" SHALL MEAN HOUSING IN AN AFFECTED  DEVEL-
 OPMENT.
   (C)  "AFFECTED  HOUSING  COMPANY"  SHALL MEAN A LIMITED-PROFIT HOUSING
 COMPANY WITH AN AFFECTED DEVELOPMENT.
   (D) "DISSOLUTION DATE" SHALL MEAN, WITH RESPECT TO ANY AFFECTED DEVEL-
 OPMENT, THE DATE OF THE DISSOLUTION OR RECONSTITUTION  OF  THE  AFFECTED
 HOUSING COMPANY WITH SUCH AFFECTED DEVELOPMENT PURSUANT TO SECTION THIR-
 TY-FIVE OF THIS ARTICLE.
   (E)  "VOUCHER  RECIPIENT"  SHALL MEAN A TENANT IN AN AFFECTED DWELLING
 UNIT WHO RECEIVES ENHANCED VOUCHER ASSISTANCE PURSUANT  TO  THE  VOUCHER
 ACT FOR SUCH PERIOD AS SUCH TENANT RECEIVES SUCH ASSISTANCE.
   (F) "VOUCHER UNIT" SHALL MEAN AN AFFECTED DWELLING UNIT THAT IS AT ANY
 TIME  OCCUPIED  BY A VOUCHER RECIPIENT, FOR SUCH PERIOD AS SUCH AFFECTED
 DWELLING UNIT IS OCCUPIED BY A VOUCHER RECIPIENT.
   (G) "MARKET UNIT" SHALL MEAN AN AFFECTED  DWELLING  UNIT  THAT  IS  NO
 LONGER  SUBJECT TO THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-
 NINE AND THE EMERGENCY TENANT PROTECTION ACT  OF  NINETEEN  SEVENTY-FOUR
 BECAUSE IT HAS BEEN DECONTROLLED PURSUANT TO THE TERMS OF APPLICABLE LAW
 OR PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   (H)  "VACATED UNIT" SHALL MEAN AN AFFECTED DWELLING UNIT, OTHER THAN A
 VOUCHER UNIT OR A MARKET UNIT, THAT IS NO LONGER OCCUPIED BY THE  TENANT
 WHO  OCCUPIED SUCH UNIT ON THE DISSOLUTION DATE OR BY THE LAWFUL SUCCES-
 SORS IN INTEREST OF SUCH TENANT.
   (I) "FULLY TAXABLE UNITS" SHALL MEAN, WITH RESPECT TO  ANY  TAX  YEAR,
 ALL  AFFECTED  UNITS  THAT  WERE  VOUCHER UNITS, MARKET UNITS OR VACATED
 UNITS ON THE TAXABLE STATUS DATE OF SUCH TAX YEAR.
   (J) "PARTIALLY TAXABLE UNITS" SHALL MEAN,  WITH  RESPECT  TO  ANY  TAX
 YEAR, ALL AFFECTED UNITS WHICH WERE NOT FULLY TAXABLE UNITS ON THE TAXA-
 BLE STATUS DATE OF SUCH TAX YEAR.
   (K) "VOUCHER ACT" SHALL MEAN SECTION 8(T) OF THE UNITED STATES HOUSING
 ACT  OF NINETEEN THIRTY-SEVEN, AS AMENDED, OR ANY SUCCESSOR STATUTE, AND
 ANY REGULATIONS PROMULGATED THEREUNDER.
   2. NOTWITHSTANDING ANY PROVISION TO THE  CONTRARY  CONTAINED  IN  THIS
 ARTICLE,  AND  NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR
 LOCAL LAW, AFTER THE DISSOLUTION DATE, AFFECTED DWELLING UNITS SHALL  BE
 FULLY  SUBJECT  TO THE PROVISIONS OF THE RENT STABILIZATION LAW OF NINE-
 TEEN HUNDRED SIXTY-NINE AND THE EMERGENCY TENANT PROTECTION ACT OF NINE-
 TEEN SEVENTY-FOUR.
   (A) THE INITIAL LEGAL REGULATED RENT FOR ANY  AFFECTED  DWELLING  UNIT
 FOLLOWING THE DISSOLUTION DATE SHALL BE THE LAST RENT AUTHORIZED FOR THE
 AFFECTED  DWELLING  UNIT BEFORE THE DISSOLUTION DATE, WHICH SHALL NOT BE
 SUBJECT TO ADJUSTMENT PURSUANT TO SUBDIVISION A OF SECTION 26-513 OF THE
 ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR SUBDIVISION A OF  SECTION
 NINE  OF SECTION FOUR OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
 SEVENTY-FOUR.
   (B) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, THE
 LEGAL REGULATED RENT FOR A VOUCHER UNIT SHALL BE EQUAL  TO  THE  MAXIMUM

 A. 3508                             3
 
 RENT  AUTHORIZED  AND APPROVED IN CONNECTION WITH THE FEDERAL ASSISTANCE
 PROVIDED TO THE VOUCHER RECIPIENT OCCUPYING SUCH  VOUCHER  UNIT.  IF  AN
 AFFECTED  DWELLING  UNIT WHICH WAS A VOUCHER UNIT CEASES TO BE A VOUCHER
 UNIT  AT  ANY TIME OR FOR ANY REASON, EXCEPT FOR THOSE REASONS SPECIFIED
 IN SUBDIVISION THREE OF THIS SECTION, THE INITIAL LEGAL  REGULATED  RENT
 FOR SUCH AFFECTED DWELLING UNIT FOLLOWING SUCH CHANGE IN STATUS SHALL BE
 EQUAL  TO THE SUM OF (I) THE LAST RENT AUTHORIZED BEFORE THE DISSOLUTION
 DATE, PLUS (II) ANY ADJUSTMENTS TO SUCH RENT AUTHORIZED BY  LAW  BETWEEN
 THE  DISSOLUTION  DATE  AND THE DATE UPON WHICH SUCH UNIT CEASED TO BE A
 VOUCHER UNIT.
   3. NOTWITHSTANDING ANY PROVISION OF  THIS  SECTION  TO  THE  CONTRARY,
 WHERE AN AFFECTED DEVELOPMENT CONTAINS DWELLING UNITS WHICH ARE ELIGIBLE
 FOR AND RECEIVE ENHANCED VOUCHER ASSISTANCE PURSUANT TO THE VOUCHER ACT,
 ANY  SUCH  DWELLING UNIT IN SUCH AFFECTED DEVELOPMENT SHALL BE DEEMED TO
 BE A MARKET UNIT AND NOT SUBJECT TO THE RENT STABILIZATION LAW OF  NINE-
 TEEN HUNDRED SIXTY-NINE AND THE EMERGENCY TENANT PROTECTION ACT OF NINE-
 TEEN  SEVENTY-FOUR  FOR  THE DURATION OF SUCH TENANCY IF: (A) THE TENANT
 RESIDING IN SUCH DWELLING UNIT AS  OF  THE  DISSOLUTION  DATE  FAILS  TO
 SUBMIT ALL OF THE REQUIRED DOCUMENTATION FOR THE INITIAL APPLICATION FOR
 ENHANCED  VOUCHER  ASSISTANCE PURSUANT TO THE VOUCHER ACT, (B) A VOUCHER
 RECIPIENT RESIDING IN SUCH DWELLING UNIT FAILS TO  SUBMIT  THE  REQUIRED
 DOCUMENTATION FOR RECERTIFICATION FOR ENHANCED VOUCHER ASSISTANCE PURSU-
 ANT  TO  THE  VOUCHER  ACT,  OR (C) A VOUCHER RECIPIENT RESIDING IN SUCH
 DWELLING UNIT VIOLATES, THROUGH ACTION OR INACTION, THE REQUIREMENTS  OF
 THE  VOUCHER  ACT.  UPON  THE FIRST VACANCY OF AN AFFECTED DWELLING UNIT
 WHICH BECOMES A MARKET RATE UNIT  PURSUANT  TO  THIS  SUBDIVISION,  SUCH
 AFFECTED  DWELLING  UNIT SHALL BE FULLY SUBJECT TO THE PROVISIONS OF THE
 RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE AND THE  EMERGENCY
 TENANT  PROTECTION  ACT  OF NINETEEN SEVENTY-FOUR, AND THE INITIAL LEGAL
 REGULATED RENT FOR SUCH AFFECTED DWELLING UNIT FOLLOWING SUCH CHANGE  IN
 STATUS  SHALL BE EQUAL TO THE SUM OF (I) THE LAST RENT AUTHORIZED BEFORE
 THE DISSOLUTION DATE, PLUS (II) ANY ADJUSTMENTS TO SUCH RENT  AUTHORIZED
 BY  LAW  BETWEEN  THE DISSOLUTION DATE AND THE DATE UPON WHICH SUCH UNIT
 CEASES TO BE A MARKET UNIT.
   4. NOTWITHSTANDING ANY PROVISION TO THE  CONTRARY  CONTAINED  IN  THIS
 ARTICLE,  AND  NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR
 LOCAL LAW, AFTER THE DISSOLUTION DATE, ANY PARTIAL EXEMPTION  FROM  REAL
 PROPERTY  TAXATION  GRANTED TO THE REAL PROPERTY IN AN AFFECTED DEVELOP-
 MENT PURSUANT TO SECTION THIRTY-THREE OF  THIS  ARTICLE  SHALL  CONTINUE
 WITH RESPECT TO ANY PARTIALLY TAXABLE UNITS, BUT ANY FULLY TAXABLE UNITS
 SHALL BE SUBJECT TO FULL REAL PROPERTY TAXATION.
   5. THIS SECTION SHALL NOT APPLY TO AN AFFECTED DEVELOPMENT IF: (A) THE
 OWNER  AND  A  DULY  RECOGNIZED  TENANTS  ASSOCIATION  EXECUTE A WRITTEN
 SETTLEMENT AGREEMENT ON OR BEFORE THE DISSOLUTION  DATE,  AND  (B)  SUCH
 WRITTEN  SETTLEMENT  AGREEMENT SPECIFIES THE RESPECTIVE RIGHTS AND OBLI-
 GATIONS OF THE TENANTS AND OWNER SUBSEQUENT TO THE DISSOLUTION DATE.
   § 3. If any clause, sentence, paragraph, section or part of  this  act
 shall  be adjudged by any court of competent jurisdiction to be invalid,
 such judgment shall not affect,  impair,  or  invalidate  the  remainder
 thereof, but shall be confined in its operation to the clause, sentence,
 paragraph,  section or part thereof directly involved in the controversy
 in which judgment shall have been rendered.
   § 4. This act shall take effect immediately; provided,  however,  that
 section  two  of this act shall apply to any affected development with a
 dissolution date on or after the effective date of this act.