NY State Senate Bill 2021-S2015A

Senate Bill S2015A

2021-2022 Legislative Session

Relates to the payment of arrears for certain taxes and placing limitations on housing development fund company regulatory agreements

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 04, 2022	print number 2015a
Mar 04, 2022	amend (t) and recommit to housing, construction and community development
Jan 05, 2022	referred to housing, construction and community development
Jan 16, 2021	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2021-S2015 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§577-b & 576, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5279
2023-2024: S4965

2021-S2015 - Summary

Modifies certain eligibility requirements; extends the time period for the payment of arrears for certain taxes; places limitations on housing development fund company regulatory agreements.

2021-S2015 - Sponsor Memo

                                
 
BILL NUMBER: S2015

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to the
payment of arrears for certain taxes

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will subordinate any real estate tax arrears to a loan
obtained by the HDFC. The company is required to increase maintenance by
a minimum of 2% per year or impose assessments which ensures that the
company can pay its financial obligations.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Private Housing Finance Law to: expand eligibility
for tax forgiveness to Housing Development Fund Corporations that have
outstanding municipal real estate taxes; subordinate suspended arrears
to any loan obtained by the HDFC; and require the HDFC to increase main-

tenance charges by a minimum of 2% each year so it can meet its obli-
gations

Section 2 is the effective date.

 
JUSTIFICATION:

HPD reduced the number of city owned residential buildings and created
homes as shareholder-owned for persons and families of low-income.
Housing Development Fund Corporations (HDFCs) are multiple dwellings
located in a city with a population of one million or more and which
acquired the title to the building from the city of New York. Many have
fallen in tax arrears.

HPD is the Supervising Agency and requires the HDFC company that owns
the eligible property to sign a regulatory agreement to pay outstanding
real estate taxes, including interest and penalties.  These charges will
be suspended and eliminated if the company complies with the require-
ments of the regulatory agreement and pays all new municipal charges in
a timely fashion. This bill is needed to assist HDFC cooperatives that
have fallen behind in paying their real estate taxes.

 
LEGISLATIVE HISTORY:

2019-2020: S.5279 - Referred to Housing, Construction and Community
Development/A.6992 Referred to Housing

 
STATE AND LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2015 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2015
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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
   payment of arrears for certain taxes

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 and subparagraphs 1 and 9 of
 paragraph  (b)  of subdivision 2 of section 577-b of the private housing
 finance law, paragraph (b) of subdivision 1 as amended by chapter 225 of
 the laws of 2004 and subparagraphs 1 and 9 of paragraph (b) of  subdivi-
 sion  2  as  added  by  chapter 315 of the laws of 2002, are amended and
 paragraph (b) of subdivision 2 is amended by adding a  new  subparagraph
 4-a to read as follows:
   (b)  [on January first, two thousand two, had] HAS outstanding munici-
 pal real estate taxes relating to any PRIOR  period  [prior  to  January
 first, two thousand one].
   (1) a term of [thirty] FORTY years;
   (4-A)  THAT  SUSPENDED  ARREARS  SHALL  BE  SUBORDINATED  TO  ANY LOAN
 OBTAINED BY THE  HOUSING  DEVELOPMENT  FUND  CORPORATION  FOR  ALLOWABLE
 PURPOSES;
   (9) that the company shall be required to increase maintenance charges
 BY  A  MINIMUM  OF  TWO PERCENT PER YEAR or impose assessments to insure
 that the company can provide for its obligations.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01942-01-1

2021-S2015A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§577-b & 576, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5279
2023-2024: S4965

2021-S2015A (ACTIVE) - Summary

Modifies certain eligibility requirements; extends the time period for the payment of arrears for certain taxes; places limitations on housing development fund company regulatory agreements.

2021-S2015A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2015A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to the
payment of arrears for certain taxes and placing limitations on housing
development fund company regulatory agreements

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will subordinate any real estate tax arrears to a loan
obtained by the HDFC. The company is required to increase maintenance by
a minimum of 2% per year or impose assessments which ensures that the
company can pay its financial obligations. This bill also limits Housing
Preservation and Development's (HPD) ability to impose certain onerous
conditions in any regulatory agreement with a Housing Development Fund
Corporation (HDFC).

 
SUMMARY OF PROVISIONS:

Section 1 amends the Private Housing Finance Law to expand eligibility

for tax forgiveness to HDFCs that have outstanding municipal real estate
taxes; subordinate suspended arrears to any loan obtained by the HDFC;
and require the HDFC to increase maintenance charges by a minimum of 2%
each year so it can meet its obligations.

Section 2 adds a new subdivision 4 to Section 576 of the Private Housing
Finance Law to prohibit any regulatory agreement: (1) from requiring an
approved monitor by the commissioner or supervisory agency; (2) placing
limitations that would limit a HDFC's ability to obtain a mortgage or
comply with state statutory requirements set forth under the private
housing finance law, including but not limited to imposing sales caps on
the sale of any units within a HDFC; (3) require a HDFC to hire a
management company from an approved list by the commissioner or supervi-
sory agency; (4) requiring a shareholder, if they inherit property with-
in 100 miles, to vacate their unit in the HDFC or sell the inherited
property; (5) limiting the assets of a HDFC shareholder to 175% of the
area median income for a family of four; (6) requiring proof that a
shareholder resides in their HDFC unit more than 183 days per year; and
(7) requiring the sale of a HDFC unit to be administered through a hous-
ing portal of the commissioner or supervising agency.

Section 3 is the effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED BILL:

The amended bill includes a new section to place limitations on the
regulatory agreements imposed on HDFCs by HPD.

 
JUSTIFICATION:

HPD reduced the number of city owned residential buildings and created
homes as shareholder-owned for persons and families of low-income.
HDFCs are multiple dwellings located in a city with a population of one
million or more and which acquired the title to the building from the
city of New York. Many have fallen in tax arrears.


HPD is the supervising agency and requires the HDFC company that owns
the eligible property to sign a regulatory agreement to pay outstanding
real estate taxes, including interest and penalties.  These charges will
be suspended and eliminated if the company complies with the require-
ments of the regulatory agreement and pays all new municipal charges in
a timely fashion. However, HPD has imposed several onerous conditions on
HDFCs that would hurt more than help. This bill is needed to assist HDFC
cooperatives that have fallen behind in paying their real estate taxes.

 
LEGISLATIVE HISTORY:

2019-2020: S.5279 - Referred to Housing, Construction and Community
Development/A.6992 Referred to Housing

 
STATE AND LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2015A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2015--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  recommitted  to  the Committee on Housing,
   Construction and Community Development in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the private housing finance  law,  in  relation  to  the
   payment  of arrears for certain taxes and placing limitations on hous-
   ing development fund company regulatory agreements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 and subparagraphs 1 and 9 of
 paragraph  (b)  of subdivision 2 of section 577-b of the private housing
 finance law, paragraph (b) of subdivision 1 as amended by chapter 225 of
 the laws of 2004 and subparagraphs 1 and 9 of paragraph (b) of  subdivi-
 sion  2  as  added  by  chapter 315 of the laws of 2002, are amended and
 paragraph (b) of subdivision 2 is amended by adding a  new  subparagraph
 4-a to read as follows:
   (b)  [on January first, two thousand two, had] HAS outstanding munici-
 pal real estate taxes relating to any PRIOR  period  [prior  to  January
 first, two thousand one].
   (1) a term of [thirty] FORTY years;
   (4-A)  THAT  SUSPENDED  ARREARS  SHALL  BE  SUBORDINATED  TO  ANY LOAN
 OBTAINED BY THE  HOUSING  DEVELOPMENT  FUND  CORPORATION  FOR  ALLOWABLE
 PURPOSES;
   (9) that the company shall be required to increase maintenance charges
 BY  A  MINIMUM  OF  TWO PERCENT PER YEAR or impose assessments to insure
 that the company can provide for its obligations.
   § 2. Section 576 of the private housing  finance  law  is  amended  by
 adding a new subdivision 4 to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01942-02-2
 S. 2015--A                          2

 
   4.  NOTWITHSTANDING  ANY  PROVISION  OF LAW, RULE OR REGULATION TO THE
 CONTRARY, A REGULATORY AGREEMENT PURSUANT TO THIS SECTION SHALL NOT:
   A. INCLUDE A REQUIREMENT FOR A MONITOR APPROVED BY THE COMMISSIONER OR
 SUPERVISING AGENCY, AS THE CASE MAY BE;
   B.  PLACE ANY LIMITATIONS THAT WOULD RESTRICT THE ABILITY OF A HOUSING
 DEVELOPMENT FUND COMPANY  TO  OBTAIN  A  MORTGAGE  OR  COMPLY  WITH  THE
 PROVISIONS OF THIS CHAPTER, INCLUDING BUT NOT LIMITED TO, IMPOSING SALES
 CAPS  ON  THE  SALE  OF DWELLING UNITS WITHIN A HOUSING DEVELOPMENT FUND
 COMPANY PROJECT;
   C. REQUIRE A HOUSING DEVELOPMENT FUND COMPANY  TO  HIRE  A  MANAGEMENT
 COMPANY  FROM A LIST OF COMPANIES APPROVED BY THE COMMISSIONER OR SUPER-
 VISING AGENCY, AS THE CASE MAY BE;
   D. WHERE A SHAREHOLDER OF A HOUSING DEVELOPMENT FUND COMPANY  INHERITS
 RESIDENTIAL  PROPERTY WITHIN ONE HUNDRED MILES OF THE MUNICIPALITY WHERE
 THE HOUSING DEVELOPMENT FUND COMPANY PROJECT, REQUIRE  SUCH  SHAREHOLDER
 TO  EITHER  VACATE  THEIR  DWELLING UNIT IN THE HOUSING DEVELOPMENT FUND
 COMPANY PROJECT OR SELL SUCH INHERITED PROPERTY;
   E. LIMIT THE ASSETS OF A SHAREHOLDER OF  A  HOUSING  DEVELOPMENT  FUND
 COMPANY  TO  ONE HUNDRED SEVENTY-FIVE PERCENT OR LESS OF THE AREA MEDIAN
 INCOME FOR A FAMILY OF FOUR FOR THE COUNTY IN WHICH A PROJECT IS LOCATED
 AS CALCULATED BY THE UNITED  STATES  DEPARTMENT  OF  HOUSING  AND  URBAN
 DEVELOPMENT;
   F. REQUIRE A SHAREHOLDER TO DEMONSTRATE HE OR SHE RESIDES IN THE HOUS-
 ING DEVELOPMENT FUND COMPANY PROJECT DWELLING UNIT MORE THAN ONE HUNDRED
 EIGHTY-THREE DAYS A YEAR; OR
   G.  REQUIRE  THE SALE OF A DWELLING UNIT IN A HOUSING DEVELOPMENT FUND
 COMPANY PROJECT TO BE ADMINISTERED  THROUGH  A  HOUSING  PORTAL  OF  THE
 COMMISSIONER OR SUPERVISING AGENCY, AS THE CASE MAY BE.
   § 3. This act shall take effect immediately.

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