NY State Senate Bill 2021-S6324

Senate Bill S6324

2021-2022 Legislative Session

Prohibits certain limited-profit housing companies from voluntarily dissolving during the state disaster emergency declared in response to the outbreak of COVID-19

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
Jan 05, 2022	referred to housing, construction and community development
Apr 21, 2021	referred to housing, construction and community development

2021-S6324 (ACTIVE) - Details

See Assembly Version of this Bill:: A5420
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Housing

2021-S6324 (ACTIVE) - Summary

Prohibits certain limited-profit housing companies from voluntarily dissolving or semi-privatizing during the state disaster emergency declared pursuant to executive order 202 of 2020 in response to the outbreak of novel coronavirus, COVID-19.

2021-S6324 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6324

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act in relation to prohibiting certain limited-profit housing compa-
nies from voluntarily dissolving during the state disaster emergency
declared in response to the outbreak of COVID-19

 
PURPOSE:

To prohibit "Mitchell-Lama" cooperatives from voluntary dissolving,
semi-privatizing, or engaging in related actions or proceedings during
the COVID-19 state disaster emergency period.

 
SUMMARY OF PROVISIONS:

Section one requires that, notwithstanding any provision of law to the
contrary, no company or urban rental company, as defined by section 12
of the private housing finance law, shall be dissolved, undergo semi-
privatization, or initiate related actions or proceedings.

Section two sets forth the effective date.

 
JUSTIFICATION:

Current law provides that limited profit housing companies may voluntar-
ily alter their organizational structure in a manner sometimes called
"semi-privatization" or "buy out" of the Mitchell-Lama Program entirely
if they meet certain requirements.  This legislation will place a mora-
torium on these processes during the state disaster emergency declared
in response to the COVID-19 outbreak to protect New Yorkers from
displacement during a public health emergency and its immediate fallout
and to aid the State in its efforts to prevent the spread of COVID-19.

In addition to protecting public health, the moratorium will ensure that
fundamental changes that affect the rights and obligations of sharehold-
ers of Mitchell-Lama cooperatives are not carried out during a period
when the pandemic imposes significant barriers to effective and trans-
parent resident and shareholder engagement.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6324 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6324
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 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 in relation to prohibiting certain limited-profit housing compa-
   nies from voluntarily dissolving during the state  disaster  emergency
   declared in response to the outbreak of COVID-19
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 1.  Notwithstanding any provision of law to  the  contrary,
 no company or urban rental company, as such terms are defined in section
 12  of  the  private housing finance law, shall be dissolved pursuant to
 the provisions of section 35 of such law or shall undergo  semi-privati-
 zation pursuant to 28 RCNY 3-14(i)(15), or shall initiate any actions or
 proceedings  related to dissolution or semi-privatization, including but
 not limited to, conducting a vote  to  authorize  a  feasibility  study;
 submitting  a  preliminary  offering  plan  to  the attorney general for
 approval; distributing a  preliminary  offering  plan  to  shareholders;
 distributing  a  final offering plan or proxy statement to shareholders;
 submitting a notice of intent to dissolve to the commissioner of housing
 or supervising agency; committing, promising, or expending funds in  any
 way  for  the  purposes of dissolution or semi-privatization; or holding
 any of the required notice meetings during the state disaster  emergency
 declared  pursuant  to  executive order 202 of 2020 in response  to  the
 outbreak of novel coronavirus, COVID-19.
   2. As used in this act, the term "semi-privatization" means dissolving
 as a mutual housing company and transferring the property to  a  housing
 development fund company organized pursuant to article XI of the private
 housing finance law.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07630-02-1

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