NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A389
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the private housing finance law, in relation to initiat-
ing a four-year moratorium on privatization voting by Mitchell-Lama
building shareholders
PURPOSE::
This bill institutes a four-year moratorium in between failed voluntary
dissolution votes within limited-profit housing companies.
SUMMARY OF SPECIFIC PROVISIONS::
Section one amends section 35 of the private housing finance law by
adding a new subdivision 5.
Section two sets forth the effective date.
JUSTIFICATION::
Privatization votes in Mitchell-Lama developments can be contentious
ordeals, and many tenants have complained of being harassed and intim-
idated during the voting period. The damage inflicted by this is
compounded when shareholders are subject to repeated dissolution votes
within short duration. These additional attempts undertaken without
justifiable-change in shareholder composition or situational context
only serve to undermine the original decision that the corporation has
reached and create relentless year-round pressure, a modest four year
moratorium between voluntary dissolution votes would provide an appro-
priate respite and lead to a better electoral process and more hospita-
ble climate for tenants and shareholders.
LEGISLATIVE HISTORY::
2021-22: A.542 - Referred to Housing
2019-20: A.1105 - Referred to Housing
2017-18: A.3199 - Referred to Housing; S.2338 - Referred to Housing,
Construction and Community Development
2015-16: A.560 - Referred to Housing; S.3590 Referred to Housing,
Construction and Community Development
2013-14: A.700 - Referred to Housing; S.1830 Referred to Housing,
Construction and Community Development
2011-12: A.1467 - Referred to Housing; S3258 - Referred to Housing,
Construction and Community Development
2009-10: A.11156 - Referred to Housing
FISCAL IMPLICATIONS::
None to the State.
EFFECTIVE DATE::
This bill shall take effect on the ninetieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
389
2023-2024 Regular Sessions
IN ASSEMBLY
January 9, 2023
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to amend the private housing finance law, in relation to initiat-
ing a four-year moratorium on privatization voting by Mitchell-Lama
building shareholders
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 35 of the private housing finance law is amended by
2 adding a new subdivision 5 to read as follows:
3 5. (a) In the event of a failed voluntary dissolution vote by a compa-
4 ny subject to this article, there shall be a four-year moratorium on
5 voluntary dissolution voting by such company.
6 (b) Any city, town or village may enact local laws, ordinances, resol-
7 utions or regulations not less restrictive than those provided in this
8 subdivision.
9 (c) The provisions of this subdivision shall not diminish the require-
10 ments of any other law which may apply to such action.
11 § 2. This act shall take effect on the ninetieth day after it shall
12 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00753-01-3
