NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A189
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the private housing finance law, in relation to the
supervision of certain limited profit housing companies
PURPOSE:
This bill improves the supervision and regulation of Mitchell-Lama hous-
ing.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the subdivision 7 of section 32 of the private hous-
ing finance law.
Section two sets forth the effective date.
JUSTIFICATION:
Mitchell-Lama housing advocates have called for this simple change in
the law because agencies currently have too much discretion in deciding
whether or not to remedy critical problems. Since supervising agencies
are not required to demand that violations are fixed, building owners
have taken this as a sign that their unlawful actions will be tolerated
and overlooked. This proposed law would not handcuff agencies or owners
by requiring specific actions; it merely demands that the problems are
resolved. The requirement that the agency "shall" pursue violations will
remedy current violations and serve as a deterrent to future malfea-
sance.
LEGISLATIVE HISTORY:
2023-23: A.56 - Referred to Housing
2021-22: A.233 - Ordered to Third Reading; S.6488 - Passed Senate
2019-20: A.1297 - Advanced to Third Reading
2017-18: A.3577 - Referred to Housing
2015-16: A.585 - Referred to Housing
2013-14: A.344 - Referred to Housing
2011-12: A.8606 - Referred to Housing
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
189
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. ROSENTHAL, SEAWRIGHT, SIMON, REYES, COOK, RAGA --
read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to the
supervision of certain limited profit housing companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 7 of section 32 of the private housing finance
2 law, as amended by chapter 550 of the laws of 1968, is amended to read
3 as follows:
4 7. Whenever the commissioner, in the case of a company undertaking or
5 otherwise operating a state-aided project, or the supervising agency, in
6 the case of a company undertaking or otherwise operating a municipally-
7 aided project, shall be of the opinion that such company is failing or
8 omitting, or is about to fail or omit to do anything required of it by
9 law or by order of the commissioner or is doing or is about to do
10 anything, or permitting anything, or is about to permit anything to be
11 done, contrary to and in violation of law or of any order, regulation or
12 directive of the commissioner or the supervising agency, as the case may
13 be, or which is improvident or prejudicial to the interest of the
14 public, the lienholders, the stockholders, or the tenants, the commis-
15 sioner or the supervising agency, as the case may be, [may, in addition
16 to such other remedies as may be available, commence] shall take such
17 steps, as may be necessary and proper to effect such remedies as may be
18 available. Such remedy may include commencing an action or proceeding in
19 the supreme court of the state of New York in the name of the commis-
20 sioner or the supervising agency, as the case may be, for the purpose of
21 having such violations or threatened violations stopped and prevented,
22 and in such action or proceeding the court may appoint a temporary or
23 permanent receiver or both. Such action or proceeding shall be commenced
24 by a petition to the supreme court, alleging the violation complained of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00947-01-5
A. 189 2
1 and praying for appropriate relief. It shall thereupon be the duty of
2 the court to specify the time, not exceeding twenty days after service
3 of a copy of the petition, within which the company complained of must
4 answer the petition. In case of any default or after answer the court
5 shall immediately inquire into the facts and circumstances in such
6 manner as the court shall direct without other or formal pleadings, and
7 without respect to any technical requirements. Such other persons or
8 corporations as it shall seem to the court necessary or proper to join
9 as parties in order to make its order or judgment effective, may be
10 joined as parties. The final judgment in any such action or proceeding
11 shall either dismiss the action or proceeding or direct that an order or
12 an injunction, or both, issue, or provide for the appointment of a
13 receiver as prayed for in the petition, and grant such other relief as
14 the court may deem appropriate.
15 § 2. This act shall take effect immediately.
