A 189: Relates to the supervision of certain limited profit housing companies.

  
  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.