S 560: Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company.

  
  STATE OF NEW YORK ________________________________________________________________________ 560 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. KRUEGER, BAILEY, HOYLMAN-SIGAL, LIU, SERRANO, STAVI- SKY -- read twice and ordered printed, and when printed to be commit- ted to the Committee on Housing, Construction and Community Develop- ment AN ACT to amend the private housing finance law, in relation to windfall profits on the dissolution or first sale of rental companies and the dissolution and/or reconstitution of mutual companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 2 of section 35 of the private housing finance 2 law, as amended by chapter 229 of the laws of 1989, is amended to read 3 as follows: 4 2. A company aided by a loan made after May first, nineteen hundred 5 fifty-nine, may voluntarily be dissolved, sold and/or reconstituted 6 without the consent of the commissioner or of the supervising agency, as 7 the case may be, not less than twenty years after the occupancy date 8 upon the payment in full of the remaining balance of principal and 9 interest due and unpaid upon the mortgage or mortgages [and], of any and 10 all expenses incurred in effecting such voluntary dissolution and of a 11 transfer fee equal to seventy-five percent of the fair market value in 12 the case of dissolution or sales price on the first sale of a rental 13 project, or, in the case of a mutual company seventy-five percent of the 14 sales price on each first sale thereafter for market value by a selling 15 shareholder. The proceeds of the transfer fees are to be paid into a 16 fund held by the New York city housing development corporation and the 17 New York state housing finance agency for the following purposes: 18 (a) to continue to subsidize the development for as long as the 19 purchaser of a rental development remains in the Mitchell-Lama program; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01716-01-5 
 S. 560 2 1 (b) for the city or state to purchase the land and to lease the land 2 to the tenants and convert the project to a limited profit mutual compa- 3 ny, with a ninety-nine year lease; 4 (c) for repair loans at zero percent interest to fund necessary capi- 5 tal improvements for as long as the company remains in the Mitchell-Lama 6 program; 7 (d) for each year that the company remains as a limited profit compa- 8 ny, to forgive one-thirtieth of the principal of any repair loan each 9 year; 10 (e) for the subsidization of other limited profit housing companies; 11 and 12 (f) for the development of other affordable housing. 13 § 2. This act shall take effect on the sixtieth day after it shall 14 have become a law.