BILL NUMBER: S4965
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to the
payment of arrears for certain taxes and placing limitations on housing
development fund company regulatory agreements
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill will subordinate any real estate tax arrears to a loan
obtained by the HDFC. The company is required to increase maintenance by
a minimum of 2% per year or impose assessments which ensures that the
company can pay its financial obligations.
 
SUMMARY OF PROVISIONS:
Section 1 amends the Private Housing Finance Law to: expand eligibility
for tax forgiveness to Housing Development Fund Corporations that have
outstanding municipal real estate taxes; subordinate suspended arrears
to any loan obtained by the HDFC; and require the HDFC to increase main-
tenance charges by a minimum of 2% each year so it can meet its obli-
gations
Section 2 is the effective date.
 
JUSTIFICATION:
HPD reduced the number of city owned residential buildings and created
homes as shareholder-owned for persons and families of low-income.
Housing Development Fund Corporations (HDFCs) are multiple dwellings
located in a city with a population of one million or more and which
acquired the title to the building from the city of New York. Many have
fallen in tax arrears.
HPD is the Supervising Agency and requires the HDFC company that owns
the eligible property to sign a regulatory agreement to pay outstanding
real estate taxes, including interest and penalties. These charges will
be suspended and eliminated if the company complies with the require-
ments of the regulatory agreement and pays all new municipal charges in
a timely fashion. This bill is needed to assist HDFC cooperatives that
have fallen behind in paying their real estate taxes.
 
LEGISLATIVE HISTORY:
2021-2022: S.2015-A - Referred to Housing, Construction and Community
Development
2019-2020: S.5279 - Referred to Housing, Construction and Community
Development/A.6992 Referred to Housing
 
STATE AND LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4965: 576 private housing finance law