Bill > S00560

This bill amends the Private Housing Finance Law to introduce a substantial 75% transfer fee on the dissolution or first sale of rental projects and mutual housing companies. Specifically, for rental projects or mutual companies that have been in operation for at least 20 years, when a voluntary dissolution or sale occurs, 75% of the fair market value or sales price must be paid as a transfer fee. These transfer fees would be collected by the New York City Housing Development Corporation and the New York State Housing Finance Agency and used for several purposes: (1) continuing to subsidize the development while remaining in the Mitchell-Lama affordable housing program, (2) potentially purchasing and leasing land to tenants, (3) providing zero-percent interest repair loans for capital improvements, (4) gradually forgiving repair loan principals, (5) subsidizing other limited-profit housing companies, and (6) developing additional affordable housing. The bill is designed to preserve affordable housing and ensure that significant financial benefits from property sales are reinvested in housing assistance programs, with the transfer fee serving as a mechanism to redirect potential windfall profits towards continued affordable housing support.