Bill > A02707

This bill, known as the "housing development fund company fairness, preservation, and affordability act," aims to clarify and enhance provisions for Housing Development Fund Companies (HDFCs), which are a type of income-restricted housing cooperative created to revitalize abandoned city-owned housing. The bill makes tax exemptions and abatements for HDFCs permanent, removing the current expiration date of 2029 for the "DAMP tax exemption" and allowing HDFCs to receive either this exemption or a more beneficial tax abatement equivalent to twice that offered to market-rate cooperatives, ensuring greater financial stability and affordability. It also updates the eligibility for special tax relief for economically distressed HDFCs, allowing for forgiveness of more recent tax arrears to prevent tax foreclosure. Furthermore, the bill clarifies that HDFCs no longer subject to original regulatory agreements will still be overseen by the commissioner or supervisory agency as long as they receive tax benefits, and it establishes annual certification requirements for HDFCs to demonstrate compliance with affordability rules, with penalties for willful violations.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A2707