New York Assembly Bill A01574

New York 2025-2026 Regular Session

• Introduced: 1/10/25
• Refer: 1/10/25
• Refer: 1/7/26

Caption

Initiates a five-year moratorium on the dissolution of any urban rental Mitchell-Lama company; establishes a Mitchell-Lama housing program study.

Summary

This bill would place a five-year moratorium on the voluntary dissolution of any urban rental Mitchell-Lama company. In practical terms, Mitchell-Lama urban rental developments that would otherwise be eligible to leave the program would be barred from doing so during the moratorium period. The bill is aimed at preserving existing affordable housing units in the Mitchell-Lama system. The bill also directs New York State Homes and Community Renewal, in consultation with the New York City Department of Housing Preservation, to conduct a study of the Mitchell-Lama housing program. The study must examine ways to preserve, sustain, reform, and expand the program, including recommendations on expansion, financing and tax incentives, the length of required program participation before dissolution, income eligibility criteria, geographic placement of future developments, and methods to preserve and grow the inventory of low- and middle-income housing. Preliminary and final reports are required within two and four years, respectively, and the dissolution moratorium would expire after five years.

Impact

The bill would amend the private housing finance law by adding a new section prohibiting voluntary dissolution for eligible urban rental Mitchell-Lama companies for five years. It would not permanently change the dissolution rules, but it would temporarily override existing authority under section 35 of the law. It also creates a new state study mandate for Homes and Community Renewal, with consultation from New York City’s housing agency, and requires the agency to gather information from other public entities as needed. The measure primarily affects Mitchell-Lama owners, tenants, and state and city housing administrators, with the goal of preserving affordable housing stock and informing future policy changes.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the overall sentiment appears supportive of affordable housing preservation and program review. The measure is framed as a response to the need to protect and potentially expand Mitchell-Lama housing, suggesting a policy preference for maintaining existing units rather than allowing them to exit the program. No formal opposition is reflected in the available materials, but the bill’s temporary restriction on dissolution indicates an intent to balance preservation with a time-limited review process.

Contention

The main point of contention is likely the moratorium itself, since it prevents urban rental Mitchell-Lama companies from voluntarily dissolving even if they otherwise qualify under current law. Owners or developers may view this as a restriction on property and business flexibility, while tenant advocates and affordable housing supporters are likely to favor it as a safeguard against loss of regulated housing. Additional areas of possible debate include whether the program’s income limits, tax and financing incentives, and required participation period should be changed, all of which are specifically identified for study rather than resolved in the bill.