Provides for a transfer fee of 75% of the fair market value in dissolution or sales of a rental project or mutual company.
Summary
Bill S00560 amends the private housing finance law to introduce a transfer fee of 75% of the fair market value during the dissolution or first sale of rental companies and mutual companies. This fee is applicable after a company has been in operation for at least twenty years post-occupancy. The proceeds from these fees will be allocated to various housing development purposes, including subsidizing ongoing developments under the Mitchell-Lama program, purchasing land for tenant leasing, and funding necessary capital improvements at zero percent interest for repair loans.
Impact
The bill impacts state laws by establishing a new financial obligation for rental companies and mutual companies upon dissolution or sale, thereby creating a revenue stream for affordable housing initiatives. It modifies existing provisions of the private housing finance law, specifically targeting the financial mechanisms surrounding the dissolution of housing entities, which could influence the dynamics of affordable housing development and maintenance in New York.
Sentiment
The general sentiment around Bill S00560 appears to be cautiously optimistic among proponents who see it as a necessary step towards maintaining affordable housing. However, there may be concerns from stakeholders in the rental and mutual housing sectors regarding the financial implications of the transfer fee, which could be perceived as a deterrent to investment or operational flexibility.
Contention
Notable points of contention include the potential financial burden imposed by the 75% transfer fee on rental companies and mutual companies, which some argue could hinder their ability to operate effectively or deter new investments in the sector. Proponents of the bill argue that the fees are essential for sustaining affordable housing programs, while opponents express concern over the impact on housing availability and company viability.
Relates to elections involving board members, by-law amendments, or dissolution, reconstitution or conversion of mutual housing companies; provides that ballots shall be cast electronically to a neutral third party; provides that by-laws approved by shareholders and the commissioner of housing or supervising agency may limit eligibility for being a candidate for board of directors of a mutual housing company; relates to quorum for purposes of an election of board members in certain mutual housing companies.
Relates to elections involving board members, by-law amendments, or dissolution, reconstitution or conversion of mutual housing companies; provides that ballots shall be cast electronically to a neutral third party; provides that by-laws approved by shareholders and the commissioner of housing or supervising agency may limit eligibility for being a candidate for board of directors of a mutual housing company; relates to quorum for purposes of an election of board members in certain mutual housing companies.
Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to establish the taxable valuation of real property used for residential purposes based on the sales price for the year in which the property transferred ownership if the transfer was sold at fair market value or valued pursuant to law as fair market value in the year in which the transfer occurred for the current owner.
Provides a tax credit for sales or rentals of agricultural assets to emerging farmers; requires the commissioner of agriculture and markets to implement a plan for certification of eligible taxpayers with respect thereto.
Provides a tax credit for sales or rentals of agricultural assets to emerging farmers; requires the commissioner of agriculture and markets to implement a plan for certification of eligible taxpayers with respect thereto.