Bill Text: NY S02067 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides that a sinking fund for a limited-profit housing company (Mitchell-Lama) for the retirement of stocks and debentures shall be authorized only when the earnings of such housing company exceed six percent; provides that deposits in such sinking fund shall not be a factor in the determination of rents.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-18 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S02067 Detail]
Download: New_York-2011-S02067-Introduced.html
S T A T E O F N E W Y O R K
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2067
2011-2012 Regular Sessions
I N S E N A T E
January 18, 2011
___________
Introduced by Sen. KRUGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend the private housing finance law, in relation to the
reserves for the retirement of stocks and debentures
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 1 of section 28 of the private housing finance
2 law, as amended by chapter 628 of the laws of 1962, is amended to read
3 as follows:
4 1. There shall be paid annually out of the earnings of the company,
5 after providing for all taxes, assessments and expenses, a sum for
6 interest on and amortization of the mortgage indebtedness of all mort-
7 gages of the company, depreciation charges and reserves if, when and to
8 the extent deemed necessary by the commissioner or the supervising agen-
9 cy, as the case may be, plus a dividend of six per centum on outstanding
10 stock and interest not exceeding six per centum on the outstanding
11 income debentures of the company; the obligation in respect of such
12 payments shall be cumulative, and any deficiency in interest, amorti-
13 zation, depreciation, reserves, if any, and dividends in any year shall
14 be paid either from any cash surplus derived from earnings remaining in
15 the treasury of the company in excess of the amount necessary to provide
16 such cumulative annual sums or from the first available earnings in
17 subsequent years. If, at the end of any three year period, the gross
18 receipts should exceed the payments or charges necessary for the
19 purposes of the project or projects and are not needed for a sinking
20 fund, reserves or other purposes, the balance may be paid in further
21 reduction of any indebtedness to the extent and upon terms and condi-
22 tions approved by the commissioner and the state comptroller or by the
23 supervising agency, as the case may be. A sinking fund may be author-
24 ized by the commissioner or the supervising agency, to purchase and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07081-01-1
S. 2067 2
1 retire bonds, income debentures or stock of the company at a price
2 approved by the commissioner or the supervising agency, as the case may
3 be, not exceeding par value thereof with accrued or unpaid dividends or
4 interest or if it be not practical to purchase such stock or income
5 debentures at a price so approved, the money in such sinking fund may be
6 added to the surplus of such company. SUCH SINKING FUND SHALL BE
7 AUTHORIZED ONLY WHEN THE EARNINGS OF THE HOUSING COMPANY EXCEED SIX PER
8 CENTUM. DEPOSITS TO A SINKING FUND SHALL NOT BE A FACTOR IN THE DETER-
9 MINATION OF RENTS. Any stock or income debentures purchased out of such
10 sinking fund shall be cancelled and shall not be reissued.
11 S 2. This act shall take effect on the first of July next succeeding
12 the date on which it shall have become a law.
