Click here for the New York State Register on line at www.dos.state.ny.us/info/register/2008/feb20/pdfs/rules.pdf" on pages 17-19 of the document.

Please submit commits to DHCR before March 31st. Comments should go to:

Gary Connor, Esq.
Division of Housing & Community Renewal
25 Beaver St., 7th Floor
New York, NY 10004
212-480-6707
E-mail: gconnor@dhcnr.state.ny.us

Click on "read more" below for a brief summary and the actual proposed regulations.

They would require partnerships that own Mitchell-Lamas to get DHCR prior written approval for sales of the buildings and sales or transfers of major ownership or partnership. They could limit sales if the landlord has many violations.

But the regulations only implicitly deal with predatory equity situations where investors buy property for much more than the current rents bring in. That requires that the owners get the current tenants out fast in order to get back their money. We need DHCR to stop sales in that kind of a situation.

(a) Partnership Agreements. Partnership agreements and amendments thereto must be in compliance with the PHFL and regulations, and are subject to the prior, written approval of the commissioner.

(b) Financial Records & Partnership Distributions. A partnership shall furnish to the commissioner such financial and other reports as the commissioner deems necessary. All distributions by a partnership are subject to the prior, written approval of the commissioner.

(c) Partnership/Housing Company Transactions. A housing company which is in a partnership , or a partnership acting on behalf of a housing company, may not enter into contracts with persons or entities in which other partners have a direct or indirect interest, or which are controlled by other partners, without the prior, written approval of the commissioner.

(d) Transfers of Interests in Partnerships. Transfer of general partner or controlling interests in the partnership, including but not limited to the substitution or admission of a new general partner, are subject to the prior, written approval of the commissioner.

(e) Transfers of Interests in Housing Companies. An interest in a housing company may not be sold or otherwise transferred with the prior, written approval of the commissioner.

(f) Standard of Review. In reviewing requests for approval of changes in ownership interests under this section, in addition to determining compliance with all other requirements for such sales or transfers, the commissioner shall determine that the proposed purchaser or transferee is a qualified and responsible owner, which shall mean that the proposed purchaser or transferee has the capacity to maintain such property in good physical and financial condition, and in compliance with program requirements. In making such determination, the commissioner may consider the purchaser or transferee’s past performance with regard to the following factors:
. . . (1) successful experience in owning or managing comparable residential properties;
. . . (2) mortgage defaults;
. . . (3) suspensions, debarments, terminations or substandard performance under a government program;
. . . (4) loss of any licenses of permits;
. . . (5) criminal convictions;
. . . (6) civil injunctions or other court sanctions, including any judgments;
. . . (7) defaults on loans or surety or performance bonds;
. . . (8) building maintenance and code violations on other buildings;
. . . (9) bankruptcies; and
. . . (10) other factors which bear on the capacity of the purchaser or transferee to maintain the project in good physical and financial condition and otherwise comply with program requirements.

(g) Conditions on Approval. In the event that the dissolution or reconstitution of a housing company is limited or precluded by statute, local law, ordinance, land disposition agreement, deed restriction, or by any other terms of creation, conveyance or through its organizational documents, the Commissioner may condition approval of a request to sell or transfer a housing development owned by such housing company, or any other interest set forth in this Part, upon the continuation of such limitation or preclusion against the buyer or transferee .