S. 9950 Summary

• Clarifies that housing development fund companies (HDFCs) with expired regulatory agreements have the right to dissolve and reincorporate under business corporation law, provided they no longer receive tax exemptions or abatements.

• Makes the DAMP tax exemption permanent for HDFCs that remain in compliance with affordability requirements, replacing the current 40-year expiration scheduled for 2029.

• Establishes income restrictions for HDFCs receiving tax benefits, requiring them to limit apartment sales to purchasers earning no more than 165% of area median income or meeting the original HDFC income limits, at the HDFC's election.

• Requires HDFCs receiving tax exemptions to file annual certifications of compliance and authorizes the commissioner to audit sales records and suspend or revoke benefits for willful violations.

• Updates the baseline year for tax forgiveness eligibility for distressed HDFCs from 2001 to 2023, allowing the city to offer tax relief to HDFCs at risk of tax foreclosure.