S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6297
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 voting,
   election and referendum procedures

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The private housing finance law is amended by adding a new
 section 13-c to read as follows:
   § 13-C. VOTING, ELECTION AND REFERENDUM PROCEDURES. 1. ANY SHAREHOLDER
 VOTE SHALL BE CONDUCTED USING SECRET BALLOTS.   SUCH  BALLOTS  SHALL  BE
 CAST  IN-PERSON  BY TENANTS ENTITLED TO OCCUPANCY IN THE PROJECT; UNLESS
 SUCH TENANT CASTS SUCH BALLOT USING AN ABSENTEE BALLOT  ISSUED  PURSUANT
 TO SUBDIVISION TWO OF THIS SECTION.
   2.  A  SHAREHOLDER ENTITLED TO OCCUPANCY IN THE PROJECT SHALL BE ENTI-
 TLED TO REQUEST AN ABSENTEE BALLOT TO CAST A BALLOT IN  ANY  SHAREHOLDER
 VOTE.  SUCH  ABSENTEE  BALLOT  SHALL  BE DELIVERED OR MAILED ONLY TO THE
 PRIMARY RESIDENCE ADDRESS OF A SHAREHOLDER ENTITLED TO OCCUPANCY IN  THE
 PROJECT.  AN  ABSENTEE BALLOT CAST PURSUANT TO THIS SUBDIVISION SHALL BE
 SEALED WITHIN TWO ENVELOPES, SHALL CONTAIN THE SIGNATURE OF  THE  SHARE-
 HOLDER  CASTING  THE  VOTE, AND SHALL BE MAILED TO A NEUTRAL THIRD PARTY
 NOT RUNNING FOR A POSITION ON THE BOARD OF DIRECTORS.
   3. PROXY VOTING SHALL NOT BE PERMITTED IN AN ELECTION FOR  A  POSITION
 ON A BOARD OF DIRECTORS, FOR DISSOLUTION OF THE COMPANY, FOR THE AUTHOR-
 IZATION  OF  A  FEASIBILITY  STUDY, FOR AN OFFERING PLAN INCLUDING A RED
 HERRING OR BLACK BOOK, OR ANY DOCUMENT OFFERED IN PLACE OF  AN  OFFERING
 PLAN AS PERMITTED BY THE ATTORNEY GENERAL.
   4. IN-PERSON BALLOTS SHALL PRODUCE A PAPER RECORD WHICH MAY BE AUDITED
 IN THE CASE OF A CONTESTED ELECTION RESULT.
   5. NO OTHERWISE-ELIGIBLE PERSON SHALL BE PREVENTED FROM BEING A CANDI-
 DATE  FOR,  BEING  ELECTED  TO, OR SERVING ON A BOARD OF DIRECTORS BASED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00372-01-1

 S. 6297                             2
 
 SOLELY ON THAT PERSON OWING OR HAVING OWED ANY AMOUNT  OF  ANY  FORM  OF
 ARREARS  TO THE HOUSING COMPANY, UNLESS, AT THE TIME OF NOMINATION, THAT
 PERSON CURRENTLY OWES AN AMOUNT OF BONA FIDE ARREARS  GREATER  THAN  THE
 EQUIVALENT  OF TWO MONTHS OF THAT PERSON'S MONTHLY MAINTENANCE.  NOTHING
 IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE OR MANDATE ANY HOUSING
 COMPANY TO ADOPT BYLAWS, RULES, POLICIES, OR PROCEDURES RESTRICTING  ANY
 PERSON'S  ELIGIBILITY  TO  BE NOMINATED, ELECTED, OR SERVE ON A BOARD OF
 DIRECTORS.  NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE  A  BASIS  IN
 ITSELF TO DENY SUCH ELIGIBILITY TO ANY PERSON.
   6.  FOR ANY SHAREHOLDER VOTE REQUIRING A SPECIFIC PERCENTAGE OF DWELL-
 ING UNITS, THE TERM "DWELLING UNITS" SHALL MEAN ALL DWELLING  UNITS  FOR
 WHICH SHARES HAVE BEEN ISSUED, REGARDLESS OF WHETHER SUCH DWELLING UNITS
 ARE OCCUPIED OR VACANT.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall apply to any vote or election that occurs on
 or after such date regardless of when such vote or  election  was  first
 noticed.