S T A T E O F N E W Y O R K
________________________________________________________________________
7079
2021-2022 Regular Sessions
I N S E N A T E
May 27, 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 author-
izing additional supervision and regulation of limited-profit housing
companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 32-a of the private housing finance law, as added
by chapter 449 of the laws of 1975, subdivision 6 as added by chapter
744 of the laws of 1977, subdivision 7 as added by chapter 409 of the
laws of 1982, subdivision 8 as added by chapter 594 of the laws of 2019
and the closing paragraph as added by chapter 74 of the laws of 1988, is
amended to read as follows:
§ 32-a. Additional supervision and regulation. The commissioner or the
supervising agency, as the case may be, shall:
1. Promulgate regulations providing for recognition of duly consti-
tuted tenants' associations and cooperators' advisory councils by the
commissioner or supervising agency, as the case may be, and providing
that a housing company shall meet on a regular basis with represen-
tatives of such an association or council at the specific project
involved to discuss matters relating to the project. A duly constituted
cooperators' advisory council shall only be such a council in a mutual
company project prior to the election of a board of directors by the
tenant-cooperators.
2. Require every company to file with him, HER or it an annual operat-
ing budget for each individual project in the manner prescribed by the
commissioner or supervising agency.
3. Require every company to file with him, HER or it semi-annual or
quarterly financial statements and an annual financial statement. Each
annual financial statement shall be accompanied by a certificate of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11105-01-1
S. 7079 2
company's independent certified public accountant. Such financial state-
ments shall be filed at the times and in the manner prescribed by the
commissioner or supervising agency.
4. Afford tenants access to and an opportunity to acquire copies of
all operating budgets or financial statements respecting the project in
which such tenants reside, to the extent that such budgets and state-
ments are required by law to be kept by the commissioner or supervising
agency.
5. Permit any tenant, duly constituted tenants' association, duly
constituted cooperators' advisory council or his, HERS or its duly
authorized representative to audit the books of the company and to have
access during normal business hours to the financial records upon which
the company's financial statements are based.
6. Promulgate regulations relating to managing agents, including
criteria for the eligibility for selection and the compensation of
managing agents by companies organized pursuant to this article. Such
regulations shall provide, among other things, that any contract with a
managing agent entered into after September first, nineteen hundred
seventy-seven shall be terminable for cause and shall be terminable,
with or without cause, at least every twelve months after commencement
of the term thereof, and that promptly upon termination the managing
agent shall turn over to the company all project records, rent rolls,
bills, cancelled checks, bank statements and other papers owned by such
company.
7. Require that every company file with him, HER or it, within six
months of the effective date of regulations implementing this subdivi-
sion and in such format as shall be prescribed by the commissioner or
the supervising agency after consultation with the state energy office,
an energy audit report which identifies potential energy-saving building
improvements, including alterations, modifications and adjustments to
the building structure, heating, cooling, lighting and ventilation
systems; their relative costs; potential energy and cost savings; and
simple payback periods, which for the purpose of this subdivision shall
mean that period of time within which the estimated cost of such
improvements, exclusive of the cost of capital, would be recovered from
the savings generated by reduced energy consumption resulting from the
improvements. The energy audit shall be conducted by a public utility,
an engineer or architect licensed by the state, or the managing agent or
other representative of the company if such individual has attended an
energy audit training workshop sponsored by the commissioner or the
state energy office. A copy of the energy audit report, required herein,
shall be given to any duly constituted tenant's association or
cooperator's advisory council and a copy shall be available for
inspection and copying by any individual tenant who requests it. The
commissioner or supervising agency shall also require that every company
certify by March thirty-first, nineteen hundred eighty-four that all
compatible conservation measures identified in the energy audit report
which have simple payback periods of one year or less have been imple-
mented; provided, however, if the commissioner or supervising agency
determines within sixty days of the date the energy audit report is
filed that one or more of such identified conservation measures cannot
be implemented by March thirty-first, nineteen hundred eighty-four,
given the projected rent revenues and other monies available to the
company from reserve funds, loans or grants from the state or federal
government or any other source, the implementation of such conservation
S. 7079 3
measures shall be provided for according to a schedule prescribed by the
commissioner or supervising agency.
8. Every tenant or resident, or a person acting on behalf of a tenant
or resident, shall be permitted to copy, by photographic means, any
document within the scope of this section pertaining to the project in
which such tenant or resident resides. A reasonable fee, subject to a
maximum therefor prescribed in regulations, may be charged for such
copies.
9. Require that within ten days of the filing of any reports or finan-
cial statements with the commissioner or supervising agency, the housing
company shall transmit a copy of said report or financial statement to a
duly constituted resident board of directors, and if there be none, to a
cooperator's advisory council or a duly constituted tenants association
representing the project concerned. Where no such council or association
exists in a project, a notice shall be posted informing the residents of
the location on the premises of the project where a copy of said report
or financial statement is available for inspection. The notice shall be
posted within ten days of filing, in a prominent place on the premises
of the project concerned.
10. REQUIRE EVERY VOTING MEMBER OF A BOARD OF DIRECTORS OF A COMPANY
SUBJECT TO THE PROVISIONS OF THIS ARTICLE, ELECTED OR APPOINTED FOR A
TERM BEGINNING ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, TO
COMPLETE, WITHIN THE FIRST YEAR OF HIS OR HER TERM AND AT LEAST ONCE
EVERY THREE YEARS THEREAFTER, A MINIMUM OF TWO HOURS OF TRAINING, IN
PERSON OR VIRTUALLY, AS THE COMMISSIONER OR SUPERVISING AGENCY, AS THE
CASE MAY BE, MAY DEEM APPROPRIATE ON THE FINANCIAL OVERSIGHT, ACCOUNT-
ABILITY AND FIDUCIARY RESPONSIBILITIES OF A BOARD MEMBER; AND TO REQUIRE
EVERY VOTING MEMBER OF A BOARD OF DIRECTORS OF A COMPANY SUBJECT TO THE
PROVISIONS OF THIS ARTICLE, ELECTED OR APPOINTED FOR A TERM BEGINNING
BEFORE THE EFFECTIVE DATE OF THIS SUBDIVISION, TO COMPLETE SUCH TRAINING
WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SUBDIVISION AND AT LEAST
ONCE EVERY THREE YEARS THEREAFTER.
11. REQUIRE EVERY VOTING MEMBER OF A BOARD OF DIRECTORS OF A COMPANY
SUBJECT TO THE PROVISIONS OF THIS ARTICLE, ELECTED OR APPOINTED FOR A
TERM BEGINNING ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, TO
COMPLETE, WITHIN THE FIRST YEAR OF HIS OR HER TERM AND AT LEAST ONCE
EVERY THREE YEARS THEREAFTER, IN ADDITION TO THE TRAINING REQUIRED BY
SUBDIVISION TEN OF THIS SECTION, A TRAINING COURSE, IN PERSON OR VIRTU-
ALLY, AS THE COMMISSIONER OR SUPERVISING AGENCY, AS THE CASE BE, MAY
DEEM APPROPRIATE, TO ACQUAINT HIM OR HER WITH THE POWERS, FUNCTIONS AND
DUTIES OF A BOARD OF DIRECTORS OF A COMPANY SUBJECT TO THE PROVISIONS OF
THIS ARTICLE, AS WELL AS THE POWERS AND DUTIES OF OTHER GOVERNING AND
ADMINISTRATIVE AUTHORITIES AFFECTING SUCH COMPANIES; AND TO REQUIRE
EVERY VOTING MEMBER OF A BOARD OF DIRECTORS OF A COMPANY SUBJECT TO THE
PROVISIONS OF THIS ARTICLE, ELECTED OR APPOINTED FOR A TERM BEGINNING
BEFORE THE EFFECTIVE DATE OF THIS SUBDIVISION, TO COMPLETE SUCH TRAINING
WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SUBDIVISION AND AT LEAST
ONCE EVERY THREE YEARS THEREAFTER.
12. REQUIRE EACH MEMBER OF A BOARD OF DIRECTORS OF A COMPANY SUBJECT
TO THE PROVISIONS OF THIS ARTICLE TO DEMONSTRATE COMPLIANCE WITH THE
REQUIREMENTS SET FORTH IN SUBDIVISIONS TEN AND ELEVEN OF THIS SECTION BY
FILING A CERTIFICATE OF COMPLETION OF SUCH COURSE OR COURSES ON A FORM
TO BE PROMULGATED BY THE COMMISSIONER. SUCH FORM SHALL BE FILED WITH THE
SECRETARY OF THE HOUSING CORPORATION AND MAINTAINED BY THE SECRETARY AS
A CORPORATE RECORD AND DISTRIBUTED ANNUALLY TO THE SHAREHOLDERS AND UPON
THE FILING OF ANY DIRECTOR WITH THE COMPANY OF THE INTENTION TO SEEK
S. 7079 4
RE-ELECTION TO THE POSITION. SIXTY DAYS PRIOR TO ANY SCHEDULED ELECTION
OF MEMBERS OF THE BOARD OF DIRECTORS, THE SECRETARY OF THE HOUSING
COMPANY SHALL FURNISH THE COMMISSIONER OR THE SUPERVISING AUTHORITY, AS
THE CASE MAY BE, WITH A LIST OF ALL INCUMBENT DIRECTORS INDICATING WHICH
INDIVIDUALS HAVE SUBMITTED CERTIFICATES REQUIRED IN THIS SUBDIVISION.
SUCH COURSE OR COURSES SHALL BE PROVIDED BY THE COMMISSIONER OR SUPER-
VISING AGENCY, AS THE CASE MAY BE, AT NO COST TO THE TRAINEE OR THE
BOARD TO WHICH THE TRAINEE HAS BEEN ELECTED.
13. DEVELOP THE CURRICULA USED FOR TRAINING REQUIRED BY SUBDIVISIONS
TEN AND ELEVEN OF THIS SECTION FOR WHICH THE SUPERVISING AGENCY OR THE
COMMISSIONER MAY REQUEST AND SHALL RECEIVE THE COOPERATION AND ASSIST-
ANCE FROM ANY DEPARTMENTS, DIVISIONS, BOARDS, BUREAUS, COMMISSIONS OR
AGENCIES OF THE STATE AND POLITICAL SUBDIVISIONS THEREOF IN DEVELOPING
SUCH CURRICULA. THESE CURRICULA MAY BE OFFERED TOGETHER AS A SINGLE
COURSE OR SEPARATELY. THE TRAINING REQUIRED BY THIS SECTION MAY BE
OFFERED BY PROVIDERS APPROVED BY THE COMMISSIONER OR SUPERVISING AGENCY,
AS THE CASE MAY BE. IN APPROVING OTHER PROVIDERS FOR THESE TRAININGS,
THE COMMISSIONER OR SUPERVISING AGENCY SHALL CONSIDER A POTENTIAL
PROVIDER'S UNDERSTANDING OF COOPERATIVE HOMEOWNERSHIP; LAWS, RULES AND
REGULATIONS AFFECTING COMPANIES SUBJECT TO THE PROVISIONS OF THIS ARTI-
CLE; AND THE FIDUCIARY RESPONSIBILITIES OF THE BOARD OF A RESIDENTIAL
COOPERATIVE, AS WELL AS THE EXPERIENCE OF THE PROVIDER IN DELIVERING
SUCH TRAINING.
14. HOLD SUCH MEETING OR MEETINGS, IN PERSON OR VIRTUALLY AS THE
COMMISSIONER OR SUPERVISORY AGENCY SHALL DEEM APPROPRIATE, WITH THE
BOARD OF A COMPANY ON THE FINANCIAL OVERSIGHT, ACCOUNTABILITY AND FIDU-
CIARY RESPONSIBILITIES OF SUCH BOARD; THE POWERS, FUNCTIONS AND DUTIES
OF SUCH BOARD; AND THE POWERS AND DUTIES OF OTHER GOVERNING AND ADMINIS-
TRATIVE AUTHORITIES AFFECTING SUCH COMPANY.
§ 2. This act shall take effect immediately.
