S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6575
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 19, 2023
                                ___________
 
 Introduced  by  M.  of  A. SEAWRIGHT, STIRPE, HUNTER, CLARK, MAGNARELLI,
   DARLING, BURDICK, JENSEN, BYRNES, McMAHON -- read once and referred to
   the Committee on People with Disabilities
 
 AN ACT to amend the mental hygiene law, in relation to the  creation  of
   an  innovative  housing  initiative  for  persons with a developmental
   disability who wish and are able to safely reside in such  a  setting;
   to  direct  the division of housing and community renewal to establish
   guidelines for the dissemination of disclosure materials for the offer
   and sale of interests in residential  environments  formed  under  the
   innovative  housing initiative; and to amend the general business law,
   in relation to creating an exemption from certain filing  requirements
   for  residential environments that are formed as cooperative interests
   in realty for persons receiving services under the innovative  housing
   initiative
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative purpose and findings.  The  legislature  hereby
 finds and declares as follows:
   (a)  New  York  state  is currently facing a severe housing crisis for
 people with developmental disabilities. Staffing shortages for certified
 housing, commonly referred to as group homes, has put  additional  pres-
 sure  on the state to provide alternative and innovative housing models,
 especially for those persons who are able to live more independently and
 wish to do so.
   (b) Many persons with developmental disabilities live with a parent or
 parents, a family member, or other  similar  direct  support  personnel.
 However, many such persons wish to live more independently, and would do
 so if an option existed that included certain appropriate supports.
   (c)  Further,  although  family  caregiving  is  appropriate  in  many
 instances, parents and similar direct support personnel  may  eventually
 become  unable to continue supporting the person who has a developmental

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05184-01-3
              

 A. 6575                             2
 
 disability, due to the direct support personnel's infirmity,  death,  or
 other concerns.
   (d)  When that happens, the person with a developmental disability may
 need to move to a group home, which is a  more  restrictive  environment
 than  an  innovative housing initiative could provide.  Often, available
 group homes are located far from the communities in  which  people  have
 lived  their  entire  lives. Although group homes may be appropriate for
 some persons with developmental disabilities, they are  not  appropriate
 for  those  persons with disabilities who wish and are able to live more
 independently.  Currently, group homes, even for  those  who  choose  to
 live in that setting, do not number nearly enough to meet the need.
   (e)  A  system that creates unnecessary pressure to place persons with
 developmental disabilities in group homes directly contravenes the spir-
 it of federal law that requires state and local governments  to  provide
 people with developmental disabilities opportunities to live in the most
 integrated setting that is available and appropriate for their needs. It
 also  works a double trauma upon the person with developmental disabili-
 ty, who has no option but to move from their long-time  home  while,  at
 the  same  time, grieving the loss of a parent or direct support person-
 nel.
   (f) Accordingly, there is a need to create new and innovative  housing
 models  that  maximize independence for persons with developmental disa-
 bilities.  The state should provide more independent housing options  to
 persons with developmental disabilities, where such persons wish and are
 able  to  take  advantage  of  such opportunities, out of concern that a
 certain number of persons  with  developmental  disabilities  living  in
 close proximity automatically qualifies as an "institution."
   (g)  Guidance  from  the  federal  Centers  for  Medicare and Medicaid
 Services ("CMS") has emphasized that there is no cap or percentage  that
 is used to determine whether housing for people with developmental disa-
 bilities  satisfies the federal standards for what constitutes an insti-
 tution. Rather, CMS clarified that state and  local  governments  should
 focus  on  the experience of the individual with developmental disabili-
 ties in that setting.
   (h) Persons with developmental disabilities can in fact live in  close
 proximity  in a safe and healthy residential environment integrated into
 the community, especially when that environment is chosen by the  person
 and  augmented with supports that maximize the person's independence and
 that are less intensive than the services provided in  an  institutional
 setting.
   (i) Thus, to maximize the availability of innovative housing settings,
 this  legislation directs the office for people with developmental disa-
 bilities ("OPWDD") to  create  an  Innovative  Housing  Initiative  that
 enables  persons  with developmental disabilities to live more independ-
 ently, including housing that is owned or leased in their  name,  or  by
 someone else on behalf of such person or that of a trust established for
 their benefit, with supports provided through OPWDD, such as availabili-
 ty  of  shared  direct  support personnel. In this way, the program will
 ensure  that  persons  with  developmental  disabilities  are   afforded
 settings that are the most integrated and appropriate for their needs.
   §  2.  The mental hygiene law is amended by adding a new section 16.38
 to read as follows:
 § 16.38 INNOVATIVE HOUSING INITIATIVE.
   (A) THE OFFICE SHALL ENABLE PERSONS WITH A DEVELOPMENTAL DISABILITY TO
 LIVE INDEPENDENTLY IN A RESIDENTIAL ENVIRONMENT, WITH SUPPORT  SERVICES,
 A. 6575                             3
 
 INCLUDING  BUT NOT LIMITED TO STAFFING SUPPORT, SHARED STAFFING SUPPORT,
 AND OPPORTUNITIES FOR SOCIAL ENGAGEMENT AND RECREATION.
   (B)  SUCH RESIDENTIAL ENVIRONMENT MAY BE COMPRISED OF A SINGLE HOUSING
 UNIT OR MULTIPLE UNITS OF HOUSING, IN ONE OR MORE  BUILDINGS,  INCLUDING
 BUT  NOT  LIMITED TO: (I) LEASED RESIDENTIAL HOUSING UNITS; (II) HOUSING
 THAT QUALIFIES AS A COOPERATIVE INTEREST IN REALTY UNDER  SECTION  THREE
 HUNDRED  FIFTY-TWO-E  OF THE GENERAL BUSINESS LAW; AND (III) CONDOMINIUM
 UNITS UNDER ARTICLE NINE-B OF THE REAL PROPERTY LAW.   THE  INTEREST  IN
 SUCH RESIDENTIAL UNIT MAY BE LEASED OR OWNED BY A PERSON WITH A DEVELOP-
 MENTAL  DISABILITY, OR AN ENTITY ON BEHALF OF SUCH PERSON, INCLUDING BUT
 NOT LIMITED TO A TRUST ESTABLISHED FOR SUCH PERSON'S BENEFIT.  EACH UNIT
 OF RESIDENTIAL HOUSING MAY BE OCCUPIED BY NO MORE  THAN  THE  NUMBER  OF
 UNRELATED PERSONS PERMITTED BY LOCAL LAW.
   (C)  THE  SELECTION  OF  THE  RESIDENTIAL  ENVIRONMENT,  THE PERSON OR
 PERSONS WITH WHOM THEY LIVE AND THE DETERMINATION THAT  THEY  MAY  INDE-
 PENDENTLY  LIVE  IN SUCH RESIDENTIAL ENVIRONMENT, WITH SUPPORT SERVICES,
 SHALL BE MADE SOLELY BY SUCH PERSON WITH A DEVELOPMENTAL DISABILITY  AND
 THEIR QUALIFIED REPRESENTATIVE.
   (D) IN RECOGNITION OF THE REQUIREMENT THAT THE INDIVIDUAL'S EXPERIENCE
 SHALL DETERMINE WHETHER A RESIDENTIAL ENVIRONMENT IS THE MOST INTEGRATED
 AND  APPROPRIATE  FOR THE NEEDS OF THE PERSON WITH A DEVELOPMENTAL DISA-
 BILITY, IN DETERMINING ELIGIBILITY  FOR  ANY  HOUSING  PROGRAM,  SUPPORT
 SERVICES OR OTHER BENEFITS, THE OFFICE SHALL:
   (1)  HONOR  THE RIGHT OF THE PERSON WITH A DEVELOPMENTAL DISABILITY TO
 CHOOSE THE RESIDENTIAL ENVIRONMENT AND WITH WHOM THEY MAY LIVE;
   (2) MAXIMIZE THE TYPES OF RESIDENTIAL ENVIRONMENTS IN WHICH  A  PERSON
 WITH  A DEVELOPMENTAL DISABILITY MAY LIVE WHILE BEING ELIGIBLE FOR FUNDS
 THROUGH A HOME AND COMMUNITY BASED WAIVER TO THE FULL  EXTENT  PERMITTED
 BY FEDERAL LAW; AND
   (3) PERMIT A NUMBER OF PERSONS WITH A DEVELOPMENTAL DISABILITY TO LIVE
 IN  A  RESIDENTIAL  ENVIRONMENT  WHEN  VIEWED  AS A WHOLE UP TO THE FULL
 EXTENT PERMITTED BY FEDERAL LAW.
   (E) THIS SECTION SHALL NOT  LIMIT  OR  OTHERWISE  AFFECT  REQUIREMENTS
 APPLYING TO:
   (1)  AN  INTEGRATED  SUPPORTIVE  HOUSING  PROGRAM  ADMINISTERED BY THE
 OFFICE IN COORDINATION  WITH  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL  (COMMONLY  REFERRED  TO  AS  THE INTEGRATIVE SUPPORTIVE HOUSING
 PROGRAM OR "ISH"); OR
   (2) PROJECTS DEVELOPED AS PART OF AN EMPIRE STATE  SUPPORTIVE  HOUSING
 INITIATIVE (COMMONLY REFERRED TO AS "ESSHI").
   (F)  THE  OFFICE  SHALL  COORDINATE  WITH  THE DEPARTMENT OF HEALTH TO
 DETERMINE WHETHER AN AMENDMENT TO THE STATE PLAN AUTHORIZED  BY  SECTION
 THREE  HUNDRED  SIXTY-THREE-A  OF THE SOCIAL SERVICES LAW OR A WAIVER IS
 REQUIRED FROM THE FEDERAL CENTERS FOR  MEDICARE  AND  MEDICAID  SERVICES
 ("CMS")  TO  MAXIMIZE FEDERAL FINANCIAL PARTICIPATION FOR THE INITIATIVE
 DESCRIBED IN THIS SECTION. IF AN AMENDMENT TO THE STATE PLAN OR A WAIVER
 IS REQUIRED OR DESIRABLE, THE DEPARTMENT OF  HEALTH  SHALL  SUBMIT  SUCH
 AMENDMENT  OR APPLY TO CMS FOR SUCH WAIVER NO MORE THAN NINETY DAYS FROM
 THE DATE THAT THIS SECTION BECOMES EFFECTIVE.
   (G) THE OFFICE SHALL COORDINATE  WITH  THE  DEPARTMENT  OF  HEALTH  TO
 ENSURE  THAT  ANY STATE TRANSITION PLAN SUBMITTED TO CMS THAT RELATES TO
 FEDERAL REGULATIONS GOVERNING HOME AND COMMUNITY-BASED SERVICES IS WRIT-
 TEN, AMENDED OR SUPPLEMENTED TO INCLUDE RECOGNITION  OF  THE  INNOVATIVE
 HOUSING INITIATIVE DESCRIBED BY THIS SECTION.
 A. 6575                             4
 
   (H)  THE  OFFICE MAY CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT
 ON HOW RESIDENTIAL ENVIRONMENTS THAT INCLUDE INNOVATIVE HOUSING  AUTHOR-
 IZED BY THIS SECTION CAN BEST BE INTEGRATED WITH THE BROADER COMMUNITY.
   (I)  THIS SECTION SHALL NOT BE CONSTRUED TO PERMIT THE OPERATION WITH-
 OUT AN OPERATING CERTIFICATE OF A COMMUNITY RESIDENCE,  COMMUNITY  RESI-
 DENTIAL  FACILITY FOR THE DISABLED, SUPERVISED LIVING FACILITY, SUPPORT-
 IVE LIVING FACILITY, OR ANY  OTHER  PROVIDER  OF  SERVICE  REQUIRING  AN
 OPERATING  CERTIFICATE  UNDER  SECTION 16.03 OF THIS ARTICLE. NOTHING IN
 THIS SECTION SHALL BE INTERPRETED AS  AUTHORIZING  AN  INCREASE  IN  THE
 NUMBER OF BEDS APPROVED FOR A COMMUNITY RESIDENCE, COMMUNITY RESIDENTIAL
 FACILITY FOR THE DISABLED, SUPERVISED LIVING FACILITY, SUPPORTIVE LIVING
 FACILITY,  OR  ANY  OTHER  PROVIDER  OF  SERVICE  REQUIRING AN OPERATING
 CERTIFICATE UNDER SECTION 16.03 OF THIS ARTICLE.
   (J) RESIDENTIAL ENVIRONMENTS IN WHICH  PERSONS  WITH  A  DEVELOPMENTAL
 DISABILITY  RECEIVE  SERVICES  PURSUANT TO THE INNOVATIVE HOUSING INITI-
 ATIVE DESCRIBED BY THIS SECTION SHALL NOT DISCRIMINATE AGAINST ANY RESI-
 DENT OR POTENTIAL RESIDENT BASED ON RACE, CREED, AGE OTHER THAN BEING AT
 LEAST EIGHTEEN YEARS OF AGE, COLOR, NATIONAL  ORIGIN,  SEX,  DISABILITY,
 MARITAL  STATUS,  MILITARY  STATUS,  FAMILY  STATUS, SEXUAL ORIENTATION,
 GENDER IDENTITY OR EXPRESSION, OR  ANY  OTHER  PROTECTED  CHARACTERISTIC
 UNDER THE NEW YORK STATE HUMAN RIGHTS LAW.
   §  3.  The  division  of housing and community renewal shall establish
 guidelines for the dissemination of disclosure materials for  the  offer
 and sale of interests in residential environments formed under the inno-
 vative  housing  initiative  established  by section 16.38 of the mental
 hygiene law, including (a)  housing  that  qualifies  as  a  cooperative
 interest  in realty under section 352-e of the general business law; (b)
 condominium units under article 9-B of  the real property law;  and  (c)
 shares  in  a  housing  development fund corporation which are otherwise
 exempt from the filing requirements of  section  352-e  of  the  general
 business  law,  to  ensure  material  information  is  disclosed  to any
 prospective shareholder  that:  (i)  fully  describes  the  risks  to  a
 prospective  shareholder's  investment; and (ii) encourages the prospec-
 tive shareholder to consult with legal counsel prior to  purchasing  any
 shares.    The  division of housing and community renewal shall make the
 disclosure guidelines publicly available on its  website  in  compliance
 with section 102(14) of the state administrative procedure act.
   §  4.  Section  352-g of the general business law, as added by chapter
 987 of the laws of 1960, is amended to read as follows:
   § 352-g. Exemptions. (A) The attorney general, upon  application,  may
 exempt  from the provisions of sections three hundred fifty-two-e, three
 hundred fifty-two-f and three hundred fifty-two-h any offerings of secu-
 rities (1) made to persons not exceeding forty in number  or  (2)  which
 securities  have  been fully registered with the securities and exchange
 commission of the United States of America or have received an exemption
 therefrom for reasons other than said offering is an intrastate offering
 to residents of the state of New York only.
   (B) RESIDENTIAL ENVIRONMENTS THAT ARE FORMED  AS  HOUSING  DEVELOPMENT
 FUND  CORPORATIONS PURSUANT TO ARTICLE XI OF THE PRIVATE HOUSING FINANCE
 LAW AND SECTION FOUR HUNDRED TWO OF THE BUSINESS CORPORATION  LAW  WHERE
 SUCH  RESIDENTIAL  ENVIRONMENT  IS FORMED FOR PERSONS RECEIVING SERVICES
 UNDER THE INNOVATIVE HOUSING INITIATIVE ESTABLISHED BY SECTION 16.38  OF
 THE  MENTAL  HYGIENE LAW AND WHERE THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL IS THE SUPERVISING AGENCY AS DEFINED  BY  SECTION  FIVE  HUNDRED
 SEVENTY-TWO  OF  THE PRIVATE HOUSING FINANCE LAW, AND WHERE THE DIVISION
 OF HOUSING AND COMMUNITY RENEWAL REQUIRES THE HOUSING  DEVELOPMENT  FUND
 A. 6575                             5
 
 CORPORATION  TO  ENTER INTO A MONITORING AGREEMENT WITH A QUALIFIED NOT-
 FOR-PROFIT WITH EXPERIENCE IN THE OVERSIGHT, SUPPORT AND  MANAGEMENT  OF
 HOUSING  DEVELOPMENT  FUND  CORPORATIONS SHALL BE EXEMPT FROM ANY FILING
 REQUIREMENTS  OF  SECTION  THREE HUNDRED FIFTY-TWO-E OF THIS ARTICLE FOR
 THE INVESTMENT IN ANY RESIDENTIAL ENVIRONMENTS AND THE CONVERSION OF ANY
 BUILDING, GROUP OF BUILDINGS OR DEVELOPMENT WHICH  ARE  CONVERTED  TO  A
 HOUSING DEVELOPMENT FUND CORPORATION.
   § 5. This act shall take effect immediately.