BILL NUMBER:S7421

TITLE OF BILL:

An act to amend the private housing finance law, in relation to the
manufactured home cooperative fund program

PURPOSE:

This bill would clarify that certain non-shareholder entities, such as
not-for-profit membership corporations, are expressly authorized to be
manufactured home park cooperatives pursuant to the Manufactured Home
Cooperative Fund Program of the New York State Housing Finance Agency
("HFA") as set forth in Article XX of the Private Housing Finance Law
("PHFL").

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend the definition of manufactured home
park cooperative in PHFL § 1121(5) to expressly include certain entities
that do not issue shares, such as not-for-profit membership corporations
and other entities, of which the holders of membership interests or
certificates thereof will be entitled to occupancy in a manufactured
home park pursuant to General Business Law § 352-e.

Section 2 of the bill would amend PHFL § 1122(5) to expressly permit
              

ownership of a cooperative by owners or holders of membership interests
or certificates of membership in such cooperative.

Section 3 of the bill would provide for an immediate effective date.

EXISTING LAW:

Article XX of the PHFL does not expressly authorize certain non-share-
holder entities, such as not-for-profit membership corporations and
other entities that issue membership interests or certificates as
evidence of ownership thereof, to become manufactured home park cooper-
atives.

LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

Manufactured homes located in parks are an important source of afforda-
ble home ownership in New York. As a way of meeting this need, the
Legislature established the Manufactured Home Cooperative Fund Program
(the "Program"), administered by HFA, which has, to date, successfully
financed the conversion to cooperatives of thirteen parks with approxi-
mately 931 units. All of these loans were funded from state appropri-

ations and loan repayments to the Fund.  Resident-owned cooperative
corporations own these parks establishing communities where the resi-
dents have a say in the key issues concerning their homes.

The Program's enabling statute, Article XX of the PHFL, authorizes HFA
to finance the conversion of eligible applicants, such as manufactured
home residents associations, into manufactured home park cooperatives.
However, the statute expressly defines "manufactured home park cooper-
ative" as a shareholder-type corporation. By expanding such definition
to include not-for-profit membership corporations and other entities
that issue membership interests or certificates as evidence of ownership
thereof, the proposed legislation would expressly authorize HFA to
finance the cooperative conversion of a broader pool of cooperatives.
The bill would stimulate lending partnerships with the private sector
and leverage HFA's Program funds with private lenders who finance the
cooperative conversion of not-for-profit membership corporations. It has
been the experience of such private lenders that such financing would
streamline the time and expense of completing the conversion of manufac-
tured home parks into cooperatives.

FISCAL IMPACT:

None.

EFFECTIVE DATE:

This bill would take effect immediately.