[ ] is old law to be omitted.
LBD14756-01-0
A. 9608 2
TO PROVIDE FAIRNESS IN THE REGULATION AND TAXATION OF COOPERATIVES AND
CONDOMINIUMS. STATE AND LOCAL LAWS AND REGULATIONS ARE ALSO DESIGNED TO
ENSURE THAT THE RESIDENTS OF SUCH AFFORDABLE HOUSING COOPERATIVES ARE
PROVIDED WITH SAFE AND HABITABLE ACCOMMODATIONS. MOREOVER, WITH THE
ENACTMENT OF THE HOUSING STABILITY AND TENANT PROTECTION ACT OF TWO
THOUSAND NINETEEN, IT IS ANTICIPATED THAT MORE HOUSING DEVELOPMENT FUND
COMPANIES MAY BE FORMED AS TENANTS BECOME THE RIGHTFUL OWNERS OF THEIR
HOMES THROUGH TENANT-SPONSORED COOPERATIVE CONVERSIONS.
2. WHILE HOUSING DEVELOPMENT FUND COMPANIES PROVIDE SOME OF THE MOST
AFFORDABLE HOUSING IN NEW YORK, THERE EXISTS NO MEANINGFUL GOVERNMENT
RESOURCE AVAILABLE TO THEIR BOARDS AND SHAREHOLDERS. TENANTS IN BUILD-
INGS THAT ARE CONVERTING TO A HOUSING DEVELOPMENT FUND COMPANY NEED
TRAINING, AND TECHNICAL AND LEGAL ASSISTANCE. TO DATE, NO SUCH RESOURCES
EXIST. ONCE A BUILDING IS CONVERTED TO A HOUSING DEVELOPMENT FUND COMPA-
NY, LITTLE TO NO RESOURCES ARE AVAILABLE AT REASONABLE COSTS TO ITS
BOARD AND ITS SHAREHOLDERS. WHILE SOME HOUSING DEVELOPMENT FUND COMPA-
NIES MAY HAVE MONITORS, THE SCOPE OF SERVICES IS EXTREMELY LIMITED, AND
MONITORS DO NOT ASSIST BOARDS AND SHAREHOLDERS IN OPERATING A BUSINESS.
TO BEGIN, MONITORS DO NOT PROVIDE LEGAL ASSISTANCE. WHEN LEGAL ISSUES OR
DISPUTES ARISE, HOUSING DEVELOPMENT FUND COMPANIES ARE OFTEN WITHOUT A
PLACE TO GO, WHICH CAN OFTENTIMES BE DEVASTATING. SUCH DISPUTES OFTEN
RESULT IN LENGTHY AND COSTLY LITIGATION AND UNCERTAINTY AS TO THE RIGHTS
OF THE PARTIES PENDING THE OUTCOME OF LITIGATION. SUCH LITIGATION
DIVERTS RESOURCES THAT COULD BE BETTER UTILIZED TO PROVIDE AFFORDABLE
AND WELL-MAINTAINED BUILDINGS AND GROUNDS FOR THE COMMON GOOD OF THE
OWNERS.
3. THIS ARTICLE IS NECESSARY TO PROVIDE A NEUTRAL, INFORMATIVE, AND
ACCESSIBLE RESOURCE AVAILABLE TO BOARDS AND SHAREHOLDERS OF HOUSING
DEVELOPMENT FUND COMPANIES. THE HDFC COOPERATIVE OMBUDSMAN APPOINTED
PURSUANT TO THIS ARTICLE WILL CONDUCT OUTREACH PROGRAMS TO EDUCATE
BOARDS AND SHAREHOLDERS AS TO THEIR LEGAL RIGHTS AND RESPONSIBILITIES.
THE HDFC COOPERATIVE OMBUDSMAN WILL ENCOURAGE ALTERNATIVE DISPUTE RESOL-
UTION WHEN DISPUTES DO ARISE. THE HDFC COOPERATIVE OMBUDSMAN WILL BE
AVAILABLE TO PROVIDE DISPUTE RESOLUTION SERVICES ON CONSENT OF THE
PARTIES. THE OMBUDSMAN WILL ALSO PROVIDE MONITORING AND SUPERVISION OF
COOPERATIVE AND CONDOMINIUM ELECTIONS FOR HDFC CO-OPS WITHOUT A MONITOR
THAT PROVIDES SUCH SERVICES.
§ 80-B. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "HOUSING DEVELOPMENT FUND COMPANY" OR "HDFC" MEANS A CORPORATION
ORGANIZED AND OPERATING PURSUANT TO THE BUSINESS CORPORATION LAW AND THE
PRIVATE HOUSING FINANCE LAW FOR THE PRIMARY PURPOSE OF PROVIDING LOW
INCOME HOUSING TO ITS MEMBER SHAREHOLDERS.
2. "LOCAL AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU, COMMISSION,
DIVISION, OFFICE, COUNCIL, OFFICER OR AGENCY OF A CITY, TOWN OR VILLAGE.
3. "OFFICE" MEANS THE OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN CREATED
BY THIS ARTICLE.
4. "THE HDFC COOPERATIVE OMBUDSMAN" OR "THE OMBUDSMAN" MEANS THE CHIEF
ADMINISTRATIVE OFFICER OF THE OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN.
5. "STATE AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU, COMMISSION,
DIVISION, OFFICE, COUNCIL OR AGENCY OF THE STATE, OR A PUBLIC BENEFIT
CORPORATION OR AUTHORITY AUTHORIZED BY THE LAWS OF THE STATE.
§ 80-C. OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN. 1. THE OFFICE OF THE
HDFC COOPERATIVE OMBUDSMAN IS HEREBY CREATED WITHIN THE DEPARTMENT OF
LAW TO HAVE AND EXERCISE THE FUNCTIONS, POWERS, AND DUTIES PROVIDED BY
A. 9608 3
THE PROVISIONS OF THIS ARTICLE AND ANY OTHER PROVISION OF LAW. THE
ATTORNEY GENERAL SHALL BE RESPONSIBLE FOR OVERSIGHT OF THE OFFICE.
2. THE HEAD OF THE OFFICE SHALL BE THE HDFC COOPERATIVE OMBUDSMAN WHO
SHALL BE APPOINTED BY THE ATTORNEY GENERAL. THE OMBUDSMAN SHALL HOLD
OFFICE UNTIL THE END OF THE TERM OF THE ATTORNEY GENERAL BY WHOM HE OR
SHE WAS APPOINTED AND UNTIL HIS OR HER SUCCESSOR IS APPOINTED AND HAS
QUALIFIED. THE OMBUDSMAN MAY BE REMOVED BY THE ATTORNEY GENERAL FOR
CAUSE, AFTER BEING GIVEN AN OPPORTUNITY TO BE HEARD. A VACANCY SHALL BE
FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT.
3. THE OMBUDSMAN SHALL RECEIVE AN ANNUAL SALARY TO BE FIXED BY THE
ATTORNEY GENERAL WITHIN THE AMOUNT MADE AVAILABLE THEREFOR BY AN APPRO-
PRIATION AND SHALL BE ALLOWED HIS OR HER ACTUAL AND NECESSARY EXPENSES
IN THE PERFORMANCE OF HIS OR HER DUTIES. THE OMBUDSMAN'S SALARY SHALL BE
NO LESS THAN THE SALARIES OF CERTAIN STATE OFFICERS HOLDING THE POSI-
TIONS INDICATED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION ONE
HUNDRED SIXTY-NINE OF THIS CHAPTER.
4. THE OMBUDSMAN SHALL BE AN ATTORNEY ADMITTED TO PRACTICE IN NEW YORK
STATE, WITH EXTENSIVE EXPERIENCE IN REAL ESTATE, AFFORDABLE HOUSING,
COOPERATIVE LAW AND IN CONFLICT AND ALTERNATIVE DISPUTE RESOLUTION.
5. THE OMBUDSMAN SHALL DIRECT THE WORK OF THE OFFICE AND SHALL BE THE
CHIEF EXECUTIVE OFFICER OF THE OFFICE. THE OMBUDSMAN MAY APPOINT SUCH
OFFICERS, EMPLOYEES, OR THIRD-PARTY CONSULTANTS AS HE OR SHE MAY DEEM
NECESSARY, PRESCRIBE THEIR POWERS AND DUTIES, FIX THEIR COMPENSATION AND
PROVIDE FOR THE REIMBURSEMENT OF THEIR EXPENSES, ALL WITHIN AMOUNTS MADE
AVAILABLE THEREFOR BY APPROPRIATION. SUCH OFFICERS AND EMPLOYEES SHALL
INCLUDE ATTORNEYS AND OTHER PROFESSIONALS WITH EXTENSIVE EXPERIENCE IN
REAL ESTATE, AFFORDABLE HOUSING, COOPERATIVE LAW, AND IN CONFLICT AND
ALTERNATIVE DISPUTE RESOLUTION.
6. THE OMBUDSMAN AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL ADHERE
TO A CODE OF ETHICS IN ORDER TO INSPIRE PUBLIC CONFIDENCE AS PRESCRIBED
BY THE PUBLIC OFFICERS LAW.
7. THE OMBUDSMAN AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL NOT
SERVE AS OFFICERS OR EMPLOYEES OF A POLITICAL PARTY OR A CLUB OR ORGAN-
IZATION RELATED TO A POLITICAL PARTY, RECEIVE REMUNERATION FOR ACTIV-
ITIES ON BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE OR PARTY POSITION OR
ENGAGE IN SOLICITING VOTES OR OTHER ACTIVITIES ON BEHALF OF A CANDIDATE
FOR PUBLIC OFFICE OR PARTY POSITION.
8. THE SECRETARY TO THE GOVERNOR SHALL ENSURE THAT ALL STATE AGENCIES
PROVIDE THE OMBUDSMAN WITH ASSISTANCE IN ADVANCING THE PURPOSES OF THE
OFFICE AND SHALL ENSURE THAT THE ACTIVITIES OF THE OFFICE ARE FULLY
COORDINATED WITH THE ACTIVITIES OF STATE AGENCIES PROVIDING RELATED
SERVICES.
§ 80-D. FUNCTIONS, POWERS, AND DUTIES OF THE OFFICE. THE OFFICE SHALL
HAVE THE FOLLOWING FUNCTIONS, POWERS, AND DUTIES:
1. TO EDUCATE AND INFORM BOARDS AND SHAREHOLDERS IN HOUSING DEVELOP-
MENT FUND COMPANIES OF THEIR LEGAL RIGHTS AND RESPONSIBILITIES UNDER
FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS APPLICABLE TO SUCH COMPA-
NIES;
2. TO COORDINATE AND ASSIST IN THE PREPARATION AND PUBLICATION OF
EDUCATIONAL AND REFERENCE MATERIALS ABOUT HOUSING DEVELOPMENT FUND
COMPANIES AND TO MAKE SUCH RESOURCES KNOWN AND AVAILABLE TO THE WIDEST
POSSIBLE AUDIENCE;
3. TO ORGANIZE AND CONDUCT MEETINGS, WORKSHOPS, CONFERENCES, PUBLIC
HEARINGS, AND FORUMS, AND TO UTILIZE ALL FORMS OF COMMUNICATION MEDIA TO
DISSEMINATE ACCURATE AND TIMELY INFORMATION OF INTEREST TO PERSONS
RESIDING IN, OWNING, OR MANAGING HOUSING DEVELOPMENT FUND COMPANIES;
A. 9608 4
4. TO PROVIDE MEETINGS, MEDIATION, ARBITRATION AND OTHER FORMS OF
ALTERNATIVE DISPUTE RESOLUTION SERVICES BETWEEN SHAREHOLDERS AND BOARDS
OF HOUSING DEVELOPMENT FUND COMPANIES AND PARTIES WHERE DISPUTES MAY
ARISE BETWEEN FOR-PROFIT AND NON-PROFIT SPONSORS AND DEVELOPERS, MANAG-
ERS, PROSPECTIVE AND EXISTING SHAREHOLDERS, AND OTHER PARTIES, SO AS TO
AVOID COSTLY AND LENGTHY LITIGATION AND REDUCE EXPENSES FOR THOSE
INVOLVED IN DISPUTES;
5. TO SUBPOENA AND ENFORCE THE ATTENDANCE OF WITNESSES, ADMINISTER
OATHS OR AFFIRMATIONS AND EXAMINE WITNESSES UNDER OATH, AND REQUIRE THE
PRODUCTION OF ANY BOOKS AND PAPERS DEEMED RELEVANT OR MATERIAL TO THE
RESOLUTION OF ANY DISPUTE PENDING BEFORE THE OFFICE;
6. TO ENGAGE WITH THE HOUSING COURTS, OTHER TRIAL COURTS, STATE AND
LOCAL AGENCIES, AND WITH ALTERNATIVE DISPUTE RESOLUTION PROGRAMS MAIN-
TAINED BY THE OFFICE OF COURT ADMINISTRATION IN ORDER TO PROVIDE
SPECIALIZED EXPERTISE IN THE RESOLUTION OF DISPUTES INVOLVING HOUSING
DEVELOPMENT FUND COMPANIES AS AN ALTERNATIVE TO LITIGATION;
7. TO OFFER PROCEDURES, MONITORS, AND VOTE COUNTING SERVICES TO
PROVIDE FAIR ELECTIONS FOR BOARDS AND SHAREHOLDERS IN HOUSING DEVELOP-
MENT FUND COMPANIES, INCLUDING BUT NOT LIMITED TO PROVIDING THAT:
(I) FIFTEEN PERCENT OF THE TOTAL VOTING INTERESTS IN HOUSING DEVELOP-
MENT FUND COMPANIES, OR SHAREHOLDERS OF SIX RESIDENTIAL UNITS, WHICHEVER
IS GREATER, MAY PETITION THE OFFICE TO ATTEND AND CONDUCT AN ELECTION OF
THE BOARD; AND
(II) ALL COSTS ASSOCIATED WITH THE ELECTION MONITORING PROCESS SHALL
BE PAID BY THE HOUSING DEVELOPMENT FUND COMPANIES;
8. TO PROVIDE LEGAL ASSISTANCE RELATED TO AMENDING GOVERNING DOCUMENTS
TO COMPLY WITH APPLICABLE LAWS, RULES AND REGULATIONS GOVERNING HOUSING
DEVELOPMENT FUND COMPANIES, AND ADVISING ON CORPORATE POLICIES INVOLVING
GOVERNANCE SUCH AS RESALES, CONFLICTS OF INTEREST, AND SHAREHOLDER
SELECTION;
9. TO REFER ANY COMPLAINT RECEIVED TO THE APPROPRIATE LAW ENFORCEMENT
AGENCY FOR PROSECUTION, IF DEEMED APPROPRIATE BY THE OFFICE; AND
10. TO PERFORM ANY OTHER FUNCTIONS THAT ARE NECESSARY OR APPROPRIATE
TO FULFILL THE DUTIES AND RESPONSIBILITIES OF THE OFFICE.
§ 80-E. PRINCIPAL OFFICE AND SATELLITE OFFICES. THE OFFICE SHALL MAIN-
TAIN ITS PRINCIPAL OFFICE IN THE CITY OF NEW YORK AND SHALL HAVE SATEL-
LITE OFFICES IN OTHER LOCATIONS WITHIN THE STATE WHERE THERE ARE SIGNIF-
ICANT CONCENTRATIONS OF HOUSING DEVELOPMENT FUND COMPANIES.
§ 80-F. ASSISTANCE OF OTHER STATE AGENCIES. TO EFFECTUATE THE PURPOSES
OF THIS ARTICLE, THE OMBUDSMAN MAY REQUEST AND SHALL BE ENTITLED TO
RECEIVE FROM ANY STATE AGENCY, AND THE SAME ARE AUTHORIZED TO PROVIDE,
SUCH ASSISTANCE, SERVICES, FACILITIES, AND DATA AS WILL ENABLE THE
OFFICE TO CARRY OUT ITS FUNCTIONS, POWERS AND DUTIES, AND SUCH TEMPORAR-
ILY OR PERMANENTLY ASSIGNED PERSONNEL AS THE DIRECTOR OF THE BUDGET MAY
APPROVE.
§ 80-G. REPORTS TO THE GOVERNOR, ATTORNEY GENERAL, AND LEGISLATURE.
THE OFFICE SHALL MAKE AN ANNUAL REPORT, TO BE RECEIVED ON OR BEFORE
JANUARY FIRST EACH FULL YEAR FOLLOWING THE EFFECTIVE DATE OF THIS ARTI-
CLE, TO THE GOVERNOR, THE ATTORNEY GENERAL, AND THE LEGISLATURE CONCERN-
ING THE ACTIVITIES UNDERTAKEN BY THE OFFICE, RECOMMENDATIONS FOR LEGIS-
LATIVE PROPOSALS, DATA CONCERNING PROGRAM ACTIVITIES, AND OTHER
PERTINENT INFORMATION AS MAY BE REQUIRED.
§ 80-H. CONTRACT AUTHORITY. THE OFFICE IS HEREBY EMPOWERED TO ENTER
INTO ANY AGREEMENT OR CONTRACT WITH ANY STATE OR LOCAL AGENCY NECESSARY
OR CONVENIENT TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. THE ATTORNEY
GENERAL MAY ALSO CONTRACT WITH OUTSIDE THIRD PARTIES FOR THE PURPOSE OF
A. 9608 5
ESTABLISHING THE OFFICE, AND THEREAFTER, THE OMBUDSMAN SHALL BE AUTHOR-
IZED TO ENTER INTO CONTRACTS WITH THIRD-PARTY PROFESSIONALS TO PROVIDE
DIRECT LEGAL SERVICES AND TECHNICAL ASSISTANCE. ANY CONTRACTS WITH
THIRD-PARTY PROFESSIONALS SHALL BE SUBJECT TO STATE PROCUREMENT LAWS.
§ 80-I. SEPARABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVAL-
IDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION, OR PART THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN
RENDERED.
§ 2. The tax law is amended by adding a new section 186-h to read as
follows:
§ 186-H. RESIDENTIAL UNIT FEE. A COOPERATIVE HOUSING CORPORATION OR A
CONDOMINIUM OWNERS ASSOCIATION, AS SUCH TERMS ARE DEFINED IN THE INTER-
NAL REVENUE CODE, SHALL PAY AN ANNUAL FEE OF SIX DOLLARS PER YEAR FOR
EACH RESIDENTIAL UNIT LOCATED IN ANY BUILDING OWNED OR OPERATED BY SUCH
CORPORATION OR ASSOCIATION. SUCH FEE SHALL BE PAYABLE TO THE DEPARTMENT.
ALL REVENUE FROM THE FEE IMPOSED PURSUANT TO THIS SECTION SHALL BE PAID
BY THE DEPARTMENT TO THE STATE COMPTROLLER TO BE DEPOSITED TO AND CRED-
ITED TO THE OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN FUND, ESTABLISHED
PURSUANT TO SECTION EIGHTY-A OF THE STATE FINANCE LAW.
§ 3. The state finance law is amended by adding a new section 80-a to
read as follows:
§ 80-A. OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL
FUND TO BE KNOWN AS THE "OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN FUND".
2. THE OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN FUND SHALL CONSIST OF
MONIES APPROPRIATED THERETO, FUNDS TRANSFERRED FROM ANY OTHER FUND OR
SOURCES, AND MONIES DEPOSITED THEREIN PURSUANT TO SECTION ONE HUNDRED
EIGHTY-SIX-H OF THE TAX LAW.
3. THE MONEYS IN THE HDFC COOPERATIVE OMBUDSMAN FUND SHALL BE KEPT
SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE
CUSTODY OF THE STATE COMPTROLLER. ALL MONEYS IN THE FUND SHALL BE
DISTRIBUTED EACH STATE FISCAL YEAR AND SUCH MONEYS SHALL BE ALLOCATED TO
AND EXPENDED BY THE DEPARTMENT OF LAW SOLELY FOR THE OPERATION AND
ADMINISTRATION OF THE OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN ESTAB-
LISHED PURSUANT TO ARTICLE FIVE-A OF THE EXECUTIVE LAW.
§ 4. Subdivision 3 of section 80 of the state finance law, as added by
section 2 of part BBB-1 of chapter 57 of the laws of 2008, is amended
and a new subdivision 2-a is added to read as follows:
2-A. ON OR BEFORE THE FIRST DAY OF FEBRUARY FOLLOWING THE EFFECTIVE
DATE OF THIS SUBDIVISION AND ANNUALLY THEREAFTER, THE ATTORNEY GENERAL
SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE,
THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE,
THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE STATE COMP-
TROLLER, AND THE PUBLIC. SUCH REPORT SHALL OUTLINE THE NATURE OF HOW THE
MONIES OF THE REAL ESTATE FINANCE BUREAU FUND WERE UTILIZED DURING THE
PRECEDING CALENDAR YEAR, AND SHALL INCLUDE: (A) THE AMOUNT OF MONEY
DISPERSED FROM SUCH FUND; (B) THE RECIPIENTS OF AWARDS FROM SUCH FUND;
(C) THE AMOUNT AWARDED TO EACH SUCH RECIPIENT; (D) THE PURPOSES FOR
WHICH SUCH AWARDS WERE GRANTED; AND (E) A SUMMARY FINANCIAL PLAN FOR
SUCH MONIES WHICH SHALL INCLUDE ESTIMATES OF ALL FUTURE RECEIPTS AND
DISBURSEMENTS FOR THE CURRENT AND SUCCEEDING FISCAL YEARS.
3. The moneys in the real estate finance bureau fund shall be kept
separate from and shall not be commingled with any other moneys in the
A. 9608 6
custody of the state comptroller. [Such] ALL MONEYS IN THE REAL ESTATE
FINANCE BUREAU FUND SHALL BE DISTRIBUTED IN THEIR ENTIRETY DURING EACH
STATE FISCAL YEAR, AND SUCH moneys shall be allocated to and expended by
the department of law solely for increasing the staffing, efficiency and
administration of the real estate finance bureau of such department. THE
FIRST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OF SUCH ANNUAL DISTRIB-
UTION OF MONIES IN THE REAL ESTATE FINANCE BUREAU FUND SHALL BE ALLO-
CATED TO HIRING ADDITIONAL STAFF BEYOND THAT WHICH WAS EMPLOYED BY THE
REAL ESTATE FINANCE BUREAU WITHIN THE DEPARTMENT OF LAW AT THE TIME OF
THE EFFECTIVE DATE OF A CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY THAT
AMENDED THIS SUBDIVISION. SUCH ALLOCATION FOR ADDITIONAL STAFFING SHALL
BE ADJUSTED ANNUALLY FOR INFLATION ACCORDING TO THE CONSUMER PRICE
INDEX.
§ 5. Paragraphs (a) and (c) of subdivision 7 of section 352-e of the
general business law, paragraph (a) as amended by section 1 of part
BBB-1 of chapter 57 of the laws of 2008 and paragraph (c) as amended by
chapter 637 of the laws of 1989, are amended to read as follows:
(a) The department of law shall collect the following fees for the
filing of each offering statement or prospectus as described in subdivi-
sion one of this section: seven hundred fifty dollars for every offering
not in excess of two hundred fifty thousand dollars; for every offering
in excess of two hundred fifty thousand dollars, four-tenths of one
percent of the total amount of the offering but not in excess of [thir-
ty] SIXTY thousand dollars of which one-half of said amount shall be a
nonrefundable deposit paid at the time of submitting the offering state-
ment to the department of law for review and the balance payable upon
the issuance of a letter of acceptance for filing said offering state-
ment. The department of law shall, in addition, collect a fee of two
hundred twenty-five dollars for each PRICE CHANGE amendment to an offer-
ing statement AND SEVEN HUNDRED FIFTY DOLLARS FOR ANY OTHER AMENDMENT TO
AN OFFERING STATEMENT. For each application granted by the department
of law which permits the applicant to solicit public interest or public
funds preliminary to the filing of an offering statement or for the
issuance of a "no-filing required" letter, AND ANY AMENDMENT THERETO,
the department of law shall collect a fee of [two hundred twenty-five]
SEVEN HUNDRED FIFTY dollars. [In the event the sponsor thereafter files
an offering statement, the fee paid for the preliminary application
shall be credited against the balance of the fee due and payable on
filing.] For each application granted pursuant to section three hundred
fifty-two-g of this article, the department of law shall collect a fee
of two-tenths of one percent of the amount of the offering of securi-
ties; however, the minimum fee shall be seven hundred fifty dollars and
the maximum fee shall be [thirty] SIXTY thousand dollars. All revenue
from that portion of any fee imposed pursuant to this paragraph, which
exceeds twenty thousand dollars FOR OFFERING STATEMENTS, AND FIVE
HUNDRED TWENTY-FIVE DOLLARS FOR ALL OTHER FILINGS, shall be paid by the
department of law to the state comptroller to be deposited in and cred-
ited EQUALLY to the real estate finance bureau fund, established pursu-
ant to section eighty of the state finance law AND THE HDFC COOPERATIVE
OMBUDSMAN FUND, ESTABLISHED PURSUANT TO SECTION EIGHTY-A OF THE STATE
FINANCE LAW.
(c) Notwithstanding the provisions of paragraph (a) of this subdivi-
sion, the department of law shall not collect any fees for the filing of
an offering statement or prospectus or any amended filings thereto as
described in subdivision one of this section whenever a conversion of a
mobile home park, building or group of buildings or development [from
A. 9608 7
residential rental status] to cooperative or condominium ownership is
being made pursuant to article ELEVEN, eighteen, nineteen or twenty of
the private housing finance law.
§ 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.