S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9608
 
                           I N  A S S E M B L Y
 
                             January 27, 2020
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Housing
 
 AN ACT to amend the executive  law,  in  relation  to  establishing  the
   office  of  the  HDFC cooperative ombudsman; and to amend the tax law,
   the state finance law, and the general business law,  in  relation  to
   establishment  of a fund for deposit of a residential unit fee, and to
   direct the administration of such fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The executive law is amended by adding a new article 5-A to
 read as follows:
                                ARTICLE 5-A
                 OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN
 SECTION 80. SHORT TITLE.
         80-A. LEGISLATIVE DECLARATION.
         80-B. DEFINITIONS.
         80-C. OFFICE OF THE HDFC COOPERATIVE OMBUDSMAN.
         80-D. FUNCTIONS, POWERS, AND DUTIES OF THE OFFICE.
         80-E. PRINCIPAL OFFICE AND SATELLITE OFFICES.
         80-F. ASSISTANCE OF OTHER STATE AGENCIES.
         80-G. REPORTS  TO  THE  GOVERNOR, ATTORNEY GENERAL, AND LEGISLA-
                 TURE.
         80-H. CONTRACT AUTHORITY.
         80-I. SEPARABILITY.
   § 80. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "HDFC COOPERATIVE OMBUDSMAN ACT".
   § 80-A. LEGISLATIVE DECLARATION.  THE  LEGISLATURE  HEREBY  FINDS  AND
 DECLARES THE FOLLOWING:
   1.  AFFORDABLE HOUSING COOPERATIVES, KNOWN AS HOUSING DEVELOPMENT FUND
 COMPANIES OR CORPORATIONS, CONSTITUTE A SIGNIFICANT PORTION OF NEW  YORK
 STATE'S AFFORDABLE HOME OWNERSHIP HOUSING STOCK WITH MORE THAN ONE THOU-
 SAND  THREE  HUNDRED COOPERATIVES WITH APPROXIMATELY TWENTY-SIX THOUSAND
 UNITS. IT IS AND HAS BEEN THE PUBLIC POLICY OF THIS STATE  TO  ENCOURAGE
 SUCH  FORMS  OF HOME OWNERSHIP. A WIDE VARIETY OF LAWS HAVE BEEN ENACTED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] 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.