NY State Senate Bill 2021-S6329

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to housing, construction and community development
Apr 22, 2021	referred to housing, construction and community development

2021-S6329 (ACTIVE) - Details

See Assembly Version of this Bill:: A622
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §17, Priv Hous Fin L
Versions Introduced in 2019-2020 Legislative Session:: A9721

2021-S6329 (ACTIVE) - Summary

Establishes certain duties of a board of directors of a limited-profit housing company, including requiring such board to hold six meetings of its members annually, make votes of the board public information, distribute certain communications to all shareholders of the company and investigate any substantive allegation that a tenant is not occupying his or her dwelling unit as his or her primary residence.

2021-S6329 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6329

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to certain
duties of a board of directors of a limited-profit housing company

 
PURPOSE:

To establish certain duties of a board of directors of "Mitchell-Lama"
cooperatives organized as limited-profit housing companies.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 17 of the private housing finance
law by adding two new subdivisions 4 and 5.

Paragraphs a-d of the new subdivision 4 require each board of directors
to:

* hold six meetings annually, with meetings open to shareholders and

residents, except in limited circumstances when executive sessions open
only to directors are permitted;

* file with the commissioner or the supervising agency any votes of the
board, including specification of how each director voted, which will be
a matter of public information;

* distribute to all shareholders any communication to the board from
oversight agencies and, in the event of a proposed dissolution, the
review of any version of an offering plan; and

* investigate any substantive allegation that a tenant is not occupying
his or her dwelling unit as his or her primary residence.

Paragraphs a-c of the new subdivision 5 require the following:

* no board will interfere with the right of a shareholder or tenant to
participate in the lawful activities of any group formed to protect the
rights of shareholders and tenants, or penalize shareholders or tenants
for exercising such right;

* shareholder and/or tenant groups will have the right to meet without
being required to pay a fee in any locations on the premises that are
devoted to the common use of all shareholders and/or tenants in a peace-
ful manner;

* boards will take all necessary and appropriate actions to ensure that
a manager or agent of the housing company complies with these require-
ments.

Section two establishes the effective date.

 
JUSTIFICATION:

Mitchell-Lama cooperatives are governed by their respective boards of
directors, composed of elected volunteer shareholders who work to
preserve and manage this vital affordable housing on behalf of them-
selves and their neighbors. Currently, the relationships between these
boards and individual shareholders are not subject to government over-
sight, apart from a mandate by the Department of Housing Preservation
and Development, to abide by the Mitchell-Lama Rules. This bill ensures
board of director meetings are open to the public and part of the public
record, as well as to mandate that communications or offers of refinanc-
ing are distributed to all shareholders.

 
LEGISLATIVE HISTORY:

New bill in the Senate.

2019-20: A9721 - Referred to Housing

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.

2021-S6329 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6329
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 22, 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 certain
   duties of a board of directors of a limited-profit housing company

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 17 of the private housing finance law is amended by
 adding two new subdivisions 4 and 5 to read as follows:
   4.  NOTWITHSTANDING  THE  PROVISIONS OF ANY LAW, GENERAL OR SPECIAL, A
 BOARD OF DIRECTORS OF A COMPANY CREATED PURSUANT TO  THE  PROVISIONS  OF
 THIS ARTICLE SHALL:
   (A)  HOLD AT LEAST SIX MEETINGS OF ITS MEMBERS ANNUALLY. SUCH MEETINGS
 SHALL BE OPEN TO THE SHAREHOLDERS AND RESIDENTS, EXCEPT  THAT  THEY  MAY
 INCLUDE  EXECUTIVE  SESSIONS OPEN ONLY TO DIRECTORS FOR THE SOLE PURPOSE
 OF DISCUSSING CONFIDENTIAL PERSONNEL ISSUES, LEGAL  ADVICE  AND  COUNSEL
 FROM  AN  ATTORNEY TO WHOM THE HOUSING COMPANY IS A CLIENT, OR CONFIDEN-
 TIAL ISSUES AFFECTING INDIVIDUAL SHAREHOLDERS OR RESIDENTS, OR  CONTRACT
 NEGOTIATION.
   (B)  FILE WITH THE COMMISSIONER OR THE SUPERVISING AGENCY, AS THE CASE
 MAY BE, A RECORD OF ANY VOTE ON A RESOLUTION OF  SUCH  BOARD,  INCLUDING
 SPECIFICATION  OF HOW EACH DIRECTOR VOTED. SUCH RECORD SHALL BE A MATTER
 OF PUBLIC RECORD.
   (C) PROMPTLY GIVE NOTICE OF AND MAKE AVAILABLE TO ALL SHAREHOLDERS ANY
 COMMUNICATION TO THE HOUSING COMPANY FROM THE COMMISSIONER OR THE SUPER-
 VISING AGENCY, AS THE CASE MAY BE, OR THE OFFICE OF THE ATTORNEY  GENER-
 AL,  REGARDING  REGULATIONS, CHANGES IN REGULATIONS, TAXATION, FINANCES,
 REFINANCING, OR, IN THE EVENT OF A PROPOSED DISSOLUTION AND REINCORPORA-
 TION, THE REVIEW OF ANY VERSION OF AN OFFERING PLAN.
   (D) INVESTIGATE ANY SUBSTANTIVE ALLEGATION THAT A TENANT IS NOT  OCCU-
 PYING HIS OR HER DWELLING UNIT AS HIS OR HER PRIMARY RESIDENCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00374-01-1

 S. 6329                             2
 
   5.  (A)  NO HOUSING COMPANY SHALL INTERFERE WITH THE RIGHT OF A SHARE-
 HOLDER OR TENANT TO FORM, JOIN OR PARTICIPATE IN THE  LAWFUL  ACTIVITIES
 OF  ANY  GROUP,  COMMITTEE  OR  OTHER ORGANIZATION FORMED TO PROTECT THE
 RIGHTS OF SHAREHOLDERS  AND  TENANTS;  NOR  SHALL  ANY  HOUSING  COMPANY
 HARASS,  PUNISH,  PENALIZE,  DIMINISH, OR WITHHOLD ANY RIGHT, BENEFIT OR
 PRIVILEGE OF A SHAREHOLDER OR TENANT UNDER THEIR  PROPRIETARY  LEASE  OR
 TENANCY FOR EXERCISING SUCH RIGHT.
   (B) SHAREHOLDER AND/OR TENANTS' GROUPS, COMMITTEES OR OTHER SHAREHOLD-
 ER  AND/OR  TENANTS'  ORGANIZATIONS SHALL HAVE THE RIGHT TO MEET WITHOUT
 BEING REQUIRED TO PAY A FEE IN ANY LOCATION ON THE PREMISES INCLUDING  A
 COMMUNITY OR SOCIAL ROOM WHERE USE IS NORMALLY SUBJECT TO A FEE WHICH IS
 DEVOTED TO THE COMMON USE OF ALL SHAREHOLDERS AND/OR TENANTS IN A PEACE-
 FUL  MANNER,  AT  REASONABLE HOURS AND WITHOUT OBSTRUCTING ACCESS TO THE
 PREMISES OR FACILITIES. NO HOUSING COMPANY SHALL DENY SUCH RIGHT.
   (C) THE BOARD OF DIRECTORS SHALL TAKE ALL  NECESSARY  AND  APPROPRIATE
 ACTIONS  TO  ENSURE  THAT  A  MANAGER  OR  AGENT  OF THE HOUSING COMPANY
 COMPLIES WITH THE REQUIREMENTS IN THIS SUBDIVISION.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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Senate Bill S6329

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2021-S6329 (ACTIVE) - Details

2021-S6329 (ACTIVE) - Summary

2021-S6329 (ACTIVE) - Sponsor Memo

2021-S6329 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6329

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Sponsored By

Brian Kavanagh

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2021-S6329 (ACTIVE) - Details

2021-S6329 (ACTIVE) - Summary

2021-S6329 (ACTIVE) - Sponsor Memo

2021-S6329 (ACTIVE) - Bill Text download pdf

Comments