S T A T E O F N E W Y O R K
________________________________________________________________________
7831
I N S E N A T E
January 12, 2022
___________
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the private housing finance law, in relation to author-
izing additional supervision and regulation of mutual companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 10, 11, 12, 13 and 14 of section 32-a of the
private housing finance law, as added by a chapter of the laws of 2021,
amending the private housing finance law relating to authorizing addi-
tional supervision and regulation of limited-profit housing companies,
as proposed in legislative bills numbers S. 7079 and A. 7637, are
amended to read as follows:
10. Require every voting member of a board of directors of a MUTUAL
company subject to the provisions of this article, elected or appointed
for a term beginning on or after the effective date of this subdivision,
to complete, within the first year of his or her term and at least once
every three years thereafter, a minimum of two hours of training, in
person or virtually, as the commissioner or supervising agency, as the
case may be, may deem appropriate on the financial oversight, account-
ability and fiduciary responsibilities of a board member; and to require
every voting member of a board of directors of a MUTUAL company subject
to the provisions of this article, elected or appointed for a term
beginning before the effective date of this subdivision, to complete
such training within one year of the effective date of this subdivision
and at least once every three years thereafter.
11. Require every voting member of a board of directors of a MUTUAL
company subject to the provisions of this article, elected or appointed
for a term beginning on or after the effective date of this subdivision,
to complete, within the first year of his or her term and at least once
every three years thereafter, in addition to the training required by
subdivision ten of this section, a training course, in person or virtu-
ally, as the commissioner or supervising agency, as the case be, may
deem appropriate, to acquaint him or her with the powers, functions and
duties of a board of directors of a MUTUAL company subject to the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11105-02-2
S. 7831 2
provisions of this article, as well as the powers and duties of other
governing and administrative authorities affecting such companies; and
to require every voting member of a board of directors of a MUTUAL
company subject to the provisions of this article, elected or appointed
for a term beginning before the effective date of this subdivision, to
complete such training within one year of the effective date of this
subdivision and at least once every three years thereafter.
12. Require each member of a board of directors of a MUTUAL company
subject to the provisions of this article to demonstrate compliance with
the requirements set forth in subdivisions ten and eleven of this
section by filing a certificate of completion of such course or courses
on a form to be promulgated by the commissioner. Such form shall be
filed with the secretary of the [housing corporation] MUTUAL COMPANY and
maintained by the secretary as a corporate record and distributed annu-
ally to the shareholders and upon the filing of any director with the
MUTUAL company of the intention to seek re-election to the position.
Sixty days prior to any scheduled election of members of the board of
directors, the secretary of the [housing] MUTUAL company shall furnish
the commissioner or the supervising authority, as the case may be, with
a list of all incumbent directors indicating which individuals have
submitted certificates required in this subdivision. Such course or
courses shall be provided by the commissioner or supervising agency, as
the case may be, at no cost to the trainee or the board to which the
trainee has been elected.
13. Develop the curricula used for training required by subdivisions
ten and eleven of this section for which the supervising agency or the
commissioner may request and shall receive the cooperation and assist-
ance from any departments, divisions, boards, bureaus, commissions or
agencies of the state and political subdivisions thereof in developing
such curricula. These curricula may be offered together as a single
course or separately. The training required by this section may be
offered by providers approved by the commissioner or supervising agency,
as the case may be. In approving other providers for these trainings,
the commissioner or supervising agency shall consider a potential
provider's understanding of cooperative homeownership; laws, rules and
regulations affecting MUTUAL companies subject to the provisions of this
article; and the fiduciary responsibilities of the board of a residen-
tial cooperative, as well as the experience of the provider in deliver-
ing such training.
14. Hold such meeting or meetings, in person or virtually as the
commissioner or supervisory agency shall deem appropriate, with the
board of a MUTUAL company on the financial oversight, accountability and
fiduciary responsibilities of such board; the powers, functions and
duties of such board; and the powers and duties of other governing and
administrative authorities affecting such company.
§ 2. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2021, amending the private housing
finance law relating to authorizing additional supervision and regu-
lation of limited-profit housing companies, as proposed in legislative
bills numbers S. 7079 and A. 7637, takes effect.
