S T A T E O F N E W Y O R K
________________________________________________________________________
8521--A
I N S E N A T E
March 8, 2022
___________
Introduced by Sen. MANNION -- read twice and ordered printed, and when
printed to be committed to the Committee on Disabilities -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the mental hygiene law, in relation to the creation of
an innovative supportive housing program for persons with a develop-
mental disability who wish and are able to safely reside in such a
setting; and to amend the general business law, in relation to creat-
ing an exemption from certain filing requirements for residential
environments that are formed as cooperative interests in realty for
persons receiving services under the innovative supportive housing
program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative purpose and findings. The legislature hereby
finds and declares as follows:
(a) New York state is currently facing a severe housing crisis for
people with developmental disabilities. Staffing shortages for certified
housing, commonly referred to as group homes, has put additional pres-
sure on the state to provide homes for people forced out of their group
homes. There is an acute need to create alternative and innovative hous-
ing models, especially for those persons who are able to live more inde-
pendently and wish to do so.
(b) Many persons with developmental disabilities live with a parent or
parents, a family member, or other similar direct support personnel.
However, many such persons wish to live more independently, and would do
so if an option existed that included certain basic supports.
(c) Further, although family caregiving is appropriate in many
instances, a system that relies exclusively on parents and similar
direct support personnel to provide a non-institutional living setting
is not sustainable. The parent or direct support personnel eventually
becomes unable to continue supporting the person who has a developmental
disability, due to the direct support personnel's infirmity, death, or
other concerns.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14727-04-2
S. 8521--A 2
(d) When that happens, the person with a developmental disability has
no option but to move to a group home, which is a more restrictive envi-
ronment than an innovative supportive housing program. Often, available
group homes are located far from the communities in which people have
lived their entire lives. Although group homes may be appropriate for
some persons with developmental disabilities, they are not appropriate
for those persons with disabilities who wish and are able to live more
independently. Currently, group homes, even for those who choose to
live in that setting, do not number nearly enough to meet the need.
(e) A system that results in the unnecessary institutionalization of
persons with developmental disabilities directly contravenes the spirit
of federal law that requires state and local governments to provide
people with developmental disabilities opportunities to live in the most
integrated setting that is available and appropriate for their needs. It
also works a double trauma upon the person with developmental disabili-
ty, who has no option but to move from their long-time home while, at
the same time, grieving the loss of a parent or direct support person-
nel. At this time, the state of New York offers no practical solution
to this crisis.
(f) Accordingly, there is a need to create new and innovative housing
models that maximize independence for persons with developmental disa-
bilities. The state must remain vigilant in its efforts to reduce insti-
tutionalization of persons with disabilities. However, the state should
not avoid opportunities to provide independent housing options to
persons with developmental disabilities, where such persons wish and are
able to take advantage of such opportunities, out of concern that a
certain number of persons with developmental disabilities living in
close proximity automatically qualifies as an "institution."
(g) Guidance from the federal Centers for Medicare and Medicaid
Services ("CMS") has emphasized that there is no cap or percentage that
is used to determine whether housing for people with developmental disa-
bilities satisfies the federal standards for what constitutes an insti-
tution. Rather, CMS clarified that state and local governments should
focus on the experience of the individual with developmental disabili-
ties in that setting.
(h) Persons with developmental disabilities can in fact live in close
proximity in a safe and healthy residential environment integrated into
the community, especially when that environment is chosen by the person
and augmented with supports that maximize the person's independence and
that are less intensive than the services provided in an institutional
setting.
(i) Thus, to maximize the availability of innovative housing settings,
this legislation directs the office for people with developmental disa-
bilities ("OPWDD") to create an Innovative Supportive Housing Program
that enables persons with developmental disabilities to live more inde-
pendently, including housing that is owned or leased in their name, or
by someone else on behalf of such person or that of a trust established
for their benefit, with supports provided through OPWDD, such as avail-
ability of shared direct support personnel. In this way, the program
will ensure that persons with developmental disabilities are afforded
settings that are the most integrated and appropriate for their needs.
§ 2. The mental hygiene law is amended by adding a new section 16.38
to read as follows:
§ 16.38 INNOVATIVE SUPPORTIVE HOUSING PROGRAM.
(A) THE OFFICE SHALL DEVELOP AN INNOVATIVE SUPPORTIVE HOUSING PROGRAM
THAT ENABLES PERSONS WITH A DEVELOPMENTAL DISABILITY TO LIVE INDEPEND-
S. 8521--A 3
ENTLY AND SAFELY, WITH SUPPORT SERVICES, INCLUDING BUT NOT LIMITED TO
STAFFING SUPPORT, SHARED STAFFING SUPPORT, AND OPPORTUNITIES FOR SOCIAL
ENGAGEMENT AND RECREATION, IN A RESIDENTIAL ENVIRONMENT. ELIGIBILITY FOR
THE PROGRAM SHALL BE DETERMINED SOLELY BY THE PERSON WITH A DEVELOP-
MENTAL DISABILITY IN COLLABORATION WITH THEIR SERVICE PROVIDER AND CARE
COORDINATION AGENCIES, AND SHALL BE BASED ON THE PERSON'S ABILITY TO
LIVE INDEPENDENTLY AND SAFELY, WITH SUPPORT SERVICES, IN THEIR CHOSEN
RESIDENTIAL ENVIRONMENT.
(B) THE INNOVATIVE SUPPORTIVE HOUSING PROGRAM ESTABLISHED BY THIS
SECTION SHALL ENABLE ELIGIBLE PERSONS WITH DEVELOPMENTAL DISABILITIES TO
RESIDE IN A RESIDENTIAL ENVIRONMENT, INCLUDING BUT NOT LIMITED TO LEASED
RESIDENTIAL HOUSING, HOUSING THAT QUALIFIES AS A COOPERATIVE INTEREST IN
REALTY UNDER SECTION THREE HUNDRED FIFTY-TWO-E OF THE GENERAL BUSINESS
LAW, AND CONDOMINIUM UNITS UNDER ARTICLE NINE-B OF THE REAL PROPERTY
LAW, WHERE AN INTEREST IN A RESIDENCE IS OWNED OR LEASED BY A PERSON
WITH A DEVELOPMENTAL DISABILITY, OR AN ENTITY ON BEHALF OF SUCH PERSON,
INCLUDING BUT NOT LIMITED TO A TRUST ESTABLISHED FOR SUCH PERSON'S BENE-
FIT.
(C) WHEN ESTABLISHING THE INNOVATIVE SUPPORTIVE HOUSING PROGRAM
DESCRIBED BY THIS SECTION, AND WHEN DETERMINING ELIGIBILITY FOR ANY
HOUSING SUBSIDY PROGRAM FOR PERSONS WITH DEVELOPMENTAL DISABILITIES, IN
RECOGNITION OF THE RIGHT OF PERSONS WITH DEVELOPMENTAL DISABILITIES TO
CHOOSE THE RESIDENTIAL ENVIRONMENT IN WHICH THEY WISH TO LIVE AND THE
PERSONS WITH WHOM THEY WISH TO LIVE, AND THE REQUIREMENT THAT GOVERNMENT
AGENCIES FOCUS ON AN INDIVIDUAL'S EXPERIENCE WHEN DETERMINING WHETHER A
RESIDENTIAL ENVIRONMENT IS THE MOST INTEGRATED AND APPROPRIATE FOR THEIR
NEEDS, THE OFFICE SHALL:
(1) MAXIMIZE THE TYPES OF RESIDENTIAL SETTINGS IN WHICH INDIVIDUALS
MAY LIVE;
(2) MAXIMIZE AND PRIORITIZE THE ABILITY OF INDIVIDUALS TO CHOOSE THE
SETTING IN WHICH THEY MAY LIVE;
(3) NOT IMPOSE ANY REQUIREMENTS ON THE TYPES OF RESIDENTIAL SETTINGS
THAT MAY BE ELIGIBLE FOR FUNDS THROUGH A HOME AND COMMUNITY BASED WAIVER
BEYOND THOSE IMPOSED BY FEDERAL LAW UNDER SECTION 1915 OF THE SOCIAL
SECURITY ACT (42 U.S.C. SEC. 1396N);
(4) NOT PRECLUDE SETTINGS FROM RECEIVING FUNDING THROUGH A HOME AND
COMMUNITY BASED WAIVER DUE TO THEIR LOCATION, SIZE, OR THE TYPE OR
NUMBER OF INDIVIDUALS SERVED EXCEPT AS REQUIRED BY FEDERAL LAW UNDER
SECTION 1915 OF THE SOCIAL SECURITY ACT (42 U.S.C. SEC. 1396(N); AND
(5) NOT ESTABLISH A MAXIMUM NUMBER OR PERCENTAGE OF PERSONS WITH
DEVELOPMENTAL DISABILITIES WHO MAY LIVE IN A RESIDENTIAL ENVIRONMENT
WHEN VIEWED AS A WHOLE.
(D) THE OFFICE SHALL COORDINATE WITH THE DEPARTMENT OF HEALTH TO
DETERMINE WHETHER AN AMENDMENT TO THE STATE PLAN AUTHORIZED BY SECTION
THREE HUNDRED SIXTY-THREE-A OF THE SOCIAL SERVICES LAW OR A WAIVER IS
REQUIRED FROM THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES
("CMS") TO MAXIMIZE FEDERAL FINANCIAL PARTICIPATION FOR THE PROGRAM
DESCRIBED IN THIS SECTION. IF AN AMENDMENT TO THE STATE PLAN OR A WAIVER
IS REQUIRED OR DESIRABLE, THE DEPARTMENT OF HEALTH SHALL SUBMIT SUCH
AMENDMENT OR APPLY TO CMS FOR SUCH WAIVER NO MORE THAN NINETY DAYS FROM
THE DATE THAT THIS SECTION BECOMES EFFECTIVE.
(E) THE OFFICE SHALL COORDINATE WITH THE DEPARTMENT OF HEALTH TO
ENSURE THAT ANY STATE TRANSITION PLAN SUBMITTED TO CMS THAT RELATES TO
FEDERAL REGULATIONS GOVERNING HOME AND COMMUNITY-BASED SERVICES IS WRIT-
TEN, AMENDED OR SUPPLEMENTED TO INCLUDE RECOGNITION OF THE INNOVATIVE
SUPPORTIVE HOUSING PROGRAM ESTABLISHED BY THIS SECTION.
S. 8521--A 4
(F) THE OFFICE MAY CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT
ON HOW RESIDENTIAL ENVIRONMENTS THAT INCLUDE INNOVATIVE SUPPORTIVE HOUS-
ING AUTHORIZED BY THIS SECTION CAN BEST BE INTEGRATED WITH THE BROADER
COMMUNITY.
(G) A RESIDENTIAL ENVIRONMENT IN WHICH PERSONS WITH DEVELOPMENTAL
DISABILITIES RECEIVE SERVICES PURSUANT TO THE INNOVATIVE SUPPORTIVE
HOUSING PROGRAM ESTABLISHED BY THIS SECTION SHALL NOT BE CONSIDERED A
COMMUNITY RESIDENCE, COMMUNITY RESIDENTIAL FACILITY FOR THE DISABLED,
SUPERVISED LIVING FACILITY, SUPPORTIVE LIVING FACILITY, OR ANY OTHER
PROVIDER OF SERVICE REQUIRING AN OPERATING CERTIFICATE UNDER SECTION
16.03 OF THIS ARTICLE. NOTHING IN THIS SECTION SHALL BE INTERPRETED AS
AUTHORIZING AN INCREASE IN THE NUMBER OF BEDS APPROVED FOR A COMMUNITY
RESIDENCE, COMMUNITY RESIDENTIAL FACILITY FOR THE DISABLED, SUPERVISED
LIVING FACILITY, SUPPORTIVE LIVING FACILITY, OR ANY OTHER PROVIDER OF
SERVICE REQUIRING AN OPERATING CERTIFICATE UNDER SECTION 16.03 OF THIS
ARTICLE.
(H) RESIDENTIAL ENVIRONMENTS IN WHICH PERSONS WITH DEVELOPMENTAL DISA-
BILITIES RECEIVE SERVICES PURSUANT TO THE INNOVATIVE SUPPORTIVE HOUSING
PROGRAM ESTABLISHED BY THIS SECTION SHALL NOT DISCRIMINATE AGAINST ANY
RESIDENT OR POTENTIAL RESIDENT BASED ON RACE, CREED, AGE OTHER THAN
BEING AT LEAST EIGHTEEN YEARS OF AGE, COLOR, NATIONAL ORIGIN, SEX, DISA-
BILITY, MARITAL STATUS, MILITARY STATUS, FAMILY STATUS, SEXUAL ORIEN-
TATION, GENDER IDENTITY OR EXPRESSION, OR ANY OTHER PROTECTED CHARACTER-
ISTIC UNDER THE NEW YORK STATE HUMAN RIGHTS LAW; PROVIDED, HOWEVER, THAT
THE AUTISM SPECTRUM DISORDERS ADVISORY BOARD ESTABLISHED PURSUANT TO
SECTION 13.42 OF THIS TITLE MAY ISSUE GUIDANCE WITH RESPECT TO RESIDENT
SELECTION, INCLUDING ADMISSIONS CRITERIA, TO ENSURE SUCH RESIDENTIAL
ENVIRONMENTS ARE PREDOMINANTLY AVAILABLE TO PERSONS WITH DEVELOPMENTAL
DISABILITIES, AND PROVIDED FURTHER THAT RESIDENTIAL ENVIRONMENTS MAY
ADHERE TO SUCH GUIDANCE.
§ 3. Section 352-g of the general business law, as added by chapter
987 of the laws of 1960, is amended to read as follows:
§ 352-g. Exemptions. (A) The attorney general, upon application, may
exempt from the provisions of sections three hundred fifty-two-e, three
hundred fifty-two-f and three hundred fifty-two-h any offerings of secu-
rities (1) made to persons not exceeding forty in number or (2) which
securities have been fully registered with the securities and exchange
commission of the United States of America or have received an exemption
therefrom for reasons other than said offering is an intrastate offering
to residents of the state of New York only.
(B) RESIDENTIAL ENVIRONMENTS THAT ARE FORMED AS COOPERATIVE INTERESTS
IN REALTY FOR PERSONS RECEIVING SERVICES UNDER THE INNOVATIVE SUPPORTIVE
HOUSING PROGRAM ESTABLISHED BY SECTION 16.38 OF THE MENTAL HYGIENE LAW
SHALL BE UNDER THE SOLE JURISDICTION OF THE AUTISM SPECTRUM DISORDERS
ADVISORY BOARD ESTABLISHED PURSUANT TO SECTION 13.42 OF THE MENTAL
HYGIENE LAW, AND SHALL BE EXEMPT FROM ANY FILING REQUIREMENTS OF SECTION
THREE HUNDRED FIFTY-TWO-E OF THIS ARTICLE FOR THE INVESTMENT IN ANY
RESIDENTIAL ENVIRONMENTS AND THE CONVERSION OF ANY BUILDING, GROUP OF
BUILDINGS OR DEVELOPMENT WHICH ARE CONVERTED TO A COOPERATIVE INTEREST
IN REALTY. THE AUTISM SPECTRUM DISORDERS ADVISORY BOARD SHALL BE CHARGED
WITH THE EXCLUSIVE JURISDICTION OVER ANY DISCLOSURE REQUIREMENTS INVOLV-
ING THE INITIAL INVESTMENT IN AND INITIAL PURCHASE OF AN INTEREST IN
SUCH RESIDENTIAL ENVIRONMENTS.
§ 4. This act shall take effect immediately.