S T A T E   O F   N E W   Y O R K
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                                   7079
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 27, 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 author-
   izing additional supervision and regulation of limited-profit  housing
   companies

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 32-a of the private housing finance law,  as  added
 by  chapter  449  of the laws of 1975, subdivision 6 as added by chapter
 744 of the laws of 1977, subdivision 7 as added by chapter  409  of  the
 laws  of 1982, subdivision 8 as added by chapter 594 of the laws of 2019
 and the closing paragraph as added by chapter 74 of the laws of 1988, is
 amended to read as follows:
   § 32-a. Additional supervision and regulation. The commissioner or the
 supervising agency, as the case may be, shall:
   1. Promulgate regulations providing for recognition  of  duly  consti-
 tuted  tenants'  associations  and cooperators' advisory councils by the
 commissioner or supervising agency, as the case may  be,  and  providing
 that  a  housing  company  shall  meet on a regular basis with represen-
 tatives of such an  association  or  council  at  the  specific  project
 involved  to discuss matters relating to the project. A duly constituted
 cooperators' advisory council shall only be such a council in  a  mutual
 company  project  prior  to  the election of a board of directors by the
 tenant-cooperators.
   2. Require every company to file with him, HER or it an annual operat-
 ing budget for each individual project in the manner prescribed  by  the
 commissioner or supervising agency.
   3.  Require  every  company to file with him, HER or it semi-annual or
 quarterly financial statements and an annual financial  statement.  Each
 annual  financial statement shall be accompanied by a certificate of the

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11105-01-1

 S. 7079                             2
 
 company's independent certified public accountant. Such financial state-
 ments shall be filed at the times and in the manner  prescribed  by  the
 commissioner or supervising agency.
   4.  Afford  tenants  access to and an opportunity to acquire copies of
 all operating budgets or financial statements respecting the project  in
 which  such  tenants  reside, to the extent that such budgets and state-
 ments are required by law to be kept by the commissioner or  supervising
 agency.
   5.  Permit  any  tenant,  duly  constituted tenants' association, duly
 constituted cooperators' advisory council  or  his,  HERS  or  its  duly
 authorized  representative to audit the books of the company and to have
 access during normal business hours to the financial records upon  which
 the company's financial statements are based.
   6.  Promulgate  regulations  relating  to  managing  agents, including
 criteria for the eligibility  for  selection  and  the  compensation  of
 managing  agents  by  companies organized pursuant to this article. Such
 regulations shall provide, among other things, that any contract with  a
 managing  agent  entered  into  after  September first, nineteen hundred
 seventy-seven shall be terminable for cause  and  shall  be  terminable,
 with  or  without cause, at least every twelve months after commencement
 of the term thereof, and that promptly  upon  termination  the  managing
 agent  shall  turn  over to the company all project records, rent rolls,
 bills, cancelled checks, bank statements and other papers owned by  such
 company.
   7.  Require  that  every  company file with him, HER or it, within six
 months of the effective date of regulations implementing  this  subdivi-
 sion  and  in  such format as shall be prescribed by the commissioner or
 the supervising agency after consultation with the state energy  office,
 an energy audit report which identifies potential energy-saving building
 improvements,  including  alterations,  modifications and adjustments to
 the building  structure,  heating,  cooling,  lighting  and  ventilation
 systems;  their  relative  costs; potential energy and cost savings; and
 simple payback periods, which for the purpose of this subdivision  shall
 mean  that  period  of  time  within  which  the  estimated cost of such
 improvements, exclusive of the cost of capital, would be recovered  from
 the  savings  generated by reduced energy consumption resulting from the
 improvements. The energy audit shall be conducted by a  public  utility,
 an engineer or architect licensed by the state, or the managing agent or
 other  representative  of the company if such individual has attended an
 energy audit training workshop sponsored  by  the  commissioner  or  the
 state energy office. A copy of the energy audit report, required herein,
 shall   be  given  to  any  duly  constituted  tenant's  association  or
 cooperator's  advisory  council  and  a  copy  shall  be  available  for
 inspection  and  copying  by  any individual tenant who requests it. The
 commissioner or supervising agency shall also require that every company
 certify by March thirty-first, nineteen  hundred  eighty-four  that  all
 compatible  conservation  measures identified in the energy audit report
 which have simple payback periods of one year or less have  been  imple-
 mented;  provided,  however,  if  the commissioner or supervising agency
 determines within sixty days of the date  the  energy  audit  report  is
 filed  that  one or more of such identified conservation measures cannot
 be implemented by  March  thirty-first,  nineteen  hundred  eighty-four,
 given  the  projected  rent  revenues  and other monies available to the
 company from reserve funds, loans or grants from the  state  or  federal
 government  or any other source, the implementation of such conservation

 S. 7079                             3
 
 measures shall be provided for according to a schedule prescribed by the
 commissioner or supervising agency.
   8.  Every tenant or resident, or a person acting on behalf of a tenant
 or resident, shall be permitted to  copy,  by  photographic  means,  any
 document  within  the scope of this section pertaining to the project in
 which such tenant or resident resides. A reasonable fee,  subject  to  a
 maximum  therefor  prescribed  in  regulations,  may be charged for such
 copies.
   9. Require that within ten days of the filing of any reports or finan-
 cial statements with the commissioner or supervising agency, the housing
 company shall transmit a copy of said report or financial statement to a
 duly constituted resident board of directors, and if there be none, to a
 cooperator's advisory council or a duly constituted tenants  association
 representing the project concerned. Where no such council or association
 exists in a project, a notice shall be posted informing the residents of
 the  location on the premises of the project where a copy of said report
 or financial statement is available for inspection. The notice shall  be
 posted  within  ten days of filing, in a prominent place on the premises
 of the project concerned.
   10. REQUIRE EVERY VOTING MEMBER OF A BOARD OF DIRECTORS OF  A  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 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  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 COMPANY SUBJECT TO THE 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 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 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 AND MAINTAINED BY THE SECRETARY  AS
 A CORPORATE RECORD AND DISTRIBUTED ANNUALLY TO THE SHAREHOLDERS AND UPON
 THE  FILING  OF  ANY  DIRECTOR WITH THE COMPANY OF THE INTENTION TO SEEK

 S. 7079                             4
 
 RE-ELECTION TO THE POSITION. SIXTY DAYS PRIOR TO ANY SCHEDULED  ELECTION
 OF  MEMBERS  OF  THE  BOARD  OF  DIRECTORS, THE SECRETARY OF THE HOUSING
 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  SUPER-
 VISING  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 COMPANIES SUBJECT TO THE PROVISIONS OF THIS  ARTI-
 CLE;  AND  THE  FIDUCIARY RESPONSIBILITIES OF THE BOARD OF A RESIDENTIAL
 COOPERATIVE, AS WELL AS THE EXPERIENCE OF  THE  PROVIDER  IN  DELIVERING
 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 COMPANY ON THE FINANCIAL OVERSIGHT, ACCOUNTABILITY AND FIDU-
 CIARY RESPONSIBILITIES OF SUCH BOARD; THE POWERS, FUNCTIONS  AND  DUTIES
 OF SUCH BOARD; AND THE POWERS AND DUTIES OF OTHER GOVERNING AND ADMINIS-
 TRATIVE AUTHORITIES AFFECTING SUCH COMPANY.
   § 2. This act shall take effect immediately.