Bill Text: NY A07637 | 2021-2022 | General Assembly | Introduced
Bill Title: Authorizes additional supervision and regulation of limited-profit housing companies relating to requiring members of a board of directors of a limited-profit housing company to complete training regarding the financial oversight, accountability and fiduciary responsibilities of a board member and the powers, functions and duties of a board of directors of a limited-profit housing company.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-12-21 - approval memo.72 [A07637 Detail]
Download: New_York-2021-A07637-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7637 2021-2022 Regular Sessions IN ASSEMBLY May 19, 2021 ___________ Introduced by M. of A. CYMBROWITZ -- read once and referred to the Committee on Housing 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: 1 Section 1. Section 32-a of the private housing finance law, as added 2 by chapter 449 of the laws of 1975, subdivision 6 as added by chapter 3 744 of the laws of 1977, subdivision 7 as added by chapter 409 of the 4 laws of 1982, subdivision 8 as added by chapter 594 of the laws of 2019 5 and the closing paragraph as added by chapter 74 of the laws of 1988, is 6 amended to read as follows: 7 § 32-a. Additional supervision and regulation. The commissioner or the 8 supervising agency, as the case may be, shall: 9 1. Promulgate regulations providing for recognition of duly consti- 10 tuted tenants' associations and cooperators' advisory councils by the 11 commissioner or supervising agency, as the case may be, and providing 12 that a housing company shall meet on a regular basis with represen- 13 tatives of such an association or council at the specific project 14 involved to discuss matters relating to the project. A duly constituted 15 cooperators' advisory council shall only be such a council in a mutual 16 company project prior to the election of a board of directors by the 17 tenant-cooperators. 18 2. Require every company to file with him, her or it an annual operat- 19 ing budget for each individual project in the manner prescribed by the 20 commissioner or supervising agency. 21 3. Require every company to file with him, her or it semi-annual or 22 quarterly financial statements and an annual financial statement. Each 23 annual financial statement shall be accompanied by a certificate of the 24 company's independent certified public accountant. Such financial state- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11105-01-1A. 7637 2 1 ments shall be filed at the times and in the manner prescribed by the 2 commissioner or supervising agency. 3 4. Afford tenants access to and an opportunity to acquire copies of 4 all operating budgets or financial statements respecting the project in 5 which such tenants reside, to the extent that such budgets and state- 6 ments are required by law to be kept by the commissioner or supervising 7 agency. 8 5. Permit any tenant, duly constituted tenants' association, duly 9 constituted cooperators' advisory council or his, hers or its duly 10 authorized representative to audit the books of the company and to have 11 access during normal business hours to the financial records upon which 12 the company's financial statements are based. 13 6. Promulgate regulations relating to managing agents, including 14 criteria for the eligibility for selection and the compensation of 15 managing agents by companies organized pursuant to this article. Such 16 regulations shall provide, among other things, that any contract with a 17 managing agent entered into after September first, nineteen hundred 18 seventy-seven shall be terminable for cause and shall be terminable, 19 with or without cause, at least every twelve months after commencement 20 of the term thereof, and that promptly upon termination the managing 21 agent shall turn over to the company all project records, rent rolls, 22 bills, cancelled checks, bank statements and other papers owned by such 23 company. 24 7. Require that every company file with him, her or it, within six 25 months of the effective date of regulations implementing this subdivi- 26 sion and in such format as shall be prescribed by the commissioner or 27 the supervising agency after consultation with the state energy office, 28 an energy audit report which identifies potential energy-saving building 29 improvements, including alterations, modifications and adjustments to 30 the building structure, heating, cooling, lighting and ventilation 31 systems; their relative costs; potential energy and cost savings; and 32 simple payback periods, which for the purpose of this subdivision shall 33 mean that period of time within which the estimated cost of such 34 improvements, exclusive of the cost of capital, would be recovered from 35 the savings generated by reduced energy consumption resulting from the 36 improvements. The energy audit shall be conducted by a public utility, 37 an engineer or architect licensed by the state, or the managing agent or 38 other representative of the company if such individual has attended an 39 energy audit training workshop sponsored by the commissioner or the 40 state energy office. A copy of the energy audit report, required herein, 41 shall be given to any duly constituted tenant's association or 42 cooperator's advisory council and a copy shall be available for 43 inspection and copying by any individual tenant who requests it. The 44 commissioner or supervising agency shall also require that every company 45 certify by March thirty-first, nineteen hundred eighty-four that all 46 compatible conservation measures identified in the energy audit report 47 which have simple payback periods of one year or less have been imple- 48 mented; provided, however, if the commissioner or supervising agency 49 determines within sixty days of the date the energy audit report is 50 filed that one or more of such identified conservation measures cannot 51 be implemented by March thirty-first, nineteen hundred eighty-four, 52 given the projected rent revenues and other monies available to the 53 company from reserve funds, loans or grants from the state or federal 54 government or any other source, the implementation of such conservation 55 measures shall be provided for according to a schedule prescribed by the 56 commissioner or supervising agency.A. 7637 3 1 8. Every tenant or resident, or a person acting on behalf of a tenant 2 or resident, shall be permitted to copy, by photographic means, any 3 document within the scope of this section pertaining to the project in 4 which such tenant or resident resides. A reasonable fee, subject to a 5 maximum therefor prescribed in regulations, may be charged for such 6 copies. 7 9. Require that within ten days of the filing of any reports or finan- 8 cial statements with the commissioner or supervising agency, the housing 9 company shall transmit a copy of said report or financial statement to a 10 duly constituted resident board of directors, and if there be none, to a 11 cooperator's advisory council or a duly constituted tenants association 12 representing the project concerned. Where no such council or association 13 exists in a project, a notice shall be posted informing the residents of 14 the location on the premises of the project where a copy of said report 15 or financial statement is available for inspection. The notice shall be 16 posted within ten days of filing, in a prominent place on the premises 17 of the project concerned. 18 10. Require every voting member of a board of directors of a company 19 subject to the provisions of this article, elected or appointed for a 20 term beginning on or after the effective date of this subdivision, to 21 complete, within the first year of his or her term and at least once 22 every three years thereafter, a minimum of two hours of training, in 23 person or virtually, as the commissioner or supervising agency, as the 24 case may be, may deem appropriate on the financial oversight, account- 25 ability and fiduciary responsibilities of a board member; and to require 26 every voting member of a board of directors of a company subject to the 27 provisions of this article, elected or appointed for a term beginning 28 before the effective date of this subdivision, to complete such training 29 within one year of the effective date of this subdivision and at least 30 once every three years thereafter. 31 11. Require every voting member of a board of directors of a company 32 subject to the provisions of this article, elected or appointed for a 33 term beginning on or after the effective date of this subdivision, to 34 complete, within the first year of his or her term and at least once 35 every three years thereafter, in addition to the training required by 36 subdivision ten of this section, a training course, in person or virtu- 37 ally, as the commissioner or supervising agency, as the case be, may 38 deem appropriate, to acquaint him or her with the powers, functions and 39 duties of a board of directors of a company subject to the provisions of 40 this article, as well as the powers and duties of other governing and 41 administrative authorities affecting such companies; and to require 42 every voting member of a board of directors of a company subject to the 43 provisions of this article, elected or appointed for a term beginning 44 before the effective date of this subdivision, to complete such training 45 within one year of the effective date of this subdivision and at least 46 once every three years thereafter. 47 12. Require each member of a board of directors of a company subject 48 to the provisions of this article to demonstrate compliance with the 49 requirements set forth in subdivisions ten and eleven of this section by 50 filing a certificate of completion of such course or courses on a form 51 to be promulgated by the commissioner. Such form shall be filed with the 52 secretary of the housing corporation and maintained by the secretary as 53 a corporate record and distributed annually to the shareholders and upon 54 the filing of any director with the company of the intention to seek 55 re-election to the position. Sixty days prior to any scheduled election 56 of members of the board of directors, the secretary of the housingA. 7637 4 1 company shall furnish the commissioner or the supervising authority, as 2 the case may be, with a list of all incumbent directors indicating which 3 individuals have submitted certificates required in this subdivision. 4 Such course or courses shall be provided by the commissioner or super- 5 vising agency, as the case may be, at no cost to the trainee or the 6 board to which the trainee has been elected. 7 13. Develop the curricula used for training required by subdivisions 8 ten and eleven of this section for which the supervising agency or the 9 commissioner may request and shall receive the cooperation and assist- 10 ance from any departments, divisions, boards, bureaus, commissions or 11 agencies of the state and political subdivisions thereof in developing 12 such curricula. These curricula may be offered together as a single 13 course or separately. The training required by this section may be 14 offered by providers approved by the commissioner or supervising agency, 15 as the case may be. In approving other providers for these trainings, 16 the commissioner or supervising agency shall consider a potential 17 provider's understanding of cooperative homeownership; laws, rules and 18 regulations affecting companies subject to the provisions of this arti- 19 cle; and the fiduciary responsibilities of the board of a residential 20 cooperative, as well as the experience of the provider in delivering 21 such training. 22 14. Hold such meeting or meetings, in person or virtually as the 23 commissioner or supervisory agency shall deem appropriate, with the 24 board of a company on the financial oversight, accountability and fidu- 25 ciary responsibilities of such board; the powers, functions and duties 26 of such board; and the powers and duties of other governing and adminis- 27 trative authorities affecting such company. 28 § 2. This act shall take effect immediately.