|SAME AS||SAME AS S07026|
|COSPNSR||Cymbrowitz, Barron, Burdick|
|Amd §31-a, add §31-c, Priv Hous Fin L|
|Enables a current tenant-cooperator of certain housing companies, entitled to occupancy by reason of ownership of shares in such housing company, to apply all or a portion of the value of his or her holdings and equity in the housing company toward any consideration required to be paid for shares which would entitle the resident to the occupancy of another unit owned and operated by the housing company.|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7671 SPONSOR: Pheffer Amato
TITLE OF BILL: An act to amend the private housing finance law, in relation to the application of tenant-cooperator shares of mutual company holdings   PURPOSE OR GENERAL IDEA OF BILL: To improve the ability of a tenant-shareholder of a Mitchell-Lama coop- erative to understand and access the current value of his or her shares and equity when relocating to another unit in the housing company.   SUMMARY OF PROVISIONS: This legislation amends the Private Housing Finance Law to require limited-profit housing companies, commonly known as Mitchell-Lama hous- ing companies, to provide a written statement of the current value of a tenant-cooperator's shares and equity in the housing company upon request of the tenant-cooperator. The bill would also require a Mitchell-Lama housing company to allow a current tenant-cooperator who intends to relocate to another unit in the same housing company to apply the value of his or her current equity and shares in the housing company toward any consideration required to be paid for shares associated with the other unit before requiring use of cash, a loan or a mortgage. In addition, the bill would require New York State Homes and Community Renewal and New York City Housing, Preservation and Development to, within 180 days of the effective date of the bill, promulgate regu- lations authorizing such application of a current tenant-cooperator's shares.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: Limited-profit cooperative housing companies, or Mitchell-Lama co-ops, give their tenant-cooperators the opportunity for affordable homeowner- ship and to grow their wealth and equity in the company over time. However, many long-term shareholders are unaware of the dollar value of their holdings and equity in the company or, in turn, how that value compares to the value associated with other units in the company. For growing families and empty-nesters in particular, this can cause confusion and make it difficult to relocate to a "right-sized" unit in the same company when desired. This bill will help improve transparency and financial literacy for Mitchell-Lama shareholders by ensuring a written statement of equity is available upon shareholder request, and that shareholders interested in transferring to a different unit in the same company have the opportu- nity to do so by transferring their assets with the company before paying out of pocket.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: Immediate.
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STATE OF NEW YORK ________________________________________________________________________ 7671 2021-2022 Regular Sessions IN ASSEMBLY May 19, 2021 ___________ Introduced by M. of A. PHEFFER AMATO -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to the application of tenant-cooperator shares of mutual company holdings The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 31-a of the private housing finance law is amended 2 by adding a new subdivision (f) to read as follows: 3 (f) a mutual company shall provide, upon request of a tenant-coopera- 4 tor, a written statement providing the current value of such tenant- 5 cooperator's shares and equity in such mutual company; 6 § 2. The private housing finance law is amended by adding a new 7 section 31-c to read as follows: 8 § 31-c. Tenant-cooperators; application of shares. 1. No mutual 9 company shall require a current tenant-cooperator to use cash, loan or 10 mortgage to make an initial payment for shares that would entitle the 11 tenant-cooperator to occupancy upon transfer to another dwelling unit 12 within the mutual company's facilities, but instead, subject to subdivi- 13 sion two of this section, shall first allow the tenant-cooperator the 14 option to apply the value of his or her shares and equity in the mutual 15 company toward any consideration required to be paid for such shares. 16 2. Within one hundred eighty days of the effective date of this 17 section, the commissioner and the supervising agency, as the case may 18 be, shall each promulgate regulations authorizing a current tenant-coop- 19 erator, entitled to occupancy by reason of ownership of shares in such 20 mutual company, to apply all or a portion of the value of his or her 21 shares and equity in the mutual company toward any consideration 22 required to be paid for shares which would entitle the tenant-cooperator 23 to occupancy of another unit owned and operated by the mutual company, 24 regardless of the sale of the tenant-cooperator's current shares in such 25 mutual company, but subject to such other charges due and owing to the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11168-03-1A. 7671 2 1 mutual company for which such tenant-cooperator may be liable. Any 2 dispute thereof may be determined by a court of appropriate jurisdiction 3 and any requirement to waive such right as a condition of ownership or 4 transfer shall be void as against public policy. 5 § 3. This act shall take effect immediately.