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A07671 Summary:

BILL NOA07671
 
SAME ASSAME AS S07026
 
SPONSORPheffer Amato
 
COSPNSRCymbrowitz, Barron, Burdick
 
MLTSPNSR
 
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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A07671 Memo:

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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A07671 Text:



 
                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.
                                                                   LBD11168-03-1

        A. 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.
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