STATE OF NEW YORK
________________________________________________________________________
7026
2021-2022 Regular Sessions
IN SENATE
May 24, 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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11168-03-1
S. 7026 2
1 mutual company, but subject to such other charges due and owing to the
2 mutual company for which such tenant-cooperator may be liable. Any
3 dispute thereof may be determined by a court of appropriate jurisdiction
4 and any requirement to waive such right as a condition of ownership or
5 transfer shall be void as against public policy.
6 § 3. This act shall take effect immediately.
