A07272 Summary:
BILL NO | A07272 |
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SAME AS | SAME AS S06412 |
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SPONSOR | Rosenthal L |
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COSPNSR | Pheffer Amato, Richardson, De La Rosa, Davila, Cymbrowitz, Seawright, Barnwell, Epstein, Burdick, Cook, Reyes, Barron, Jackson, Forrest, Zinerman, Simon |
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MLTSPNSR | |
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Add §§13-c & 35-a, amd §17, Priv Hous Fin L | |
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Relates to voting, election and referendum procedures; requirements regarding mutual housing companies considering dissolution and/or reconstitution; duties of a board of directors of a limited-profit housing company; prohibits certain limited-profit housing companies from voluntarily dissolving during the state disaster emergency declared in response to the outbreak of COVID-19. |
A07272 Actions:
BILL NO | A07272 | |||||||||||||||||||||||||||||||||||||||||||||||||
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04/29/2021 | referred to housing | |||||||||||||||||||||||||||||||||||||||||||||||||
05/24/2021 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2021 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2021 | rules report cal.232 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2021 | ordered to third reading rules cal.232 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/02/2021 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/02/2021 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/02/2021 | REFERRED TO RULES | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2021 | SUBSTITUTED FOR S6412 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2021 | 3RD READING CAL.1092 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2021 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2021 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
12/10/2021 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
12/22/2021 | signed chap.749 | |||||||||||||||||||||||||||||||||||||||||||||||||
12/22/2021 | approval memo.112 |
A07272 Committee Votes:
Cymbrowitz | Aye | Fitzpatrick | Nay | ||||||
Cook | Aye | Smith | Nay | ||||||
Rosenthal | Aye | Byrnes | Nay | ||||||
Rodriguez | Aye | Reilly | Nay | ||||||
Kim | Aye | Schmitt | Nay | ||||||
Pichardo | Aye | Brown | Nay | ||||||
Walker | Aye | Jensen | Nay | ||||||
Joyner | Aye | Lawler | Nay | ||||||
Dilan | Aye | ||||||||
Bichotte Hermel | Aye | ||||||||
Davila | Aye | ||||||||
Barron | Aye | ||||||||
De La Rosa | Aye | ||||||||
Niou | Aye | ||||||||
Taylor | Aye | ||||||||
Epstein | Aye | ||||||||
Eichenstein | Aye | ||||||||
Meeks | Aye | ||||||||
Burdick | Aye | ||||||||
Rivera | Aye | ||||||||
Heastie | Aye | Barclay | Nay | ||||||
Gottfried | Aye | Hawley | Nay | ||||||
Nolan | Excused | Giglio | Nay | ||||||
Weinstein | Aye | Blankenbush | Nay | ||||||
Pretlow | Aye | Norris | Nay | ||||||
Cook | Aye | Montesano | Nay | ||||||
Glick | Aye | Ra | Nay | ||||||
Aubry | Aye | Brabenec | Nay | ||||||
Englebright | Aye | ||||||||
Dinowitz | Aye | ||||||||
Colton | Aye | ||||||||
Magnarelli | Aye | ||||||||
Perry | Aye | ||||||||
Paulin | Aye | ||||||||
Peoples-Stokes | Aye | ||||||||
Benedetto | Aye | ||||||||
Lavine | Aye | ||||||||
Lupardo | Aye | ||||||||
Zebrowski | Aye | ||||||||
Thiele | Aye | ||||||||
Braunstein | Aye | ||||||||
Dickens | Aye | ||||||||
Davila | Aye | ||||||||
Go to top
A07272 Floor Votes:
Yes
Abbate
Yes
Clark
Yes
Frontus
No
Lalor
Yes
Paulin
Yes
Sillitti
Yes
Abinanti
Yes
Colton
Yes
Galef
Yes
Lavine
Yes
Peoples-Stokes
Yes
Simon
Yes
Anderson
Yes
Conrad
Yes
Gallagher
No
Lawler
Yes
Perry
No
Simpson
No
Angelino
Yes
Cook
No
Gallahan
No
Lemondes
Yes
Pheffer Amato
No
Smith
No
Ashby
Yes
Cruz
No
Gandolfo
Yes
Lunsford
Yes
Pichardo
No
Smullen
Yes
Aubry
Yes
Cusick
No
Giglio JA
Yes
Lupardo
Yes
Pretlow
Yes
Solages
No
Barclay
Yes
Cymbrowitz
No
Giglio JM
Yes
Magnarelli
Yes
Quart
Yes
Steck
Yes
Barnwell
Yes
Darling
Yes
Glick
Yes
Mamdani
No
Ra
Yes
Stern
Yes
Barrett
Yes
Davila
Yes
Gonzalez-Rojas
No
Manktelow
Yes
Rajkumar
Yes
Stirpe
Yes
Barron
Yes
De La Rosa
No
Goodell
Yes
McDonald
Yes
Ramos
No
Tague
Yes
Benedetto
No
DeStefano
Yes
Gottfried
No
McDonough
No
Reilly
No
Tannousis
Yes
Bichotte Hermel
Yes
Dickens
Yes
Griffin
Yes
McMahon
Yes
Reyes
Yes
Taylor
No
Blankenbush
Yes
Dilan
Yes
Gunther
Yes
Meeks
Yes
Richardson
Yes
Thiele
No
Brabenec
Yes
Dinowitz
No
Hawley
No
Mikulin
Yes
Rivera J
Yes
Vanel
Yes
Braunstein
No
DiPietro
Yes
Hevesi
No
Miller B
Yes
Rivera JD
No
Walczyk
Yes
Bronson
No
Durso
Yes
Hunter
No
Miller M
Yes
Rodriguez
Yes
Walker
No
Brown
Yes
Eichenstein
Yes
Hyndman
Yes
Mitaynes
Yes
Rosenthal D
Yes
Wallace
Yes
Burdick
Yes
Englebright
Yes
Jackson
No
Montesano
Yes
Rosenthal L
No
Walsh
Yes
Burgos
Yes
Epstein
Yes
Jacobson
No
Morinello
Yes
Rozic
Yes
Weinstein
Yes
Burke
Yes
Fahy
Yes
Jean-Pierre
Yes
Niou
No
Salka
Yes
Weprin
No
Buttenschon
Yes
Fall
No
Jensen
ER
Nolan
Yes
Santabarbara
Yes
Williams
No
Byrne
Yes
Fernandez
Yes
Jones
No
Norris
Yes
Sayegh
Yes
Woerner
No
Byrnes
No
Fitzpatrick
Yes
Joyner
Yes
O'Donnell
No
Schmitt
Yes
Zebrowski
Yes
Cahill
ER
Forrest
Yes
Kelles
Yes
Otis
Yes
Seawright
Yes
Zinerman
Yes
Carroll
No
Friend
Yes
Kim
No
Palmesano
Yes
Septimo
Yes
Mr. Speaker
‡ Indicates voting via videoconference
A07272 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A7272 Revised 5/26/2021 SPONSOR: Rosenthal L
  TITLE OF BILL: An act to amend the private housing finance law, in relation to voting, election and referendum procedures; to requirements regarding mutual housing companies considering dissolution and/or reconstitution; to certain duties of a board of directors of a limited-profit housing company; and to prohibiting certain limited-profit housing companies from voluntarily dissolving during the state disaster emergency declared in response to the outbreak of COVID-19   PURPOSE: This bill is intended to ensure open, transparent, and democratic gover- nance of "Mitchell-Lama" cooperatives, which are organized as limited- profit housing companies, and to protect the interests of shareholders and the public interest in preserving affordable housing. It would accomplish this by establishing certain voting and election procedures, duties of boards of directors, and high thresholds for votes to approve dissolution or steps related to dissolution. The bill also seeks to protect the public health and the interests of shareholders by prohibit- ing dissolution or semi privatization, or related actions or proceedings, during the COVID-19 state disaster emergency period.   SUMMARY OF PROVISIONS: Section one of the bill amends the private housing finance law by adding a new section 13-c outlining voting, election and referendum procedures. Section two of the bill amends the private housing finance law by adding a new section 35-a setting requirements regarding dissolution or recon- stitution of mutual housing companies. Subdivisions 1 through 4 of the new section 35-a provide that: any vote for dissolution of the company shall require the approval of 8096 of all dwelling units owned by the mutual housing company; * any vote to authorize a feasibility study, preliminary offering plan, final offering plan, proxy statement, or notice of intent to dissolve shall require approval of 80'-'6 of all dwelling units; * no funds from the operating budget may be used for the preparation or distribution of any plans or studies or for services related to dissolution and/or reconstitution of the mutual housing company; and *no vote regarding disillusion may occur within five years following a failed vote. Section three of the bill amends section 17 of the private housing finance law by adding two new subdivisions 4 and 5. Paragraphs a-d of the new subdivision 4 require each board of directors to: * hold six meetings annually, with meetings open to shareholders and residents, except in limited circumstances when executive sessions open only to directors are permitted; * file with the commissioner or the supervising agency any votes of the board, indicating how each director voted, which will be a matter of public information; * distribute to all shareholders any communication to the board from oversight agencies and, in the event of a proposed dissolution, the review of any version of an offering plan; and * investigate any substantive allegation that a tenant is not occupying his or her dwelling unit as a primary residence. Paragraphs a-c of the new subdivision 5 require that: * no board may interfere with the right of a shareholder or tenant to participate in the lawful activities of any group formed to protect the rights of shareholders and tenants, or penalize shareholders or tenants for exercising such right; * shareholder and tenant groups may meet without being required to pay a fee in any location on the premises that are devoted to the common use of all shareholders or tenants; * boards will take all necessary and appropriate actions to ensure that a manager or agent of the housing company complies with these require- ments. Section four of the bill requires that, notwithstanding any provision of law to the contrary, no company or urban rental company, as defined by section 12 of the private housing finance law, shall be dissolved, undergo semi-privatization, or initiate related actions or proceeding during the COVID-19 state disaster emergency period. Section five of the bill sets forth the effective date.   JUSTIFICATION: Nearly 65 years ago, State Senator MacNeil Mitchell and Assemblymember Alfred Lama passed landmark legislation to provide incentives for investment in affordable housing. "Mitchell-Lama" cooperatives are governed by their respective boards of directors, composed of elected volunteer shareholders who work to preserve and manage this vital affordable housing on behalf of themselves and their neighbors. The New York City Department of Housing Preservation and Development or New York State Homes and Community Renewal provide oversight of these important sources of affordable housing. This legislation seeks to ensure open, transparent, and democratic governance of Mitchell-Lama coops and to protect the interests of share- holders and the public interest in preserving affordable housing. It would accomplish this by establishing certain voting and election proce- dures, duties of boards of directors, and high thresholds for votes to approve dissolution or steps related to dissolution. Such supermajority voting thresholds are intended to ensure that changes to the basic ownership structure and long-term affordability of the coops are only undertaken when there is a broad consensus among shareholders that the changes are in their best interest. The bill also seeks to protect the public health and the interests of shareholders by prohibiting dissol- ution or semi-privatization, or related actions or proceedings, during the COVID-19 state disaster emergency -- a period when the pandemic imposes significant barriers to effective and transparent resident and shareholder engagement and decision making.   LEGISLATIVE HISTORY: New bill. Provisions of this bill are similar to those of the following bills: A9719A of 2020 (Rosenthal L) A9720A of 2020 (Rosenthal L) A9721A of 2020 (Rosenthal L) A5420A of 2021 (Rosenthal L)   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal.   EFFECTIVE DATE: This act shall take effect immediately; provided, however, sections one, two and three of this act shall take effect on the ninetieth day after it shall have become a law.
A07272 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 7272 2021-2022 Regular Sessions IN ASSEMBLY April 29, 2021 ___________ Introduced by M. of A. L. ROSENTHAL -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to voting, election and referendum procedures; to requirements regarding mutual housing companies considering dissolution and/or reconstitution; to certain duties of a board of directors of a limited-profit housing company; and to prohibiting certain limited-profit housing companies from voluntarily dissolving during the state disaster emergency declared in response to the outbreak of COVID-19 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The private housing finance law is amended by adding a new 2 section 13-c to read as follows: 3 § 13-c. Voting, election and referendum procedures. 1. Any shareholder 4 vote shall be conducted using secret ballots. Such ballots shall be 5 cast in-person by tenants entitled to occupancy in the project; unless 6 such tenant casts such ballot using an absentee ballot issued pursuant 7 to subdivision two of this section. 8 2. A shareholder entitled to occupancy in the project shall be enti- 9 tled to request an absentee ballot to cast a ballot in any shareholder 10 vote. Such absentee ballot shall be delivered or mailed only to the 11 primary residence address of a shareholder entitled to occupancy in the 12 project. An absentee ballot cast pursuant to this subdivision shall be 13 sealed within two envelopes, shall contain the signature of the share- 14 holder casting the vote, and shall be mailed to a neutral third party 15 not running for a position on the board of directors. 16 3. Proxy voting shall not be permitted in an election for a position 17 on a board of directors, for dissolution of the company, for the author- 18 ization of a feasibility study, for an offering plan including a red 19 herring or black book, or any document offered in place of an offering 20 plan as permitted by the attorney general. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10975-02-1A. 7272 2 1 4. In-person ballots shall produce a paper record which may be audited 2 in the case of a contested election result. 3 5. No otherwise-eligible person shall be prevented from being a candi- 4 date for, being elected to, or serving on a board of directors based 5 solely on that person owing or having owed any amount of any form of 6 arrears to the housing company, unless, at the time of nomination, that 7 person currently owes an amount of bona fide arrears greater than the 8 equivalent of two months of that person's monthly maintenance. Nothing 9 in this subdivision shall be construed to require or mandate any housing 10 company to adopt bylaws, rules, policies, or procedures restricting any 11 person's eligibility to be nominated, elected, or serve on a board of 12 directors. Nothing contained in this subdivision shall be a basis in 13 itself to deny such eligibility to any person. 14 6. For any shareholder vote requiring a specific percentage of dwell- 15 ing units, the term "dwelling units" shall mean all dwelling units for 16 which shares have been issued, regardless of whether such dwelling units 17 are occupied or vacant. 18 § 2. The private housing finance law is amended by adding a new 19 section 35-a to read as follows: 20 § 35-a. Requirements regarding dissolution. Mutual housing companies 21 considering dissolution and/or reconstitution pursuant to section thir- 22 ty-five of this article shall be subject to the following requirements: 23 1. Any vote for dissolution of the company, or to authorize a feasi- 24 bility study, a preliminary offering plan which may be referred to as a 25 red herring, a final offering plan which may be referred to as a black 26 book, or a proxy statement, or to send a notice of intent to dissolve to 27 the commissioner or supervising agency shall require the approval of 28 eighty percent of all dwelling units owned by the mutual housing compa- 29 ny. 30 2. No funds from the operating budget of the mutual housing company 31 shall be used for the preparation or distribution of a feasibility 32 study, a preliminary offering plan or red herring, a final offering plan 33 or black book, a proxy statement, or a notice of intent to dissolve, or 34 to pay for any services related to evaluation of, preparation for, or 35 execution of dissolution and/or reconstitution pursuant to section thir- 36 ty-five of this article, including but not limited to legal services. 37 3. No vote under subdivision one of this section, shall occur within 38 five years following a vote under subdivision one of this section that 39 failed. 40 § 3. Section 17 of the private housing finance law is amended by 41 adding two new subdivisions 4 and 5 to read as follows: 42 4. Notwithstanding the provisions of any law, general or special, a 43 board of directors of a company created pursuant to the provisions of 44 this article shall: 45 (a) Hold at least six meetings of its members annually. Such meetings 46 shall be open to the shareholders and residents, except that they may 47 include executive sessions open only to directors for the sole purpose 48 of discussing confidential personnel issues, legal advice and counsel 49 from an attorney to whom the housing company is a client, or confiden- 50 tial issues affecting individual shareholders or residents, or contract 51 negotiation. 52 (b) File with the commissioner or the supervising agency, as the case 53 may be, a record of any vote on a resolution of such board, including 54 specification of how each director voted. Such record shall be a matter 55 of public record.A. 7272 3 1 (c) Promptly give notice of and make available to all shareholders any 2 communication to the housing company from the commissioner or the super- 3 vising agency, as the case may be, or the office of the attorney gener- 4 al, regarding regulations, changes in regulations, taxation, finances, 5 refinancing, or, in the event of a proposed dissolution and reincorpora- 6 tion, the review of any version of an offering plan. 7 (d) Investigate any substantive allegation that a tenant is not occu- 8 pying his or her dwelling unit as his or her primary residence. 9 5. (a) No housing company shall interfere with the right of a share- 10 holder or tenant to form, join or participate in the lawful activities 11 of any group, committee or other organization formed to protect the 12 rights of shareholders and tenants; nor shall any housing company 13 harass, punish, penalize, diminish, or withhold any right, benefit or 14 privilege of a shareholder or tenant under their proprietary lease or 15 tenancy for exercising such right. 16 (b) Shareholder and/or tenants' groups, committees or other sharehold- 17 er and/or tenants' organizations shall have the right to meet without 18 being required to pay a fee in any location on the premises including a 19 community or social room where use is normally subject to a fee which is 20 devoted to the common use of all shareholders and/or tenants in a peace- 21 ful manner, at reasonable hours and without obstructing access to the 22 premises or facilities. No housing company shall deny such right. 23 (c) The board of directors shall take all necessary and appropriate 24 actions to ensure that a manager or agent of the housing company 25 complies with the requirements in this subdivision. 26 § 4. 1. Notwithstanding any provision of law to the contrary, no 27 company or urban rental company, as such terms are defined in section 12 28 of the private housing finance law, shall be dissolved pursuant to the 29 provisions of section 35 of such law or shall undergo semi-privatization 30 pursuant to 28 RCNY 3-14(i)(15), or shall initiate any actions or 31 proceedings related to dissolution or semi-privatization, including but 32 not limited to, conducting a vote to authorize a feasibility study; 33 submitting a preliminary offering plan to the attorney general for 34 approval; distributing a preliminary offering plan to shareholders; 35 distributing a final offering plan or proxy statement to shareholders; 36 submitting a notice of intent to dissolve to the commissioner of housing 37 or supervising agency; committing, promising, or expending funds in any 38 way for the purposes of dissolution or semi-privatization; or holding 39 any of the required notice meetings during the state disaster emergency 40 declared pursuant to executive order 202 of 2020 in response to the 41 outbreak of novel coronavirus, COVID-19. 42 2. As used in this act, the term "semi-privatization" means dissolving 43 as a mutual housing company and transferring the property to a housing 44 development fund company organized pursuant to article XI of the private 45 housing finance law. 46 § 5. This act shall take effect immediately; provided, however, 47 sections one, two and three of this act shall take effect on the nineti- 48 eth day after it shall have become a law.
A07272 LFIN:
  | NO LFIN |
A07272 Chamber Video/Transcript:
6-1-21 | Video (@ 02:35:28) | Transcript pdf | Transcript html |
6-2-21 | Video (@ 04:44:03) | Transcript pdf | Transcript html |