New York S 2208: Establishes certain rights for shareholders in limited-profit housing companies

Bill Text

STATE OF NEW YORK
________________________________________________________________________
2208
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
___________
Introduced by Sen. BAILEY -- 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 estab-
lishing certain rights for shareholders in 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 12 of the private housing finance law is amended by
2 adding a new subdivision 17 to read as follows:
3 17. "Shareholder." A tenant entitled to occupancy in a project by
4 reason of ownership of shares in a company.
5 § 2. The private housing finance law is amended by adding a new
6 section 13-c to read as follows:
7 § 13-c. Rights of shareholders. 1. New and existing shareholders shall
8 receive the following information:
9 (a) an initial bank statement from the company reflecting the amount
10 of the subscription or down payment including, but not limited to the
11 name of the bank, the type of bank account and the projected per annum
12 interest rate;
13 (b) for each year of tenancy, shareholders shall receive a bank state-
14 ment reflecting the amount of equity in their bank accounts;
15 (c) a copy and synopsis of the New York state real estate laws govern-
16 ing the management and distribution of shareholders' equity and the
17 accrued equity value for cooperative apartment units. Such information
18 shall be presented in straightforward, easily comprehensible language;
19 (d) detailed information outlining the process, policies and proce-
20 dures for surrendering the apartment unit including time frames for
21 notifying management, shareholders' obligations, management's obli-
22 gations, a punch list for required satisfactory conditions for each
EXPLANATION--Matter in (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD05472-01-9

S. 2208 2
1 room, allowances for normal wear and tear, and matters related to the
2 equity distribution; and
3 (e) the names of state officials or district management executives to
4 contact in the event of any dispute related to the surrender of their
5 housing.
6 2. Shareholders shall identify a family member or designated contact
7 person who shall assume responsibility for surrender of their housing in
8 the event of a medical emergency or death. The required document shall
9 be in such form and manner as the commissioner may prescribe. A nota-
10 rized copy of the document shall be filed in the management office, and
11 the original and copies maintained by the shareholder, family member or
12 designated person.
13 3. (a) Outgoing cooperative shareholders shall be liable for mainte-
14 nance or carrying charges after surrendering their apartment units based
15 on the following scale:
16 (i) 0-45 days notification to the cooperative board - three months.
17 (ii) 45-90 days notification to the cooperative board - two months.
18 (iii) Over 90 days notification to the cooperative board - one month.
19 (b) Shareholders shall be charged a maximum three months' carrying
20 charges. If housing is surrendered involuntarily because of medical
21 requirements or death, the maximum carrying charge to the shareholder
22 shall be one month. Outgoing shareholders shall have the option for the
23 incoming shareholder to purchase other personal property including, but
24 not limited to kitchen appliances and carpeting.
25 4. (a) The board of directors of each company shall apportion a
26 percentage of each monthly maintenance or carrying charge in a reserve
27 fund for each shareholder that shall be used exclusively for repairs and
28 restoration costs to housing at the end of the shareholders' tenancy.
29 (b) Shareholders shall receive a written statement of the amount of
30 money available in their reserve fund for use to cure deficient condi-
31 tions to their housing. The shareholders' allotment shall be deducted
32 from the final cost amount. If costs for repairs and restoration are
33 less than the amount in the reserve fund, the remaining money shall
34 revert to an account maintained by company management.
35 5. (a) Within thirty days after notification to surrender their hous-
36 ing, shareholders shall receive a bank statement indicating the total
37 amount of their equity, and if applicable, the accrued value or addi-
38 tional percentage of equity.
39 (b) Within two weeks of notification to surrender housing, company
40 management shall schedule an initial inspection. Management shall
41 provide shareholders with a punch list of deficient conditions assessed
42 in the housing. Shareholders shall have the option to cure the assessed
43 deficient conditions by an approved independent contractor prior to the
44 final inspection of their housing.
45 6. If shareholders d