STATE OF NEW YORK
        ________________________________________________________________________

                                          2741

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    January 22, 2025
                                       ___________

        Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
          Committee on Housing

        AN ACT to amend the private housing finance law, in relation  to  review
          of certain contracts of 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 32-a of the private housing finance law is  amended
     2  by adding two new subdivisions 15 and 16 to read as follows:
     3    15.  Review  any  bids for a contract to be entered into by a limited-
     4  profit housing company for an amount over fifty thousand dollars.
     5    (a) Bids shall be reviewed in a manner so as to assure the prudent and
     6  economical use of moneys and in the best interest  of  shareholders,  to
     7  facilitate  the acquisition of materials, supplies and services of maxi-
     8  mum quality at the lowest possible cost under the circumstances  and  to
     9  guard   against   favoritism,   improvidence,  extravagance,  fraud  and
    10  corruption. To further such objectives, an authority shall adopt  inter-
    11  nal  policies  and  procedures  governing all procurements of materials,
    12  supplies and services over fifty thousand dollars.
    13    (b) Such policies and procedures shall contain  provisions  which,  at
    14  minimum:
    15    (i)  prescribe  a  procedure  for determining whether a procurement of
    16  materials, supplies, and services is subject to a sealed bid  and  docu-
    17  menting  the  basis  for  any  determination  that  a  sealed bid is not
    18  required by law;
    19    (ii) set forth when each such method of procurement will be  utilized,
    20  taking  into account which method will best further the purposes of this
    21  subdivision and the cost-effectiveness of the method;
    22    (iii) require adequate documentation of actions  taken  in  connection
    23  with each such method of procurement; and
    24    (iv)  identify  the  respective  titles  of  persons  responsible  for
    25  purchasing. Such information shall be updated biennially.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00952-01-5
        A. 2741                             2

     1    16. The division of housing and community renewal  and  the  New  York
     2  city  department  of  housing preservation and development shall collab-
     3  orate to develop a procurement and bid  corruption  prevention  training
     4  program.   Such procurement corruption prevention training program shall
     5  be  interactive, given to board members of Mitchell-Lama developments as
     6  a part of their required training and include:
     7    (i) information concerning the federal, state, and local  statues  and
     8  regulations related to gratuities and bribes;
     9    (ii) information concerning criminal liabilities related to gratuities
    10  and bribes;
    11    (iii) examples of conduct that would constitute gratuities and bribes;
    12  and
    13    (iv)  examples  of  favoritism,  improvidence, extravagance, fraud and
    14  corruption that may undermine the bidding process.
    15    § 2. This act shall take effect on the ninetieth day  after  it  shall
    16  have become a law.