Bill Text: NY S01658 | 2025-2026 | General Assembly | Introduced
Bill Title: Establishes certain rights for shareholders in limited-profit housing companies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-13 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S01658 Detail]
Download: New_York-2025-S01658-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1658 2025-2026 Regular Sessions IN SENATE January 13, 2025 ___________ 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-d to read as follows: 7 § 13-d. 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 italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04694-01-5S. 1658 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 dispute any outstanding costs, shareholders shall 46 have an opportunity to cure the deficient conditions after the final 47 inspection. If the dispute is not resolved, shareholders may confer with 48 executives at the district management office or follow an established 49 procedure for the resolution of such matters. 50 7. Shareholders shall receive the total equity distribution, including 51 the equity and accrued equity value, within ninety days following 52 surrender of the housing. 53 8. If shareholders involuntarily surrender their housing because of 54 medical circumstances or death, the equity for the housing shall be 55 transferred to the state commensurate with state regulations for 56 unclaimed funds.S. 1658 3 1 9. The board of directors of any company and management shall be 2 prohibited from applying any costs for restoration of the housing from 3 shareholders' equity distribution until, and unless, it is determined, 4 the reserve fund and applicable carrying charges are not adequate to 5 cover costs. Shareholders, their family members, or heirs, have the 6 option to hire an outside inspector to assess the costs and pay for the 7 costs themselves. If these options are not exercised, the board of 8 directors and management shall complete an affidavit or other document 9 detailing the list of repairs, deficient conditions of the housing 10 including photographs, the amount of the shareholder's reserve fund, and 11 the additional proposed costs to be deducted from the equity. 12 § 3. This act shall take effect on the one hundred twentieth day after 13 it shall have become a law. Effective immediately, the addition, amend- 14 ment and/or repeal of any rule or regulation necessary for the implemen- 15 tation of this act on its effective date are authorized to be made on or 16 before such date.
