STATE OF NEW YORK ________________________________________________________________________ 5028 2023-2024 Regular Sessions IN SENATE February 22, 2023 ___________ Introduced by Sen. MANNION -- read twice and ordered printed, and when printed to be committed to the Committee on Disabilities AN ACT to amend the mental hygiene law, in relation to the creation of an innovative housing initiative for persons with a developmental disability who wish and are able to safely reside in such a setting; to direct the division of housing and community renewal to establish guidelines for the dissemination of disclosure materials for the offer and sale of interests in residential environments formed under the innovative housing initiative; and to amend the general business law, in relation to creating an exemption from certain filing requirements for residential environments that are formed as cooperative interests in realty for persons receiving services under the innovative housing initiative The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative purpose and findings. The legislature hereby 2 finds and declares as follows: 3 (a) New York state is currently facing a severe housing crisis for 4 people with developmental disabilities. Staffing shortages for certified 5 housing, commonly referred to as group homes, has put additional pres- 6 sure on the state to provide alternative and innovative housing models, 7 especially for those persons who are able to live more independently and 8 wish to do so. 9 (b) Many persons with developmental disabilities live with a parent or 10 parents, a family member, or other similar direct support personnel. 11 However, many such persons wish to live more independently, and would do 12 so if an option existed that included certain appropriate supports. 13 (c) Further, although family caregiving is appropriate in many 14 instances, parents and similar direct support personnel may eventually 15 become unable to continue supporting the person who has a developmental EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05184-03-3S. 5028 2 1 disability, due to the direct support personnel's infirmity, death, or 2 other concerns. 3 (d) Accordingly, there is a need to create new and innovative housing 4 models that maximize independence for persons with developmental disa- 5 bilities. The state should provide more independent housing options to 6 persons with developmental disabilities, where such persons wish and are 7 able to take advantage of such opportunities. 8 (e) Thus, to maximize the availability of innovative housing settings, 9 this legislation directs the office for people with developmental disa- 10 bilities ("OPWDD") to create an Innovative Housing Initiative that 11 enables persons with developmental disabilities to live more independ- 12 ently, including housing that is owned or leased in their name, or by 13 someone else on behalf of such person or that of a trust established for 14 their benefit, with supports provided through OPWDD, such as availabili- 15 ty of shared direct support personnel. In this way, OPWDD will help 16 ensure that persons with developmental disabilities are afforded 17 settings that are the most integrated and appropriate for their needs. 18 § 2. The mental hygiene law is amended by adding a new section 16.38 19 to read as follows: 20 § 16.38 Innovative housing initiative. 21 (a) The office shall enable persons with a developmental disability to 22 live independently in a residential environment, with support services, 23 including but not limited to staffing support, shared staffing support, 24 and opportunities for social engagement and recreation. 25 (b) Such residential environment may be comprised of a single housing 26 unit or multiple units of housing, in one or more buildings, including 27 but not limited to: (i) leased residential housing units; (ii) housing 28 that qualifies as a cooperative interest in realty under section three 29 hundred fifty-two-e of the general business law; and (iii) condominium 30 units under article nine-B of the real property law. The interest in 31 such residential unit may be leased or owned by a person with a develop- 32 mental disability, or an entity on behalf of such person, including but 33 not limited to a trust established for such person's benefit. Each unit 34 of residential housing may be occupied by no more than the number of 35 unrelated persons permitted by local law. 36 (c) The selection of the residential environment, the person or 37 persons with whom they live and the determination that they may inde- 38 pendently live in such residential environment, with support services, 39 shall be made solely by such person with a developmental disability and 40 their qualified representative. 41 (d) In recognition of the requirement that the individual's experience 42 shall determine whether a residential environment is the most integrated 43 and appropriate for the needs of the person with a developmental disa- 44 bility, in determining eligibility for any housing program, support 45 services or other benefits, the office shall: 46 (1) honor the right of the person with a developmental disability to 47 choose the residential environment and with whom they may live; 48 (2) maximize the types of residential environments in which a person 49 with a developmental disability may live while being eligible for funds 50 through a home and community based waiver to the full extent permitted 51 by federal law; and 52 (3) permit a number of persons with a developmental disability to live 53 in a residential environment when viewed as a whole up to the full 54 extent permitted by federal law. 55 (e) This section shall not limit or otherwise affect requirements 56 applying to:S. 5028 3 1 (1) an integrated supportive housing program administered by the 2 office in coordination with the division of housing and community 3 renewal (commonly referred to as the Integrative Supportive Housing 4 program or "ISH"); or 5 (2) projects developed as part of an empire state supportive housing 6 initiative (commonly referred to as "ESSHI"). 7 (f) The office shall coordinate with the department of health to 8 determine whether an amendment to the state plan authorized by section 9 three hundred sixty-three-a of the social services law or a waiver is 10 required from the federal Centers for Medicare and Medicaid Services 11 ("CMS") to maximize federal financial participation for the initiative 12 described in this section no more than thirty days from the effective 13 date of this section. If the office determines that an amendment to the 14 state plan or a waiver is required or desirable, the department of 15 health shall submit such amendment or apply to CMS for such waiver with- 16 in twelve months from the date of said determination. 17 (g) The office may conduct public hearings to receive public comment 18 on how residential environments that include innovative housing author- 19 ized by this section can best be integrated with the broader community. 20 (h) This section shall not be construed to permit the operation with- 21 out an operating certificate of a community residence, community resi- 22 dential facility for the disabled, supervised living facility, support- 23 ive living facility, or any other provider of service requiring an 24 operating certificate under section 16.03 of this article. Nothing in 25 this section shall be interpreted as authorizing an increase in the 26 number of beds approved for a community residence, community residential 27 facility for the disabled, supervised living facility, supportive living 28 facility, or any other provider of service requiring an operating 29 certificate under section 16.03 of this article. 30 (i) Residential environments in which persons with a developmental 31 disability receive services pursuant to the innovative housing initi- 32 ative described by this section shall not discriminate against any resi- 33 dent or potential resident based on race, creed, age other than being at 34 least eighteen years of age, color, national origin, sex, disability, 35 marital status, military status, family status, sexual orientation, 36 gender identity or expression, or any other protected characteristic 37 under the New York state human rights law. 38 § 3. The division of housing and community renewal shall establish 39 guidelines for the dissemination of disclosure materials for the offer 40 and sale of interests in residential environments formed under the inno- 41 vative housing initiative established by section 16.38 of the mental 42 hygiene law, including (a) housing that qualifies as a cooperative 43 interest in realty under section 352-e of the general business law; (b) 44 condominium units under article 9-B of the real property law; and (c) 45 shares in a housing development fund corporation which are otherwise 46 exempt from the filing requirements of section 352-e of the general 47 business law, to ensure material information is disclosed to any 48 prospective shareholder that: (i) fully describes the risks to a 49 prospective shareholder's investment; and (ii) encourages the prospec- 50 tive shareholder to consult with legal counsel prior to purchasing any 51 shares. The division of housing and community renewal shall make the 52 disclosure guidelines publicly available on its website in compliance 53 with section 102(14) of the state administrative procedure act. 54 § 4. Section 352-g of the general business law, as added by chapter 55 987 of the laws of 1960, is amended to read as follows:S. 5028 4 1 § 352-g. Exemptions. (a) The attorney general, upon application, may 2 exempt from the provisions of sections three hundred fifty-two-e, three 3 hundred fifty-two-f and three hundred fifty-two-h any offerings of secu- 4 rities (1) made to persons not exceeding forty in number or (2) which 5 securities have been fully registered with the securities and exchange 6 commission of the United States of America or have received an exemption 7 therefrom for reasons other than said offering is an intrastate offering 8 to residents of the state of New York only. 9 (b) Residential environments that are formed as housing development 10 fund corporations pursuant to article XI of the private housing finance 11 law and section four hundred two of the business corporation law where 12 such residential environment is formed for persons receiving services 13 under the innovative housing initiative established by section 16.38 of 14 the mental hygiene law and where the division of housing and community 15 renewal is the supervising agency as defined by section five hundred 16 seventy-two of the private housing finance law, and where the division 17 of housing and community renewal requires the housing development fund 18 corporation to enter into a monitoring agreement with a qualified not- 19 for-profit with experience in the oversight, support and management of 20 housing development fund corporations shall be exempt from any filing 21 requirements of section three hundred fifty-two-e of this article for 22 the investment in any residential environments and the conversion of any 23 building, group of buildings or development which are converted to a 24 housing development fund corporation. 25 § 5. This act shall take effect immediately.