N.Y. Private Housing Finance Law § 32-a: Additional supervision and regulation

§ 32-a. Additional supervision and regulation. The commissioner or the

supervising agency, as the case may be, shall:

1. Promulgate regulations providing for recognition of duly

constituted tenants' associations and cooperators' advisory councils by

the commissioner or supervising agency, as the case may be, and

providing that a housing company shall meet on a regular basis with

representatives of such an association or council at the specific

project involved to discuss matters relating to the project. A duly

constituted cooperators' advisory council shall only be such a council

in a mutual company project prior to the election of a board of

directors by the tenant-cooperators.

2. Require every company to file with him, her or it an annual

operating budget for each individual project in the manner prescribed by

the commissioner or supervising agency.

3. Require every company to file with him, her or it semi-annual or

quarterly financial statements and an annual financial statement. Each

annual financial statement shall be accompanied by a certificate of the

company's independent certified public accountant. Such financial

statements shall be filed at the times and in the manner prescribed by

the commissioner or supervising agency.

4. Afford tenants access to and an opportunity to acquire copies of

all operating budgets or financial statements respecting the project in

which such tenants reside, to the extent that such budgets and

statements are required by law to be kept by the commissioner or

supervising agency.

5. Permit any tenant, duly constituted tenants' association, duly

constituted cooperators' advisory council or his, hers or its duly

authorized representative to audit the books of the company and to have

access during normal business hours to the financial records upon which

the company's financial statements are based.

6. Promulgate regulations relating to managing agents, including

criteria for the eligibility for selection and the compensation of

managing agents by companies organized pursuant to this article. Such

regulations shall provide, among other things, that any contract with a

managing agent entered into after September first, nineteen hundred

seventy-seven shall be terminable for cause and shall be terminable,

with or without cause, at least every twelve months after commencement

of the term thereof, and that promptly upon termination the managing

agent shall turn over to the company all project records, rent rolls,

bills, cancelled checks, bank statements and other papers owned by such

company.

7. Require that every company file with him, her or it, within six

months of the effective date of regulations implementing this

subdivision and in such format as shall be prescribed by the

commissioner or the supervising agency after consultation with the state

energy office, an energy audit report which identifies potential

energy-saving building improvements, including alterations,

modifications and adjustments to the building structure, heating,

cooling, lighting and ventilation systems; their relative costs;

potential energy and cost savings; and simple payback periods, which for

the purpose of this subdivision shall mean that period of time within

which the estimated cost of such improvements, exclusive of the cost of

capital, would be recovered from the savings generated by reduced energy

consumption resulting from the improvements. The energy audit shall be

conducted by a public utility, an engineer or architect licensed by the

state, or the managing agent or other representative of the company if

such individual has attended an energy audit training workshop sponsored

by the commissioner or the state energy office. A copy of the energy

audit report, required herein, shall be given to any duly constituted

tenant's association or cooperator's advisory council and a copy shall

be available for inspection and copying by any individual tenant who

requests it. The commissioner or supervising agency shall also require

that every company certify by March thirty-first, nineteen hundred

eighty-four that all compatible conservation measures identified in the

energy audit report which have simple payback periods of one year or

less have been implemented; provided, however, if the commissioner or

supervising agency determines within sixty days of the date the energy

audit report is filed that one or more of such identified conservation

measures cannot be implemented by March thirty-first, nineteen hundred

eighty-four, given the projected rent revenues and other monies

available to the company from reserve funds, loans or grants from the

state or federal government or any other source, the implementation of

such conservation measures shall be provided for according to a schedule

prescribed by the commissioner or supervising agency.

8. Every tenant or resident, or a person acting on behalf of a tenant

or resident, shall be permitted to copy, by photographic means, any

document within the scope of this section pertaining to the project in

which such tenant or resident resides. A reasonable fee, subject to a

maximum therefor prescribed in regulations, may be charged for such

copies.

* 9. Require that within ten days of the filing of any reports or

financial statements with the commissioner or supervising agency, the

housing company shall transmit a copy of said report or financial

statement to a duly constituted resident board of directors, and if

there be none, to a cooperator's advisory council or a duly constituted

tenants association representing the project concerned. Where no such

council or association exists in a project, a notice shall be posted

informing the residents of the location on the premises of the project

where a copy of said report or financial statement is available for

inspection. The notice shall be posted within ten days of filing, in a

prominent place on the premises of the project concerned.

* NB There are 2 sb 9's

* 9. Promulgate regulations to require each tenant use their dwelling

unit as their primary residence to maintain their right of continued

occupancy or be subject to eviction in a court of competent jurisdiction

by a mutual housing company.

* NB There are 2 sb 9's

10. Require every voting member of a board of directors of a mutual

company subject to the provisions of this article, elected or appointed

for a term beginning on or after the effective date of this subdivision,

to complete, within the first year of his or her term and at least once

every three years thereafter, a minimum of two hours of training, in

person or virtually, as the commissioner or supervising agency, as the

case may be, may deem appropriate on the financial oversight,

accountability and fiduciary responsibilities of a board member; and to

require every voting member of a board of directors of a mutual company

subject to the provisions of this article, elected or appointed for a

term beginning before the effective date of this subdivision, to

complete such training within one year of the effective date of this

subdivision and at least once every three years thereafter.

11. Require every voting member of a board of directors of a mutual

company subject to the provisions of this article, elected or appointed

for a term beginning on or after the effective date of this subdivision,

to complete, within the first year of his or her term and at least once

every three years thereafter, in addition to the training required by

subdivision ten of this section, a training course, in person or

virtually, as the commissioner or supervising agency, as the case be,

may deem appropriate, to acquaint him or her with the powers, functions

and duties of a board of directors of a mutual company subject to the

provisions of this article, as well as the powers and duties of other

governing and administrative authorities affecting such companies; and

to require every voting member of a board of directors of a mutual

company subject to the provisions of this article, elected or appointed

for a term beginning before the effective date of this subdivision, to

complete such training within one year of the effective date of this

subdivision and at least once every three years thereafter.

12. Require each member of a board of directors of a mutual company

subject to the provisions of this article to demonstrate compliance with

the requirements set forth in subdivisions ten and eleven of this

section by filing a certificate of completion of such course or courses

on a form to be promulgated by the commissioner. Such form shall be

filed with the secretary of the mutual company and maintained by the

secretary as a corporate record and distributed annually to the

shareholders and upon the filing of any director with the mutual company

of the intention to seek re-election to the position. Sixty days prior

to any scheduled election of members of the board of directors, the

secretary of the mutual company shall furnish the commissioner or the

supervising authority, as the case may be, with a list of all incumbent

directors indicating which individuals have submitted certificates

required in this subdivision. Such course or courses shall be provided

by the commissioner or supervising agency, as the case may be, at no

cost to the trainee or the board to which the trainee has been elected.

13. Develop the curricula used for training required by subdivisions

ten and eleven of this section for which the supervising agency or the

commissioner may request and shall receive the cooperation and

assistance from any departments, divisions, boards, bureaus, commissions

or agencies of the state and political subdivisions thereof in

developing such curricula. These curricula may be offered together as a

single course or separately. The training required by this section may

be offered by providers approved by the commissioner or supervising

agency, as the case may be. In approving other providers for these

trainings, the commissioner or supervising agency shall consider a

potential provider's understanding of cooperative homeownership; laws,

rules and regulations affecting mutual companies subject to the

provisions of this article; and the fiduciary responsibilities of the

board of a residential cooperative, as well as the experience of the

provider in delivering such training.

14. Hold such meeting or meetings, in person or virtually as the

commissioner or supervisory agency shall deem appropriate, with the

board of a mutual company on the financial oversight, accountability and

fiduciary responsibilities of such board; the powers, functions and

duties of such board; and the powers and duties of other governing and

administrative authorities affecting such company.