Relates to the manufactured home cooperative fund.
Ayes (57): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Espada, Farley, Flanagan, Foley, Fuschillo, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Maziarz, McDonald, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (5): Duane, Golden, Leibell, Montgomery, Morahan
TITLE OF BILL:
An act to amend the private housing finance law, in relation to the manufactured home cooperative fund program
This bill would clarify that certain non-shareholder entities, such as not-for-profit membership corporations, are expressly authorized to be manufactured home park cooperatives pursuant to the Manufactured Home Cooperative Fund Program of the New York State Housing Finance Agency ("HFA") as set forth in Article XX of the Private Housing Finance Law ("PHFL").
SUMMARY OF PROVISIONS:
Section 1 of the bill would amend the definition of manufactured home park cooperative in PHFL § 1121(5) to expressly include certain entities that do not issue shares, such as not-for-profit membership corporations and other entities, of which the holders of membership interests or certificates thereof will be entitled to occupancy in a manufactured home park pursuant to General Business Law § 352-e.
Section 2 of the bill would amend PHFL § 1122(5) to expressly permit ownership of a cooperative by owners or holders of membership interests or certificates of membership in such cooperative.
Section 3 of the bill would provide for an immediate effective date.
Article XX of the PHFL does not expressly authorize certain non-shareholder entities, such as not-for-profit membership corporations and other entities that issue membership interests or certificates as evidence of ownership thereof, to become manufactured home park cooperatives.
This is a new bill.
STATEMENT IN SUPPORT:
Manufactured homes located in parks are an important source of affordable home ownership in New York. As a way of meeting this need, the Legislature established the Manufactured Home Cooperative Fund Program (the "Program"), administered by HFA, which has, to date, successfully financed the conversion to cooperatives of thirteen parks with approximately 931 units. All of these loans were funded from state appropri ations and loan repayments to the Fund. Resident-owned cooperative corporations own these parks establishing communities where the residents have a say in the key issues concerning their homes.
The Program's enabling statute, Article XX of the PHFL, authorizes HFA to finance the conversion of eligible applicants, such as manufactured home residents associations, into manufactured home park cooperatives. However, the statute expressly defines "manufactured home park cooperative" as a shareholder-type corporation. By expanding such definition to include not-for-profit membership corporations and other entities that issue membership interests or certificates as evidence of ownership thereof, the proposed legislation would expressly authorize HFA to finance the cooperative conversion of a broader pool of cooperatives. The bill would stimulate lending partnerships with the private sector and leverage HFA's Program funds with private lenders who finance the cooperative conversion of not-for-profit membership corporations. It has been the experience of such private lenders that such financing would streamline the time and expense of completing the conversion of manufactured home parks into cooperatives.
This bill would take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7421 IN SENATE April 8, 2010 ___________Introduced by Sen. ESPADA -- (at request of the New York State Housing Finance Agency) -- 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 the manufactured home cooperative fund program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 6 of section 1121 of the private housing finance law, as amended by chapter 99 of the laws of 1997, is amended to read as follows: 6. "Manufactured home park cooperative" shall mean a corporation OR OTHER ENTITY formed for the purpose of owning a manufactured home park wherein the ownership of such shares, MEMBERSHIP INTEREST OR CERTIFICATE OF MEMBERSHIP will entitle the owners OR HOLDERS thereof to occupancy in such park pursuant to section three hundred fifty-two-e of the general business law. S 2. Paragraph (c) of subdivision 5 of section 1122 of the private housing finance law, as amended by chapter 99 of the laws of 1997, is amended to read as follows: (c) the extent to which manufactured home parks, subsequent to receiv- ing assistance under this article, will be owned as a cooperative by shareholders OR OWNERS OR HOLDERS OF MEMBERSHIP INTERESTS OR CERTIFICATE OF MEMBERSHIP IN SUCH COOPERATIVE whose average incomes do not exceed (i) the greater of one hundred percent of the median income for the metropolitan statistical area in which a project is located or one hundred percent of the median income for the state, or (ii) if the project is located outside such an area, the greater of one hundred percent of the median income for the county in which the project is located or one hundred percent of the median income for the state; S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15676-01-0