New York Laws
Article 2 - Limited-Profit Housing Companies
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.

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