Relates to the manufactured home cooperative fund

BILL NUMBER:S7421

Title of bill

An act to amend the private housing finance law, in relation to the manufactured home cooperative fund program

Purpose

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.

Existing law

Article XX of the PHFL does not expressly authorize certain non-share- holder 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 cooper- atives.

Legislative history

This is a new bill.

Statement in support

Manufactured homes located in parks are an important source of afforda- ble 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 approxi- mately 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 resi- dents 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 cooper- ative" 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 manufac- tured home parks into cooperatives.

Fiscal impact

None.

Effective date

This bill would take effect immediately.