N.Y. Private Housing Finance Law Section 31-A
Resale price of shares


Notwithstanding any other provision of this article and subject to any regulation not inconsistent with this section which may be promulgated by the commissioner or supervising agency:

(a)

The resale price of shares in a mutual company shall be fixed by the mutual company, subject to the approval of the commissioner or supervising agency and shall be equal to (1) the consideration the selling tenant-cooperator paid for such shares and (2) any capital assessments and voluntary capital contributions approved by the commissioner or supervising agency and paid by the selling tenant-cooperator to the mutual company, to the extent not already included in the consideration paid for such shares, and, if established by the mutual company, (3) a proportionate share of the actual aggregate amortization paid on all existing and prior mortgages on the project in reduction of total outstanding principal indebtedness during such period as shall be fixed by the board of directors of the mutual company, to the extent not already included in the consideration paid for such shares, and

(4)

reasonable administrative charges.

(b)

The aggregate amount to be paid to the selling tenant-cooperator with respect to the sale of the selling tenant-cooperator’s shares shall be fixed by the board of directors of the mutual company, subject to the approval of the commissioner or supervising agency, and shall be equal to (1) the consideration the selling tenant-cooperator paid for such shares, (2) any capital assessments and voluntary capital contributions approved by the commissioner or supervising agency and paid by the selling tenant-cooperator to the mutual company, to the extent not already included in the consideration paid for such shares, and

(3)

a proportionate share of the actual aggregate amortization paid by the selling tenant-cooperator on all existing and prior mortgages on the project in reduction of total outstanding principal indebtedness during such period as shall be fixed by the board of directors pursuant to subdivision (a) of this section, to the extent not already included in the consideration paid for such shares. To the extent that a selling tenant-cooperator may be entitled to an amount less than the resale price of his shares, the difference shall be retained by the mutual company.

(c)

The board of directors may, subject to the approval of the commissioner or supervising agency, establish a general policy pursuant to which a selling tenant-cooperator who had occupied more than one dwelling unit is paid an amount measured by his proportionate share of the actual aggregate amortization paid during his period of occupancy on all existing or prior mortgages on the project. To the extent that a selling tenant-cooperator may be entitled to an amount greater than the resale price of shares, the difference may be paid to the selling tenant-cooperator by the mutual company.

(d)

The “proportionate share of the actual aggregate amortization paid on all existing and prior mortgages on the project” referred to in subdivision (a) of this section shall be in the same ratio to such actual aggregate amortization as the number of shares held by the selling tenant-cooperator at the time of sale bears to the total number of shares of issued and outstanding capital stock of the mutual company during such period.

(e)

Nothing contained in this section shall prohibit the continued use of any method of calculating resale price adopted by a mutual company and approved by the commissioner or supervising agency prior to the effective date of this section.

(f)

a mutual company shall provide, upon request of a tenant-cooperator, a written statement providing the current value of such tenant-cooperator’s shares and equity in such mutual company;

Source: Section 31-A — Resale price of shares, https://www.­nysenate.­gov/legislation/laws/PVH/31-A (updated Jul. 30, 2021; accessed Jun. 15, 2024).

10
Short title
11
Policy and purposes of article
11‑A
Additional policy and purposes of article
12
Definitions
13
Limited-profit housing companies
13‑A
The applicability of not-for-profit corporation law
13‑B
Verification of papers filed with supervising agency
13‑C
Voting, election and referendum procedures
14
Consent of commissioner to incorporation
15
Participation by certain corporations and individuals
16
Limited-profit housing companies
17
Powers
18
Designation of and service of process on secretary of state and registered agent
19
Consideration for issuance of stock, bonds or income debentures
20
Mortgages, mortgage bonds and notes
21
Capital structure
22
State loans
22‑A
Redevelopment loans
22‑B
Loans for state-aided limited-profit housing companies
23
Municipal loans and municipally aided projects
23‑A
Mortgage modifications, evidence of pre-existing indebtedness
23‑B
Participation in loan or investment
23‑C
Mortgage modifications
24
Income debentures
25
Working capital
26
Conditions and security for loans
26‑A
Findings for municipally-aided projects
26‑B
Special provisions with respect to state urban development corporation projects
26‑C
Special provisions with respect to Battery Park city projects
27
Limitations
28
Payments from earnings
29
Acquisition of property
30
Transfer of real property
31
Rentals and selection of tenants
31‑A
Resale price of shares
31‑B
Assignment or pledge of tenant cooperator’s shares
31‑C
Tenant-cooperators
32
Supervision and regulation
32‑A
Additional supervision and regulation
32‑B
Annual reports
33
Tax exemptions
34
Foreclosure and judgments
35
Voluntary dissolution
35‑A
Requirements regarding dissolution
36
Sale of project prior to termination of tax exemption
36‑A
Additional powers of municipalities
37
Separability clause

Accessed:
Jun. 15, 2024

Last modified:
Jul. 30, 2021

§ 31-A’s source at nysenate​.gov

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