senate Bill S604

Relates to voting rights in cooperative apartments

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO CONSUMER PROTECTION
  • 04 / Jan / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 08 / Mar / 2012
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 12 / Mar / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES

Summary

Provides that the sponsor of a cooperative apartment building or condominium units may not continue to sit on the board or to vote after the transfer to the cooperative corporation or condominium ownership.

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Bill Details

See Assembly Version of this Bill:
A798
Versions:
S604
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd ยงยง352-ee, 352-eee & 352-eeee, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S7545, A834
2007-2008: A3232, A3232

Sponsor Memo

BILL NUMBER:S604

TITLE OF BILL:
An act
to amend the general business law, in relation to prohibiting a sponsor
from becoming a director or voting on the board after a building has
been converted to a cooperative apartment building or condominium
ownership

PURPOSE:
To prevent the landlord of an apartment or building that has been
converted to a co-op from becoming a director or voting member on the
co-op board.

SUMMARY OF PROVISIONS:
Amends the General Business Law by adding a new paragraph (vi) to
subdivision 1 of section 352-ee, paragraph (g) to subdivision 2 of
section 352-eee, and paragraph (g) to subdivision 2 of section
352-eeee.

JUSTIFICATION:
This bill would eliminate the possibility of landlords holding a seat
on the board of directors or be allowed to vote any shares after
conversion to cooperative ownership. Presently there are no laws that
state that once a landlord sells apartments from his or her apartment
building, thus establishing a cooperative apartment building, he or
she cannot hold a seat on the board of directors or be allowed to
vote any shares after conversion to cooperative ownership. This bill
would prohibit landlords from holding a seat on board of directors
and voting on matters which rightfully are no longer under the
landlords' jurisdiction.

LEGISLATIVE HISTORY:
2010: S.7545/A.834
2007-08: A.3232 - Referred to Housing
2005-06: A.1461 - Referred to Housing
2003-04: A.3031 - Referred to Housing
2001-02: A.1130 - Referred to Housing
1999-2000: A.2018 - Referred to Housing

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to plans
submitted on and after such date;
provided, however, that the amendments to sections 352-eee and
352-eeee of the general
business law made by sections two and three of this act shall not
affect the expiration of such sections and shall be deemed to expire
therewith.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   604

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to  prohibiting  a
  sponsor from becoming a director or voting on the board after a build-
  ing  has  been converted to a cooperative apartment building or condo-
  minium ownership

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraphs (iv) and (v) of subdivision 1 of section 352-ee
of the general business law, as added by chapter  509  of  the  laws  of
1978, are amended and a new paragraph (vi) is added to read as follows:
  (iv) a statement, satisfactory to the attorney general, that it is the
obligation  of  the sponsor to complete all alterations and improvements
to individual spaces or dwelling units in compliance with such  approved
plans  within the time specified in the plan or, if the sponsor does not
undertake such obligation, that it is the obligation of  the  individual
owners of shares in the cooperative corporation or of condominium units,
under  the supervision of the cooperative corporation or, in the case of
a condominium, under the  supervision  of  the  board  of  managers,  to
complete  such alterations and improvements within the time specified in
the plan; [and]
  (v) a statement that a permanent certificate of occupancy is  required
for  permanent residential use of the premises, that a temporary certif-
icate of occupancy may only be renewed for a total period of  two  years
from  the  date  of  its  original  issuance  and that, if the temporary
certificate of occupancy shall have expired prior to obtaining a  perma-
nent  certificate  of  occupancy,  residential occupancy of the premises
will be in violation of the multiple dwelling law, subjecting the  occu-
pants  and the cooperative corporation and its board of directors or, in
the case of a condominium, the unit owners and  board  of  managers,  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03323-01-1

S. 604                              2

penalties under the multiple dwelling law including eviction of residen-
tial occupants[.]; AND
  (VI)  A  STATEMENT THAT THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD
OF DIRECTORS OR BE ALLOWED TO VOTE ANY SHARES AFTER CONVERSION TO  COOP-
ERATIVE OR CONDOMINIUM OWNERSHIP.
  S  2.  Subdivision 2 of section 352-eee of the general business law is
amended by adding a new paragraph (g) to read as follows:
  (G) THE PLAN PROVIDES THAT AFTER  THE  CONVERSION  TO  COOPERATIVE  OR
CONDOMINIUM  OWNERSHIP THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD OF
DIRECTORS NOR VOTE ANY SHARES.
  S 3. Subdivision 2 of section 352-eeee of the general business law  is
amended by adding a new paragraph (g) to read as follows:
  (G)  THE  PLAN  PROVIDES  THAT  AFTER THE CONVERSION TO COOPERATIVE OR
CONDOMINIUM OWNERSHIP THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD  OF
DIRECTORS NOR VOTE ANY SHARES.
  S  4.  This act shall take effect immediately and shall apply to plans
submitted on and after such date; provided, however, that the amendments
to sections 352-eee and 352-eeee of the general  business  law  made  by
sections  two  and  three of this act shall not affect the expiration of
such sections and shall be deemed to expire therewith.

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