S T A T E O F N E W Y O R K
________________________________________________________________________
4948
2009-2010 Regular Sessions
I N A S S E M B L Y
February 10, 2009
___________
Introduced by M. of A. V. LOPEZ, BALL, GALEF -- Multi-Sponsored by -- M.
of A. ENGLEBRIGHT -- read once and referred to the Committee on Hous-
ing
AN ACT to amend the general business law and the real property law, in
relation to enactment of a residential cooperative and condominium
owner's bill of rights
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
352-eeeee to read as follows:
S 352-EEEEE. RESIDENTIAL COOPERATIVE AND CONDOMINIUM OWNER'S BILL OF
RIGHTS. THE ORGANIZATIONAL AND OPERATING DOCUMENTS OF EVERY RESIDENTIAL
COOPERATIVE HOUSING CORPORATION AND EVERY RESIDENTIAL CONDOMINIUM ASSO-
CIATION ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE STATE SHALL
GUARANTEE THE FOLLOWING TO EACH SHAREHOLDER OR UNIT OWNER:
1. THAT (A) ALL APPLICATIONS IN CONNECTION WITH MATTERS WHICH REQUIRE
APPROVAL OF THE BOARD OF DIRECTORS OR BOARD OF MANAGERS AND (B) ALL
REQUESTS FOR DETERMINATIONS BY THE BOARD OF DIRECTORS OR BOARD OF MANAG-
ERS INCLUDING BUT NOT LIMITED TO REQUESTS FOR THE RESOLUTION OF DISPUTES
BETWEEN OR AMONG SHAREHOLDERS OR UNIT OWNERS, DISPUTES BETWEEN SHARE-
HOLDERS AND THE COOPERATIVE CORPORATION OR BETWEEN UNIT OWNERS AND THE
CONDOMINIUM ASSOCIATION SUCH AS DISPUTES CONCERNING RESPONSIBILITY FOR
REPAIRS SHALL BE PROCESSED IN A REASONABLY EXPEDITIOUS MANNER ON A NON-
DISCRIMINATORY BASIS PURSUANT TO UNIFORM PROCEDURES AND TIMETABLES
ADOPTED IN WRITING AND ANY SUCH APPROVAL SHALL NOT BE UNREASONABLY WITH-
HELD. THE BOARD'S DECISION SHALL BE IN WRITING AND SHALL SET FORTH THE
REASONS THEREFOR, EXCEPT THAT NO REASON SHALL BE REQUIRED WHEN APPROVAL
IS GRANTED. A BOARD'S REFUSAL TO ALLOW A SHAREHOLDER OR UNIT OWNER TO
SUBLET AN APARTMENT PURSUANT TO A UNIFORM POLICY WHICH IS REASONABLY
DESIGNED TO PROHIBIT OR LIMIT SUBLETTING SHALL NOT BE DEEMED TO BE AN
UNREASONABLE WITHHOLDING OF CONSENT PURSUANT TO THIS SUBDIVISION. THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08712-01-9
A. 4948 2
FOREGOING PROVISIONS OF THIS SUBDIVISION SHALL NOT PROHIBIT THE ENFORCE-
MENT OF UNIFORM REASONABLE POLICIES RELATED TO THE HEALTH, SAFETY AND
WELFARE OF THE RESIDENTS AND THE SAFE AND PRUDENT OPERATION OF THE PREM-
ISES.
2. THAT ELECTIONS FOR MEMBERS OF THE BOARD OF DIRECTORS OR THE BOARD
OF MANAGERS BE HELD BY SECRET BALLOT, UNLESS WAIVED BY A UNANIMOUS VOTE
OF THE SHAREHOLDERS PRESENT IN PERSON OR BY PROXY AT THE ELECTION MEET-
ING, OR IN THE CASE OF AN UNCONTESTED ELECTION. A TALLY OF THE VOTES
RECEIVED BY EACH CANDIDATE IN AN ELECTION FOR THE BOARD OF MANAGERS OR
BOARD OF DIRECTORS SHALL BE POSTED WITHIN ONE DAY FOLLOWING THE AVAIL-
ABILITY OF SUCH INFORMATION IN A PROMINENT PLACE ACCESSIBLE TO ALL
TENANTS IN EACH BUILDING COMPRISING THE COOPERATIVE OR CONDOMINIUM.
3. THAT THE BOARD OF DIRECTORS OR BOARD OF MANAGERS ACT IN A TIMELY
FASHION TO FILL ANY VACANCIES WHICH OCCUR ON SUCH BOARDS.
4. THAT ANY MEMBER OF A BOARD OF DIRECTORS OR BOARD OF MANAGERS WHO IS
ELECTED WHILE A SHAREHOLDER OR UNIT OWNER IN THE COOPERATIVE CORPORATION
OR CONDOMINIUM ASSOCIATION, WHO SELLS HIS OR HER APARTMENT OR THE SHARES
ALLOCATED THERETO, AND WHO, SUBSEQUENT TO SUCH SALE SHALL NO LONGER BE A
SHAREHOLDER OR UNIT OWNER IN SUCH CORPORATION OR ASSOCIATION, SHALL
RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING DATE OF SUCH SALE.
5. THAT COMPLETE AND ACCURATE FINANCIAL STATEMENTS AND ANY OTHER
STATEMENTS ORDINARILY PROVIDED TO SHAREHOLDERS OR UNIT OWNERS BE
PROVIDED IN A TIMELY FASHION PURSUANT TO ESTABLISHED TIMETABLES AT LEAST
ONCE ANNUALLY. FOR THE PURPOSES OF THIS SUBDIVISION "FINANCIAL STATE-
MENTS" SHALL INCLUDE THE BALANCE SHEETS AND STATEMENTS OF INCOME AND
EXPENSE FOR EACH OF THE THREE MOST CURRENT FISCAL YEARS. ATTACHED TO
SAID FINANCIAL STATEMENTS SHALL BE A STATEMENT WHICH DISCLOSES (A) ANY
KNOWN INTEREST, DIRECT OR INDIRECT, BENEFICIAL OR OTHERWISE, WHICH ANY
DIRECTOR, ASSOCIATION MEMBER, OFFICER, EMPLOYEE, AGENT, SHAREHOLDER OR
CONDOMINIUM OWNER OR RELATIVE OF ANY SUCH PERSON HAS IN ANY SUPPLIER OF
SERVICES OR MATERIAL TO SAID COOPERATIVE OR CONDOMINIUM AND (B) ANY
CONSIDERATION, FINANCIAL OR OTHERWISE, WHICH SAID DIRECTOR, ASSOCIATION
MEMBER, OFFICER, EMPLOYEE, AGENT, SHAREHOLDER OR CONDOMINIUM OWNER OR
RELATIVE OF ANY SUCH PERSON HAS RECEIVED OR IS RECEIVING FROM SUCH
SUPPLIER.
6. THAT THE FOLLOWING DOCUMENTS BE MADE AVAILABLE FOR INSPECTION OR
COPYING BY SHAREHOLDERS OR UNIT OWNERS AT REASONABLE TIMES ON NO MORE
THAN TEN DAYS WRITTEN NOTICE TO THE BOARD OF DIRECTORS OR BOARD OF
MANAGERS:
(A) APPROVED MINUTES OF BOARD OF DIRECTORS OR BOARD OF MANAGERS MEET-
INGS, PROVIDED THAT SUCH BOARDS SHALL HAVE FIFTEEN DAYS FROM THE DATES
OF THE MEETINGS AT WHICH THE MINUTES ARE APPROVED TO PREPARE SUCH
MINUTES;
(B) AGREEMENTS AND BILLS FOR GOODS AND SERVICES. ALL SUCH AGREEMENTS
AND BILLS SHALL FULLY DESCRIBE THE GOODS PROVIDED OR SERVICES PERFORMED
AND APPORTION THE TOTAL COST FOR SPECIFIC GOODS OR SERVICES;
(C) BANKING ACCOUNT AND FINANCIAL INVESTMENT STATEMENTS;
(D) VENDOR LISTS AND COMPETITIVE BIDDING SUBMISSIONS;
(E) REPORTS OF ACCOUNTANTS, CONSULTANTS AND EXPERTS RETAINED OR HIRED
TO PERFORM SERVICES FOR OR ON BEHALF OF THE CORPORATION OR ASSOCIATION
INCLUDING FINANCIAL STATEMENTS AS DEFINED IN SUBDIVISION FIVE OF THIS
SECTION PROVIDED, HOWEVER, THAT SUCH REPORTS MAY BE WITHHELD WHERE THE
REPORT CONCERNS OR MAY CONCERN LITIGATION, WHERE THE REPORT WAS PREPARED
IN CONNECTION WITH THE LITIGATION AND WHERE A MAJORITY OF THE MEMBERS OF
THE BOARD HAVE VOTED TO WITHHOLD SUCH INFORMATION. WHERE THE MATTER
CONCERNS ALLEGED CONFLICT OF INTEREST OR MALFEASANCE INVOLVING BOARD
A. 4948 3
MEMBERS THE REPORT MAY BE WITHHELD ONLY UPON A VOTE OF THE MAJORITY OF
DISINTERESTED BOARD MEMBERS. IF ALL BOARD MEMBERS ARE INTERESTED PARTIES
THE REPORT MAY NOT BE WITHHELD; AND
(F) REPORTS BY MUNICIPAL AND/OR COUNTY INSPECTORS CONCERNING COMPLI-
ANCE WITH HEALTH, BUILDING AND HOUSING CODES AND REGULATIONS.
7. THAT IN ADDITION TO ANY OTHER NOTICE REQUIRED BY THE COOPERATIVE
CORPORATION'S OR CONDOMINIUM ASSOCIATION'S ORGANIZATIONAL OR OPERATING
DOCUMENTS, NOTICE OF ALL BOARD AND SHAREHOLDER OR UNIT OWNER MEETINGS BE
POSTED IN A PROMINENT PLACE ACCESSIBLE TO ALL SHAREHOLDERS AND UNIT
OWNERS IN EACH BUILDING COMPRISING THE COOPERATIVE OR CONDOMINIUM.
8. THAT THE BOARD OF DIRECTORS OR BOARD OF MANAGERS SHALL NOT IMPOSE
SPECIAL ASSESSMENTS, OR ENTER INTO CONTRACTS FOR EXTRAORDINARY EXPENSES
BEYOND CUSTOMARY OPERATING OR MAINTENANCE COSTS, WITHOUT APPROVAL BY A
VOTE OF THE SHAREHOLDERS OR UNIT OWNERS. A VOTE OF THE SHAREHOLDERS OR
UNIT OWNERS MAY BE WAIVED BY THE BOARD IN THE CASE OF (A) AN EMERGENCY
EVIDENCED BY AN APPROVED RESOLUTION OF THE BOARD, (B) A REQUIRED REFI-
NANCING OF AN EXISTING MORTGAGE OR (C) WHERE SHAREHOLDERS OR UNIT OWNERS
HAVE BEEN NOTIFIED OF THE PROPOSED ACTION IN WRITING WITHIN A REASONABLE
PERIOD OF TIME PRIOR TO THE PROPOSED DATE OF IMPLEMENTATION OF THE
ACTION AND WHERE SUCH NOTICE PROVIDES THAT THE BOARD MAY WAIVE A VOTE
UNLESS AT LEAST A CERTAIN PERCENT OF THE SHAREHOLDERS OR UNIT OWNERS
DEMAND IN WRITING THAT THE ACTION BE PUT TO A VOTE. SUCH PERCENTAGE MAY
NOT EXCEED FIFTY PERCENT.
S 2. Subdivision 1 of section 339-v of the real property law is
amended by adding a new paragraph (k) to read as follows:
(K) THAT A MEMBER OF THE BOARD OF MANAGERS WHO IS ELECTED TO FILL A
VACANCY, UNLESS ELECTED BY A GENERAL VOTE OF THE UNIT OWNERS, SHALL HOLD
OFFICE UNTIL THE NEXT MEETING OF UNIT OWNERS AT WHICH THE ELECTION OF A
MEMBER OR MEMBERS OF THE BOARD OF MANAGERS IS IN THE REGULAR ORDER OF
BUSINESS, AND UNTIL HIS OR HER SUCCESSOR HAS BEEN ELECTED AND QUALIFIED.
S 3. Within 6 months of the effective date of this act the attorney
general shall promulgate a handbook summarizing the rights of sharehold-
ers and unit owners vis-a-vis cooperative corporations and condominium
associations and the procedures and processes available to shareholders
and unit owners to enforce such rights.
S 4. This act shall take effect immediately; provided, however, that
as to residential cooperative housing corporations and residential
condominium associations existing and operating as such on the effective
date of this act the boards of directors of such corporations and the
boards of managers of such associations shall within 1 year of the
effective date of this act take all steps necessary to amend the appro-
priate organizational and operating documents of such corporations or
associations to implement the provisions of this act.