S T A T E   O F   N E W   Y O R K
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                                  4725

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen. LEIBELL -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

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.
                                                           LBD11056-01-9
              

S. 4725                             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

S. 4725                             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.