Senate Bill S5124

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

                                  5124

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the real property law, in relation  to  the  preparation
  and recording of restrictive covenant declarations

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

  Section 1. The real property law is amended by adding  a  new  section
291-i to read as follows:
  S  291-I.  PROHIBITED RESTRICTIVE COVENANTS. 1. (A) ANY PROVISION IN A
WRITTEN INSTRUMENT RELATING TO OR AFFECTING REAL PROPERTY THAT  PURPORTS
TO  FORBID  OR RESTRICT CONVEYING, MORTGAGING, ENCUMBERING OR LEASING OF
SUCH REAL PROPERTY TO ANY PERSON ON THE BASIS OF RACE, COLOR,  RELIGION,
GENDER OR ANY OTHER CRITERIA IN VIOLATION OF APPLICABLE FEDERAL OR STATE
LAW, SHALL BE VOID.
  (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, THE FOLLOWING
PROVISIONS ARE NOT PROHIBITED BY THIS SECTION:
  (I) A LIMITATION, ON THE BASIS OF RELIGION, ON THE USE OF REAL PROPER-
TY HELD BY A RELIGIOUS INSTITUTION OR ORGANIZATION OR BY  ANY  RELIGIOUS
OR  CHARITABLE  ORGANIZATION,  OPERATED,  SUPERVISED  OR CONTROLLED BY A
RELIGIOUS INSTITUTION OR ORGANIZATION AND USED FOR RELIGIOUS OR CHARITA-
BLE PURPOSES; AND
  (II) A LIMITATION, IN ACCORDANCE  WITH  THE  PROVISIONS  OF  STATE  OR
FEDERAL  LAW, ON THE BASIS OF SOURCE OF INCOME OR SOCIO-ECONOMIC STATUS,
ON THE USE OF REAL PROPERTY DESIGNATED  AS  HOUSING  ACCOMMODATIONS  FOR
PERSONS  IN  LOW  INCOME  CATEGORIES,  WHICH LIMITATION RESTRICTS USE OR
OCCUPANCY OF SUCH PROPERTY TO PERSONS IN SUCH CATEGORIES, INCLUDING, BUT
NOT LIMITED TO LIMITATIONS ON PROPERTY:
  (A) DESIGNATED AS PUBLICLY-ASSISTED HOUSING ACCOMMODATIONS AS PROVIDED
IN SECTION TWO HUNDRED NINETY-TWO OF THE HUMAN RIGHTS LAW; OR
  (B) SUBJECT TO RENT CONTROL OR RENT STABILIZATION PURSUANT TO  CHAPTER
FIVE  HUNDRED  SEVENTY-SIX OF THE LAWS OF NINETEEN HUNDRED SEVENTY-FOUR,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11179-01-9
              

S. 5124                             2

CONSTITUTING  THE  EMERGENCY   TENANT   PROTECTION   ACT   OF   NINETEEN
SEVENTY-FOUR,  CHAPTER  TWO HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN
HUNDRED FORTY-SIX, CONSTITUTING THE EMERGENCY HOUSING RENT CONTROL  LAW,
OR THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
  (C)  THE  VOIDING  OF  A  PROVISION  PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION SHALL NOT AFFECT THE VALIDITY OF  THE  INSTRUMENT,  AND  THE
INSTRUMENT  SHALL  HAVE FULL FORCE AND EFFECT IN ALL OTHER RESPECTS, AND
SHALL BE CONSTRUED AS IF NO SUCH PROVISION WERE CONTAINED THEREIN.
  2. NO WRITTEN INSTRUMENT HEREAFTER MADE, RELATING TO OR AFFECTING REAL
PROPERTY, SHALL BE FILED OR RECORDED IN A FORM CONTAINING ANY  PROVISION
IN VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION UNLESS
SUCH  INSTRUMENT  IS  ACCOMPANIED BY A RESTRICTIVE COVENANT DECLARATION.
UPON THE TRANSFER OR SALE OF REAL PROPERTY, OR UPON  THE  OCCURRENCE  OF
ANY OTHER CIRCUMSTANCES ENTAILING THE FILING OF A NEW DEED PERTAINING TO
REAL  PROPERTY,  WHICHEVER  OCCURS  FIRST, OR UPON THE FILING OF A LEASE
PERTAINING TO REAL PROPERTY, THE ATTORNEY, TITLE  INSURANCE  COMPANY  OR
TITLE  INSURANCE  AGENT  PREPARING THE NEW DEED OR LEASE SHALL PREPARE A
RESTRICTIVE COVENANT DECLARATION AS PROVIDED  IN  SUBDIVISION  THREE  OF
THIS SECTION, TO BE SIGNED BY THE PROSPECTIVE PURCHASER OR LESSOR OF THE
PROPERTY,  AND  SHALL FILE THE SAME AT THE TIME THE NEW DEED OR LEASE IS
FILED.
  3. A RESTRICTIVE COVENANT DECLARATION SHALL:
  (A) BEAR THE HEADING "UNLAWFUL RESTRICTIVE COVENANT DECLARATION";
  (B) INCLUDE A COMPLETE COPY OF THE ORIGINAL  DOCUMENT  CONTAINING  THE
UNLAWFUL  RESTRICTIVE  COVENANT  AND REFERENCE SUCH DOCUMENT BY BOOK AND
PAGE OR INSTRUMENT NUMBER AND THE DATE OF RECORDING, AND SET  FORTH  THE
NAMES OF THE SIGNATORIES TO THE ORIGINAL DOCUMENT, IF ANY;
  (C) IDENTIFY THE LANGUAGE OF THE UNLAWFUL RESTRICTIVE COVENANT;
  (D)  SET FORTH THE FOLLOWING STATEMENT IN AT LEAST EIGHTEEN-POINT BOLD
FACED TYPE: "THIS DOCUMENT CONTAINS ONE  OR  MORE  ILLEGAL  RESTRICTIONS
THAT  VIOLATE  STATE  AND/OR  FEDERAL  LAW.  TO  THE  EXTENT  THAT THESE
PROVISIONS VIOLATE STATE OR FEDERAL LAW, THEY ARE DEEMED TO BE VOID  AND
UNENFORCEABLE";
  (E)  BE  FILED  AND RECORDED WITH THE DOCUMENT CONTAINING THE UNLAWFUL
RESTRICTIVE COVENANT AT THE TIME OF FILING AND RECORDING OF  SUCH  DOCU-
MENT; AND
  (F)  BE INDEXED IN THE SAME MANNER AS ANY PREVIOUSLY RECORDED DOCUMENT
OR DOCUMENTS TO WHICH THE RESTRICTIVE COVENANT  DECLARATION  REFERS  AND
SHALL  REFERENCE  THE  ORIGINAL  DOCUMENT BY BOOK AND PAGE OR INSTRUMENT
NUMBER AND THE DATE OF RECORDING.
  4. THE COUNTY RECORDER SHALL MAKE AVAILABLE TO THE  PUBLIC  FORMS  FOR
PREPARATION  OF  A  RESTRICTIVE  COVENANT  DECLARATION.  ALL RESTRICTIVE
COVENANT DECLARATIONS SHALL BE ACCEPTED FOR FILING BY THE COUNTY RECORD-
ER WITHOUT PAYMENT OF A FILING FEE.
  5. DEFINITIONS. AS USED IN THIS SECTION:
  (A) "PROVISION" MEANS ALL CLAUSES, STIPULATIONS, RESTRICTIONS,  PROHI-
BITIONS,  COVENANTS AND CONDITIONS OF ANY KIND OR CHARACTER, INCLUDING A
RIGHT OF ENTRY OR A POSSIBILITY OF REVERTER, WHICH DIRECTLY OR INDIRECT-
LY LIMIT THE USE OR OCCUPANCY OF REAL PROPERTY; AND
  (B) "WRITTEN INSTRUMENT" OR  "INSTRUMENT"  MEANS  EVERY  WRITING  THAT
RELATES  TO  OR  AFFECTS  ANY  RIGHT,  TITLE, INTEREST IN REAL PROPERTY,
INCLUDING, BUT NOT LIMITED TO, DEEDS, MORTGAGES, LEASES, LIENS, MAPS AND
PLATS.
  6. APPLICATION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT
THE INCLUSION IN WRITTEN INSTRUMENTS OF  PROVISIONS  NECESSARY  TO  GIVE
EFFECT TO STATE OR FEDERAL STATUTES.

S. 5124                             3

  7. LIABILITY. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY PERSON WHO,
IN  GOOD  FAITH  AND IN THE USUAL COURSE OF BUSINESS, DELIVERS ANY DEED,
CONTRACT, SECURITY INSTRUMENT, OR OTHER INSTRUMENT AFFECTING THE  TRANS-
FER  OR  SALE  OF,  OR  ANY  INTEREST IN, REAL PROPERTY WHICH CONTAINS A
RESTRICTIVE  COVENANT  AS  DESCRIBED IN SUBDIVISION ONE OF THIS SECTION,
SHALL BE IMMUNE FROM CIVIL LIABILITY. IN ADDITION, SUCH  DELIVERY  SHALL
NOT CONSTITUTE AN UNFAIR HOUSING PRACTICE. THE PROVISIONS OF THIS SUBDI-
VISION SHALL NOT APPLY TO ANY PERSON WHO:
  (A)  REPRESENTS  OR ATTEMPTS TO REPRESENT THAT SUCH RESTRICTIVE COVEN-
ANTS ARE VALID AND ENFORCEABLE; OR
  (B) HONORS OR EXERCISES OR ATTEMPTS TO HONOR OR EXERCISE SUCH RESTRIC-
TIVE COVENANTS.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however that effective  immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its effective  date  are
authorized  and  directed  to  be  made  and completed on or before such
effective date.