senate Bill S54

2013-2014 Legislative Session

Relates to voting rights in cooperative apartments

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to housing, construction and community development
Jan 09, 2013 referred to housing, construction and community development

S54 - Bill Details

See Assembly Version of this Bill:
A360
Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd ยงยง352-ee, 352-eee & 352-eeee, Gen Bus L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S604, A798
2009-2010: S7545, A834

S54 - Bill Texts

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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 NUMBER:S54

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:
2011-12: S.604
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.

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

                                   54

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERALTA -- 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, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01093-01-3

S. 54                               2

the  case  of  a  condominium, the unit owners and board of managers, to
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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