NY State Senate Bill 2017-S8643

Senate Bill S8643

2017-2018 Legislative Session

Creates a residential condominium owner bill of rights

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 10, 2018	referred to judiciary

2017-S8643 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §339-ll, RP L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S1751
2021-2022: S3017
2023-2024: S3320

2017-S8643 (ACTIVE) - Summary

Creates a residential condominium owner's bill of rights that includes the right to transparency, the right to timely decisions, voting rights, the right to notice, and the right against extraordinary expenses.

2017-S8643 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8643

SPONSOR: SEPULVEDA
 
TITLE OF BILL:  An act to amend the real property law, in relation to
creating a residential condominium owner bill of rights

 
PURPOSE:

To amend provisions in the not-for-profit corporation law, general busi-
ness law, and real property law in relation to the enactment of a resi-
dential condominium owner's bill of rights

 
SUMMARY OF PROVISIONS:

This bill will also enact a bill of rights for owners of residential
condominium units with respect to managing the common charges, elements,
expenses, or profits of thirty five hundred or more units.  This bill
will provide condo-owners both privately owned and not-for-profit condo-
minium associations the right to transparency which includes the right
for condo unit owners to review a complete accounting for all expendi-
tures, capital improvement and or anything in excess of the contingency

fund including the budget, a comparison of any and all bidding processes
for work to be done in the condominium including work that was conducted
and the amounts of contributions of each owner whether individual or
group sponsors, billings estimates overages and proof of the expendi-
tures that comprise the total of the surcharge and minutes of each meet-
ing where the planning and voting on the proposal was discussed with all
owners and for any and all expenditures not made in the ordinary course
of business.

This bill will also require for the Condominium Board of any not-for-
profit condominium board to make available for inspection and review to
all condo unit owners the IRS Form 990 when they are filed annually.

This bill would require that all applications and requests by condomin-
ium owners that require approval by the board of managers regarding
disputes between owners and the condominium association be processed in
a reasonably expeditious manner pursuant to uniform procedures and time-
tables adopted in writing.

The final results of elections for the board of managers would be
required to be posted in a prominent location within one business day
following the availability of such information.

The board of managers would be required to call a meeting within sixty
days of a vacancy to fill a vacancy if it occurs more than six months
prior to the annual unit owners meeting.

The bill would require any board member, who sells his or her apartment
and is no longer a unit holder in the condominium, to resign from the
board no later than the closing date of such sale.

Furthermore, the bill would ensure that accurate financial statements
and other statements normally provided to unit owners of privately owned
and not-for-profit condominiums would need to be provided in a timely
fashion.

The bill would require that proper documentation be made available for
inspection or copying by unit owners; including approved minutes of
board of managers meetings; accurate records of the receipts and expend-
itures arising from the operation of the property; bank account and
financial investment statements; proposals received for bids on goods
and services for the condominium; reports of hired accountants and
consultants on behalf of the association and reports by municipal or
county inspectors concerning health, building, and safety codes and
regulations.

The bill would require that a notice of all condominium board meetings
be posted in a prominent location.

The bill would direct the board members to propose expense limits every
five years. The board would be prohibited from, by vote, entering into
contracts for extraordinary expenses without approval of the unit
owners, unless it is deemed to be an emergency or doing so is required
for refinancing the mortgage.

Finally, the bill directs the attorney general to update the handbook
summary of the rights of condominium owners vis-a-vis condominium asso-
ciations and the procedures and processes available to unit owners to
enforce such rights.

The Attorney General would be authorized to enforce the provisions of
this section.

 
EXISTING LAW:

The current law in the State does not sufficiently protect the condo
owners/residents of both privately owned and not for profit condo
boards.

 
JUSTIFICATION:

Too many condo boards do not provide sufficient transparency and disclo-
sure of their records, fostering ill will among condo owners.  This bill
is an incentive for condominium management and their boards to be fully
accountable so that condominium ownership will be profitable, manageable
and stable.

 
LEGISLATIVE HISTORY:

N/A

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S8643 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8643
 
                             I N  S E N A T E
 
                               May 10, 2018
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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 creating a resi-
   dential condominium owner bill of rights
 
   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
 339-ll to read as follows:
   § 339-LL. RESIDENTIAL CONDOMINIUM OWNER'S BILL OF RIGHTS.  THE  ORGAN-
 IZATIONAL AND OPERATING DOCUMENTS OF A NOT-FOR-PROFIT RESIDENTIAL CONDO-
 MINIUM  ASSOCIATION ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE
 STATE AND MANAGING THE COMMON CHARGES, ELEMENTS, EXPENSES, OR PROFITS OF
 THIRTY-FIVE HUNDRED OR MORE UNITS SHALL GUARANTEE THE  FOLLOWING  RIGHTS
 TO EACH UNIT OWNER.
   1.  THE  RIGHT TO TRANSPARENCY. COMPLETE AND ACCURATE FINANCIAL STATE-
 MENTS, REPORTS OF HIRED ACCOUNTANTS AND CONSULTANTS  ON  BEHALF  OF  THE
 ASSOCIATION,  REPORTS  BY  MUNICIPAL  OR COUNTY INSPECTORS, AND APPROVED
 MINUTES OF THE BOARD OF MANAGERS' MEETINGS SHALL BE AVAILABLE FOR REVIEW
 WITHIN A TIMELY FASHION OF A REQUEST TO REVIEW, INSPECT,  OR  COPY.  ANY
 FINANCIAL  STATEMENTS,  REPORTS,  OR MINUTES ORDINARILY PROVIDED TO UNIT
 OWNERS SHALL BE PROVIDED IN A TIMELY  FASHION  PURSUANT  TO  ESTABLISHED
 TIMETABLES.  IN  ADDITION  TO  ANY  OTHER  NOTICE REQUIRED, THE APPROVED
 MINUTES OF ALL BOARD AND UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMI-
 NENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE
 CONDOMINIUM WITHIN ONE DAY OF THEIR APPROVAL. FOR THE PURPOSES  OF  THIS
 SUBDIVISION,  "FINANCIAL STATEMENTS" SHALL INCLUDE A COMPLETE ACCOUNTING
 FOR ALL EXPENDITURES, CAPITAL IMPROVEMENTS, OR ANYTHING IN EXCESS OF THE
 CONTINGENCY FUND INCLUDING THE BUDGET,  A  COMPARISON  OF  ANY  AND  ALL
 BIDDING  PROCESSES FOR WORK TO BE DONE ON THE CONDOMINIUM INCLUDING WORK
 THAT WAS CONDUCTED AND THE AMOUNTS OF THE CONTRIBUTIONS  OF  EACH  OWNER
 WHETHER  INDIVIDUAL  OR  GROUP SPONSORED, BILLINGS, ESTIMATES, OVERAGES,
 AND PROOF OF THE EXPENDITURES THAT COMPRISE THE TOTAL OF  THE  SURCHARGE
 AND  MINUTES  OF  EACH  MEETING  WHERE  THE  PLANNING  AND VOTING ON THE
 PROPOSAL WAS DISCUSSED WITH ALL THE OWNERS, FOR ANY AND ALL EXPENDITURES
 NOT MADE IN THE ORDINARY COURSE OF BUSINESS, BANK ACCOUNT AND  FINANCIAL
 INVESTMENT STATEMENTS, AND THE ASSOCIATION'S IRS FORM NINE-HUNDRED-NINE-

 TY, IF APPLICABLE, FOR EACH OF THE THREE MOST CURRENT FISCAL YEARS.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06852-04-8

 S. 8643                             2
 
   2.  THE  RIGHT TO TIMELY DECISIONS. ALL APPLICATIONS BY UNIT OWNERS IN
 CONNECTION WITH MATTERS WHICH REQUIRE APPROVAL OF THE BOARD OF  MANAGERS
 AND  ALL REQUESTS FOR DETERMINATIONS BY THE BOARD OF MANAGERS INCLUDING,
 BUT NOT LIMITED TO, REQUESTS FOR THE RESOLUTION OF DISPUTES  BETWEEN  OR
 AMONG  UNIT  OWNERS,  DISPUTES  BETWEEN  UNIT OWNERS AND THE CONDOMINIUM
 ASSOCIATION SUCH AS DISPUTES CONCERNING RESPONSIBILITY FOR REPAIRS SHALL
 BE PROCESSED IN A REASONABLY  EXPEDITIOUS  MANNER  PURSUANT  TO  UNIFORM
 PROCEDURES AND TIMETABLES ADOPTED IN WRITING. 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.
   3. VOTING RIGHTS.  (A) THE BOARD OF MANAGERS SHALL CALL A  MEETING  TO
 FILL  ANY  VACANCIES  WHICH OCCUR ON SUCH BOARD WITHIN SIXTY DAYS OF THE
 OCCURRENCE OF SUCH VACANCY IF THE VACANCY OCCURS MORE  THAN  SIX  MONTHS
 PRIOR TO THE ANNUAL MEETING OF UNIT OWNERS.
   (B) THE FINAL RESULTS OF ELECTIONS FOR THE BOARD OF MANAGERS INCLUDING
 A  TALLY  OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE POSTED WITHIN
 ONE BUSINESS DAY FOLLOWING THE AVAILABILITY OF  SUCH  INFORMATION  IN  A
 PROMINENT  PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING COMPRIS-
 ING THE CONDOMINIUM.
   (C) ANY MEMBER OF A BOARD OF MANAGERS WHO  IS  ELECTED  WHILE  A  UNIT
 OWNER  IN  THE  CONDOMINIUM,  WHO  SELLS  HIS OR HER APARTMENT, AND WHO,
 SUBSEQUENT TO SUCH SALE SHALL NO LONGER BE A UNIT OWNER IN  SUCH  CONDO-
 MINIUM,  SHALL  RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING DATE OF
 SUCH SALE.
   4. THE RIGHT TO NOTICE. IN ADDITION  TO  ANY  OTHER  NOTICE  REQUIRED,
 NOTICE  OF ALL BOARD AND UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMI-
 NENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE
 CONDOMINIUM.
   5. THE RIGHT AGAINST EXTRAORDINARY EXPENSES.  NO  LESS  THAN  ONCE  IN
 EVERY  FIVE  YEARS THE BOARD SHALL PROPOSE EXPENSE LIMITS WHICH SHALL BE
 INCLUDED IN THE NOTICE OF THE ANNUAL OR ANY OTHER MEETING  OF  THE  UNIT
 OWNERS.  AN  OPPORTUNITY FOR UNIT OWNERS TO COMMENT ON SUCH PROPOSAL AND
 TO OFFER LOWER EXPENSE LIMITS SHALL BE INCLUDED IN THE AGENDA  FOR  SUCH
 MEETING.  AT THE CONCLUSION OF THE COMMENT PERIOD THE BOARD SHALL, BY AN
 OPEN  VOTE,  ADOPT  EXPENSE  LIMITS  NOT TO EXCEED THOSE PROPOSED BY THE
 BOARD WHICH SHALL BE EFFECTIVE UNTIL CHANGED. ONCE APPROVED BY VOTE, THE
 BOARD SHALL NOT ENTER INTO CONTRACTS FOR EXTRAORDINARY EXPENSES  WITHOUT
 APPROVAL  OF  THE UNIT OWNERS, UNLESS IT IS DEEMED TO BE AN EMERGENCY OR
 IS REQUIRED FOR REFINANCING OF THE MORTGAGE.
   6. THE ATTORNEY GENERAL IS AUTHORIZED TO  ENFORCE  THE  PROVISIONS  OF
 THIS  SECTION AND MAY, UPON HIS OR HER OWN INITIATIVE, OR IN RESPONSE TO
 A COMPLAINT BY ONE OR MORE UNIT OWNERS, INVESTIGATE ALLEGATIONS  OF  ANY
 FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
   §  2. Within six months of the effective date of this act the attorney
 general shall promulgate a  handbook  summarizing  the  rights  of  unit
 owners  vis-a-vis  condominium associations and the procedures and proc-
 esses available to unit owners to enforce such rights.
   § 3. This act shall take effect immediately; provided,  however,  that
 as  to  residential  condominium  associations existing and operating as
 such on the effective date of this act the boards of  managers  of  such
 associations  shall  within  one  year of the effective date of this act
 take all steps necessary to amend  the  appropriate  organizational  and
 operating  documents of such associations to implement the provisions of
 this act.

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