S T A T E O F N E W Y O R K
________________________________________________________________________
3100
2019-2020 Regular Sessions
I N A S S E M B L Y
January 28, 2019
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Introduced by M. of A. DINOWITZ, COLTON -- Multi-Sponsored by -- M. of
A. GLICK -- read once and referred to the Committee on Housing
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
the case of a condominium, the unit owners and board of managers, to
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00704-01-9
A. 3100 2
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.
§ 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.
§ 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.
§ 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.