S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3057
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 Introduced by M. of A. DINOWITZ, COLTON, GOTTFRIED -- Multi-Sponsored by
   -- M. of A.  GLICK -- read once and referred to the Committee on Hous-
   ing
 
 AN  ACT  to amend the general business law, in relation to the rights of
   cooperative and condominium  sponsors  and  purchasers  regarding  the
   rental of vacant dwelling units

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 352-eeee of the general business law is amended  by
 adding a new subdivision 9 to read as follows:
   9.  (A) WHENEVER ANY UNSOLD DWELLING UNIT IN A RESIDENTIAL COOPERATIVE
 OR CONDOMINIUM BUILDING BECOMES VACANT, SUCH DWELLING UNIT  MAY  NOT  BE
 RENTED AND MUST BE OFFERED FOR SALE UNLESS EITHER:
   (I)  THE  ORIGINAL  OFFERING PLAN WHICH WAS ACCEPTED FOR FILING BY THE
 ATTORNEY GENERAL EXPRESSLY DISCLOSED THE POSSIBILITY THAT UNSOLD  DWELL-
 ING  UNITS  MIGHT  NOT BE SOLD WHEN THEY BECOME VACANT, AND THE OFFERING
 PLAN CONTAINED A WARNING TO PURCHASERS OF THE RISK ENTAILED IN  PURCHAS-
 ING A UNIT IN A BUILDING WHERE UNSOLD DWELLING UNITS ARE NOT OFFERED FOR
 SALE; OR
   (II)  THE  SPONSOR  OR  OTHER  OWNER OF THE UNSOLD DWELLING UNIT FIRST
 OBTAINS THE CONSENT OF A MAJORITY OF THOSE MEMBERS  OF  THE  COOPERATIVE
 CORPORATION  BOARD  OF  DIRECTORS  OR  CONDOMINIUM  ASSOCIATION BOARD OF
 MANAGERS WHO ARE NOT AFFILIATED WITH, EMPLOYED BY,  OR  RELATED  TO  THE
 SPONSOR OR OWNER OF THE UNSOLD DWELLING UNIT OR UNITS TO SAID RENTAL.
   (B)  IN THE EVENT THAT NEITHER OF THE CONDITIONS SET FORTH IN SUBPARA-
 GRAPHS (I) AND (II) OF PARAGRAPH (A) OF THIS SUBDIVISION  ARE  MET,  AND
 SUCH  DWELLING  UNIT  REMAINS  UNSOLD AND UNOCCUPIED FOR A PERIOD OF ONE
 YEAR FROM THE DATE IT BECOMES VACANT, THEN  THE  DWELLING  UNIT  MAY  BE
 RENTED  FOR  A  PERIOD  OF UP TO ONE YEAR. AT THE CONCLUSION OF SUCH ONE
 YEAR RENTAL PERIOD, THE UNSOLD DWELLING UNIT SHALL ONCE AGAIN BE  DEEMED
 TO  HAVE  BECOME VACANT, AND THE PROVISIONS OF THIS SUBDIVISION SHALL BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05501-01-1

 A. 3057                             2
 
 APPLIED ONCE AGAIN. THE PROHIBITION AGAINST THE SALE OR RENTAL OF UNSOLD
 DWELLING UNITS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVI-
 SION SHALL CONTINUE UNTIL THE APARTMENT IS SOLD.
   (C)  IF ANY UNSOLD DWELLING UNIT WHICH BECOMES VACANT IS RENTED PURSU-
 ANT TO THE PROVISIONS OF THIS SUBDIVISION, THEN THE OWNER  OF  THE  UNIT
 BEING  RENTED SHALL IMMEDIATELY SEND A COPY OF THE FULLY EXECUTED LEASE,
 AS WELL AS SUCH OTHER INFORMATION AS MAY BE NECESSARY SO THAT  BOTH  THE
 OWNER OF THE UNIT AND THE TENANT CAN BE REACHED IN THE EVENT OF AN EMER-
 GENCY,  TO  THE BOARD OF DIRECTORS OF THE COOPERATIVE CORPORATION OR THE
 BOARD OF MANAGERS OF THE CONDOMINIUM ASSOCIATION.
   (D) THIS SUBDIVISION SHALL NOT APPLY TO ANY SHAREHOLDER OR UNIT  OWNER
 WHO  ESTABLISHES  TO  THE REASONABLE SATISFACTION OF A MAJORITY OF THOSE
 MEMBERS OF THE COOPERATIVE CORPORATION BOARD OF DIRECTORS OR CONDOMINIUM
 ASSOCIATION BOARD OF MANAGERS WHO ARE NOT AFFILIATED WITH, EMPLOYED  BY,
 OR RELATED TO, THE SPONSOR OR OWNER OF THE UNSOLD DWELLING UNIT OR UNITS
 THAT  HE OR SHE PURCHASED A DWELLING UNIT FOR PERSONAL USE OR USE BY HIS
 OR HER IMMEDIATE FAMILY MEMBER, BUT WHOSE IMMEDIATE FAMILY MEMBER IS NOT
 PRESENTLY OCCUPYING THE DWELLING UNIT, NOR SHALL THIS SUBDIVISION  APPLY
 TO  DWELLING  UNITS  OWNED  BY  A COOPERATIVE CORPORATION OR CONDOMINIUM
 ASSOCIATION OR ENTITIES FORMED BY EITHER OF THEM TO HOLD UNITS  OBTAINED
 FROM  A SPONSOR. IMMEDIATE FAMILY MEMBER AS USED IN THIS PARAGRAPH SHALL
 BE  DEFINED  AS  THE  SHAREHOLDER'S  SPOUSE,  CHILDREN,   GRANDCHILDREN,
 PARENTS, GRANDPARENTS, BROTHERS OR SISTERS.
   (E) AS USED IN THIS SUBDIVISION, THE TERM "UNSOLD DWELLING UNIT" SHALL
 MEAN  AN  APARTMENT  IN A COOPERATIVE HOUSING CORPORATION OR A UNIT IN A
 CONDOMINIUM THAT WAS NOT SOLD FOR OCCUPANCY BY THE PURCHASER  AND  SHALL
 INCLUDE, BUT NOT BE LIMITED TO, COOPERATIVE SHARES AND CONDOMINIUM UNITS
 DESIGNATED  BY THE SPONSOR OR HOLDER OF UNSOLD SHARES AS "UNSOLD SHARES"
 OR "UNSOLD UNITS".
   § 2. This act shall take effect immediately and  shall  apply  to  all
 dwelling  units  in  cooperative  and  condominium buildings that become
 vacant on or after such effective date.