NY State Senate Bill 2021-S2874

Senate Bill S2874

2021-2022 Legislative Session

Requires a uniform processes for considering applications to purchase condominiums or cooperatives

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to corporations, authorities and commissions
Jan 26, 2021	referred to corporations, authorities and commissions

co-Sponsors

2021-S2874 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-b, N-PC L; add §728, BC L
Versions Introduced in 2019-2020 Legislative Session:: S6408

2021-S2874 (ACTIVE) - Summary

Requires a uniform process for considering applications to purchase condominiums or cooperatives.

2021-S2874 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2874

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the not-for-profit corporation law and the business
corporation law, in relation to cooperative purchase applications

 
PURPOSE:

This bill would ensure that the process of purchasing cooperative hous-
ing is fair, transparent and does the utmost to protect against illegal
discrimination.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds Section 519-B to the not-for-profit corpo-
ration law. It requires any residential cooperative corporation formed
as not-for-profits to create procedures for a uniform application proc-
ess. Any residential cooperative corporation would need to provide writ-
ten copies of these procedures to any prospective purchaser or seller

who request them. The uniform application process must require the such
cooperative corporation to notify the prospective purchaser that their
application has been received and is either complete or is incomplete
and what additional documentation is needed, within twenty-one days of
receiving such application. In the notice telling the prospective
purchaser the application is complete, the cooperative corporation must
state what date they will complete their review and either approve or
deny the application. Such date must be within ninety days of the
receipt of a completed application.  If a board fails to issue a final
determination, the consent of the sale will be granted. This section
also requires a written reason be provided for all denied sales.

Section two does the same but for cooperatives formed under the business
corporation law, by adding a new section 728 to the business corporation
law.

Section three of the bill sets forth the effective date.

 
JUSTIFICATION:

Residential cooperative purchasers are subject to processes and condi-
tions that apply to no other purchasers of single-family residences.
These processes and conditions give the appearance and have the poten-
tial to be misused to illegally discriminate against a potential
purchaser of cooperative housing. Because NYS strongly opposes all ille-
gal discrimination and wholeheartedly promotes fair housing laws and
regulations, it is essential that the process for purchasing a cooper-
ative dwelling include the additional safeguards of this bill to protect
against illegal discrimination.

 
LEGISLATIVE HISTORY:

2020: S6408B (Kavanagh) / A1267D (Perry) - AMEND AND RECOMMIT TO CORPO-
RATIONS, AUTHORITIES AND COMMISSIONS/ amended on third reading 1267d
2019: S6408B (Kavanagh) / A1267D (Perry) - RULES/ ordered to third read-
ing rules cal.237
2017-2018: A3813(Perry) - Referred to Housing
2015-2016: A6395(Perry) - Referred to Housing
2013-2014: A4388(Perry) - Referred to Housing
2011-2012: A3053(Perry) - Referred to Housing
2009-2010: A3553(Perry) - Referred to Housing
2007-2008: A3994(Perry) - Referred to Housing
2005-2006: A3813/S3355 (Perry/Balboni) - Referred to Housing/Third Read-
ing Calendar

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2021-S2874 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2874
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend  the  not-for-profit corporation law and the business
   corporation law, in relation to cooperative purchase applications

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The not-for-profit corporation law is amended by adding a
 new section 519-b to read as follows:
 § 519-B. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION, UPON RECEIVING AN APPLICATION FROM A PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT  OF  SUCH APPLICATION WITHIN TWENTY-ONE DAYS AND TO
 INCLUDE IN SUCH  ACKNOWLEDGEMENT  OF  RECEIPT  WHETHER  THE  APPLICATION
 SUBMITTED FULLY SATISFIES THE REQUIREMENTS THEREFOR, THE WAY OR WAYS THE
 SUBMITTED APPLICATION IS INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECES-
 SARY TO EFFECTUATE CONSIDERATION OF THE APPLICATION.
   (D)  THE  PROCESSES ESTABLISHED PURSUANT TO THIS SECTION SHALL FURTHER
 REQUIRE THAT, FOLLOWING THE SUBMISSION OF A  COMPLETED  APPLICATION  AND
 ALL  ADDITIONAL  MATERIALS  REQUESTED IN THE ACKNOWLEDGEMENT OF RECEIPT,
 THE BOARD OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER  OR  THEIR
 AGENT  THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05016-01-1

 S. 2874                             2
 
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   §  2.  The business corporation law is amended by adding a new section
 728 to read as follows:
 § 728. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION UPON RECEIVING AN APPLICATION FROM A  PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWL-
 EDGEMENT OF RECEIPT WHETHER THE APPLICATION  SUBMITTED  FULLY  SATISFIES
 THE  REQUIREMENTS THEREFOR, THE WAY OR WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECESSARY TO EFFECTUATE CONSID-
 ERATION OF THE APPLICATION.
   (D) THE PROCESSES ESTABLISHED PURSUANT TO THIS SECTION  SHALL  FURTHER
 REQUIRE  THAT,  FOLLOWING  THE SUBMISSION OF A COMPLETED APPLICATION AND
 ALL ADDITIONAL MATERIALS REQUESTED IN THE  ACKNOWLEDGEMENT  OF  RECEIPT,
 THE  BOARD  OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER OR THEIR
 AGENT THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY  WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S2874

Share this bill

Sponsored By

Brian Kavanagh