Assembly Bill A10983

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10983
 
                           I N  A S S E M B L Y
 
                              April 14, 2026
                                ___________
 
 Introduced by M. of A. POWERS -- read once and referred to the Committee
   on Housing
 
 AN  ACT  to  amend  the  business corporation law and the not-for-profit
   corporation law, in relation to requiring at least one director  on  a
   board of directors of a residential cooperative housing corporation be
   a  primary  resident  of  such  residential cooperative housing corpo-
   ration; and to amend the real property law, in relation to prohibiting
   the charging of payments,  fees  or  charges  by  cooperative  housing
   corporations without thirty days' notice
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 701 of the business corporation law, as amended  by
 chapter 432 of the laws of 1977, is amended to read as follows:
 § 701. Board of directors.
   Subject  to  any provision in the certificate of incorporation author-
 ized by paragraph (b) of section 620 (Agreements as to voting; provision
 in certificate of incorporation as to control of directors) or by  para-
 graph (b) of section 715 (Officers), the business of a corporation shall
 be  managed  under the direction of its board of directors, each of whom
 shall be at least eighteen years of age, AND FOR ANY BOARD OF  DIRECTORS
 OF  A  RESIDENTIAL COOPERATIVE HOUSING CORPORATION INCORPORATED PURSUANT
 TO THIS CHAPTER, AT LEAST ONE DIRECTOR SHALL BE A  PRIMARY  RESIDENT  OF
 SUCH  RESIDENTIAL  COOPERATIVE HOUSING CORPORATION.   The certificate of
 incorporation or the by-laws  may  prescribe  other  qualifications  for
 directors,  AND  IN  THE  CASE OF RESIDENTIAL COOPERATIVE HOUSING CORPO-
 RATIONS, MAY REQUIRE A GREATER NUMBER OF DIRECTORS BE PRIMARY  RESIDENTS
 OF SUCH RESIDENTIAL COOPERATIVE HOUSING CORPORATIONS.
   §  2.  Section 701 of the not-for-profit corporation law is amended by
 adding a new paragraph (c) to read as follows:
   (C) FOR ANY BOARD OF DIRECTORS OF A  RESIDENTIAL  COOPERATIVE  HOUSING
 CORPORATION INCORPORATED PURSUANT TO THIS CHAPTER, AT LEAST ONE DIRECTOR
 SHALL  BE  A  PRIMARY  RESIDENT  OF SUCH RESIDENTIAL COOPERATIVE HOUSING
 CORPORATION. THE CERTIFICATE OF INCORPORATION OR  THE  BY-LAWS  OF  SUCH
 RESIDENTIAL  COOPERATIVE HOUSING CORPORATIONS MAY PRESCRIBE OTHER QUALI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14947-02-6
 A. 10983                            2
 
 FICATIONS FOR DIRECTORS INCLUDING A REQUIREMENT THAT A GREATER NUMBER OF
 DIRECTORS BE PRIMARY RESIDENTS OF SUCH RESIDENTIAL  COOPERATIVE  HOUSING
 CORPORATIONS.
   §  3.    Section 238-a of the real property law is amended by adding a
 new subdivision 4 to read as follows:
   4. NO PAYMENTS, FEES OR CHARGES MAY BE CHARGED BY A COOPERATIVE  HOUS-
 ING CORPORATION TO A TENANT THAT IS A DWELLING UNIT OWNER OR SHAREHOLDER
 OF SUCH COOPERATIVE HOUSING CORPORATION UNLESS SUCH PAYMENT IS DESCRIBED
 AND DISCLOSED TO ALL SUCH COOPERATIVE HOUSING CORPORATION'S SHAREHOLDERS
 IN WRITING AT LEAST THIRTY DAYS PRIOR TO IMPLEMENTATION.
   § 4. This act shall take effect immediately.