S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7296
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2025
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Corporations, Authorities and Commissions
 
 AN ACT to amend the limited liability company law and the real  property
   law, in relation to limiting the number of residential real properties
   beneficial owners of limited liability companies can own

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The limited liability company law is amended  by  adding  a
 new section 1101-a to read as follows:
   §  1101-A.  LIMITATIONS ON BENEFICIAL OWNERSHIP OF RESIDENTIAL PROPER-
 TY-HOLDING LIMITED LIABILITY COMPANIES. 1. DEFINITIONS. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "BENEFICIAL OWNER" SHALL HAVE THE SAME MEANING  AS  SUCH  TERM  IS
 DEFINED IN 31 U.S.C. § 5336(A)(3).
   (B) "COVERED LIMITED LIABILITY COMPANY" SHALL MEAN ANY LIMITED LIABIL-
 ITY  COMPANY THAT HOLDS TITLE TO ONE OR MORE PARCELS OF RESIDENTIAL REAL
 PROPERTY LOCATED WITHIN THE STATE OF NEW YORK.
   2. OWNERSHIP LIMITATION. NO INDIVIDUAL SHALL BE A BENEFICIAL OWNER  OF
 MORE THAN THREE COVERED LIMITED LIABILITY COMPANIES THAT OWN RESIDENTIAL
 REAL PROPERTY LOCATED WITHIN THE STATE OF NEW YORK.
   3. PROHIBITED TRANSACTIONS. NO COVERED LIMITED LIABILITY COMPANY SHALL
 ACQUIRE  TITLE  TO  RESIDENTIAL  REAL PROPERTY IF SUCH ACQUISITION WOULD
 RESULT IN ANY BENEFICIAL OWNER BEING ASSOCIATED  WITH  MORE  THAN  THREE
 COVERED LIMITED LIABILITY COMPANIES.
   4.  MANDATORY DISCLOSURE. (A) UPON THE FILING OF ARTICLES OF ORGANIZA-
 TION FOR ANY COVERED LIMITED LIABILITY COMPANY THAT INTENDS  TO  ACQUIRE
 RESIDENTIAL  REAL PROPERTY, THE APPLICANT SHALL DISCLOSE THE NAME(S) AND
 IDENTIFYING INFORMATION OF ALL BENEFICIAL OWNERS TO  THE  DEPARTMENT  OF
 STATE.
   (B)  ANY  COVERED  LIMITED  LIABILITY COMPANY TRANSFERRING TITLE TO OR
 ACQUIRING RESIDENTIAL REAL PROPERTY SHALL INCLUDE A  BENEFICIAL  OWNER'S
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11236-01-5
              

 A. 7296                             2
 
 AFFIDAVIT  AS  PART  OF THE DEED RECORDING PROCESS WITH THE COUNTY CLERK
 AND SUBMIT THE SAME TO THE DEPARTMENT OF STATE.
   5.  PENALTIES.  (A)  THE  ATTORNEY GENERAL SHALL HAVE THE AUTHORITY TO
 BRING A CIVIL ACTION TO ENJOIN OR REVERSE ANY TRANSACTION THAT  VIOLATES
 THE  PROVISIONS  OF THIS SECTION, AND TO SEEK DISGORGEMENT OF UNLAWFULLY
 HELD PROPERTY.
   (B) ANY INDIVIDUAL WHO KNOWINGLY  VIOLATES  SUBDIVISION  TWO  OF  THIS
 SECTION  SHALL  BE  SUBJECT TO A CIVIL PENALTY NOT TO EXCEED TWENTY-FIVE
 THOUSAND DOLLARS PER EACH VIOLATION.
   (C) ANY INDIVIDUAL WHO KNOWINGLY FILES A FALSE DISCLOSURE IN VIOLATION
 OF SUBDIVISION FOUR OF THIS SECTION SHALL BE GUILTY  OF  A  MISDEMEANOR,
 PUNISHABLE BY A FINE LEVIED BY THE DEPARTMENT OF STATE NOT TO EXCEED TEN
 THOUSAND DOLLARS FOR EACH FALSE FILING.
   6.  REGULATIONS.  THE  SECRETARY  OF STATE IS AUTHORIZED TO PROMULGATE
 RULES AND REGULATIONS NECESSARY TO  IMPLEMENT  THE  PROVISIONS  OF  THIS
 SECTION,  INCLUDING  BUT  NOT  LIMITED TO, DEFINING REPORTING STANDARDS,
 CREATING A FORM AFFIDAVIT FOR BENEFICIAL OWNERS,  COMPLIANCE  PROCESSES,
 AND ENFORCEMENT MECHANISMS.
   § 2. The real property law is amended by adding a new section 295-a to
 read as follows:
   §  295-A. BENEFICIAL OWNERSHIP DISCLOSURE IN RESIDENTIAL REAL PROPERTY
 TRANSACTIONS. 1. ANY DEED CONVEYING TITLE TO RESIDENTIAL  REAL  PROPERTY
 WHERE  THE  GRANTEE  OR  GRANTOR IS A LIMITED LIABILITY COMPANY SHALL BE
 ACCOMPANIED BY AN AFFIDAVIT IDENTIFYING THE BENEFICIAL  OWNERS  OF  SUCH
 LIMITED  LIABILITY COMPANY, CONSISTENT WITH SECTION ELEVEN HUNDRED ONE-A
 OF THE LIMITED LIABILITY COMPANY LAW.
   2. SUCH AFFIDAVIT SHALL BE SUBMITTED CONTEMPORANEOUSLY WITH  THE  DEED
 FOR  RECORDING WITH THE COUNTY CLERK, AND FAILURE TO SUBMIT SUCH AFFIDA-
 VIT SHALL RENDER THE DEED UNRECORDABLE.
   3. EACH COUNTY CLERK SHALL  NOTIFY  THE  SECRETARY  OF  STATE  OF  ANY
 CONVEYANCE  INVOLVING  A  COVERED LIMITED LIABILITY COMPANY AND TRANSMIT
 THE ACCOMPANYING DISCLOSURE AFFIDAVITS WITHIN THIRTY DAYS OF RECORDING.
   § 3. Severability. If any provision of this act, or any application of
 any provision of this act, is held to be invalid, that shall not  affect
 the  validity or effectiveness of any other provision of this act, or of
 any other application of any provision of this act, which can  be  given
 effect  without  that  provision  or  application;  and to that end, the
 provisions and applications of this act are severable.
   § 4. This act shall take effect January 1, 2026. Effective  immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such date.