Senate Bill S10727

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10727
 
                             I N  S E N A T E
 
                             October 28, 2026
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property law, in relation to prohibiting retal-
   iation by cooperative housing programs against shareholders
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  real property law is amended by adding a new section
 235-k to read as follows:
   § 235-K. RETALIATION BY COOPERATIVE HOUSING  CORPORATIONS  PROHIBITED.
 1.  FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "COOPERATIVE HOUSING CORPORATION" SHALL MEAN THE BOARD OR MANAGING
 AGENT OF ANY CORPORATION, ENTITY, OR  ORGANIZATION  FORMED  PURSUANT  TO
 ARTICLE  FOUR  OF  THE BUSINESS CORPORATION LAW OR ARTICLE ELEVEN OF THE
 PRIVATE HOUSING FINANCE LAW THAT OPERATES RESIDENTIAL HOUSING ON A COOP-
 ERATIVE BASIS THROUGH PROPRIETARY LEASES, OCCUPANCY AGREEMENTS, OR SIMI-
 LAR ARRANGEMENTS.
   (B) "SHAREHOLDER" SHALL MEAN ANY OWNER OF SHARES ALLOCATED TO A  RESI-
 DENTIAL  UNIT  WITHIN  A  COOPERATIVE HOUSING CORPORATION AND ANY LAWFUL
 OCCUPANT RESIDING PURSUANT TO SUCH SHAREHOLDER'S  PROPRIETARY  LEASE  OR
 OCCUPANCY AGREEMENT.
   (C) "ADVERSE ACTION" SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) COMMENCEMENT OF LITIGATION AGAINST A SHAREHOLDER;
   (II) TERMINATION OR ATTEMPTED TERMINATION OF A PROPRIETARY LEASE;
   (III) COMMENCEMENT OF PROCEEDINGS ALLEGING OBJECTIONABLE CONDUCT;
   (IV)  SELECTIVE  ENFORCEMENT  OF  HOUSE  RULES, BYLAWS, OR PROPRIETARY
 LEASE PROVISIONS;
   (V) IMPOSITION OF FINES, FEES, ASSESSMENTS, OR PENALTIES  NOT  IMPOSED
 IN A SUBSTANTIALLY SIMILAR MANNER UPON OTHER SHAREHOLDERS;
   (VI)  DENIAL  OF  APPROVALS,  PERMISSIONS,  OR  APPLICATIONS OTHERWISE
 CUSTOMARILY GRANTED UNDER SIMILAR CIRCUMSTANCES; OR
   (VII) ANY ACTION THAT WOULD REASONABLY DETER A SHAREHOLDER FROM  EXER-
 CISING RIGHTS PROTECTED BY THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16513-01-6
              

 S. 10727                            2
 
   2.  NO  COOPERATIVE  HOUSING  CORPORATION  SHALL  TAKE  ADVERSE ACTION
 AGAINST A SHAREHOLDER BECAUSE SUCH SHAREHOLDER,  OR  SOMEONE  ACTING  ON
 SUCH SHAREHOLDER'S BEHALF, IN GOOD FAITH:
   (A)  MADE  A  COMPLAINT  TO THE COOPERATIVE HOUSING CORPORATION OR ANY
 GOVERNMENTAL AUTHORITY ALLEGING VIOLATION OF ANY HEALTH OR  SAFETY  LAW,
 REGULATION,  CODE,  OR  ORDINANCE  OR THE WARRANTY OF HABITABILITY UNDER
 SECTION TWO HUNDRED THIRTY-FIVE-B OF THIS ARTICLE;
   (B) REQUESTED INSPECTION OR ENFORCEMENT BY A GOVERNMENTAL AUTHORITY;
   (C) EXERCISED RIGHTS UNDER THE BUSINESS CORPORATION  LAW,  PROPRIETARY
 LEASE, BYLAWS, CERTIFICATE OF INCORPORATION, OR HOUSE RULES;
   (D)  REQUESTED  ACCESS TO CORPORATE BOOKS AND RECORDS AS AUTHORIZED BY
 LAW;
   (E)  COMMUNICATED  WITH  OTHER  SHAREHOLDERS   REGARDING   GOVERNANCE,
 ELECTIONS, FINANCES, OR BUILDING OPERATIONS;
   (F)  ORGANIZED, PARTICIPATED IN, OR SUPPORTED SHAREHOLDER ASSOCIATIONS
 OR GROUPS;
   (G) SOUGHT LEGAL ADVICE OR REPRESENTATION;
   (H) COMMENCED, PARTICIPATED IN, OR TESTIFIED IN ANY JUDICIAL, ADMINIS-
 TRATIVE, OR ARBITRATION PROCEEDING  INVOLVING  THE  COOPERATIVE  HOUSING
 CORPORATION; OR
   (I)  OTHERWISE  EXERCISED RIGHTS PROTECTED BY FEDERAL, STATE, OR LOCAL
 LAW.
   3. AN ADVERSE ACTION OCCURRING WITHIN ONE  YEAR  AFTER  A  SHAREHOLDER
 ENGAGES IN PROTECTED ACTIVITY SHALL CREATE A REBUTTABLE PRESUMPTION THAT
 SUCH  ACTION  WAS RETALIATORY. THE EFFECT OF THE PRESUMPTION SHALL BE TO
 REQUIRE THE COOPERATIVE HOUSING CORPORATION TO ESTABLISH A  NON-RETALIA-
 TORY MOTIVE FOR ITS ACTS BY A PREPONDERANCE OF THE EVIDENCE.
   4.  IN  ANY  ACTION  SEEKING  TERMINATION  OF  A  PROPRIETARY LEASE OR
 EVICTION  OF  A  SHAREHOLDER  PURSUANT  TO  AN   OBJECTIONABLE   CONDUCT
 PROVISION,  EVIDENCE  OF RETALIATION SHALL BE ADMISSIBLE NOTWITHSTANDING
 ANY APPLICATION OF  THE  BUSINESS  JUDGMENT  RULE.  JUDGEMENT  SHALL  BE
 ENTERED  FOR  THE  SHAREHOLDER  IF  THE COURT FINDS THAT THE COOPERATIVE
 HOUSING CORPORATION IS ACTING IN RETALIATION FOR ANY ACTION SET FORTH IN
 SUBDIVISION TWO OF THIS SECTION.
   5. A COOPERATIVE HOUSING CORPORATION'S BOARD OR  ITS  AGENT  SHALL  BE
 SUBJECT  TO  A  CIVIL  ACTION FOR DAMAGES, ATTORNEY'S FEES AND COSTS AND
 OTHER APPROPRIATE RELIEF, INCLUDING INJUNCTIVE AND OTHER EQUITABLE REME-
 DIES, AS MAY BE DETERMINED BY A COURT OF COMPETENT JURISDICTION  IN  ANY
 CASE  IN  WHICH  THE  COOPERATIVE  HOUSING  CORPORATION HAS VIOLATED THE
 PROVISIONS OF THIS SECTION.
   6. ANY PROVISION OF A PROPRIETARY LEASE, OCCUPANCY  AGREEMENT,  BYLAW,
 RULE,  POLICY,  OR CONTRACT PURPORTING TO WAIVE OR LIMIT RIGHTS PROVIDED
 UNDER THIS SECTION SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
   7. THIS SECTION SHALL NOT BE GIVEN EFFECT IN ANY CASE IN WHICH  IT  IS
 ESTABLISHED  THAT THE CONDITION FROM WHICH THE COMPLAINT OR ACTION AROSE
 WAS CAUSED BY THE SHAREHOLDER, A MEMBER OF THE SHAREHOLDER'S  HOUSEHOLD,
 OR A GUEST OF THE SHAREHOLDER.
   8.  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO CLASSIFY A COOPER-
 ATIVE HOUSING CORPORATION AS A LANDLORD OR A SHAREHOLDER AS A TENANT FOR
 PURPOSES OTHER THAN THIS SECTION.
   § 2. This act shall take effect immediately.