NY State Senate Bill 2025-S2098A

Senate Bill S2098A

2025-2026 Legislative Session

Requires the board of directors of a cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 09, 2025	print number 2098a
Jun 09, 2025	amend (t) and recommit to housing, construction and community development
Jan 15, 2025	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2025-S2098 - Details

See Assembly Version of this Bill:: A7090
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Business Corporation Law
Laws Affected:: Add §728, BC L; add §519-b, N-PC L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7512
2021-2022: A7773
2023-2024: S9426, A1064

2025-S2098 - Summary

Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.

2025-S2098 - Sponsor Memo

                                 
BILL NUMBER: S2098

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring the
board of directors of a cooperative apartment corporation to notify
applicants seeking to purchase shares of the corporation of the reason
or reasons the board of directors has refused such request

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill aims to ensure transparency and fairness in the process of
purchasing shares in cooperative apartment corporations by requiring the
board of directors to provide specific reasons for the denial of appli-
cations to purchase shares.

 
SUMMARY OF PROVISIONS:

Section 1. Amends the general business law by adding a new section
352-m, which requires cooperative corporation boards to provide a writ-
ten explanation to applicants detailing the reasons for the denial of

their share purchase requests within thirty days of the decision.

Section 2. Establishes the effective date of the act.

 
JUSTIFICATION:

Current laws do not obligate cooperative boards to disclose reasons for
denying share purchase applications, often leaving rejected applicants
without a clear understanding of the decision, which can sometimes stem
from discrimination or personal biases. By requiring boards to provide
reasons, this bill promotes accountability and prevents arbitrary or
discriminatory rejections. The need for such transparency was high-
lighted in the case of 40 West 67th Street v.  Pullman, which under-
scored the unique legal position of cooperative corporations and their
ability to act without the same procedural checks required in tradi-
tional landlord-tenant relationships.

Enhancing transparency in cooperative share transactions ensures fair
treatment of potential buyers and supports a more inclusive housing
market. This measure could lead to a decrease in discrimination and
increase the diversity of cooperative communities.

 
PRIOR LEGISLATIVE HISTORY:

2024: S9426 (Kavanagh) - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT /A1064 (Bichotte Hermelyn) - referred to housing

2023: A1064 (Bichotte Hermelyn) - referred to housing

2022: A7773 (Bichotte Hermelyn) - referred to housing

2021: A7773 (Bichotte Hermelyn) - referred to housing

2020: A7512 (Bichotte Hermelyn) - referred to housing

2019: A7773 (Bichotte Hermelyn) - referred to housing

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S2098 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2098
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to amend the general business law, in relation to requiring the
   board of directors of a cooperative apartment  corporation  to  notify
   applicants seeking to purchase shares of the corporation of the reason
   or reasons the board of directors has refused such request
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 352-m to read as follows:
   § 352-M. DENIAL OF RIGHT TO PURCHASE SHARES OF  A  COOPERATIVE  CORPO-
 RATION. IN THE EVENT THAT THE BOARD OF DIRECTORS OF A COOPERATIVE CORPO-
 RATION  DENIES  THE  REQUEST  OF AN APPLICANT TO PURCHASE SHARES OF SUCH
 CORPORATION ALLOTTED TO A PARTICULAR DWELLING UNIT, THE BOARD OF  DIREC-
 TORS SHALL NOTIFY SUCH APPLICANT IN WRITING OF THE REASON OR REASONS THE
 BOARD  OF  DIRECTORS HAS DENIED THE REQUEST TO PURCHASE THE SHARES. SUCH
 NOTIFICATION SHALL BE PROVIDED TO THE APPLICANT WITHIN  THIRTY  DAYS  OF
 THE  BOARD'S  DECISION  TO  DENY THE APPLICANT'S REQUEST TO PURCHASE THE
 SHARES.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05826-01-5

2025-S2098A (ACTIVE) - Details

See Assembly Version of this Bill:: A7090
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Business Corporation Law
Laws Affected:: Add §728, BC L; add §519-b, N-PC L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7512
2021-2022: A7773
2023-2024: S9426, A1064

2025-S2098A (ACTIVE) - Summary

2025-S2098A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2098A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the business corporation law and the not-for-profit
corporation law, in relation to requiring the board of directors of a
residential cooperative apartment corporation to notify applicants seek-
ing to purchase shares of the corporation of the reason or reasons the
board of directors has refused such request

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill aims to ensure transparency and fairness in the process of
purchasing shares in cooperative apartment corporations by requiring the
board of directors to provide specific reasons for the denial of appli-
cations to purchase shares.

 
SUMMARY OF PROVISIONS:

Section 1 amends the business corporation law by adding a new section
728, which requires cooperative corporation boards to provide a written

explanation to applicants detailing the reasons for the denial of their
share purchase requests within thirty days of the decision.

Section 2 amends the not-for-profit corporation law by adding a new
section 519-b, which requires cooperative corporation boards to provide
a written explanation to applicants detailing the reasons for the denial
of their share purchase requests within thirty days of the decision.

Section 3 establishes the effective date of the act.

 
JUSTIFICATION:

Current laws do not obligate cooperative boards to disclose reasons for
denying share purchase applications, often leaving rejected applicants
without a clear understanding of the decision, which can sometimes stem
from discrimination or personal biases. By requiring boards to provide
reasons, this bill promotes accountability and prevents arbitrary or
discriminatory rejections. The need for such transparency was high-
lighted in the case of 40 West 67th Street v. Pullman, which underscored
the unique legal position of cooperative corporations and their ability
to act without the same procedural checks required in traditional land-
lord-tenant relationships.

Enhancing transparency in cooperative share transactions ensures fair
treatment of potential buyers and supports a more inclusive housing
market. This measure could lead to a decrease in discrimination and
increase the diversity of cooperative communities.

 
PRIOR LEGISLATIVE HISTORY:

2024: S9426 (Kavanagh) - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT /A1064 (Bichotte Hermelyn) - referred to housing

2023: A1064 (Bichotte Hermelyn) - referred to housing

2022: A7773 (Bichotte Hermelyn) - referred to housing

2021: A7773 (Bichotte Hermelyn) - referred to housing

2020: A7512 (Bichotte Hermelyn) - referred to housing

2019: A7773 (Bichotte Hermelyn) - referred to housing

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S2098A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2098--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the business  corporation  law  and  the  not-for-profit
   corporation  law, in relation to requiring the board of directors of a
   residential cooperative apartment  corporation  to  notify  applicants
   seeking to purchase shares of the corporation of the reason or reasons
   the board of directors has refused such request
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The business corporation law is amended  by  adding  a  new
 section 728 to read as follows:
 § 728. DENIAL  OF  RIGHT TO PURCHASE SHARES OF A RESIDENTIAL COOPERATIVE
          HOUSING CORPORATION.
   IN THE EVENT THAT THE BOARD OF DIRECTORS OF A RESIDENTIAL  COOPERATIVE
 HOUSING  CORPORATION  INCORPORATED  PURSUANT  TO THIS CHAPTER DENIES THE
 REQUEST OF AN APPLICANT TO PURCHASE SHARES OF SUCH CORPORATION  ALLOTTED
 TO  A PARTICULAR DWELLING UNIT, THE BOARD OF DIRECTORS SHALL NOTIFY SUCH
 APPLICANT IN WRITING OF THE REASON OR REASONS THE BOARD OF DIRECTORS HAS
 DENIED THE REQUEST TO PURCHASE THE SHARES. SUCH  NOTIFICATION  SHALL  BE
 PROVIDED  TO THE APPLICANT WITHIN THIRTY DAYS OF THE BOARD'S DECISION TO
 DENY THE APPLICANT'S REQUEST TO PURCHASE THE SHARES.
   § 2. The not-for-profit corporation law is amended  by  adding  a  new
 section 519-b to read as follows:
 § 519-B. DENIAL OF RIGHT TO PURCHASE SHARES OF A RESIDENTIAL COOPERATIVE
          HOUSING CORPORATION.
   IN  THE EVENT THAT THE BOARD OF DIRECTORS OF A RESIDENTIAL COOPERATIVE
 HOUSING CORPORATION INCORPORATED PURSUANT TO  THIS  CHAPTER  DENIES  THE
 REQUEST  OF AN APPLICANT TO PURCHASE SHARES OF SUCH CORPORATION ALLOTTED
 TO A PARTICULAR DWELLING UNIT, THE BOARD OF DIRECTORS SHALL NOTIFY  SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05826-03-5

 S. 2098--A                          2
 
 APPLICANT  IN  WRITING OF THE REASON OR REASONS THE BOARD  OF  DIRECTORS
 HAS DENIED THE REQUEST TO PURCHASE THE SHARES.  SUCH NOTIFICATION  SHALL
 BE  PROVIDED TO THE APPLICANT WITHIN THIRTY DAYS OF THE BOARD'S DECISION
 TO DENY THE APPLICANT'S REQUEST TO PURCHASE THE SHARES.
   § 3. This act shall take effect immediately.

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