Senate Bill S2098A

                             
                     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.