S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7541
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 22, 2025
                                ___________
 
 Introduced  by  Sen.  BYNOE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to establishing tran-
   sparency guidelines for condominiums and cooperative housing units
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative intent. This Legislature hereby finds that on
 June 24, 2021, Champlain Towers South, a 12-story condominium  in  Surf-
 side, Florida experienced a partial collapse that resulted in the deaths
 of  98 residents, becoming the third-deadliest non-deliberate structural
 engineering failure in United States history. In  the  wake  of  such  a
 tragedy, this Legislature understands that there are currently no exist-
 ing  statewide regulations which would require that condominium or coop-
 erative housing associations' property management company  or  board  of
 managers  make  information regarding any inspections, permits, or engi-
 neering reports available to unit owners and purchasers.
   Additionally, this Legislature finds that in Myrtle Beach, South Caro-
 lina, residents of the  Renaissance  Towers  condominium  are  currently
 embroiled in an ongoing lawsuit after 300 units were evacuated after the
 building  was  deemed unsafe by Horry County Code Enforcement on October
 7, 2022. These unit owners reported  that  the  board  of  managers  had
 failed  to document or inform unit owners of the findings of engineering
 reports for over 20 years prior  to  the  evacuation.  This  Legislature
 determines that transparency of reporting inspections, permits and engi-
 neering  reports  would  provide residents and purchasers with the know-
 ledge to make informed decisions about their condominium and cooperative
 housing associations, and such reports should be provided to local muni-
 cipalities to protect the health and wellbeing of residents.
   Furthermore, this Legislature finds that this legislation  would  make
 New  York  the  third  state,  following Florida and New Jersey, to have
 strengthened transparency regulations on condominiums and co-ops follow-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11710-01-5
              

 S. 7541                             2
 
 ing the 2021 Champlain Towers South collapse. As such, this  Legislature
 finds  that  New  York  should  follow in their footsteps to ensure that
 condominium and cooperative housing associations' board of managers  and
 property  management  companies should have a duty to inform unit owners
 and purchasers of any  structural,  mechanical,  health,  or  fire  code
 violations  that may exist in a condominium or cooperative housing prop-
 erty.
   § 2. Section 339-e of the real property law is amended by adding three
 new subdivisions 17, 18 and 19 to read as follows:
   17. "INSPECTIONS" SHALL MEAN ANY REPORT COMPLETED BY AN EMPLOYEE OF  A
 MUNICIPALITY,  A CONTRACTOR WORKING ON BEHALF OF A MUNICIPALITY OR PROP-
 ERTY MANAGEMENT COMPANY FOR THE PURPOSE OF  ENSURING  A  PROPERTY  MEETS
 LOCAL  BUILDING  CODES, HEALTH AND SAFETY STANDARDS, OR FIRE CODE, OR TO
 EVALUATE IF A PROPERTY HAS SIGNIFICANT MECHANICAL OR STRUCTURAL DAMAGE.
   18. "ENGINEERING REPORTS" SHALL MEAN ANY REPORT COMPLETED BY A  CERTI-
 FIED  ENGINEER  OR ARCHITECT ON BEHALF OF A PROPERTY MANAGEMENT COMPANY,
 THE BOARD OF MANAGERS, A MUNICIPALITY, OR THE STATE OF NEW YORK FOR  THE
 PURPOSE OF EVALUATING IF A PROPERTY HAS SIGNIFICANT MECHANICAL OR STRUC-
 TURAL DAMAGES.
   19.  "PERMIT"  SHALL  MEAN  ANY OFFICIAL APPROVAL ISSUED BY A STATE OR
 MUNICIPALITY AUTHORIZING THE PROPERTY MANAGEMENT COMPANY, A  CONSULTANT,
 OR  ANY  AGENCY HIRED BY THE BOARD OF MANAGERS TO OPERATE, CONDUCT RENO-
 VATIONS, REPAIRS, OR REMEDIATION FOR ANY PROPERTY POSSESSING RESIDENTIAL
 CONDOMINIUMS OR COOPERATIVE HOUSING UNITS.
   § 3. Section 339-q of the real property law, as added by chapter 82 of
 the laws of 1964, is amended to read as follows:
   § 339-q. Filing with  board.  1.  True  copies  of  the  floor  plans,
 INSPECTIONS,  ENGINEERING REPORTS, PERMITS, the declaration, the by-laws
 and any rules and regulations shall be kept on file in the office of the
 board of managers and shall be available for  inspection  at  convenient
 hours  of  weekdays  by  persons having an interest. COPIES OF THE FLOOR
 PLANS, INSPECTIONS, ENGINEERING REPORTS, PERMITS, THE  DECLARATION,  THE
 BY-LAWS  AND  ANY  RULES AND REGULATIONS SHALL BE PROVIDED DIGITALLY AND
 PHYSICALLY TO UNIT OWNERS WHENEVER ANY REVISION, AMENDMENT,  INSPECTION,
 REPORT OR PLAN IS MADE OR ISSUED.
   2.  SHOULD  THE  BOARD OF MANAGERS FAIL TO COMPLY WITH ANY ITEM WITHIN
 THIS SECTION, THE OFFICE OF THE ATTORNEY GENERAL OF  THE  STATE  OF  NEW
 YORK  SHALL  RESERVE  THE RIGHT TO VOID ANY OFFERING PLAN PERMITTING THE
 OPERATION OF THE CONDOMINIUM OR COOPERATIVE.
   3. NOTHING IN THIS SECTION SHALL ABROGATE  OR  LIMIT  A  UNIT  OWNER'S
 RIGHT TO FILE A CIVIL OR CRIMINAL ACTION AGAINST THE BOARD OF MANAGERS.
   §  4.  The real property law is amended by adding a new section 339-mm
 to read as follows:
   § 339-MM. REPORTING REQUIREMENTS. 1. WHEN A BUYER AS DEFINED IN  PARA-
 GRAPH  B  OF SUBDIVISION ONE OF SECTION FOUR HUNDRED FORTY-THREE OF THIS
 CHAPTER ENTERS INTO A CONTRACT TO PURCHASE A CONDOMINIUM OR  COOPERATIVE
 HOUSING UNIT, THE PROPERTY MANAGEMENT COMPANY OR BOARD OF MANAGERS SHALL
 PROVIDE  THE  BUYER WITH RECORDS OF THE MOST RECENT INSPECTION AND ENGI-
 NEERING REPORTS AND PERMITS FOR THE SUBJECT PROPERTY.
   2. ANY POTENTIAL BUYER SHALL HAVE THE RIGHT TO REQUEST A COPY  OF  THE
 MOST  RECENT INSPECTION OR ENGINEERING REPORT FOR A CONDOMINIUM OR COOP-
 ERATIVE HOUSING UNIT FROM THE PROPERTY MANAGEMENT COMPANY  OR  BOARD  OF
 MANAGERS.
   3.  ANY  INSPECTION OR ENGINEERING REPORT COMPLETED BY A CONSULTANT OR
 ENGINEER ON BEHALF OF A UNIT OWNER, THE BOARD OF MANAGERS, OR THE  PROP-
 ERTY  MANAGEMENT COMPANY FOR ANY CONDOMINIUM OR CO-OP STRUCTURE SHALL BE
 S. 7541                             3
 
 FILED WITH THE LOCAL MUNICIPAL BUILDING DEPARTMENT, LOCAL HEALTH DEPART-
 MENT OR CODE ENFORCEMENT OFFICIALS WITHIN SIXTY DAYS.
   4.  A  COPY OF ANY PERMIT GRANTED BY A LOCAL MUNICIPALITY OR THE STATE
 OF NEW YORK FOR THE CONDOMINIUM OR COOPERATIVE HOUSING PROPERTY SHALL BE
 MADE AVAILABLE BY THE PROPERTY  MANAGEMENT  COMPANY  AND  THE  BOARD  OF
 MANAGERS FOR ALL UNIT OWNERS.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.