Senate Bill S7745

2025-2026 Legislative Session

Creates the cooperative and condominium ombudsperson program and authorizes the residential unit fee

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 02, 2025	referred to housing, construction and community development

2025-S7745 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Public Housing Law
Laws Affected:: Amd §14, Pub Hous L; add Art 11 §§360 - 360-i, RP L; add §186-h, Tax L; add §81-a, St Fin L

2025-S7745 (ACTIVE) - Summary

Creates the cooperative and condominium ombudsperson program; authorizes the residential unit tax; establishes the cooperative and condominium ombudsperson program fund.

2025-S7745 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7745

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the public housing law and the real property law, in
relation to creating the cooperative and condominium ombudsperson
program; to amend the tax law, in relation to authorizing the residen-
tial unit fee; and to amend the state finance law, in relation to estab-
lishing the cooperative and condominium ombudsperson program fund

 
PURPOSE:

The bill creates the Cooperative and Condominium Ombudsperson Program
within the Division of Housing and Community Renewal, to serve as a
neutral, informative, and accessible resource available to cooperative
and condominium shareholders and unit owners, prospective shareholders
and unit owners, boards of directors and managers, and other affected
parties.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 of section 14 of the public housing law
to add a new paragraph y which empowers the Commissioner of Housing and
Community Renewal to administer the Cooperative and Condominium Ombud-
sperson Program.

Section 2 amends the real property law by adding a new article 11 estab-
lishing the Cooperative and Condominium Ombudsperson Program.

Article 11:

*Shall be known as the "cooperative and condominium ombudsperson act"

*The legislature finds that as cooperative and condominium housing
constitutes a significant portion of New York's residential housing
stock and it is the public policy of the state to encourage such forms
of home ownership, it is necessary to provide a neutral, informative,
and accessible resource available to all parties involved in residential
cooperative and condominium ownership and governance

*Defines relevant terms

*Outlines the Cooperative and Condominium Ombudsperson Program and
services to be provided under the program:

*To be established within the Division of Housing and Community Renewal
which shall be responsible for program oversight and have the power to
implement by appropriate regulation

*Division of Housing and Community Renewal to fund a not-forprofit enti-
ty, selected by competitive bidding, to act as the Cooperative and
Condominium Ombudsperson, to provide services under the program and to
oversee statewide

*Ombudsperson program staff to include at least one attorney or other
professional with extensive experience in real estate, cooperative and
condominium law, and conflict and alternative dispute resolution to

oversee program services; staff to adhere to code of ethics and avoid
conflicts of interest

*Program would educate shareholders of cooperatives and owners of condo-
miniums, their boards of directors and boards of managers, professionals
working with and for such boards, property managers, and other inter-
ested parties about their legal rights and responsibilities under feder-
al, state, and local laws and regulations

*Additional services to be provided under the program: to prepare educa-
tional and reference materials; to organize and conduct meetings, work-
shops, conferences and forums to disseminate information; to provide
mediation, arbitration, and other forms of alternative dispute resol-
ution; to refer parties to hearings held before the Division of Housing
and Community Renewal where mediation or alternative dispute resolution
fails; to offer monitors and vote counting services to assure fair
elections for board membership; to perform other functions and duties as
necessary.

*Ombudsperson to maintain registry of cooperatives and condominiums
within the state, to be updated annually

*Annual reports to be made to the Governor and the Legislature

Section 3 adds a new section 186-h to the Tax Law to create a new resi-
dential unit fee. Each cooperative corporation and condominium associ-
ation shall pay an annual fee of six dollars per year to the Department
of Taxation and Finance for each residential unit located in a building
or buildings owned or operated by such corporation or association. All
revenue from such fees paid to the Department of Taxation and Finance to
be paid to the State Comptroller to be deposited into the Cooperative
and Condominium Ombudsperson Program Fund.

Section 4 of the bill adds a new section 81-a to the State Finance Law
to establish a new fund in the custody of the State Comptroller to be
known as the "Cooperative and Condominium Ombudsperson Program Fund."
All monies in this fund shall be kept separate from other monies in the
custody of the State Comptroller. Monies from the fund shall be allo-
cated and spent by the Division of Housing and Community Renewal solely
for the staffing and administration of the Cooperative and Condominium
Ombudsperson Program.

Section 5 establishes the effective date.

 
JUSTIFICATION:

The rights of condominium owners and cooperative shareholders are
derived from a complex set of laws, regulations, and individual organ-
izational bylaws and other corporate documents. Under Article 23A of New
York's General Business Law, the Attorney General is responsible for the
regulation of public offerings of real estate securities, including the
offer of cooperative interests in realty, such as cooperatives and
condominiums, and the conversion of rental buildings to condominiums and
cooperatives. This protects potential buyers from fraud through detailed
disclosure requirements. Once cooperative and condominium offering plans
are declared effective, condominiums then fall under the New York State
Condominium Act and cooperatives fall under the state's Business Corpo-
ration Law - the statute which regulates all the state's corporations.
Unless the sponsor is still controlling the board of directors or is not
keeping the commitments which it made in the offering plan, the Attorney
General no longer has jurisdiction or oversight responsibilities.' While
the Condominium Act and the General Business Law grant condominium unit
owners and residential cooperative shareholders some rights, for the
most part, they leave many issues to t he cooperative or condominium's
governing documents - for cooperatives, the proprietary lease, house
rules, certificate of incorporation and by-laws; for condominiums, the
unit deed or declaration, house rules and by-laws of the condominium
association.  Neither the Condominium Act nor the Business Corporation
Law provide a remedy short of litigation if these governing documents
are not adhered to.

The laws and regulations governing the rights of cooperative and condo-
minium residents, shareholders, unit owners, association members, and
boards of directors can be difficult to navigate and comprehend. This is
particularly true in the case of cooperative buildings since they are
governed by the Business Corporation Law which was not designed to regu-
late residential real estate.  Cooperative shareholders are often
unaware that they do not own real property, and are considered tenants
of the corporation that owns the building where they live.

The boards of directors in cooperatives, and boards of managers in
condominiums, have a great deal of discretion over most issues involved
in the daily management and operation of their buildings.

While many cooperative and condominium boards act in the best interest
of their buildings, are financially prudent, and are responsive to the
needs of shareholders and unit owners, significant problems arise for
residents when this is not the case. Difficulties also arise when boards
of directors and managers are unable or unwilling to remedy disputes
between residents which may lead to the diminution of quality of life in
the building and significant tension between neighbors. Disputes regard-
ing transparency, finances, board elections, management decisions, rules
and regulations, construction, and other issues between individual resi-
dents, as well as between residents and their boards, are all too
common.

Because there is no government agency or other entity which oversees the
operation of cooperatives and condominiums, shareholders and unit owners
are left with only two options when serious problems develop:  to organ-
ize other residents to change the board of directors or managers, or to
initiate legal action against the board or another shareholder or unit
owner.

Neither of these options is easy or appealing for most residents.
Changing the membership of the board of directors or managers often
takes an extended period of time, and is difficult or even impossible in
buildings where the original building sponsor or another party controls
the majority of votes. As a result, problems in cooperative and condo-
minium buildings all too often result in lengthy, expensive, and acrimo-
nious litigation which harms all parties involved. Such litigation
diverts resources which could be better utilized to provide well main-
tained buildings and grounds for the common good of the residents. Liti-
gation between neighbors frequently detracts from the quality of life in
buildings, harms the sense of community, and ultimately results in
greater expenses for everyone since boards have to pass the costs of
legal fees along to all residents. In cases where shareholders and unit
owners do not have the economic resources needed to pursue litigation,
problems may remain unresolved for years, finances may be mishandled,
and buildings deteriorate.

Florida, Nevada, and New Jersey have created ombudsperson or ombudsper-
son-type offices to address similar challenges in their states.2 These
offices provide general education to condominium owners and cooperative
shareholders, monitor board elections, and offer alternative dispute
resolution processes that provide a fair and inexpensive means for unit
owners and shareholders to resolve disputes with each other or with
their cooperative or condominium association. Other states have passed
or are considering legislation to create condominium or community asso-
ciation ombudspersons. 3

New York has one of the largest, if not the largest, number of cooper-
atives and condominiums in the nation. New York is also unique in having
both cooperative and condominium housing . In parts of the state, coop-
erative shareholders and condominium owners substantially outnumber
owners of single-and two-family homes.

Cooperative shareholders and condominium unit owners would see signif-
icant benefits from the Cooperative and Condominium Ombudsperson Program
created by this bill. The program, to be overseen by the Division of
Housing and Community Renewal, will provide a neutral, informative, and
accessible resource available to all parties involved in residential
cooperative and condominium ownership and governance, by producing and
distributing educational materials, holding public meetings and forums,
and providing a means to solve disputes without the need for costly and
time consuming litigation.

 
FISCAL IMPLICATIONS:

None. The Cooperative and Condominium Ombudsperson Program will be fully
funded by the creation of the six dollar residential unit fee.

 
LEGISLATIVE HISTORY:

New bill.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
becomes law.
1 Office of the New York State Attorney General, Boards, Bylaws and
Rules: Understanding & Dealing With a Co-op Board of Directors,
https://ag.ny.gov/sites/default/files/publications/coop_board_directors.
pdf
2 See, e.g., Nev. Rev. Stat. § 116.625,et seq (creating the office of
Ombudsman for Owners in Common-Interest Communities and Condominium
Hotels); NJ Rev. Stat. § 46:8B-13.1 - 16 (directing the Commissioner of
Consumer Affairs to provide guidance to associations and vesting that
office with power to direct boards of associations "to provide a fair
and efficient procedure for the resolution of disputes," and to order
compliance with records requests); Fla. Stat. § 718.5011 et
seq.(establishing the Office of the Condominium Ombudsman and delineat-
ing its powers and duties).
3 See Joni Lucas, Ombudsman Programs Being Considered, HOA Resources,
Community Associations Institute available at
https://hoaresources.caionline.org/considering-hoa-ombudsman-program/ .

2025-S7745 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7745
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                May 2, 2025
                                ___________
 
 Introduced  by  Sen.  MAYER  -- 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 public housing law and the real property law, in
   relation to creating  the  cooperative  and  condominium  ombudsperson
   program; to amend the tax law, in relation to authorizing the residen-
   tial  unit  fee;  and  to  amend the state finance law, in relation to
   establishing the cooperative and condominium ombudsperson program fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1 of section 14 of the public housing law is
 amended by adding a new paragraph (y) to read as follows:
   (Y) ADMINISTER THE COOPERATIVE AND  CONDOMINIUM  OMBUDSPERSON  PROGRAM
 PURSUANT TO ARTICLE ELEVEN OF THE REAL PROPERTY LAW.
   §  2.  The  real property law is amended by adding a new article 11 to
 read as follows:
                                ARTICLE 11
             COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM
 SECTION 360.   SHORT TITLE.
         360-A.  LEGISLATIVE DECLARATION.
         360-B. DEFINITIONS.
         360-C. COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM.
         360-D. SERVICES UNDER THE PROGRAM.
         360-E. REGISTRATION OF COOPERATIVES AND  CONDOMINIUMS  WITH  THE
                  OMBUDSPERSON PROGRAM.
         360-F. ASSISTANCE OF OTHER STATE AGENCIES.
         360-G. REPORTS TO THE GOVERNOR AND THE LEGISLATURE.
         360-H. CONTRACT AUTHORITY.
         360-I. SEPARABILITY.
   §  360.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "COOPERATIVE AND CONDOMINIUM OMBUDSPERSON ACT".

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11727-03-5

 S. 7745                             2
 
   § 360-A. LEGISLATIVE DECLARATION. THE LEGISLATURE FINDS AND DETERMINES
 AS FOLLOWS:
   COOPERATIVE  AND CONDOMINIUM HOUSING CONSTITUTES A SIGNIFICANT PORTION
 OF NEW YORK STATE'S RESIDENTIAL HOUSING STOCK. IT IS AND  HAS  BEEN  THE
 PUBLIC POLICY OF THIS STATE TO ENCOURAGE SUCH FORMS OF HOME OWNERSHIP. A
 WIDE  VARIETY  OF  LAWS  HAVE  BEEN  ENACTED  TO PROVIDE FAIRNESS IN THE
 CONVERSION OF RENTAL PROPERTIES TO COOPERATIVE AND CONDOMINIUM OWNERSHIP
 AND IN THE REGULATION AND TAXATION  OF  COOPERATIVES  AND  CONDOMINIUMS.
 STATE  AND  LOCAL  LAWS AND REGULATIONS ARE ALSO DESIGNED TO ENSURE THAT
 THE RESIDENTS OF SUCH HOUSING  ARE  PROVIDED  WITH  SAFE  AND  HABITABLE
 ACCOMMODATIONS.
   UNFORTUNATELY, DISPUTES HAVE NOT INFREQUENTLY ARISEN AMONG COOPERATIVE
 AND  CONDOMINIUM  SPONSORS  AND DEVELOPERS, COOPERATIVE SHAREHOLDERS AND
 CONDOMINIUM UNIT  OWNERS,  PROSPECTIVE  SHAREHOLDERS  AND  UNIT  OWNERS,
 BOARDS  OF DIRECTORS AND BOARDS OF MANAGERS. SUCH DISPUTES MAY RESULT IN
 LENGTHY AND COSTLY LITIGATION AND UNCERTAINTY AS TO THE  RIGHTS  OF  THE
 PARTIES  PENDING  THE  OUTCOME  OF  LITIGATION.  SUCH LITIGATION DIVERTS
 RESOURCES THAT COULD BE BETTER UTILIZED TO PROVIDE AFFORDABLE AND  WELL-
 MAINTAINED BUILDINGS AND GROUNDS FOR THE COMMON GOOD OF THE OWNERS.
   THIS ARTICLE IS NECESSARY TO PROVIDE A NEUTRAL, INFORMATIVE AND ACCES-
 SIBLE  RESOURCE AVAILABLE TO ALL PARTIES INVOLVED IN RESIDENTIAL COOPER-
 ATIVE AND CONDOMINIUM OWNERSHIP AND GOVERNANCE. THE OMBUDSPERSON PROGRAM
 CREATED PURSUANT TO THIS  ARTICLE  WILL  CONDUCT  OUTREACH  PROGRAMS  TO
 EDUCATE  UNIT  OWNERS  AND  BOARD  MEMBERS  AS TO THEIR LEGAL RIGHTS AND
 RESPONSIBILITIES. THE OMBUDSPERSON PROGRAM  WILL  ENCOURAGE  ALTERNATIVE
 DISPUTE  RESOLUTION  WHEN  DISPUTES  DO  ARISE. THE OMBUDSPERSON WILL BE
 AVAILABLE TO PROVIDE DISPUTE  RESOLUTION  SERVICES  ON  CONSENT  OF  THE
 PARTIES.  THE  OMBUDSPERSON WILL ALSO PROVIDE MONITORING AND SUPERVISION
 OF COOPERATIVE AND CONDOMINIUM ELECTIONS.
   § 360-B. DEFINITIONS. 1. "COOPERATIVE" MEANS A  CORPORATION  ORGANIZED
 AND  OPERATING  PURSUANT  TO THE GENERAL BUSINESS LAW OR THE COOPERATIVE
 CORPORATIONS LAW FOR THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL  HOUS-
 ING TO ITS SHAREHOLDERS.
   2.  "CONDOMINIUM"  MEANS  A  HOMEOWNERS ASSOCIATION OR ANY ASSOCIATION
 ORGANIZED AND OPERATING PURSUANT TO ARTICLE NINE-B OF THIS  CHAPTER  FOR
 THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL HOUSING TO ITS UNIT OWNERS.
   3.  "PROGRAM"  MEANS  THE  COOPERATIVE  AND  CONDOMINIUM  OMBUDSPERSON
 PROGRAM CREATED BY THIS ARTICLE.
   4. "OMBUDSPERSON" MEANS THE NOT-FOR-PROFIT  ORGANIZATION  SELECTED  TO
 RUN THE COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM.
   5.  "STATE  AGENCY"  MEANS  ANY DEPARTMENT, BOARD, BUREAU, COMMISSION,
 DIVISION, OFFICE, COUNCIL OR AGENCY OF THE STATE, OR  A  PUBLIC  BENEFIT
 CORPORATION OR AUTHORITY AUTHORIZED BY THE LAWS OF THE STATE.
   6.  "LOCAL  AGENCY"  MEANS  ANY DEPARTMENT, BOARD, BUREAU, COMMISSION,
 DIVISION, OFFICE, COUNCIL, OFFICER OR AGENCY OF A CITY, TOWN OR VILLAGE.
   § 360-C. COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM.   1.  THERE
 SHALL  BE  ESTABLISHED  WITHIN  THE  DIVISION  OF  HOUSING AND COMMUNITY
 RENEWAL A COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM. THE  COMMIS-
 SIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL BE RESPON-
 SIBLE FOR OVERSIGHT OF THE PROGRAM.
   2. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS ARTICLE, THE DIVISION
 OF  HOUSING  AND  COMMUNITY  RENEWAL SHALL ESTABLISH THE COOPERATIVE AND
 CONDOMINIUM OMBUDSPERSON PROGRAM, AND SHALL HAVE THE POWER TO  IMPLEMENT
 THE PROGRAM BY APPROPRIATE REGULATIONS.
   3.  THE  DIVISION  OF  HOUSING  AND COMMUNITY RENEWAL SHALL DISTRIBUTE
 MONIES FROM THE COOPERATIVE AND CONDOMINIUM  OMBUDSPERSON  PROGRAM  FUND
 S. 7745                             3
 
 ESTABLISHED PURSUANT TO SECTION EIGHTY-ONE-A OF THE STATE FINANCE LAW TO
 ONE  ELIGIBLE  NOT-FOR-PROFIT  ENTITY,  TO  BE SELECTED BY A COMPETITIVE
 BIDDING PROCESS, TO ACT AS THE COOPERATIVE AND CONDOMINIUM  OMBUDSPERSON
 AND  TO  OVERSEE  THE  COOPERATIVE  AND CONDOMINIUM OMBUDSPERSON PROGRAM
 STATEWIDE. THE OMBUDSPERSON SHALL DEVELOP A STATEWIDE INFRASTRUCTURE  TO
 DELIVER  SERVICES  ON A LOCAL OR REGIONAL LEVEL AND MAY SUBCONTRACT WITH
 ONE OR MORE ELIGIBLE NOT-FOR-PROFIT ENTITIES TO PROVIDE  SERVICES  UNDER
 THE PROGRAM.
   4. THE NOT-FOR-PROFIT ORGANIZATION AND ANY SUBCONTRACTED ORGANIZATIONS
 PROVIDING  SERVICES UNDER THE PROGRAM SHALL EMPLOY AT LEAST ONE ATTORNEY
 OR OTHER PROFESSIONAL WITH EXTENSIVE EXPERIENCE IN REAL ESTATE,  COOPER-
 ATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND ALTERNATIVE DISPUTE RESOL-
 UTION  TO  OVERSEE  THE  OMBUDSPERSON  PROGRAM SERVICES PROVIDED BY SUCH
 ORGANIZATION.
   5. OMBUDSPERSON PROGRAM STAFF SHALL ADHERE TO  A  CODE  OF  ETHICS  IN
 ORDER  TO INSPIRE PUBLIC CONFIDENCE AND TRUST IN THE FAIRNESS AND IMPAR-
 TIALITY OF THE PROGRAM. THE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL
 SHALL  PRESCRIBE  SUCH  CODE OF ETHICS. SUCH CODE SHALL REQUIRE THAT THE
 OMBUDSPERSON PROGRAM STAFF RESPECT AND COMPLY WITH THE  LAW;  THAT  THEY
 NOT  USE  OR  ATTEMPT  TO  USE  THEIR  POSITIONS TO SECURE PRIVILEGES OR
 EXEMPTIONS FOR THEMSELVES OR OTHERS; THAT THEY NOT  SOLICIT,  ACCEPT  OR
 AGREE TO ACCEPT ANY GIFTS OR GRATUITIES FROM PERSONS HAVING OR LIKELY TO
 HAVE  ANY  TRANSACTION  WITH THE OFFICE; THAT THEY NOT REQUEST OR ACCEPT
 ANY PAYMENT IN ADDITION TO THEIR  REGULAR  COMPENSATION  FOR  ASSISTANCE
 GIVEN  AS PART OF THEIR OFFICIAL DUTIES; AND THAT THEY SHALL NOT PERFORM
 ANY FUNCTION IN A MANNER THAT IMPROPERLY FAVORS ANY PERSON OR PARTY.
   6. OMBUDSPERSON PROGRAM STAFF SHALL NOT SERVE AS OFFICERS OR EMPLOYEES
 OF A POLITICAL PARTY OR A CLUB OR ORGANIZATION RELATED  TO  A  POLITICAL
 PARTY,  RECEIVE  REMUNERATION  FOR ACTIVITIES ON BEHALF OF ANY CANDIDATE
 FOR PUBLIC OFFICE OR PARTY POSITION OR ENGAGE  IN  SOLICITING  VOTES  OR
 OTHER  ACTIVITIES  ON  BEHALF  OF A CANDIDATE FOR PUBLIC OFFICE OR PARTY
 POSITION.
   7. THE SECRETARY TO THE GOVERNOR SHALL ASSURE THAT ALL STATE  AGENCIES
 PROVIDE  THE  OMBUDSPERSON  WITH ASSISTANCE IN ADVANCING THE PURPOSES OF
 THE OFFICE AND TO ASSURE THAT THE ACTIVITIES OF  THE  OFFICE  ARE  FULLY
 COORDINATED  WITH  THE  ACTIVITIES  OF  STATE AGENCIES PROVIDING RELATED
 SERVICES.
   § 360-D. SERVICES UNDER  THE  PROGRAM.  SERVICES  PROVIDED  UNDER  THE
 PROGRAM SHALL INCLUDE:
   1.  EDUCATING  AND  INFORMING  SHAREHOLDERS  OF  COOPERATIVES AND UNIT
 OWNERS OF CONDOMINIUMS, THEIR BOARDS OF DIRECTORS AND BOARDS  OF  MANAG-
 ERS,  PROPERTY  MANAGERS, PROFESSIONALS WORKING WITH AND FOR SUCH BOARDS
 AND OTHER INTERESTED PARTIES OF THEIR LEGAL RIGHTS AND  RESPONSIBILITIES
 UNDER  THE  FEDERAL,  STATE AND LOCAL LAWS AND REGULATIONS APPLICABLE TO
 COOPERATIVE AND CONDOMINIUM HOUSING IN THE STATE OF NEW YORK  AND  UNDER
 THE COOPERATIVE AND CONDOMINIUM DOCUMENTS GOVERNING THE RESPECTIVE PROP-
 ERTIES.
   2.  COORDINATING  AND  ASSISTING IN THE PREPARATION AND PUBLICATION OF
 EDUCATIONAL AND REFERENCE MATERIALS ABOUT RESIDENTIAL  COOPERATIVES  AND
 CONDOMINIUMS,  TO  MAKE SUCH RESOURCES KNOWN AND AVAILABLE TO THE WIDEST
 POSSIBLE AUDIENCE.
   3. ORGANIZING AND CONDUCTING  MEETINGS,  WORKSHOPS,  CONFERENCES,  AND
 FORUMS  AND  UTILIZING  ALL FORMS OF COMMUNICATIONS MEDIA TO DISSEMINATE
 ACCURATE AND TIMELY INFORMATION OF  INTEREST  TO  PERSONS  RESIDING  IN,
 OWNING AND MANAGING COOPERATIVE AND CONDOMINIUM HOUSING.
 S. 7745                             4
 
   4.  PROVIDING  MEDIATION,  ARBITRATION  AND OTHER FORMS OF ALTERNATIVE
 DISPUTE RESOLUTION SERVICES TO COOPERATIVE AND CONDOMINIUM SPONSORS  AND
 DEVELOPERS,  COOPERATIVE  SHAREHOLDERS, CONDOMINIUM OWNERS, THEIR BOARDS
 OF DIRECTORS AND MANAGERS, PROSPECTIVE SHAREHOLDERS AND UNIT OWNERS  AND
 OTHER  PARTIES  SO  AS TO AVOID COSTLY AND LENGTHY LITIGATION AND REDUCE
 EXPENSES FOR THOSE INVOLVED IN DISPUTES.
   5. REFERRING PARTIES FOR A HEARING BEFORE THE DIVISION OF HOUSING  AND
 COMMUNITY RENEWAL.
   (A)  SHOULD  MEDIATION,  ARBITRATION,  OR  OTHER  FORM  OF ALTERNATIVE
 DISPUTE RESOLUTION PROVIDED BY  OR  THROUGH  THE  OMBUDSPERSON  FAIL  TO
 RESOLVE  A  DISPUTE  BETWEEN  THE  PARTIES,  THE OMBUDSPERSON, MAY, UPON
 REQUEST BY EITHER PARTY, REFER THE DISPUTE FOR A HEARING TO BE  HELD  BY
 THE  DIVISION  OF  HOUSING  AND COMMUNITY RENEWAL IN ACCORD WITH ARTICLE
 THREE OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
   (B) REFERRALS FOR HEARING BEFORE THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL SHALL BE LIMITED TO DISPUTES REGARDING ACTS THAT MAY BE CONTRARY
 TO LAW  OR  AN  ASSOCIATION'S  GOVERNING  RULES;  UNREASONABLE,  UNFAIR,
 OPPRESSIVE,  RETALIATORY, OR DISCRIMINATORY; BASED ON A MISTAKE OF FACT;
 BASED ON IMPROPER OR IRRELEVANT GROUNDS; OR OTHERWISE ERRONEOUS.
   (C) UPON RECEIPT OF A REFERRAL FROM THE OMBUDSPERSON'S OFFICE, IF  THE
 DIVISION  FINDS  THAT THE DISPUTE MEETS THE CRITERIA OF PARAGRAPH (B) OF
 THIS SUBDIVISION, THE DIVISION SHALL SCHEDULE A HEARING AND ISSUE NOTICE
 TO THE PARTIES OF THE TIME AND PLACE OF THE HEARING.
   (D) SUCH HEARINGS SHALL BE HELD BEFORE AN ADMINISTRATIVE LAW JUDGE WHO
 SHALL RECEIVE EVIDENCE, DOCUMENTS, AND TESTIMONY AND PROVIDE THE PARTIES
 WITH AN OPPORTUNITY TO BE HEARD.
   (E) THE ADMINISTRATIVE LAW JUDGE SHALL HAVE THE POWER TO SUBPOENA  AND
 ENFORCE  THE  ATTENDANCE  OF WITNESSES, ADMINISTER OATHS OR AFFIRMATIONS
 AND EXAMINE WITNESSES UNDER OATH, AND  REQUIRE  THE  PRODUCTION  OF  ANY
 BOOKS  AND  PAPERS  DEEMED RELEVANT OR MATERIAL TO THE RESOLUTION OF ANY
 DISPUTE PENDING BEFORE THE DIVISION.
   (F) AFTER CONCLUSION OF THE HEARING, THE DIVISION SHALL ISSUE A  WRIT-
 TEN DETERMINATION OF ITS DECISION TO BOTH PARTIES. IN THE WRITTEN DETER-
 MINATION,  THE  DIVISION  MAY  ORDER ANY PARTY TO ABIDE BY THE STATUTES,
 REGULATIONS, OR GOVERNING RULES AT ISSUE.
   (G) EITHER PARTY MAY SEEK JUDICIAL REVIEW OF SUCH DETERMINATION PURSU-
 ANT TO ARTICLE  SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE  LAW  AND  RULES
 PROVIDED THAT SUCH REVIEW SHALL BE MAINTAINED AGAINST THE SAME PARTIES.
   6.  ENGAGING  WITH HOUSING COURTS, OTHER TRIAL COURTS, STATE AND LOCAL
 AGENCIES AND WITH ALTERNATIVE DISPUTE RESOLUTION PROGRAMS MAINTAINED  BY
 THE  OFFICE  OF  COURT  ADMINISTRATION  IN  ORDER TO PROVIDE SPECIALIZED
 EXPERTISE IN THE RESOLUTION OF COOPERATIVE AND CONDOMINIUM  DISPUTES  AS
 AN ALTERNATIVE TO LITIGATION.
   7.  OFFERING PROCEDURES, MONITORS AND VOTE COUNTING SERVICES TO ASSURE
 FAIR ELECTIONS FOR MEMBERS OF COOPERATIVE BOARDS OF DIRECTORS AND CONDO-
 MINIUM BOARDS OF MANAGERS.  FIFTEEN PERCENT OF THE TOTAL  VOTING  INTER-
 ESTS  IN  A  COOPERATIVE OR CONDOMINIUM OR SHAREHOLDERS OR OWNERS OF SIX
 RESIDENTIAL UNITS, WHICHEVER IS GREATER, MAY PETITION  THE  OMBUDSPERSON
 TO  ATTEND  AND  CONDUCT AN ELECTION OF DIRECTORS OR MANAGERS. ALL COSTS
 ASSOCIATED WITH THE ELECTION MONITORING PROCESS SHALL  BE  PAID  BY  THE
 COOPERATIVE OR CONDOMINIUM.
   8.  REFERRING  ANY COMPLAINTS RECEIVED TO THE APPROPRIATE LAW ENFORCE-
 MENT AGENCY FOR PROSECUTION, IF DEEMED APPROPRIATE BY THE OMBUDSPERSON.
   9. PERFORMING ANY OTHER FUNCTIONS THAT ARE NECESSARY OR APPROPRIATE TO
 FULFILL THE DUTIES AND RESPONSIBILITIES OF THE PROGRAM.
 S. 7745                             5
 
   § 360-E. REGISTRATION OF COOPERATIVES AND CONDOMINIUMS WITH THE OMBUD-
 SPERSON PROGRAM. THE COOPERATIVE AND  CONDOMINIUM  OMBUDSPERSON  PROGRAM
 SHALL  COMPILE  AND MAINTAIN A REGISTER OF COOPERATIVES AND CONDOMINIUMS
 WITHIN THE STATE WHICH SHALL BE UPDATED ANNUALLY, UPON  PAYMENT  OF  THE
 RESIDENTIAL UNIT FEE PURSUANT TO SECTION ONE HUNDRED EIGHTY-SIX-H OF THE
 TAX LAW, AND SHALL INCLUDE THE FOLLOWING INFORMATION:
   1. THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE ASSOCIATION;
   2.  THE NAME OF THE MANAGEMENT COMPANY OR MANAGING AGENT, AND THE NAME
 OF ANY OTHER PERSON WHO IS AUTHORIZED TO MANAGE THE PROPERTY AT THE SITE
 OF THE COOPERATIVE OR CONDOMINIUM;
   3. THE NAMES, MAILING ADDRESSES AND TELEPHONE NUMBERS OF  THE  MEMBERS
 OF THE EXECUTIVE BOARD OF THE COOPERATIVE OR CONDOMINIUM;
   4. THE NAME OF THE DECLARANT;
   5. THE NUMBER OF UNITS IN THE COOPERATIVE OR CONDOMINIUM ASSOCIATION;
   6. THE TOTAL ANNUAL ASSESSMENT MADE BY THE ASSOCIATION;
   7. THE NUMBER OF FORECLOSURES WHICH WERE COMPLETED ON UNITS WITHIN THE
 COOPERATIVE  OR CONDOMINIUM, AND WHICH WERE BASED ON LIENS FOR THE FAIL-
 URE OF THE SHAREHOLDER OR UNIT'S OWNER TO  PAY  ANY  ASSESSMENTS  LEVIED
 AGAINST  THE SHARES OR UNIT OR ANY FINES IMPOSED AGAINST THE SHAREHOLDER
 OR UNIT'S OWNER; AND
   8. WHETHER A STUDY  OF  THE  RESERVES  OF  THE  ASSOCIATION  HAS  BEEN
 CONDUCTED.
   §  360-F.  ASSISTANCE  OF  OTHER  STATE  AGENCIES.  TO  EFFECTUATE THE
 PURPOSES OF THIS ARTICLE, THE DIVISION OF HOUSING AND COMMUNITY  RENEWAL
 MAY  REQUEST AND SHALL BE ENTITLED TO RECEIVE FROM ANY STATE AGENCY, AND
 THE SAME ARE AUTHORIZED TO PROVIDE, SUCH ASSISTANCE,  SERVICES,  FACILI-
 TIES,  AND DATA AS WILL ENABLE THE DIVISION TO CARRY OUT THE PURPOSES OF
 THE OMBUDSPERSON PROGRAM.
   § 360-G. REPORTS TO THE GOVERNOR AND THE LEGISLATURE. THE DIVISION  OF
 HOUSING  AND  COMMUNITY  RENEWAL  SHALL  MAKE  AN  ANNUAL  REPORT, TO BE
 RECEIVED ON OR BEFORE JANUARY FIRST, TO THE GOVERNOR AND THE LEGISLATURE
 CONCERNING THE ACTIVITIES UNDERTAKEN BY THE OMBUDSPERSON PROGRAM, RECOM-
 MENDATIONS FOR LEGISLATIVE PROPOSALS, DATA CONCERNING PROGRAM ACTIVITIES
 AND OTHER PERTINENT INFORMATION AS MAY BE REQUIRED.
   § 360-H. CONTRACT AUTHORITY. THE DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL IS HEREBY EMPOWERED TO ENTER INTO ANY AGREEMENT OR CONTRACT WITH
 ANY  STATE  OR  LOCAL  AGENCY  NECESSARY  OR CONVENIENT TO CARRY OUT THE
 PROVISIONS OF THIS ARTICLE.
   § 360-I. SEPARABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
 DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
 INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   §  3.  The tax law is amended by adding a new section 186-h to read as
 follows:
   § 186-H. RESIDENTIAL UNIT FEE. A COOPERATIVE HOUSING CORPORATION OR  A
 HOMEOWNERS ASSOCIATION, AS SUCH TERMS ARE DEFINED IN SECTION TWO HUNDRED
 TEN OF THIS CHAPTER, SHALL PAY AN ANNUAL FEE OF SIX DOLLARS PER YEAR FOR
 EACH  RESIDENTIAL UNIT LOCATED IN A BUILDING OR BUILDINGS OWNED OR OPER-
 ATED BY SUCH CORPORATION OR ASSOCIATION. SUCH FEE SHALL  BE  PAYABLE  TO
 THE  DEPARTMENT.  ALL  REVENUE  FROM  THE  FEE  IMPOSED PURSUANT TO THIS
 SECTION SHALL BE PAID BY THE DEPARTMENT TO THE STATE COMPTROLLER  TO  BE
 DEPOSITED  TO AND CREDITED TO THE COOPERATIVE AND CONDOMINIUM OMBUDSPER-
 S. 7745                             6
 
 SON PROGRAM FUND, ESTABLISHED PURSUANT TO SECTION  EIGHTY-ONE-A  OF  THE
 STATE FINANCE LAW.
   §  4. The state finance law is amended by adding a new section 81-a to
 read as follows:
   § 81-A. COOPERATIVE AND  CONDOMINIUM  OMBUDSPERSON  PROGRAM  FUND.  1.
 THERE  IS  HEREBY  ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER A
 SPECIAL FUND TO BE KNOWN AS THE "COOPERATIVE AND CONDOMINIUM  OMBUDSPER-
 SON PROGRAM FUND".
   2.  THE  COOPERATIVE  AND  CONDOMINIUM OMBUDSPERSON PROGRAM FUND SHALL
 CONSIST OF MONIES APPROPRIATED THERETO, FUNDS TRANSFERRED FROM ANY OTHER
 FUND OR SOURCES, AND MONIES DEPOSITED THEREIN PURSUANT  TO  SECTION  ONE
 HUNDRED EIGHTY-SIX-H OF THE TAX LAW.
   3.  THE MONIES IN THE COOPERATIVE AND CONDOMINIUM OMBUDSPERSON PROGRAM
 FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE  COMMINGLED  WITH  ANY
 OTHER  MONIES IN THE CUSTODY OF THE STATE COMPTROLLER. SUCH MONIES SHALL
 BE ALLOCATED TO AND EXPENDED BY THE DIVISION OF  HOUSING  AND  COMMUNITY
 RENEWAL  SOLELY  FOR  THE STAFFING AND ADMINISTRATION OF THE COOPERATIVE
 AND CONDOMINIUM OMBUDSPERSON PROGRAM.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S7745

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Sponsored By

Shelley B. Mayer

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

Actions

2025-S7745 (ACTIVE) - Details

2025-S7745 (ACTIVE) - Summary

2025-S7745 (ACTIVE) - Sponsor Memo

2025-S7745 (ACTIVE) - Bill Text download pdf

Comments