Bill Text: NY A01623 | 2021-2022 | General Assembly | Introduced


Bill Title: Requires a uniform process for considering applications to purchase condominiums or cooperatives.

Spectrum: Slight Partisan Bill (Democrat 8-4)

Status: (Introduced - Dead) 2022-04-05 - enacting clause stricken [A01623 Detail]

Download: New_York-2021-A01623-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1623

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2021
                                       ___________

        Introduced  by  M. of A. PERRY, PAULIN, DiPIETRO, PEOPLES-STOKES, BRABE-
          NEC, SEAWRIGHT, RICHARDSON -- Multi-Sponsored by --  M.  of  A.  COOK,
          GALEF,  LUPARDO,  McDONOUGH -- read once and referred to the Committee
          on Housing

        AN ACT to amend the not-for-profit  corporation  law  and  the  business
          corporation law, in relation to cooperative purchase applications

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The not-for-profit corporation law is amended by  adding  a
     2  new section 519-b to read as follows:
     3  § 519-b. Residential cooperative corporations; ownership interests.
     4    (a)  Any  residential cooperative corporation incorporated pursuant to
     5  this chapter, shall establish uniform  processes  for  applying  to  and
     6  considering  applications  for  the purchase of certificates of stock, a
     7  proprietary lease or other evidence of an  ownership  interest  in  such
     8  residential cooperative corporation.
     9    (b)  Written  notice  of such processes shall be made available to any
    10  prospective purchasers and prospective sellers, or their respective real
    11  estate agents, promptly upon request.
    12    (c) At a minimum, such processes shall require the cooperative  corpo-
    13  ration,  upon  receiving an application from a prospective purchaser, to
    14  acknowledge receipt of such application within twenty-one  days  and  to
    15  include  in  such  acknowledgement  of  receipt  whether the application
    16  submitted fully satisfies the requirements therefor, the way or ways the
    17  submitted application is incomplete, and any additional materials neces-
    18  sary to effectuate consideration of the application.
    19    (d) The processes established pursuant to this section  shall  further
    20  require  that,  following  the submission of a completed application and
    21  all additional materials requested in the  acknowledgement  of  receipt,
    22  the  board  of directors shall notify the prospective purchaser or their
    23  agent that the application is complete. Such notice shall state by  what

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05016-01-1

        A. 1623                             2

     1  date review of the application will be complete and when the prospective
     2  purchaser or their agent will be notified whether consent to the sale is
     3  granted or denied.
     4    (e) Written notice that consent to the sale has been granted or denied
     5  shall  be provided to the prospective purchaser no more than ninety days
     6  after the submission of a completed application. In the event a sale  is
     7  denied, such notice shall state the reason for the denial. If no written
     8  notice  is  provided  within  ninety  days, consent to the sale shall be
     9  granted.
    10    (f) Nothing in this section shall be construed to limit the rights  or
    11  remedies provided by any other provision of law.
    12    §  2.  The business corporation law is amended by adding a new section
    13  728 to read as follows:
    14  § 728. Residential cooperative corporations; ownership interests.
    15    (a) Any residential cooperative corporation incorporated  pursuant  to
    16  this  chapter,  shall  establish  uniform  processes for applying to and
    17  considering applications for the purchase of certificates  of  stock,  a
    18  proprietary  lease  or  other  evidence of an ownership interest in such
    19  residential cooperative corporation.
    20    (b) Written notice of such processes shall be made  available  to  any
    21  prospective purchasers and prospective sellers, or their respective real
    22  estate agents, promptly upon request.
    23    (c)  At a minimum, such processes shall require the cooperative corpo-
    24  ration upon receiving an application from a  prospective  purchaser,  to
    25  acknowledge  receipt of such application and to include in such acknowl-
    26  edgement of receipt whether the application  submitted  fully  satisfies
    27  the  requirements therefor, the way or ways the submitted application is
    28  incomplete, and any additional materials necessary to effectuate consid-
    29  eration of the application.
    30    (d) The processes established pursuant to this section  shall  further
    31  require  that,  following  the submission of a completed application and
    32  all additional materials requested in the  acknowledgement  of  receipt,
    33  the  board  of directors shall notify the prospective purchaser or their
    34  agent that the application is complete. Such notice shall state by  what
    35  date review of the application will be complete and when the prospective
    36  purchaser or their agent will be notified whether consent to the sale is
    37  granted or denied.
    38    (e) Written notice that consent to the sale has been granted or denied
    39  shall  be provided to the prospective purchaser no more than ninety days
    40  after the submission of a completed application. In the event a sale  is
    41  denied, such notice shall state the reason for the denial. If no written
    42  notice  is  provided  within  ninety  days, consent to the sale shall be
    43  granted.
    44    (f) Nothing in this section shall be construed to limit the rights  or
    45  remedies provided by any other provision of law.
    46    § 3. This act shall take effect on the one hundred twentieth day after
    47  it shall have become a law.
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