STATE OF NEW YORK
________________________________________________________________________
3254--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
___________
Introduced by M. of A. CYMBROWITZ -- read once and referred to the
Committee on Housing -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general business law and the business corporation
law, in relation to enactment of a residential condominium and cooper-
ative owner's bill of rights
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 352-eeeee to read as follows:
3 § 352-eeeee. Residential condominium owner's bill of rights. The
4 organizational and operating documents of every residential condominium
5 established or operating pursuant to the laws of the state shall guaran-
6 tee the following to each unit owner:
7 1. That (a) all applications by unit owners in connection with matters
8 which require approval of the board of managers and (b) all requests for
9 determinations by the board of managers including but not limited to
10 requests for the resolution of disputes between or among unit owners,
11 disputes between unit owners and the condominium association such as
12 disputes concerning responsibility for repairs shall be processed in a
13 reasonably expeditious manner pursuant to uniform procedures and timeta-
14 bles adopted in writing. The board's decision shall be in writing and
15 shall set forth the reasons therefor, except that no reason shall be
16 required when approval is granted.
17 2. That the final results of elections for the board of managers
18 including a tally of the votes received by each candidate shall be post-
19 ed within one business day following the availability of such informa-
20 tion in a prominent place accessible to all unit owners in each building
21 comprising the condominium.
22 3. That the board of managers shall call a meeting to fill any vacan-
23 cies which occur on such board within sixty days of the occurrence of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07407-02-9
A. 3254--A 2
1 such vacancy if the vacancy occurs more than six months prior to the
2 annual meeting of unit owners.
3 4. That any member of a board of managers who is elected while a unit
4 owner in the condominium, who sells his or her apartment, and who,
5 subsequent to such sale shall no longer be a unit owner in such condo-
6 minium, shall resign from such board no later than the closing date of
7 such sale.
8 5. That complete and accurate financial statements and any other
9 statements ordinarily provided to unit owners be provided in a timely
10 fashion pursuant to established timetables at least once annually. For
11 the purposes of this subdivision "financial statements" shall include
12 the balance sheets and statements of income and expense for each of the
13 three most current fiscal years. Attached to said financial statements
14 shall be a statement which discloses (a) any controlling interest or
15 employee or agency relationship which any board member or officer of the
16 condominium association or the spouse of such person has in or with any
17 supplier of services or materials to said condominium and (b) any
18 consideration the value of which exceeds one hundred dollars which any
19 such board member or officer or the spouse of such person receives from
20 such supplier.
21 6. That the following documents be made available for inspection or
22 copying, by any reasonable electronic or physical means including camera
23 or photocopier, by unit owners during regular business hours on no more
24 than ten days written notice to the board of managers:
25 (a) approved minutes of board of managers meetings, provided that such
26 board shall have thirty days from the dates of the meetings at which the
27 minutes are approved to prepare such minutes and provided further that
28 the board may exclude matters which it deems confidential or which were
29 discussed in executive session;
30 (b) detailed, accurate records, in chronological order, of the
31 receipts and expenditures arising from the operation of the property;
32 (c) bank account and financial investment statements;
33 (d) all proposals received in response to a request for bids to
34 provide goods or services to the condominium the cost of which is
35 reasonably expected to exceed five thousand dollars in any one year.
36 Such documents shall be made available within ten days of receipt unless
37 the board chooses to conduct closed competitive bidding in which case
38 the documents shall be made available within ten days of the selection
39 of the successful bid;
40 (e) reports of accountants, consultants and experts retained or hired
41 to perform services for or on behalf of the association including finan-
42 cial statements as defined in subdivision five of this section provided,
43 however, that such reports may be withheld when a majority of the
44 members of the board has voted to withhold such information. When the
45 matter concerns alleged conflict of interest or malfeasance involving
46 board members the report may be withheld only upon a vote of the majori-
47 ty of disinterested board members. If all board members are interested
48 parties the report may not be withheld;
49 (f) reports by municipal and/or county inspectors concerning compli-
50 ance with health, building and housing codes and regulations; and
51 (g) the records of decisions by the board of managers to exclude or
52 withdraw materials pursuant to paragraph (a) or (e) of this subdivision.
53 Such records shall be prepared in every instance that materials are
54 withheld or excluded. The record shall include the general nature of the
55 materials and the reason for withholding or excluding same.
A. 3254--A 3
1 7. That in addition to any other notice required by the condominium
2 association's organizational or operating documents, notice of all board
3 and unit owner meetings shall be posted in a prominent place accessible
4 to all unit owners in each building comprising the condominium.
5 8. The attorney general is authorized to enforce the provisions of
6 this section and may, upon his or her own initiative, or in response to
7 a complaint by one or more unit owners, investigate allegations of any
8 failure to comply with the provisions hereof.
9 § 2. The business corporation law is amended by adding a new section
10 708-a to read as follows:
11 § 708-a. Residential cooperative owner's bill of rights.
12 (a) For the purposes of this section, the term "cooperative" shall
13 mean a corporation owning or leasing residential premises and operating
14 the same on a cooperative basis.
15 (b) (1) The organizational and operating documents of every residen-
16 tial cooperative established or operating pursuant to the laws of the
17 state shall guarantee the following to each shareholder:
18 (2) That (i) all applications by shareholders in connection with
19 matters which require approval of the board of directors and (ii) all
20 requests for determinations by the board of directors including but not
21 limited to requests for the resolution of disputes between or among
22 shareholders, disputes between shareholders and the board such as
23 disputes concerning responsibility for repairs shall be processed in a
24 reasonably expeditious manner pursuant to uniform procedures and timeta-
25 bles adopted in writing. The board's decision shall be in writing and
26 shall set forth the reasons therefor, except that no reason shall be
27 required when approval is granted.
28 (3) That the final results of elections for the board of directors
29 including a tally of the votes received by each candidate shall be post-
30 ed within one business day following the availability of such informa-
31 tion in a prominent place accessible to all shareholders in each build-
32 ing comprising the cooperative.
33 (4) That the board of directors shall call a meeting to fill any
34 vacancies which occur on such board within sixty days of the occurrence
35 of such vacancy if the vacancy occurs more than six months prior to the
36 annual meeting of shareholders.
37 (5) That any member of a board of directors who is elected while a
38 shareholder in the cooperative, who sells his or her apartment, and who,
39 subsequent to such sale shall no longer be a shareholder in such cooper-
40 ative, shall resign from such board no later than the closing date of
41 such sale.
42 (6) That complete and accurate financial statements and any other
43 statements ordinarily provided to shareholders be provided in a timely
44 fashion pursuant to established timetables at least once annually. For
45 the purposes of this paragraph "financial statements" shall include the
46 balance sheets and statements of income and expense for each of the
47 three most current fiscal years. Attached to said financial statements
48 shall be a statement which discloses (i) any controlling interest or
49 employee or agency relationship which any board member or officer of the
50 cooperative board or the spouse of such person has in or with any
51 supplier of services or materials to said cooperative and (ii) any
52 consideration the value of which exceeds one hundred dollars which any
53 such board member or officer or the spouse of such person receives from
54 such supplier.
55 (7) That the following documents be made available for inspection or
56 copying, by any reasonable electronic or physical means including camera
A. 3254--A 4
1 or photocopier, by shareholders during regular business hours on no more
2 than ten days written notice to the board of directors:
3 (i) approved minutes of board of directors meetings, provided that
4 such board shall have thirty days from the dates of the meetings at
5 which the minutes are approved to prepare such minutes and provided
6 further that the board may exclude matters which it deems confidential
7 or which were discussed in executive session;
8 (ii) detailed, accurate records, in chronological order, of the
9 receipts and expenditures arising from the operation of the property;
10 (iii) bank account and financial investment statements;
11 (iv) all proposals received in response to a request for bids to
12 provide goods or services to the cooperative the cost of which is
13 reasonably expected to exceed five thousand dollars in any one year.
14 Such documents shall be made available within ten days of receipt unless
15 the board chooses to conduct closed competitive bidding in which case
16 the documents shall be made available within ten days of the selection
17 of the successful bid;
18 (v) reports of accountants, consultants and experts retained or hired
19 to perform services for or on behalf of the cooperative including finan-
20 cial statements as defined in paragraph five of this subdivision
21 provided, however, that such reports may be withheld when a majority of
22 the members of the board has voted to withhold such information. When
23 the matter concerns alleged conflict of interest or malfeasance involv-
24 ing board members the report may be withheld only upon a vote of the
25 majority of disinterested board members. If all board members are inter-
26 ested parties the report may not be withheld;
27 (vi) reports by municipal and/or county inspectors concerning compli-
28 ance with health, building and housing codes and regulations; and
29 (vii) the records of decisions by the board of directors to exclude or
30 withdraw materials pursuant to subparagraph (i) or (v) of this para-
31 graph. Such records shall be prepared in every instance that materials
32 are withheld or excluded. The record shall include the general nature
33 of the materials and the reason for withholding or excluding same.
34 (8) That in addition to any other notice required by the cooperative's
35 organizational or operating documents, notice of all board and share-
36 holder meetings shall be posted in a prominent place accessible to all
37 shareholders in each building comprising the cooperative.
38 (9) The attorney general is authorized to enforce the provisions of
39 this section and may, upon his or her own initiative, or in response to
40 a complaint by one or more shareholders, investigate allegations of any
41 failure to comply with the provisions hereof.
42 § 3. Within six months of the effective date of this act the attorney
43 general shall promulgate a handbook summarizing the rights of unit
44 owners vis-a-vis condominium associations and the procedures and proc-
45 esses available to unit owners to enforce such rights.
46 § 4. This act shall take effect immediately; provided, however, that
47 as to residential condominium associations existing and operating as
48 such on the effective date of this act the boards of managers of such
49 associations shall within one year of the effective date of this act
50 take all steps necessary to amend the appropriate organizational and
51 operating documents of such associations to implement the provisions of
52 this act.