STATE OF NEW YORK
        ________________________________________________________________________

                                         4955--B

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 27, 2023
                                       ___________

        Introduced by M. of A. THIELE, L. ROSENTHAL -- read once and referred to
          the  Committee  on  Housing  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          reported  and  referred  to  the  Committee  on  Codes -- reported and
          referred to the Committee on Rules -- Rules Committee discharged, bill
          amended, ordered reprinted as amended and recommitted to the Committee
          on Rules

        AN ACT to amend the real property law, in relation to lease-hold retire-
          ment communities

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

     1    Section  1.  The  real property law is amended by adding a new section
     2  238-b to read as follows:
     3    § 238-b. Lease-hold retirement community. 1. Definitions. As  used  in
     4  this section:
     5    (a) A "lease-hold retirement community" shall mean a contiguous parcel
     6  of  privately  owned  real  property containing two hundred or more lots
     7  which are leased to owners  of  year-round  homes  erected  thereon  and
     8  affixed  thereto  wherein  the  occupation  is restricted to individuals
     9  based on age pursuant to paragraph (h)  of  subdivision  three  of  this
    10  section.
    11    A  "lease-hold  retirement community" shall not include a manufactured
    12  home park, or condominium, as defined in this chapter, a continuing care
    13  retirement community authorized under article forty-six  or  forty-six-A
    14  of the public health law, or a cooperative housing corporation.
    15    (b) "Home owner" shall mean one who holds title to a home.
    16    (c)  "Tenant"  shall  mean  one  who  occupies  a home in a lease-hold
    17  retirement community for thirty days or more, and  whose  occupation  of
    18  the  home  in the lease-hold retirement community is known to the lease-
    19  hold retirement community owner or operator.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02016-05-3

        A. 4955--B                          2

     1    2. Leases. (a) Any lease-hold retirement community owner  or  operator
     2  shall  offer  every home owner the opportunity to sign a long term lease
     3  for ninety-nine years, with an option of the home owner to  cancel  said
     4  lease on ninety days written notice to said owner or operator.
     5    (b)  A  copy of such lease-hold retirement community's rules and regu-
     6  lations, if any, shall be attached to and become a  part  of  the  lease
     7  provided for by this section, as if fully set forth therein.
     8    (c)  No  rules  or  regulations  shall  be inconsistent with the lease
     9  provisions in effect at the commencement of such lease.
    10    (d) A copy of the lease shall be delivered by such lease-hold  retire-
    11  ment  community  owner  or operator to all home owners or tenants at the
    12  time of the first deposit made payable  to  said  lease-hold  retirement
    13  community owner or operator.
    14    3.  Rules  and  regulations.  (a)  The lease-hold retirement community
    15  owner or operator may promulgate rules or regulations governing the rent
    16  and use or occupation of the home lot, provided that such rules or regu-
    17  lations shall not be unreasonable, arbitrary or capricious.
    18    (b) A copy of all rules and regulations  shall  be  delivered  by  the
    19  lease-hold  retirement community owner or operator to all home owners or
    20  tenants at the time of the first deposit made payable to said lease-hold
    21  retirement community owner or operator.
    22    (c) A copy of all rules and regulations shall be posted in a conspicu-
    23  ous public location upon the grounds of the lease-hold retirement commu-
    24  nity.
    25    (d) If a rule or regulation is  not  applied  uniformly  to  all  home
    26  owners  or  tenants,  there  shall be a rebuttable presumption that such
    27  rule or regulation is unreasonable, arbitrary or capricious.
    28    (e) Any rule or regulation which does not conform to the  requirements
    29  of  this section or which has not been supplied or posted as required by
    30  this section, shall not be enforceable.
    31    (f) No rule or regulation may be added, amended, repealed  or  changed
    32  by  the lease-hold retirement community owner or operator without speci-
    33  fying the date of implementation of said  added,  amended,  repealed  or
    34  changed  rule  or  regulation,  which date shall be no fewer than thirty
    35  days after written notice to all home owners or tenants.
    36    (g) Rules and regulations shall not take  effect  until  supplied  and
    37  posted pursuant to this subdivision.
    38    (h)  Such  rules and regulations may establish a minimum age for indi-
    39  viduals to occupy a home  within  the  lease-hold  retirement  community
    40  subject to any applicable law.
    41    4.  Fees.  (a) No lease-hold retirement community home owner or tenant
    42  shall be charged a fee, charge, or assessment except  for  rent,  utili-
    43  ties,  and  fees  for services necessary for the operation of the lease-
    44  hold retirement community, such as for facilities available to the  home
    45  owners and tenants.
    46    (b)  All  such charges for rent, utilities, services necessary for the
    47  operation of the lease-hold retirement community, and facilities  avail-
    48  able  to  the  home owners and tenants must be reasonably related to the
    49  facility available or the services actually rendered.
    50    (c) A lease-hold retirement community owner  or  operator  must  fully
    51  disclose  all  charges  for  rent, utilities, services necessary for the
    52  operation of the lease-hold retirement community, and facilities  avail-
    53  able  to  the  home owners and tenants to all home owners at the time of
    54  the first deposit made payable to said community owner  or  operator.  A
    55  new  or  increased fee, charge, or assessment that is not specified in a
    56  home owner's lease agreement shall not be collectable until  the  lease-

        A. 4955--B                          3

     1  hold retirement community owner or operator provides the home owner with
     2  a  written copy detailing such fee, charge, or assessment specifying the
     3  date of implementation which shall be no less  than  ninety  days  after
     4  such written notice.
     5    (d)  Failure  on the part of the lease-hold retirement community owner
     6  or operator to fully disclose all charges for rent, utilities,  services
     7  necessary  for the operation of the lease-hold retirement community, and
     8  facilities available to the home owners and tenants  pursuant  to  para-
     9  graph  (c) of this subdivision shall prevent the said community owner or
    10  operator from collecting such charges.
    11    5. Prohibition. No lease-hold retirement community owner  or  operator
    12  shall:
    13    (a) Restrict the purchase or installation of any commodities, goods or
    14  services by the home owner or agent thereof to specific vendors, includ-
    15  ing,  but  not limited to, employees, agents or other persons acting for
    16  or on behalf of the lease-hold retirement community owner or operator.
    17    (b) Restrict the interior improvement, including but not  limited  to,
    18  the  installation  of  appliances,  to any property of the home owner or
    19  tenant, so long as such  interior  improvement  is  in  compliance  with
    20  applicable  building  codes,  other provisions of law, and the rules and
    21  regulations of the lease-hold retirement community and provided  further
    22  that adequate utilities are available for such improvement.
    23    (c)  Restrict  the installation, maintenance or repair of any property
    24  of the home owner or tenant  to  specific  vendors  including,  but  not
    25  limited  to,  employees, agents or other persons acting for or on behalf
    26  of the lease-hold retirement community owner or operator.
    27    (d) Charge a fee or impose other charges on a home owner or tenant who
    28  chooses to install appliances or fixtures. This shall not  restrict  the
    29  ability  of  the  lease-hold  retirement  community owner or operator to
    30  collect increased utility charges resulting from the installation of any
    31  appliance or fixture.
    32    (e) Impose any charge for or restrict the ingress  or  egress  to  the
    33  lease-hold  retirement  community  of, any person employed, retained, or
    34  invited by the home owner or tenant.
    35    6. Sale of homes. (a) No  lease-hold  retirement  community  owner  or
    36  operator shall deny a home owner the right to sell their home within the
    37  lease-hold  retirement  community  provided the home owner shall give to
    38  the lease-hold retirement community owner or operator twenty days' writ-
    39  ten notice of the home owner's intention to sell, provided that  if  the
    40  home  owner is deceased no such notice shall be required from the admin-
    41  istrator or executor of the home owner's estate,  and  provided  further
    42  that no lease-hold retirement community owner or operator shall restrict
    43  access to the lease-hold retirement community to any potential purchaser
    44  or representatives of any seller unless the lease-hold retirement commu-
    45  nity owner establishes that such restriction is necessary to protect the
    46  property  of  such  community owner or operator from substantial harm or
    47  impairment. The lease-hold retirement community owner  or  operator  may
    48  reserve  the right to approve the purchaser of said home for the remain-
    49  der of the seller's or deceased home owner's term  but  such  permission
    50  may not be unreasonably withheld.  If the lease-hold retirement communi-
    51  ty  owner  or operator unreasonably withholds permission or unreasonably
    52  restricts access to the lease-hold retirement community, the home  owner
    53  or  the executor or administrator of a deceased home owner's  estate may
    54  recover the costs of the proceedings and attorneys' fees if it is  found
    55  that  the lease-hold retirement community owner or operator acted in bad
    56  faith by withholding permission or restricting access.

        A. 4955--B                          4

     1    (b) The right to sell a lease-hold retirement community home  includes
     2  the incidental right to use any and all methods common to sales of resi-
     3  dential property.
     4    (c)  The lease-hold retirement community owner or operator shall enter
     5  into a lease agreement within a reasonable time from the  completion  of
     6  the sale pursuant to subdivision two of this section with the subsequent
     7  purchaser of a home in the lease-hold retirement community.
     8    (d)  The  lease-hold  retirement community owner or operator shall not
     9  exact a commission or fee with respect to  the  price  realized  by  the
    10  seller unless the community owner or operator has acted as agent for the
    11  home owner in the sale pursuant to a written contract.
    12    (e) If the lease-hold retirement community owner or operator rejects a
    13  purchaser  as  a  prospective home owner, the selling home owner must be
    14  informed in writing of the reasons therefor.
    15    7. (a) The lease-hold  retirement  community  owner  or  operator  may
    16  reserve  the  right  to  approve  any tenants who lease or sublease real
    17  property and any improvements thereon  from  a  home  owner  within  the
    18  lease-hold  retirement  community.   The lease-hold retirement community
    19  owner or operator may only withhold approval if the proposed  tenant  or
    20  proposed  lease  or  sublease  is not in conformity with the established
    21  rules and regulations of such lease-hold retirement community.
    22    (b) If a home owner wishes to lease or sublease real property and  any
    23  improvements thereon within a lease-hold retirement community:
    24    (1)  The  home  owner  must inform the lease-hold retirement community
    25  owner or operator no less than thirty days prior to the proposed  effec-
    26  tive date of such lease or sublease.
    27    (2)  The lease-hold retirement community owner or operator may request
    28  additional information from the home owner  within  ten  days.  If  such
    29  additional information is not unduly burdensome, failure to provide such
    30  additional  information  will  allow the lease-hold retirement community
    31  owner or operator to withhold their approval of the proposed  tenant  or
    32  proposed lease or sublease.
    33    (3)  If the lease-hold retirement community owner or operator does not
    34  respond by approving or withholding approval of the proposed  tenant  or
    35  proposed  lease or sublease within thirty days of the initial request by
    36  the homeowner, the proposed tenant or proposed lease or  sublease  shall
    37  be deemed approved.
    38    8.  Emergencies.   A lease-hold retirement community owner or operator
    39  shall designate a phone number that is available on a  twenty-four  hour
    40  basis  to  insure  the  availability  of  emergency  response in matters
    41  affecting the health, safety, well-being, and general welfare of  lease-
    42  hold retirement community tenants.  The telephone number shall be posted
    43  in a conspicuous public location in the lease-hold retirement community,
    44  given  in  writing  to  each  home owner and tenant, and registered with
    45  appropriate municipal law enforcement, health and fire officials.
    46    9. Retaliation. (a) No lease-hold retirement community owner or opera-
    47  tor shall serve a notice to quit upon any home  owner  or  commence  any
    48  action  to  recover  real  property  or  summary  proceeding  to recover
    49  possession of real property in retaliation for:
    50    (1) A good faith complaint, by or in behalf of the home  owner,  to  a
    51  governmental  authority  of  the lease-hold retirement community owner's
    52  or  operator's   alleged   violation  of any health or safety law, regu-
    53  lation, code, or ordinance, or any law or regulation which  has  as  its
    54  objective the regulation of premises used for dwelling purposes; or
    55    (2) Actions taken in good faith, by or in behalf of the home owner, to
    56  secure  or  enforce any rights under the lease, under subdivision ten of

        A. 4955--B                          5

     1  this section and subdivisions two and three of section two hundred thir-
     2  ty-five-b of this article, or under any other  local  law,  law  of  the
     3  state  of  New  York,  or  of  its  governmental subdivisions, or of the
     4  United States which has as its objective the regulation of premises used
     5  for dwelling purposes; or
     6    (3)  The  home  owners's  participation  in  the  activities of a home
     7  owners's organization.
     8    (b)  No  lease-hold  retirement  community  owner  or  operator  shall
     9  substantially  alter  the  terms  of  the tenancy in retaliation for any
    10  actions set  forth in subparagraphs one, two and three of paragraph  (a)
    11  of this subdivision.
    12    (c) This subdivision shall apply to all lease-hold retirement communi-
    13  ty  with  four or more homes. However, its provisions shall not be given
    14  effect  in any case in which it is established that the  condition  from
    15  which  the  complaint  or  action  arose was caused by the home owner, a
    16  member of the  home owner's household, or a guest of the home owner. Nor
    17  shall it apply in a case where a tenancy was terminated pursuant to  the
    18  terms  of  a lease as a result of a bona fide transfer of ownership. The
    19  rights and obligations of the lease-hold retirement community  owner  or
    20  operator  and the home owner shall be governed by the provisions of this
    21  subdivision and subdivisions three, four and five of section two hundred
    22  twenty-three-b of this article.
    23    10. Warranty of habitability, maintenance, disruption of services.  In
    24  every written or oral lease or rental agreement entered into by  a  home
    25  owner,  the  lease-hold  retirement community owner or operator shall be
    26  deemed to covenant and warrant that the premises so leased or rented and
    27  the home if rented, including rental through a rent-to-own contract, and
    28  all areas used in connection therewith in common with other  home  owner
    29  or residents including all roads within the lease-hold retirement commu-
    30  nity  are  fit for human habitation and for the uses reasonably intended
    31  by the parties and that the occupants of such premises and such homes if
    32  rented shall not be subjected to any conditions which would  be  danger-
    33  ous,  hazardous or detrimental to their life, health or safety. When any
    34  such condition has been caused by the misconduct of the  home  owner  or
    35  lessee or persons under their direction or control, it shall not consti-
    36  tute  a  breach  of  such covenants and warranties. The rights and obli-
    37  gations of the lease-hold retirement community owner or operator and the
    38  home owner shall be governed by the provisions of this  subdivision  and
    39  subdivisions  two and three of section two hundred thirty-five-b of this
    40  article.
    41    11. Attorneys' fees. Whenever a lease shall provide that in any action
    42  or summary proceeding   the lease-hold  retirement  community  owner  or
    43  operator  may  recover  attorneys' fees and expenses awarded by a court,
    44  there shall be implied in  such  lease  a  covenant  by  the  lease-hold
    45  retirement  community  owner  or  operator, to pay to the home owner the
    46  reasonable attorneys' fees and expenses incurred by the   home owner  to
    47  the  same  extent  as  is provided in section two hundred thirty-four of
    48  this article which section shall apply in  its  entirety.  A  lease-hold
    49  retirement  community owner or operator may not demand that a home owner
    50  pays attorneys' fees unless such fees have been awarded  pursuant  to  a
    51  court order.
    52    12.  Refusal  to  furnish service. Any lease-hold retirement community
    53  owner or operator who has agreed to provide hot  or  cold  water,  heat,
    54  light,  power,  or  any  other service or facility to an occupant of the
    55  lease-hold retirement community shall  not  willfully  or  intentionally

        A. 4955--B                          6

     1  fail  to  furnish  such  water,  heat,  light, power or other service or
     2  facility, or interfere with the quiet enjoyment of the leased premises.
     3    13.  Receipts.  Upon  receipt  of rent, fees, charges or other assess-
     4  ments, in the form of cash or any instrument  other  than  the  personal
     5  check  of  the tenant, it shall be the duty of the lease-hold retirement
     6  community owner or operator to provide the payor with a written  receipt
     7  containing the following:
     8    (a) The date;
     9    (b) The amount;
    10    (c) The identity of the premises and the purpose for which paid; and
    11    (d) The signature and title of the person receiving payment.
    12    14.  Remedies. The county attorney may commence an action to restrain,
    13  prevent, and/or enjoin a violation of this section or a  continuance  of
    14  such  violation  of this section or a continuance of such violation by a
    15  lease-hold retirement community owner or operator.
    16    § 2. Subdivision 1 of section 233-b of the real property law, as added
    17  by section 12 of part O of chapter 36 of the laws of 2019, is amended to
    18  read as follows:
    19    1. The provisions of this section  shall  apply  to  all  manufactured
    20  homes  located  in  a  manufactured  home park as defined in section two
    21  hundred thirty-three of this article, however manufactured homes located
    22  in manufactured home parks that are subject to  a  regulatory  agreement
    23  with a governmental entity to preserve affordable housing or that other-
    24  wise  limits  rent  increases  are  exempt  from  the provisions of this
    25  section.   Homes in a lease-hold retirement  community,  as  defined  in
    26  section  two  hundred  thirty-eight-b  of  this  article,  shall also be
    27  subject to the provisions of this section relating to rent increases the
    28  same as a manufactured home park.
    29    § 3. Severability. If any part or provision of this act or the  appli-
    30  cation  thereof  to  a person or circumstance is adjudged invalid by any
    31  court of competent jurisdiction, such judgment shall be confined in  its
    32  operation  to the part or the provision or application directly involved
    33  in the controversy in which such judgment shall have been  rendered  and
    34  shall  not affect or impair the validity of the remainder of this act or
    35  application thereof to other persons or circumstances.
    36    § 4. Nothing provided herein shall prohibit  a  county  from  enacting
    37  more  stringent standards for a lease-hold retirement community than are
    38  established in section one of this act.
    39    § 5. This act shall take effect on the first of October next  succeed-
    40  ing  the  date  on  which  it shall have become a law and shall apply to
    41  sales, actions, rent increases, or leases involving  lease-hold  retire-
    42  ment community homes occurring or entered into on or after such date.