Bill Text: NY A02383 | 2011-2012 | General Assembly | Introduced


Bill Title: Requires cooperative housing corporations provide a prospective purchaser with a written statement of reasons when withholding consent to a purchase; voids any agreement inconsistent with such requirement.

Spectrum: Strong Partisan Bill (Democrat 25-2)

Status: (Introduced - Dead) 2011-05-11 - enacting clause stricken [A02383 Detail]

Download: New_York-2011-A02383-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2383
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 18, 2011
                                      ___________
       Introduced  by  M.  of  A.  DESTITO,  PRETLOW, SPANO, KAVANAGH, LANCMAN,
         DenDEKKER, SCHROEDER, JEFFRIES --  Multi-Sponsored  by  --  M.  of  A.
         AUBRY,  COOK,  CYMBROWITZ,  ENGLEBRIGHT,  FARRELL, GALEF, GLICK, GOTT-
         FRIED,  HEASTIE,  HEVESI,   JACOBS,   LATIMER,   MAYERSOHN,   MILLMAN,
         O'DONNELL,  TOWNS, WEISENBERG, WRIGHT -- read once and referred to the
         Committee on Governmental Operations
       AN ACT to amend the civil rights law, in relation to  discrimination  in
         the ownership of cooperative housing
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative findings and declaration of intent. The  legis-
    2  lature  recognizes  that cooperative ownership in multi-family dwellings
    3  is a popular form of home  ownership  in  New  York  state.  An  ongoing
    4  concern  for  consumers dealing in the cooperative housing market is the
    5  potential for the unlawful rejection by a board of directors of a buyer.
    6    The legislature finds and determines that, not infrequently,  a  co-op
    7  board  rejects  what appears to be a well-qualified customer. Often, the
    8  prospective purchaser has concerns that the rejection was in fact unlaw-
    9  ful discrimination. Both federal and state  laws  protect  our  citizens
   10  from  unfair  housing practices, which include discrimination based upon
   11  race, ethnicity, gender, age or family status.
   12    For such reasons, it is the legislature's intent to require boards  of
   13  directors of cooperative housing to disclose to proposed purchasers, the
   14  reasons for rejecting a sale.
   15    S 2.  Section 19-a of the civil rights law, as added by chapter 376 of
   16  the laws of 1971, is amended to read as follows:
   17    S  19-a.    Prohibition  against  unreasonable withholding of consent.
   18  WHENEVER ANY CORPORATION FORMED  FOR  THE  PURPOSE  OF  THE  COOPERATIVE
   19  OWNERSHIP  OF REAL ESTATE WITHIN THE STATE WITHHOLDS CONSENT TO THE SALE
   20  OR PROPOSED SALE OF CERTIFICATES OF STOCK OR OTHER EVIDENCE OF OWNERSHIP
   21  OF AN INTEREST IN SUCH CORPORATION, SUCH CORPORATION SHALL  PROVIDE  THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06151-01-1
       A. 2383                             2
    1  PROSPECTIVE  PURCHASER WITH A WRITTEN STATEMENT OF ITS REASONS FOR WITH-
    2  HOLDING CONSENT NO LATER THAN FIVE BUSINESS DAYS AFTER ITS  DECISION  TO
    3  WITHHOLD CONSENT.
    4    1.  No  SUCH  corporation  [formed  for the purpose of the cooperative
    5  ownership of real estate within the state]  shall  withhold  [its]  SUCH
    6  consent  [to the sale or proposed sale of certificates of stock or other
    7  evidence of ownership of an interest in such corporation] because of the
    8  race, creed, national origin, or sex of the purchaser.
    9    2. For the purposes of this section a "corporation" shall include  the
   10  cooperative  management,  cooperative tenants, cooperative shareholders,
   11  or any appointee or successor in interest of a corporation.
   12    3. This section shall apply to every sale or proposed sale whether  by
   13  a  corporation  directly,  its  successor  in  interest, or by any other
   14  lawfully entitled party.
   15    4. Every agreement, negative covenant, restrictive covenant  or  other
   16  provision,  whether written or oral and wherever contained, inconsistent
   17  with this section shall be void and unenforceable.
   18    S 3. This act shall take effect on the ninetieth day  after  it  shall
   19  have become a law.
feedback