Bill Text: NY A03057 | 2021-2022 | General Assembly | Introduced

Bill Title: Prohibits upon the vacancy of an unsold condominium or cooperative dwelling unit, the rental of such unit unless the original offering plan provided for such rental and a majority of the members of the condominium or cooperative agree thereto; generally requires the sale of such units.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2021-01-22 - referred to housing [A03057 Detail]

Download: New_York-2021-A03057-Introduced.html

                STATE OF NEW YORK


                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 22, 2021

        Introduced by M. of A. DINOWITZ, COLTON, GOTTFRIED -- Multi-Sponsored by
          -- M. of A.  GLICK -- read once and referred to the Committee on Hous-

        AN  ACT  to amend the general business law, in relation to the rights of
          cooperative and condominium  sponsors  and  purchasers  regarding  the
          rental of vacant dwelling units

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

     1    Section 1. Section 352-eeee of the general business law is amended  by
     2  adding a new subdivision 9 to read as follows:
     3    9.  (a) Whenever any unsold dwelling unit in a residential cooperative
     4  or condominium building becomes vacant, such dwelling unit  may  not  be
     5  rented and must be offered for sale unless either:
     6    (i)  the  original  offering plan which was accepted for filing by the
     7  attorney general expressly disclosed the possibility that unsold  dwell-
     8  ing  units  might  not be sold when they become vacant, and the offering
     9  plan contained a warning to purchasers of the risk entailed in  purchas-
    10  ing a unit in a building where unsold dwelling units are not offered for
    11  sale; or
    12    (ii)  the  sponsor  or  other  owner of the unsold dwelling unit first
    13  obtains the consent of a majority of those members  of  the  cooperative
    14  corporation  board  of  directors  or  condominium  association board of
    15  managers who are not affiliated with, employed by,  or  related  to  the
    16  sponsor or owner of the unsold dwelling unit or units to said rental.
    17    (b)  In the event that neither of the conditions set forth in subpara-
    18  graphs (i) and (ii) of paragraph (a) of this subdivision  are  met,  and
    19  such  dwelling  unit  remains  unsold and unoccupied for a period of one
    20  year from the date it becomes vacant, then  the  dwelling  unit  may  be
    21  rented  for  a  period  of up to one year. At the conclusion of such one
    22  year rental period, the unsold dwelling unit shall once again be  deemed
    23  to  have  become vacant, and the provisions of this subdivision shall be

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

        A. 3057                             2

     1  applied once again. The prohibition against the sale or rental of unsold
     2  dwelling units except in accordance with the provisions of this subdivi-
     3  sion shall continue until the apartment is sold.
     4    (c)  If any unsold dwelling unit which becomes vacant is rented pursu-
     5  ant to the provisions of this subdivision, then the owner  of  the  unit
     6  being  rented shall immediately send a copy of the fully executed lease,
     7  as well as such other information as may be necessary so that  both  the
     8  owner of the unit and the tenant can be reached in the event of an emer-
     9  gency,  to  the board of directors of the cooperative corporation or the
    10  board of managers of the condominium association.
    11    (d) This subdivision shall not apply to any shareholder or unit  owner
    12  who  establishes  to  the reasonable satisfaction of a majority of those
    13  members of the cooperative corporation board of directors or condominium
    14  association board of managers who are not affiliated with, employed  by,
    15  or related to, the sponsor or owner of the unsold dwelling unit or units
    16  that  he or she purchased a dwelling unit for personal use or use by his
    17  or her immediate family member, but whose immediate family member is not
    18  presently occupying the dwelling unit, nor shall this subdivision  apply
    19  to  dwelling  units  owned  by  a cooperative corporation or condominium
    20  association or entities formed by either of them to hold units  obtained
    21  from  a sponsor. Immediate family member as used in this paragraph shall
    22  be  defined  as  the  shareholder's  spouse,  children,   grandchildren,
    23  parents, grandparents, brothers or sisters.
    24    (e) As used in this subdivision, the term "unsold dwelling unit" shall
    25  mean  an  apartment  in a cooperative housing corporation or a unit in a
    26  condominium that was not sold for occupancy by the purchaser  and  shall
    27  include, but not be limited to, cooperative shares and condominium units
    28  designated  by the sponsor or holder of unsold shares as "unsold shares"
    29  or "unsold units".
    30    § 2. This act shall take effect immediately and  shall  apply  to  all
    31  dwelling  units  in  cooperative  and  condominium buildings that become
    32  vacant on or after such effective date.