Bill Text: NY A03813 | 2017-2018 | General Assembly | Introduced
Bill Title: Requires applications to purchase condominiums or cooperatives to be acted upon within forty-five days, failure to do so results in automatic approval.
Spectrum: Slight Partisan Bill (Democrat 12-4)
Status: (Introduced - Dead) 2018-01-03 - referred to housing [A03813 Detail]
Download: New_York-2017-A03813-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3813 2017-2018 Regular Sessions IN ASSEMBLY January 30, 2017 ___________ Introduced by M. of A. PERRY, PAULIN, RAIA -- Multi-Sponsored by -- M. of A. COOK, GALEF, HIKIND, HOOPER, LUPARDO, LUPINACCI, McDONOUGH, TITONE -- read once and referred to the Committee on Housing AN ACT to amend the real property 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. Legislative findings. The legislature hereby finds and 2 declares that residential cooperative purchasers are subject to proc- 3 esses and conditions that do not also apply to purchasers of other 4 single family residences. The legislature also finds that these proc- 5 esses and conditions, at a minimum, give the appearance and have the 6 potential to be misused to illegally discriminate against a purchaser of 7 cooperative housing. Because this state strongly opposes all illegal 8 discrimination and promotes fair housing laws and regulations, it is 9 essential that the process for purchasing a cooperative dwelling include 10 additional safeguards to protect against illegal discrimination. This 11 act is not intended and does not diminish the duty of cooperative boards 12 to uphold their established fiduciary duties. This act will significant- 13 ly improve the transparency of the cooperative purchase process to the 14 benefit of all parties involved in the transaction. 15 § 2. The real property law is amended by adding a new article 11 to 16 read as follows: 17 ARTICLE 11 18 COOPERATIVE PURCHASE 19 APPLICATIONS 20 Section 360. Short title. 21 361. Definitions. 22 362. Purchase applications. 23 363. Action upon applications. 24 364. Public policy. 25 § 360. Short title. This article shall be known and may be cited as 26 the "fairness in cooperative home ownership act". EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06398-01-7A. 3813 2 1 § 361. Definitions. As used in this article, unless the context other- 2 wise requires: 3 1. "Application" means the standardized form developed and utilized by 4 a cooperative for the acquisition of certificates of stock or other 5 evidence of ownership of an interest in the cooperative. 6 2. "Cooperative" means real property which is improved and used or 7 occupied, or intended to be used or occupied, as the home or residence 8 of one or more persons, which is subject to article twenty-three-A of 9 the general business law, and shall include its cooperative management, 10 cooperative tenants, cooperative shareholders or any appointees or 11 successors in interest thereof. 12 3. "Person" means a natural person, corporation, partnership, associ- 13 ate, trustee, limited liability company or other legal entity. 14 4. "Purchase" means the acquisition of certificates of stock or other 15 evidence of ownership of an interest in a cooperative. 16 5. "Unit" means a part of the cooperative property used or intended to 17 be used for the home or residence of one or more persons. 18 § 362. Purchase applications. Every cooperative shall develop a stand- 19 ardized form application and shall provide such application to any 20 person seeking to purchase a unit in such cooperative. Every application 21 shall set forth the requirements for purchase of a unit and include a 22 notice to the applicant advising how they may access information on fair 23 housing and anti-discrimination laws. Such notice shall be promulgated 24 by the division of human rights. 25 § 363. Action upon applications. 1. Within ten days of receipt of a 26 completed application, the cooperative shall provide the applicant with 27 written acknowledgment of receipt of the application and, if applicable, 28 written notice of any way in which the application is incomplete. An 29 application shall be deemed complete upon the failure of a cooperative 30 to timely provide the applicant with such notice. 31 2. Within forty-five days of receipt of an application, the cooper- 32 ative shall either reject or approve the application and provide the 33 applicant with written notice thereof. 34 3. Whenever any cooperative shall reject an application, such cooper- 35 ative shall provide the applicant with a written statement of the 36 reasons for such rejection. No cooperative shall reject an application 37 because of the race, creed, color, national origin, sexual orientation, 38 military status, sex, age, disability, marital status or familial status 39 of the purchaser. 40 4. Deposit by a purchaser of an application in the United States mail 41 certified and addressed to the registered office of the cooperative or 42 its managing agent shall be deemed submitted and received by the cooper- 43 ative five days after such deposit. 44 5. Failure by a cooperative to take action on a completed application 45 within forty-five days of receipt thereof by either notifying the 46 purchaser of its approval or rejection shall be deemed to be an approval 47 of the application. 48 § 364. Public policy. Every agreement, negative covenant, restrictive 49 covenant or other provision, whether written or oral and wherever 50 contained, inconsistent with this article shall be void and unenforcea- 51 ble. 52 § 3. This act shall take effect on the sixtieth day after it shall 53 have become a law and shall apply to applications submitted and received 54 on or after such date.
