Bill Text: NY A06510 | 2021-2022 | 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: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-03-19 - referred to governmental operations [A06510 Detail]

Download: New_York-2021-A06510-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6510

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     March 19, 2021
                                       ___________

        Introduced by M. of A. WALKER -- 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    § 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    § 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
    22  prospective purchaser with a written statement of its reasons for  with-
    23  holding  consent  no later than five business days after its decision to
    24  withhold consent.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04330-01-1

        A. 6510                             2

     1    1. No such corporation [formed for  the  purpose  of  the  cooperative
     2  ownership  of  real  estate  within the state] shall withhold [its] such
     3  consent [to the sale or proposed sale of certificates of stock or  other
     4  evidence of ownership of an interest in such corporation] because of the
     5  race, creed, national origin, or sex of the purchaser.
     6    2.  For the purposes of this section a "corporation" shall include the
     7  cooperative management, cooperative tenants,  cooperative  shareholders,
     8  or any appointee or successor in interest of a corporation.
     9    3.  This section shall apply to every sale or proposed sale whether by
    10  a corporation directly, its successor  in  interest,  or  by  any  other
    11  lawfully entitled party.
    12    4.  Every  agreement, negative covenant, restrictive covenant or other
    13  provision, whether written or oral and wherever contained,  inconsistent
    14  with this section shall be void and unenforceable.
    15    §  3.  This  act shall take effect on the ninetieth day after it shall
    16  have become a law.
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