Bill Text: NY A08971 | 2013-2014 | General Assembly | Introduced

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Bill Title: Enacts a bill of rights for owners of residential condominium units to provide fair and equitable treatment of all unit owners; directs the attorney general to promulgate a handbook summary of the rights of unit owners vis-a-vis condominium associations and the procedures and processes available to unit owners to enforce such rights.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-03-04 - referred to housing [A08971 Detail]

Download: New_York-2013-A08971-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8971
                                 I N  A S S E M B L Y
                                     March 4, 2014
                                      ___________
       Introduced  by  M. of A. WRIGHT, MOSLEY -- read once and referred to the
         Committee on Housing
       AN ACT to amend the general business law, in relation to enactment of  a
         residential condominium owner's bill of rights
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new section
    2  352-eeeee to read as follows:
    3    S 352-EEEEE. RESIDENTIAL  CONDOMINIUM  OWNER'S  BILL  OF  RIGHTS.  THE
    4  ORGANIZATIONAL  AND OPERATING DOCUMENTS OF EVERY RESIDENTIAL CONDOMINIUM
    5  ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE STATE SHALL GUARAN-
    6  TEE THE FOLLOWING TO EACH UNIT OWNER:
    7    1. THAT (A) ALL APPLICATIONS BY UNIT OWNERS IN CONNECTION WITH MATTERS
    8  WHICH REQUIRE APPROVAL OF THE BOARD OF MANAGERS AND (B) ALL REQUESTS FOR
    9  DETERMINATIONS BY THE BOARD OF MANAGERS INCLUDING  BUT  NOT  LIMITED  TO
   10  REQUESTS  FOR  THE  RESOLUTION OF DISPUTES BETWEEN OR AMONG UNIT OWNERS,
   11  DISPUTES BETWEEN UNIT OWNERS AND THE  CONDOMINIUM  ASSOCIATION  SUCH  AS
   12  DISPUTES  CONCERNING  RESPONSIBILITY FOR REPAIRS SHALL BE PROCESSED IN A
   13  REASONABLY EXPEDITIOUS MANNER PURSUANT TO UNIFORM PROCEDURES AND TIMETA-
   14  BLES ADOPTED IN WRITING.  THE BOARD'S DECISION SHALL BE IN  WRITING  AND
   15  SHALL  SET  FORTH  THE  REASONS THEREFOR, EXCEPT THAT NO REASON SHALL BE
   16  REQUIRED WHEN APPROVAL IS GRANTED.
   17    2.  THAT THE FINAL RESULTS OF ELECTIONS  FOR  THE  BOARD  OF  MANAGERS
   18  INCLUDING A TALLY OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE POST-
   19  ED  WITHIN  ONE BUSINESS DAY FOLLOWING THE AVAILABILITY OF SUCH INFORMA-
   20  TION IN A PROMINENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING
   21  COMPRISING THE CONDOMINIUM.
   22    3. THAT THE BOARD OF MANAGERS SHALL CALL A MEETING TO FILL ANY  VACAN-
   23  CIES  WHICH  OCCUR  ON SUCH BOARD WITHIN SIXTY DAYS OF THE OCCURRENCE OF
   24  SUCH VACANCY IF THE VACANCY OCCURS MORE THAN SIX  MONTHS  PRIOR  TO  THE
   25  ANNUAL MEETING OF UNIT OWNERS.
   26    4.  THAT ANY MEMBER OF A BOARD OF MANAGERS WHO IS ELECTED WHILE A UNIT
   27  OWNER IN THE CONDOMINIUM, WHO SELLS  HIS  OR  HER  APARTMENT,  AND  WHO,
   28  SUBSEQUENT  TO  SUCH SALE SHALL NO LONGER BE A UNIT OWNER IN SUCH CONDO-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05121-01-3
       A. 8971                             2
    1  MINIUM, SHALL RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING  DATE  OF
    2  SUCH SALE.
    3    5.  THAT  COMPLETE  AND  ACCURATE  FINANCIAL  STATEMENTS AND ANY OTHER
    4  STATEMENTS ORDINARILY PROVIDED TO UNIT OWNERS BE PROVIDED  IN  A  TIMELY
    5  FASHION  PURSUANT  TO ESTABLISHED TIMETABLES AT LEAST ONCE ANNUALLY. FOR
    6  THE PURPOSES OF THIS SUBDIVISION "FINANCIAL  STATEMENTS"  SHALL  INCLUDE
    7  THE  BALANCE SHEETS AND STATEMENTS OF INCOME AND EXPENSE FOR EACH OF THE
    8  THREE MOST CURRENT FISCAL YEARS.  ATTACHED TO SAID FINANCIAL  STATEMENTS
    9  SHALL  BE  A  STATEMENT  WHICH DISCLOSES (A) ANY CONTROLLING INTEREST OR
   10  EMPLOYEE OR AGENCY RELATIONSHIP WHICH ANY BOARD MEMBER OR OFFICER OF THE
   11  CONDOMINIUM ASSOCIATION OR THE SPOUSE OF SUCH PERSON HAS IN OR WITH  ANY
   12  SUPPLIER  OF  SERVICES  OR  MATERIALS  TO  SAID  CONDOMINIUM AND (B) ANY
   13  CONSIDERATION THE VALUE OF WHICH EXCEEDS ONE HUNDRED DOLLARS  WHICH  ANY
   14  SUCH  BOARD MEMBER OR OFFICER OR THE SPOUSE OF SUCH PERSON RECEIVES FROM
   15  SUCH SUPPLIER.
   16    6. THAT THE FOLLOWING DOCUMENTS BE MADE AVAILABLE  FOR  INSPECTION  OR
   17  COPYING BY UNIT OWNERS DURING REGULAR BUSINESS HOURS ON NO MORE THAN TEN
   18  DAYS WRITTEN NOTICE TO THE BOARD OF MANAGERS:
   19    (A) APPROVED MINUTES OF BOARD OF MANAGERS MEETINGS, PROVIDED THAT SUCH
   20  BOARD SHALL HAVE THIRTY DAYS FROM THE DATES OF THE MEETINGS AT WHICH THE
   21  MINUTES  ARE  APPROVED TO PREPARE SUCH MINUTES AND PROVIDED FURTHER THAT
   22  THE BOARD MAY EXCLUDE MATTERS WHICH IT DEEMS CONFIDENTIAL OR WHICH  WERE
   23  DISCUSSED IN EXECUTIVE SESSION;
   24    (B)  DETAILED,  ACCURATE  RECORDS,  IN  CHRONOLOGICAL  ORDER,  OF  THE
   25  RECEIPTS AND EXPENDITURES ARISING FROM THE OPERATION OF THE PROPERTY;
   26    (C) BANK ACCOUNT AND FINANCIAL INVESTMENT STATEMENTS;
   27    (D) ALL PROPOSALS RECEIVED IN  RESPONSE  TO  A  REQUEST  FOR  BIDS  TO
   28  PROVIDE  GOODS  OR  SERVICES  TO  THE  CONDOMINIUM  THE COST OF WHICH IS
   29  REASONABLY EXPECTED TO EXCEED FIVE THOUSAND DOLLARS  IN  ANY  ONE  YEAR.
   30  SUCH DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF RECEIPT UNLESS
   31  THE  BOARD  CHOOSES  TO CONDUCT CLOSED COMPETITIVE BIDDING IN WHICH CASE
   32  THE DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF  THE  SELECTION
   33  OF THE SUCCESSFUL BID;
   34    (E)  REPORTS OF ACCOUNTANTS, CONSULTANTS AND EXPERTS RETAINED OR HIRED
   35  TO PERFORM SERVICES FOR OR ON BEHALF OF THE ASSOCIATION INCLUDING FINAN-
   36  CIAL STATEMENTS AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION PROVIDED,
   37  HOWEVER, THAT SUCH REPORTS MAY  BE  WITHHELD  WHEN  A  MAJORITY  OF  THE
   38  MEMBERS  OF  THE  BOARD HAS VOTED TO WITHHOLD SUCH INFORMATION. WHEN THE
   39  MATTER CONCERNS ALLEGED CONFLICT OF INTEREST  OR  MALFEASANCE  INVOLVING
   40  BOARD MEMBERS THE REPORT MAY BE WITHHELD ONLY UPON A VOTE OF THE MAJORI-
   41  TY  OF  DISINTERESTED BOARD MEMBERS. IF ALL BOARD MEMBERS ARE INTERESTED
   42  PARTIES THE REPORT MAY NOT BE WITHHELD;
   43    (F) REPORTS BY MUNICIPAL AND/OR COUNTY INSPECTORS  CONCERNING  COMPLI-
   44  ANCE WITH HEALTH, BUILDING AND HOUSING CODES AND REGULATIONS; AND
   45    (G)  THE  RECORDS  OF DECISIONS BY THE BOARD OF MANAGERS TO EXCLUDE OR
   46  WITHDRAW MATERIALS PURSUANT TO PARAGRAPH (A) OR (E) OF THIS SUBDIVISION.
   47  SUCH RECORDS SHALL BE PREPARED IN  EVERY  INSTANCE  THAT  MATERIALS  ARE
   48  WITHHELD OR EXCLUDED. THE RECORD SHALL INCLUDE THE GENERAL NATURE OF THE
   49  MATERIALS AND THE REASON FOR WITHHOLDING OR EXCLUDING SAME.
   50    7.  THAT  IN  ADDITION TO ANY OTHER NOTICE REQUIRED BY THE CONDOMINIUM
   51  ASSOCIATION'S ORGANIZATIONAL OR OPERATING DOCUMENTS, NOTICE OF ALL BOARD
   52  AND UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMINENT PLACE  ACCESSIBLE
   53  TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE CONDOMINIUM.
   54    8.  (A)  THAT  THE  BOARD OF MANAGERS SHALL NOT IMPOSE SPECIAL ASSESS-
   55  MENTS, OR ENTER INTO CONTRACTS FOR EXTRAORDINARY EXPENSES  THE  COST  OF
   56  WHICH  EXCEEDS  LIMITS  ESTABLISHED  PURSUANT  TO  PARAGRAPH (B) OF THIS
       A. 8971                             3
    1  SUBDIVISION BEYOND CUSTOMARY OPERATING  OR  MAINTENANCE  COSTS,  WITHOUT
    2  APPROVAL  BY A VOTE OF THE UNIT OWNERS. A VOTE OF THE UNIT OWNERS MAY BE
    3  WAIVED BY THE BOARD IN THE CASE OF (I)  AN  EMERGENCY  EVIDENCED  BY  AN
    4  APPROVED  RESOLUTION  OF THE BOARD, OR (II) A REQUIRED REFINANCING OF AN
    5  EXISTING MORTGAGE.
    6    (B) UNLESS THE BYLAWS REQUIRE A  UNIT  OWNER  VOTE  TO  ESTABLISH  THE
    7  LIMITS  REFERRED  TO  IN  PARAGRAPH  (A) OF THIS SUBDIVISION, THE LIMITS
    8  SHALL BE ESTABLISHED BY THE BOARD OF MANAGERS AS FOLLOWS. NO  LESS  THAN
    9  ONCE  IN  EVERY FIVE YEARS THE BOARD SHALL PROPOSE LIMITS WHICH SHALL BE
   10  INCLUDED IN THE NOTICE OF THE ANNUAL OR ANY OTHER MEETING  OF  THE  UNIT
   11  OWNERS.  AN  OPPORTUNITY FOR UNIT OWNERS TO COMMENT ON SUCH PROPOSAL AND
   12  TO OFFER LOWER LIMITS SHALL BE INCLUDED IN THE AGENDA FOR SUCH  MEETING.
   13  AT  THE  CONCLUSION  OF  THE  COMMENT PERIOD THE BOARD SHALL, BY AN OPEN
   14  VOTE, ADOPT LIMITS NOT TO EXCEED THOSE PROPOSED BY THE BOARD WHICH SHALL
   15  BE EFFECTIVE UNTIL CHANGED PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH.
   16    9. THE ATTORNEY GENERAL IS AUTHORIZED TO  ENFORCE  THE  PROVISIONS  OF
   17  THIS  SECTION AND MAY, UPON HIS OR HER OWN INITIATIVE, OR IN RESPONSE TO
   18  A COMPLAINT BY ONE OR MORE UNIT OWNERS, INVESTIGATE ALLEGATIONS  OF  ANY
   19  FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
   20    S  2.  Within  6 months of the effective date of this act the attorney
   21  general shall promulgate a  handbook  summarizing  the  rights  of  unit
   22  owners  vis-a-vis  condominium associations and the procedures and proc-
   23  esses available to unit owners to enforce such rights.
   24    S 3. This act shall take effect immediately; provided,  however,  that
   25  as  to  residential  condominium  associations existing and operating as
   26  such on the effective date of this act the boards of  managers  of  such
   27  associations  shall within 1 year of the effective date of this act take
   28  all steps necessary to amend the appropriate organizational and  operat-
   29  ing  documents  of such associations to implement the provisions of this
   30  act.