Bill Text: NY S07735 | 2021-2022 | General Assembly | Introduced

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Bill Title: Delineates instances where no landlord-tenant relationships exist in cooperative apartments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-02-24 - SIGNED CHAP.93 [S07735 Detail]

Download: New_York-2021-S07735-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7735

                    IN SENATE

                                     January 7, 2022
                                       ___________

        Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the general obligations law and the real  property  law,
          in  relation  to  excluding tenant-shareholders in cooperative housing
          corporations from certain housing provisions

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

     1    Section  1.  Paragraph  (a) of subdivision 1-a of section 7-108 of the
     2  general obligations law, as separately amended  by  chapter  428  and  a
     3  chapter  of  the  laws of 2021 amending the general obligations law, the
     4  real property law, and the real property  actions  and  proceedings  law
     5  relating  to excluding tenant-shareholders in cooperative housing corpo-
     6  rations from certain housing  provisions,  as  proposed  in  legislative
     7  bills numbers S. 5105-C and A. 350-C, is amended to read as follows:
     8    (a) No deposit or advance shall exceed the amount of one month's rent,
     9  unless  the  deposit  or  advance is for a seasonal use dwelling unit as
    10  provided for in subdivisions four and five of this  section,  or  unless
    11  the deposit or advance is for an owner-occupied cooperative apartment as
    12  provided for in subdivision [four] six of this section.
    13    § 2. Subdivision 4 of section 7-108 of the general obligations law, as
    14  amended  by  a  chapter  of  the laws of 2021 amending the general obli-
    15  gations law, the real property law, and the real  property  actions  and
    16  proceedings law relating to excluding tenant-shareholders in cooperative
    17  housing  corporations  from  certain  housing provisions, as proposed in
    18  legislative bills numbers S. 5105-C and A. 350-C, is renumbered subdivi-
    19  sion 6 and is amended to read as follows:
    20    6. A dwelling unit shall  qualify  as  an  owner-occupied  cooperative
    21  apartment  for the purpose of paragraph (a) of subdivision one-a of this
    22  section if it meets all of the following conditions:
    23    (a) the tenant is the dwelling unit owner, purchaser or shareholder of
    24  such a cooperative housing corporation;
    25    (b) such tenant has or will have after purchase exclusive occupancy of
    26  such dwelling unit individually and with the permitted occupants  pursu-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03421-16-2
        S. 7735                             2

     1  ant  to  a  proprietary lease or occupancy agreement and established and
     2  delimited rights under such lease or agreement; and
     3    (c)  such  dwelling  unit  is not subject to the provisions of article
     4  two, article four, article five, or article eleven of the private  hous-
     5  ing  finance  law.    For  the  purposes  of this paragraph, "deposit or
     6  advance", as used in paragraph (a) of subdivision one-a of this section,
     7  shall not include any payments or advances that are part of the purchase
     8  price of the unit or shares.
     9    § 3. Paragraph (b) of subdivision 1 of section 238-a of the real prop-
    10  erty law, as amended by a chapter of  the  laws  of  2021  amending  the
    11  general  obligations  law,  the real property law, and the real property
    12  actions and proceedings law relating to excluding tenant-shareholders in
    13  cooperative housing corporations from  certain  housing  provisions,  as
    14  proposed in legislative bills numbers S. 5105-C and A. 350-C, is amended
    15  to read as follows:
    16    (b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
    17  to  reimburse  costs  associated  with conducting a background check and
    18  credit check, provided the cumulative fee or fees for such checks is  no
    19  more  than  the  actual cost of the background check and credit check or
    20  twenty dollars, whichever is less, and the landlord, lessor,  sub-lessor
    21  or  grantor shall waive the fee or fees if the potential tenant provides
    22  a copy of a background check or credit check conducted within  the  past
    23  thirty days. The landlord, lessor, sub-lessor or grantor may not collect
    24  the  fee  or  fees  unless  the  landlord, lessor, sub-lessor or grantor
    25  provides the potential tenant with a copy of  the  background  check  or
    26  credit  check  and the receipt or invoice from the entity conducting the
    27  background check or credit check.   Notwithstanding  the  provisions  of
    28  this paragraph, a cooperative housing corporation[, other than a cooper-
    29  ative  housing  corporation  subject  to  the provisions of article two,
    30  article four, article five or article  eleven  of  the  private  housing
    31  finance  law,]  shall  be permitted to charge a fee or fees to reimburse
    32  costs associated with conducting a background check and credit check  in
    33  excess  of  twenty  dollars,  where  the potential tenant would become a
    34  dwelling unit owner or shareholder of such  cooperative  housing  corpo-
    35  ration,  provided  the cumulative fee or fees for such checks is no more
    36  than the actual cost of  such  background  check  and/or  credit  check.
    37  Further, with regard to a cooperative housing corporation subject to the
    38  provisions  of article two, article four, article five or article eleven
    39  of the private housing finance law, all such fees must be reasonable and
    40  approved by the agency supervising such cooperative housing corporation.
    41    § 4. This act shall take effect on the  same  date  and  in  the  same
    42  manner as a chapter of the laws of 2021 amending the general obligations
    43  law,   the  real  property  law,  and  the  real  property  actions  and
    44  proceedings law relating to excluding tenant-shareholders in cooperative
    45  housing corporations from certain housing  provisions,  as  proposed  in
    46  legislative bills numbers S. 5105-C and A. 350-C, takes effect.