BILL NUMBER: S71
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property law, in relation to providing certif-
ication and registration requirements for property managers of cooper-
atives and condominiums
 
PURPOSE OR GENERAL IDEA OF BILL:
To assure property managers and those performing property management
duties for certain cooperatives or condominiums have the training,
competency and integrity to adequately perform their duties.
 
SUMMARY OF PROVISIONS:
The bill adds a new article 12-D to the real property law.
Section 1: Defines "certification," "property manager," and "residential
realty management" for purposes of the section.
Section 2: States that no property manager of cooperatives or condomin-
iums, or entities employing such property manager shall perform residen-
tial realty management unless such property manager or entity has filed
a registration statement with the Secretary of State; and those perform-
ing property management duties for the property manager have been certi-
fied by an approved certifying organization.
Section 3: Sets forth the information that must be contained in the
"property manager registration statement."
Section 4: States that the registration statement must be filed every
two years with the Secretary of State. This section also authorizes the
Secretary of State to collect a $50 fee for each filing.
Section 5: States that the Secretary of State must be notified of any
change of information, including but not limited to: changes in employ-
ment, retirement, resignation or termination, within 45-days.
Section 6: Authorizes the Secretary of State to issue a certification to
those applicants who have completed the necessary requirements.
Section 7: Requires the Secretary of State to establish procedures for
approving or disapproving applications from organizations to act as.
approved certifying organizations, and for periodically reviewing the
certification programs of approved organizations.
Section 8: Allows for the suspension and revocation of certification it,
after notice and hearing, the Secretary determines the property manager
is in violation of provisions of the article or the law.
Section 9: States that this section shall not apply to any property
manager, or entity employing a property manager, if all the condominiums
or cooperative units for which such property manager or entity performs
services comprising less than twenty-five residential units.
Section 10: Provides for graduated civil penalties.
Section 11: Mandates the segregation of funds for each managed unit. A
violation of this provision would constitute a misdemeanor punishable by
a fine not to exceed five thousand dollars.
Section 12: Mandates the turning over of all property records within ten
days upon cessation of performing realty management, except funds and
records requiring bank reconciliation which allows for 45 days.
Section 13: states that the Attorney General shall have the power to
enforce the provisions of the article.
Section 2 of the bill sets forth the effective date.
 
JUSTIFICATION:
Currently, there is no legal requirement that property managers have
training or experience in property management. In the past, unscrupulous
or untrained property managers have bilked cooperative shareholders of
millions of dollars in elaborate schemes of fraud. This bill would
require property managers to disclose whether the individual or his or
her principals have been convicted of crimes involving fraudulent prac-
tices or crimes arising out of their duties as a property manager. Such
disclosure will enhance the ability of cooperatives and condominium
boards to determine the integrity of property managers which they may
employ.
This bill would also establish a procedure to ensure that those perform-
ing property management duties possess the skills and training essential
to satisfactorily perform their duties. It would require the certifying
organization to annually review the credentials of all certified indi-
viduals to determine that those holding a certification continue to meet
the standards established by the organization
 
PRIOR LEGISLATIVE HISTORY:
2024: S663 (Kavanagh)-REFERRED TO JUDICIARY
2023: S663 (Kavanagh)-REFERRED TO JUDICIARY
2022: S3092 (Kavanagh)-REFERRED TO JUDICIARY
2021: S3092 - (Kavanagh)- REFERRED TO JUDICIARY
2021: S3092 - (Kavanagh)- REFERRED TO JUDICIARY
2020: S2340 - (Kavanagh) - REFERRED TO JUDICIARY
2019: S2340 - (Kavanagh) - REFERRED TO JUDICIARY
2018: S7104 - (Kavanagh) - REFERRED TO JUDICIARY
2016: S198A - (Squadron) - REFERRED TO JUDICIARY
2015: S198A - (Squadron) - REFERRED TO JUDICIARY
2014: S198A - (Squadron) - REFERRED TO JUDICIARY /A2110A (Kavanagh) -
referred to housing
2013: S198A - (Squadron) - REFERRED TO JUDICIARY /A2110A (Kavanagh) -
referred to housing
2012: S87 - (Squadron) - REFERRED TO JUDICIARY /A5985 (Kavanagh) -
referred to housing
2011: S87 - (Squadron) - REFERRED TO JUDICIARY /A5985 (Kavanagh) -
referred to housing
2010: S5301 - (Squadron) - REFERRED TO JUDICIARY /A7388 (Kavanagh) -
referred to housing
2009: S5301 - (Squadron) - REFERRED TO JUDICIARY /A7388 (Kavanagh) -
referred to housing
 
FISCAL IMPLICATIONS:
The Secretary of state shall collect a $50 fee with each registration.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law, except that any rules and regulations necessary for the
timely implementation of this act on its effective date shall be promul-
gated on or before such date; provided, however, that subdivision 2 of
section 448 of the real property law, as added by section one of this
act, shall take effect on the first January next succeeding the date
upon which it shall have become law.