BILL NUMBER: S1452
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property law, in relation to the timing of
decisions for the sales of cooperative apartments
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would ensure that the process of purchasing cooperative hous-
ing is fair and transparent by adding uniformity and predictability to
the application process.
 
SUMMARY OF PROVISIONS:
Section one provides the legislative intent of the bill.
Section two adds a new article 11 to the Real Property Law. The new
article 11 establishes definitions, requires that the board of directors
or managing agent of each cooperative corporation shall maintain a
standardized application and list of requirements for all cooperative
apartments subject to the by-laws or proprietary lease of such corpo-
ration, and establishes a process for prospective purchasers to submit
an application, and for cooperative corporations to acknowledge receipt
and to notify the prospective purchaser whether the application is
complete. Article 11 also requires that the cooperative corporation
notify an applicant whether consent to a sale is granted or denied with-
in 45 days, providing the reason for denial if the application is
denied, and establishes the tolling of time, which provides for a longer
timeframe for coop board response during summer months as boards often
meet less frequently during this time.
Section three sets forth the effective date.
 
JUSTIFICATION:
Residential cooperative purchasers and sellers are unusual among single
family residential buyers and sellers in that they are subject to having
the purchase approved or rejected by a third party, the board of the
cooperative corporation. The processes and conditions that cooperative
boards impose are sometimes opaque, unpredictable, or prone to long
delays, in ways that can be unfair and impose unreasonable burdens on
buyers and sellers. This bill would help address these concerns for the
benefit of all buyers and sellers.
Moreover, the long history of housing discrimination throughout New
York, which continues to this day, requires that the State take steps to
protect prospective buyers who are members of groups that are routinely
subject to such discrimination. There is no reason to believe that the
decisions of cooperative boards -- which include the power to either
grant or deny people the right to live where they choose - are immune
from discriminatory behavior that is otherwise widespread. Because New
York strongly opposes all illegal discrimination and promotes fair hous-
ing for all, it is essential that the process for selling and purchasing
a home in a cooperative dwelling include the safeguards of this bill.
 
PRIOR LEGISLATIVE HISTORY:
2024: S2964A (Kavanagh) - REFERRED TO JUDICIARY /A1778A (Lavine) -
referred to housing
2023: S2964A (Kavanagh) - REFERRED TO JUDICIARY /A1778A (Lavine) -
referred to housing .
2022: S2846 (Kavanagh) - REFERRED TO JUDICIARY /A5856 (Lavine) -
referred to housing
2021: S2846 (Kavanagh) - REFERRED TO JUDICIARY /A5856 (Lavine) -
referred to housing
2020: S4677 (Kavanagh)- REFERRED TO JUDICIARY /A6194 (Lavine) - referred
to housing
2019: S4677 (Kavanagh)- REFERRED TO JUDICIARY /A6194 (Lavine) - referred
to housing
2018: S7523 (Hannon) - REFERRED TO JUDICIARY /A10084 (Lavine) -referred
to housing
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE ATE: This act shall take effect on the one hundred twenti-
eth day after it shall have become a law and shall apply to applications
submitted and received on or after such date. Effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
to be made and completed on or before such effective date.