BILL NUMBER: S5089
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the real property law, in relation to creating a resi-
dential condominium owner bill of rights
 
PURPOSE:
To amend provisions in the not-for-profit corporation law, general busi-
ness law, and real property law in relation to the enactment of a resi-
dential condominium owner's bill of rights.
 
SUMMARY OF PROVISIONS:
This bill will also enact a bill of rights for owners of residential
condominium units with respect to managing the common charges, elements,
expenses, or profits of thirty-five hundred or more units. This bill
will provide condo-owners both privately owned and not-for-profit condo-
minium associations the right to transparency which includes the right
for condo unit owners to review a complete accounting for all expendi-
tures, capital improvement and or anything in excess of the contingency
fund including the budget, a comparison of any and all bidding processes
for work to be done in the condominium including work that was conducted
and the amounts of contributions of each owner whether individual or
group sponsors, billings estimate overages and proof of the expenditures
that comprise the total of the surcharge and minutes of each meeting
where the planning and voting on the proposal was discussed with all
owners and for any and all expenditures not made in the ordinary course
of business.
This bill will also require for the Condominium Board of any not-for-
profit condominium board to make available for inspection and review to
all condo unit owners the IRS Form 990 when they are filed annually.
This bill would require that all applications and requests by condomin-
ium owners that require approval by the board of managers regarding
disputes between owners and the condominium association be processed in
a reasonably expeditious manner pursuant to uniform procedures and time-
tables adopted in writing.
The final results of elections for the board of managers would be
required to be posted in a prominent location within one business day
following the availability of such information. The board of managers
would be required to call a meeting within sixty days of a vacancy to
fill a vacancy if it occurs more than six months prior to the annual
unit owners meeting. The bill would require any board member, who sells
his or her apartment and is no longer a unit holder in the condominium,
to resign from the board no later than the closing date of such sale.
Furthermore, the bill would ensure that accurate financial statements
and other statements normally provided to unit owners of privately owned
and not-for-profit condominiums would need to be provided in a timely
fashion.
The bill would require that proper documentation be made available for
inspection or copying by unit owners; including approved minutes of
board of managers meetings; accurate records of the receipts and expend-
itures arising from the operation of the property; bank account and
financial investment statements; proposals received for bids on goods
and services for the condominium; reports of hired accountants and
consultants on behalf of the association and reports by municipal or
county inspectors concerning health, building, and safety codes and
regulations.
The bill would require that a notice of all condominium board meetings
be posted in a prominent location.
The bill would direct the board members to propose expense limits every
five years. The board would be prohibited from, by vote, entering into
contracts for extraordinary expenses without approval of the unit
owners, unless It is deemed to be an emergency or doing so is required
for refinancing the mortgage.
Finally, the bill directs the attorney general to update the handbook
summary of the rights of condominium owners vis-a-vis condominium asso-
ciations and the procedures and processes available to unit owners to
enforce such rights. The Attorney General would be authorized to
enforce the provisions of this section.
 
EXISTING LAW:
The current law in the State does not sufficiently protect the condo
owners/residents of both privately owned and not for profit condo
boards.
 
JUSTIFICATION:
Too many condo boards do not provide sufficient transparency and disclo-
sure of their records, fostering ill will among condo owners. This bill
is an incentive for condominium management and their boards to be fully
accountable so that condominium ownership will be profitable, manageable
and stable.
 
LEGISLATIVE HISTORY:
S.3320 of Housing;2023-2024; Passed Senate,Delivered to Assembly,
Referred to
S.3017 of 2022: Passed Senate, Referred to Housing;
S.3017 of 2021:Referred to Judiciary;
S.1751 of 2020:Died in Assembly, Referred to Judiciary;
S.1751 of 2019:Passed Senate, Delivered to Senate
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that as to
residential condominium associations existing and operating as such on
the effective date of this act the boards of managers of such associ-
ations shall within one year of the effective date of this act take all
steps necessary to amend the appropriate organizational and operating
documents of such associations to implement the provisions of this act.