BILL NUMBER: S8718
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the real property law, in relation to the use of a resi-
dence as a no-impact home-based business within a homeowners' associ-
ation
 
PURPOSE:
To protect small-business owners' ability to run a home business that
has no impact on their neighbors.
 
SUMMARY OF PROVISIONS:
Section 1 creates a new article 9-E and section 344 of the real property
law which establishes the no-impact home-based business rights act.
Paragraph 1 defines a no-impact home-based business as one that (1) is
consistent with the residential character of the dwelling unit, (2) is
subordinate to the use of the dwelling unit for residential purposes,
(3) uses no equipment or process that creates noise, vibration, glares,
fumes, or causes an increase of common expenses, (4) does not involve
any hazardous materials.
Paragraphs 2 and 3 prohibit the banning of a no-impact home-based busi-
ness unless 90% of the HOA, not including developers, votes in favor of
banning it. If no-impact home-based businesses are banned, HOAs are
permitted to exempt individual businesses from the ban.
Paragraph 4 preserves an 110A's right to restrict a no-impact home-based
businesses activities in common areas owned by the association.
Section 2 states the effective date.
 
JUSTIFICATION:
When moving into a neighborhood with a Home-Owners Association (HOA)
people agree to abide by the rules that have been created by that commu-
nity. However, everyone has the right to decide how they use their home,
so long as it is not a detriment to the rest of the community. However,
it has been discovered that some HOAs are putting in place rules to
restrict residents basic abilities to earn a living, even when it has no
impact on the neighborhood. Small home-based businesses, such as thera-
pists and music teachers, have essentially no impact on the rest of the
neighborhood, yet some associations have prohibited their operation.
This bill provides additional protections for small businesses by creat-
ing a definition of no-impact home-based businesses and prohibits them
from being banned by an HOA, unless 90% of the residents vote in favor
of it. These restrictions will help protect people's ability to run
their businesses in the privacy of their own homes from overly restric-
tive ordinances.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to state.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.