BILL NUMBER: S9574
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the real property law, in relation to the recovery of
attorneys' fees in the event of certain default judgments where a tenant
is a dwelling unit owner or shareholder of a cooperative housing corpo-
ration
 
PURPOSE OR GENERAL IDEA OF BILL:
To authorize the recovery of attorneys' fees by either party in default
judgment cases involving cooperative housing shareholders, where such
fees are provided for in a proprietary lease or occupancy agreement,
without regard to the cooperative's status under the private housing
finance law.
 
SUMMARY OF PROVISION:
Section 1 amends subdivision 2 of section 234 of the Real Property Law
to remove language that excludes cooperative housing corporations
subject to articles II, IV, V, or XI of the Private Housing Finance Law
from eligibility for corresponding attorney's fees awards in default
judgment proceedings.
Section 2 provides that the act shall take effect immediately.
 
JUSTIFICATION:
Section 234 of the real property law is intended to ensure reciprocity
of remedy with respect to attorneys' fees in landlord-tenant relation-
ships where such fees are provided for in a lease. However, the current
law excludes certain cooperative housing corporations governed by the
private housing finance law from this reciprocal framework in cases of
default judgments.
This exclusion creates an inequitable distinction between cooperative
housing shareholders based solely on the regulatory status of their
housing corporation. Shareholders in cooperatives subject to the private
housing finance law, many of whom reside in affordable or limited-profit
housing, are denied the same legal protections afforded to other tenants
and shareholders.
By eliminating this exclusion, the bill promotes fairness and consisten-
cy in the application of the law, ensuring that all cooperative housing
shareholders have equal access to the recovery of attorneys' fees where
contractually authorized. This change also supports judicial efficiency
and reinforces the enforceability of proprietary lease provisions.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9574: 234 real property law, 234(2) real property law