Enacts the "fairness in cooperative homeownership act"; regulates the submission and determinations of applications for ownership of cooperative apartments.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1778A Revised 4/27/2023
SPONSOR: Lavine (MS) 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 are subject to processes and condi-
tions that do not also apply to purchasers of other single-family resi-
dences. These processes and conditions have the potential to be misused
against a purchaser of cooperative housing. Because New York State
strongly opposes all illegal discrimination and promotes fair housing
laws and regulations, it is essential that the process for purchasing a
cooperative dwelling include the additional safeguards of this bill.
PRIOR LEGISLATIVE HISTORY:
2021-22 S2846 (Kavanagh) / A5856 (Lavine) - judiciary/housing
2019-20: S4677 (Kavanagh) / A6194 (Lavine) - judiciary/housing
2018: S7523 (Hannon)/A10084 (Lavine) - Referred to Judiciary/Referred to
Housing
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
EFFECTIVE DATE:
This act shall take effect 120 days after it becomes law and shall apply
to applications submitted and received on or after such date, provided
that the Commissioner of the New York State Division of Human Rights may
take any actions necessary prior to such effective date for the imple-
mentation of this act, including but not limited to establishing guide-
lines and promulgating rules.
