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Sponsors
1 Co-sponsor
History
- Substituted by A620
- Advanced to third reading
- 2nd report cal.
- 1st report cal.605
- Referred to housing, construction and community development
- Substituted by A620
- Advanced to third reading
- 2nd report cal.
- 1st report cal.515
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides for notification of a cooperative tenant shareholder's or condominium owner's right to terminate a self-dealing contract under federal law
Signed by Governor · Sponsor Brian Kavanagh
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to notification of cooperative or condominium self-dealing contract termination
Purpose
Provides for notification of a cooperative tenant shareholder's or condominium owner's right to terminate a self-dealing contract under federal law.
Summary of provisions
Adds a new subdivision 2-d to section 352-e of the General Business Law to define "self-dealing contract" and require sponsors of co-op or condominium conversions to notify tenant shareholders or unit owners entitled to terminate such contracts pursuant to the Condominium and Cooperative Abuse Act, 15 U.C.C. 3607, in writing within 30 days of the date that the right commences and at least 60 days before the right expires.
Justification
The Condominium and Cooperative Abuse Relief Act of 1980, 15 U.C.C. 3607, permits shareholders and unit owners to terminate self-dealing or so-called "sweetheart" contracts within two years after the sponsor loses "special developer control" Because the statute does not contain a notice provision, in many instances the time to attack the contracts has expired without the board knowing they had any rights. In addition, many disputes have arisen over just when the sponsor lost special developer control. The notification provision required in this bill would both help prevent such disputes, and insure that coop and condominium boards are fully aware of their right to terminate contracts which are not in the best interest of the cooperative or condominium.
Legislative history
2008: A8037 (Kavanagh) - Passed Assembly 2007: A8037 (Kavanagh) - Passed Assembly 2006: A6970 (Grannis) - Passed Assembly 2005: A6970 (Grannis) - Housing 2004: 4038 (Grannis) - Passed Assembly 2003: A4038 (Grannis) - Passed Assembly 2002: A4390 (Grannis) - Housing 2001: A4390 (Grannis) - Housing 2000: A1688 (Grannis) - Passed Assembly 1999: A1688 (Grannis) - Passed Assembly 1998: A867A (Grannis) - Passed Assembly 1997: A867A (Grannis) - Passed Assembly 1996: A4626 (Grannis) - Passed Assembly 1995: A4626 (Grannis) - Passed Assembly 1994: A621 (Grannis)- Passed Assembly 1993: A621 (Grannis) - Housing 1992: A1091 (Grannis) - Housing 1990: A4132 (Grannis) - Passed Assembly 1987: A11504 (Grannis) - Rules
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become a law and shall apply to plans for which letters of accept are issued on or after such effective date
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.