Establishes a residential cooperative and condominium owner's bill of rights

Title of bill

An act to amend the general business law and the real property law, in relation to enactment of a residential cooperative and condominium owner's bill of rights

Purpose or general idea of bill

: The purpose of this bill is to clarify the rights and responsibilities of shareholders and boards of directors of cooperative corporations, unit owners and boards of managers of condominium associations.

Summary of specific provisions

: This bill would add a new section of the general business law, to require the board association of cooperatives and condominiums to:

1. Process requests for action in an expeditious, non-discriminatory fashion, according to uniform written procedures;

2. Hold elections by secret ballot and post election results;

3. Fill vacancies in a timely fashion;

4. Provide for the resignation of members of the board if the person is selling their interest in the corporation or association;

5. Provide financial statements to all owners in a timely fashion, on at least an annual basis; such statement must include information on member's financial interest in any company providing goods or services to the corporation or association;

6. Make various documents available to all owners for inspection;

7. Post notice of meetings at least ten days prior to the meeting;

8. Notify, and in some cases seek approval from, owners before imposing special assessments or entering into contracts for extraordinary expenses; and

9. Provide owners with written procedures for requesting timely determination by the board or association of disputes.

Additionally, the bill would also amend the real property law to require that board members chosen to fill vacancies must stand for election at the next meeting of unit owners where elections are scheduled.

This bill would also amend the unconsolidated laws to require the Attorney General and the Department of Law, within six months of the effective date of this act, to issue a handbook describing rights of owners vis-a-vis their board or association.

Justification

: Boards of directors of cooperative corporations and boards of managers of condominium associations exercise broad authority over the rights and financial interests of individual property owners.

Presently these boards and associations possess are given broad legal discretion under the law.

This bill would establish a number of important due process rights for individual property owners in dealing with their board or association and also create general standards for the conduct of business by these boards or associations.

While most boards and associations perform admirably in managing their buildings' affairs, there have been reports of abuses. Complaints have been received from property owners who feel that they have been dealt with in an arbitrary and capricious manner by the board or association.

The protection incorporated in this bill would help to ensure that property owners are dealt with fairly and have access to important information regarding the management of the buildings which constitute their homes.

Prior legislative history

: 2008 - S2386 - Referred to the Standing committee on Housing, Construction and Community Development.

Fiscal implications

Minimal cost to Attorney General and the Department of Law for printing and distributing handbook.

Effective date

This act would take effect immediately, and existing boards would have one year to come into compliance.