Establishes a residential condominium owner's bill of rights

Title of bill

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

Purpose or general idea of bill

The purpose of this bill is to clarify the rights and responsibilities unit owners and boards of managers of condominium associations.

Summary of specific provisions

This bill would amend the general business law to require a Condominium Board to:

* Process requests for action in an expeditious, manner according to uniform written procedures;

*Post election results in a prominent place accessible to all owners within one business day after they become available;

*Fill vacancies within sixty days if such vacancy occurs more than six months prior to the annual meeting of unit owners;

* Provide for the resignation of members of the board if the person is selling their condominium unit;

*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 association; * Make various documents available to all owners for inspection;

* Post notice of meetings in a prominent place accessible to all unit owners; and

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

This bill would also require the Department of Law to issue a handbook describing rights of owners vis-a-vis their association and the procedures and processes available to unit owners to enforce such rights.

Justification

Boards of managers of condominium associations exercise broad authority over the rights and financial interests of individual property owners.

Under present law, there is little which regulates the discretionary authority these associations possess.

This bill would establish a number of important due process rights for individual property owners in dealing with their association. It would also create general standards for the conduct of business by these associations. While most associations perform admirably in managing their buildings' affairs, there have been reports of abuses by associations.

Complaints have been received from property owners who feel that they have been dealt with in an arbitrary and capricious manner by the 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 their building.

Prior legislative history

2008- S.4309 - Referred to the Standing Committee on Housing, Construction and Community Development.

Fiscal implications

None Noted.

Effective date

This act would take effect immediately, provided however that condominium associations existing and operating as such on the effective date of this act, shall take all necessary steps to amend the appropriate organizational and operating documents to implement the provisions of this act within one year of the effective date of this act.