What's happening
This bill prohibits sponsors from serving on or voting for boards of co-ops or condominiums after building conversion.
Why it matters
Limits sponsor influence post-conversion. By barring sponsors from board membership or voting rights after conversion, the bill aims to ensure that control of co-op and condo boards shifts fully to resident owners, reducing the potential for conflicts of interest.
Potential for greater resident empowerment. With sponsors excluded from board decisions, residents are likely to have more say in the management and governance of their buildings, which could lead to policies and practices better reflecting their priorities and concerns.
Addresses longstanding concerns about governance. Sponsors often retain significant control even after selling most units, which can delay needed repairs or improvements and affect building finances; this bill seeks to prevent such scenarios by mandating sponsor disengagement.
Could alter market and conversion dynamics. Real estate sponsors may reconsider conversion strategies, knowing they cannot influence building decisions post-conversion, which could lead to changes in how and when buildings are converted to co-ops or condos.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Ban Sponsor Voting in Co-ops
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to housing
- Referred to housing
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.
End Sponsor Board Voting
In Senate Committee · Housing, Construction And Community Development · Sponsor José Peralta
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1102
2017-2018 Regular Sessions
IN ASSEMBLY
January 10, 2017
Introduced by M. of A. DINOWITZ, COLTON -- Multi-Sponsored by -- M. of A. GLICK -- read once and referred to the Committee on Housing
AN ACT to amend the general business law, in relation to prohibiting a sponsor from becoming a director or voting on the board after a building has been converted to a cooperative apartment building or condominium ownership
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs (iv) and (v) of subdivision 1 of section 352-ee of the general business law, as added by chapter 509 of the laws of 1978, are amended and a new paragraph (vi) is added to read as follows:
(iv) a statement, satisfactory to the attorney general, that it is the obligation of the sponsor to complete all alterations and improvements to individual spaces or dwelling units in compliance with such approved plans within the time specified in the plan or, if the sponsor does not undertake such obligation, that it is the obligation of the individual owners of shares in the cooperative corporation or of condominium units, under the supervision of the cooperative corporation or, in the case of a condominium, under the supervision of the board of managers, to complete such alterations and improvements within the time specified in the plan; [and]
(v) a statement that a permanent certificate of occupancy is required for permanent residential use of the premises, that a temporary certificate of occupancy may only be renewed for a total period of two years from the date of its original issuance and that, if the temporary certificate of occupancy shall have expired prior to obtaining a permanent certificate of occupancy, residential occupancy of the premises will be in violation of the multiple dwelling law, subjecting the occupants and the cooperative corporation and its board of directors or, in the case of a condominium, the unit owners and board of managers, to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00056-01-7
A. 1102 2
penalties under the multiple dwelling law including eviction of residential occupants[.]; and
(vi) a statement that the sponsor shall not hold a seat on the board of directors or be allowed to vote any shares after conversion to cooperative or condominium ownership.
§ 2. Subdivision 2 of section 352-eee of the general business law is amended by adding a new paragraph (g) to read as follows:
(g) The plan provides that after the conversion to cooperative or condominium ownership the sponsor shall not hold a seat on the board of directors nor vote any shares.
§ 3. Subdivision 2 of section 352-eeee of the general business law is amended by adding a new paragraph (g) to read as follows:
(g) The plan provides that after the conversion to cooperative or condominium ownership the sponsor shall not hold a seat on the board of directors nor vote any shares.
§ 4. This act shall take effect immediately and shall apply to plans submitted on and after such date; provided, however, that the amendments to sections 352-eee and 352-eeee of the general business law made by sections two and three of this act shall not affect the expiration of such sections and shall be deemed to expire therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.