What's happening
This bill restricts the rental of unsold, vacant cooperative and condominium units, requiring they be offered for sale first, with exceptions.
Why it matters
Limits on investor rentals. By requiring unsold, vacant units to be offered for sale before they can be rented, the bill aims to discourage sponsors and investors from holding large numbers of units as rentals, which can affect building ownership stability and the experience of existing residents.
Protects purchaser expectations. The bill only allows rentals without sale efforts if the original offering plan clearly warned buyers about the possibility, or with approval from an independent board majority—helping ensure that buyers aren’t surprised by a building dominated by sponsor rentals.
Short-term rental exception. If an unsold unit sits vacant and unsold for a year, it can be rented out for up to one year, providing a limited exception to prevent prolonged vacancy and financial strain on the building, but reinforcing that the primary goal is eventual sale.
Carves out exceptions for personal/family use. The bill allows shareholders or unit owners to rent units if acquired for personal or immediate family use (with board approval), and exempts units owned by the building itself, offering flexibility for genuine non-investor ownership situations.
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Who cares
Co-op and condominium sponsors and owners of unsold units
They would generally have to offer vacant unsold units for sale rather than rent them unless the original offering plan included the required disclosure and warning or independent board members approved the rental.
Co-op directors and condominium board managers
Board members unaffiliated with the sponsor or unit owner would gain authority to approve rentals, and boards would receive executed leases and emergency contact information for units rented under the bill.
Prospective tenants of unsold units
Without the required offering-plan disclosure or board consent, a unit could be rented for up to one year only after remaining unsold and unoccupied for a year, with the restrictions applying again afterward.
Owners who bought units for personal or immediate-family use
They could qualify for an exemption by establishing the specified personal-use or family-use circumstances to the reasonable satisfaction of a majority of independent board members.
Headline styles
Limit Sponsor Apartment Rentals
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
1 Multi-sponsor
History
- Ordered to third reading rules cal.216
- Rules report cal.216
- Reported
- Reported referred to rules
- Reported referred to codes
- 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.
Limit Rental of Unsold Units
In Senate Committee · Housing, Construction And Community Development · Sponsor Marisol Alcantara
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1815
2017-2018 Regular Sessions
IN ASSEMBLY
January 13, 2017
Introduced by M. of A. DINOWITZ, COLTON, KAVANAGH -- Multi-Sponsored by -- M. of A. FARRELL, GLICK -- read once and referred to the Committee on Housing
AN ACT to amend the general business law, in relation to the rights of cooperative and condominium sponsors and purchasers regarding the rental of vacant dwelling units
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 352-eeee of the general business law is amended by adding a new subdivision 8 to read as follows:
8. (a) Whenever any unsold dwelling unit in a residential cooperative or condominium building becomes vacant, such dwelling unit may not be rented and must be offered for sale unless either:
(i) the original offering plan which was accepted for filing by the attorney general expressly disclosed the possibility that unsold dwelling units might not be sold when they become vacant, and the offering plan contained a warning to purchasers of the risk entailed in purchasing a unit in a building where unsold dwelling units are not offered for sale; or
(ii) the sponsor or other owner of the unsold dwelling unit first obtains the consent of a majority of those members of the cooperative corporation board of directors or condominium association board of managers who are not affiliated with, employed by, or related to the sponsor or owner of the unsold dwelling unit or units to said rental.
(b) In the event that neither of the conditions set forth in subparagraphs (i) and (ii) of paragraph (a) of this subdivision are met, and such dwelling unit remains unsold and unoccupied for a period of one year from the date it becomes vacant, then the dwelling unit may be rented for a period of up to one year. At the conclusion of such one year rental period, the unsold dwelling unit shall once again be deemed to have become vacant, and the provisions of this subdivision shall be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03599-01-7
A. 1815 2
applied once again. The prohibition against the sale or rental of unsold dwelling units except in accordance with the provisions of this subdivision shall continue until the apartment is sold.
(c) If any unsold dwelling unit which becomes vacant is rented pursuant to the provisions of this subdivision, then the owner of the unit being rented shall immediately send a copy of the fully executed lease, as well as such other information as may be necessary so that both the owner of the unit and the tenant can be reached in the event of an emergency, to the board of directors of the cooperative corporation or the board of managers of the condominium association.
(d) This subdivision shall not apply to any shareholder or unit owner who establishes to the reasonable satisfaction of a majority of those members of the cooperative corporation board of directors or condominium association board of managers who are not affiliated with, employed by, or related to, the sponsor or owner of the unsold dwelling unit or units that he or she purchased a dwelling unit for personal use or use by his or her immediate family member, but whose immediate family member is not presently occupying the dwelling unit, nor shall this subdivision apply to dwelling units owned by a cooperative corporation or condominium association or entities formed by either of them to hold units obtained from a sponsor. Immediate family member as used in this paragraph shall be defined as the shareholder's spouse, children, grandchildren, parents, grandparents, brothers or sisters.
(e) As used in this subdivision, the term "unsold dwelling unit" shall mean an apartment in a cooperative housing corporation or a unit in a condominium that was not sold for occupancy by the purchaser and shall include, but not be limited to, cooperative shares and condominium units designated by the sponsor or holder of unsold shares as "unsold shares" or "unsold units".
§ 2. This act shall take effect immediately and shall apply to all dwelling units in cooperative and condominium buildings that become vacant on or after such effective date; provided, however, that the amendments to section 352-eeee of the general business law made by section one of this act shall not affect the expiration of such section 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.