What's happening
This bill requires that in large cooperative or condominium conversions, a majority of the board must be elected by resident owners within 36 months or when 51% of units are sold.
Why it matters
Shifts control from sponsors to residents faster. By requiring that resident owners elect a majority of the board within 36 months (or when 51% of units are sold), the bill limits sponsors' ability to maintain long-term control over building governance, which can be used to delay resident influence on operations and policy.
Protects residents’ interests during critical early years. Early transfer of board power helps ensure that maintenance decisions, spending, and building policies reflect the interests of those actually living in the building, rather than outside investors or developers whose priorities may differ.
Applies to larger buildings only. This requirement targets conversions with 20 or more units, addressing concerns that residents in large complexes are particularly vulnerable to being outnumbered and outvoted by sponsors for extended periods.
Introduces a clear, predictable timeline. Residents and sponsors alike gain clarity about when governance will shift, reducing uncertainty and potential legal disputes over control of the board, and potentially making conversions more attractive to prospective buyers who want a say in building management.
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
Residents Elect Co-op Boards
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
2 Multi-sponsors
History
- Referred to housing
- Referred to housing
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3901
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. DINOWITZ, COLTON, KAVANAGH -- Multi-Sponsored by -- M. of A. FARRELL, GOTTFRIED, WRIGHT -- read once and referred to the Committee on Housing
AN ACT to amend the general business law, in relation to plans for conversions of residences to cooperative or condominium ownership
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. 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, if twenty or more units are proposed in such plan, that a majority of the board of directors or managers shall be elected by the shareholders or unit owners who are in occupancy upon the first to occur of any of the following:
(i) fifty-one percent of the shares or units have been sold;
(ii) regardless of the number of unsold shares or units held by the sponsor or a successor in interest, within thirty-six months from the time the plan is declared effective; or
(iii) regardless of the number of unsold shares or units held by the sponsor or a successor in interest, within thirty-six months of the effective date of this paragraph.
§ 2. 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, if twenty or more units are proposed in such plan, that a majority of the board of directors or managers shall be elected by the shareholders or unit owners who are in occupancy upon the first to occur of any of the following:
(i) fifty-one percent of the shares or units have been sold;
(ii) regardless of the number of unsold shares or units held by the sponsor or a successor in interest, within thirty-six months from the time the plan is declared effective; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03434-01-7
A. 3901 2
(iii) regardless of the number of unsold shares or units held by the sponsor or a successor in interest, within thirty-six months of the effective date of this paragraph.
§ 3. This act shall take effect immediately; provided that the amendment to section 352-eee of the general business law made by section one of this act shall not affect the expiration of such section and shall expire therewith and the amendment to section 352-eeee of the general business law made by section two of this act shall not affect the expiration of such section and shall 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.