What's happening
This bill prohibits sponsors from serving on or voting for boards after buildings convert to co-op or condo ownership.
Why it matters
Limits sponsor influence. By barring sponsors from board seats or voting rights post-conversion, the bill aims to ensure that decision-making power shifts to resident owners rather than remaining with developers or outside investors.
Reduces potential conflicts of interest. Preventing sponsors from holding board positions or casting votes addresses long-standing concerns that sponsors may prioritize their own financial interests over the well-being and preferences of residents.
Promotes resident control and accountability. This change helps empower cooperative and condominium owners to govern their buildings, potentially leading to more responsive management and policies that reflect the needs of the people actually living there.
Applies prospectively. The new restrictions will only apply to plans submitted after the law takes effect, meaning current arrangements won’t be immediately impacted—important for those in ongoing or completed conversions.
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Who cares
Headline styles
End Sponsor Board Voting
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
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.
Ban Sponsor Voting in Co-ops
In Assembly Committee · Housing · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
343
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00056-01-7
S. 343 2
the case of a condominium, the unit owners and board of managers, to 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.
Sponsor's memo
Title of bill
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
Purpose
To prevent the landlord of an apartment or building that has been converted to a co-op from becoming a director or voting member on the co-op board.
Summary of provisions
Amends the General Business Law by adding a new paragraph (vi) to subdivision 1 of section 352-ee, paragraph (g) to subdivision 2 of section 352-eee, and paragraph (g) to subdivision 2 of section 352-eeee.
Justification
This bill would eliminate the possibility of landlords holding a seat on the board of directors or be allowed to vote any shares after conversion to cooperative ownership. Presently there are no laws that state that once a landlord sells apartments from his or her apartment building, thus establishing a cooperative apartment building, he or she cannot hold a seat on the board of directors or be allowed to vote any shares after conversion to cooperative ownership. This bill would prohibit landlords from holding a seat on board of directors and voting on matters which rightfully are no longer under the landlords' jurisdiction.
Legislative history
2015-2016---S1252 2013-2014 - S.54 2011-12: S.604 2010: S.7545/A.834 2007-08: A.3232 - Referred to Housing 2005-06: A.1461 - Referred to Housing 2003-04: A.3031 - Referred to Housing 2001-02: A.1130 - Referred to Housing 1999-2000: A.2018 - Referred to Housing
Fiscal implications
None.
Effective date
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.