What's happening
This bill requires residential cooperative corporations to adopt uniform, transparent processes and timelines for reviewing and responding to purchase applications.
Why it matters
Creates clear deadlines and requirements for co-op boards. The bill obligates boards to acknowledge purchase applications within 21 days, specify missing materials, and provide a firm timeline for when decisions will be made, reducing uncertainty and delays often experienced by buyers and sellers.
Mandates written explanations for denials. If a co-op board rejects a sale, it must now provide the specific reason for the denial in writing, making the decision process more accountable and potentially limiting arbitrary or discriminatory rejections.
Automatic approval for non-response. If a board fails to provide a written decision within 90 days of receiving a completed application, the sale is automatically approved, which prevents co-op boards from stalling sales indefinitely and protects applicants from procedural stonewalling.
Increases transparency for all parties. The requirement to make the application process and review criteria available upon request empowers both buyers and sellers (and their agents) to understand and prepare for the process, potentially reducing conflicts and misunderstandings.
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Who cares
Headline styles
Standardize Condo Application Process
Plain English, a few words. Used as the page title.
Sponsors
8 Co-sponsors
4 Multi-sponsors
History
- Amended on third reading 1267d
- Ordered to third reading cal.63
- Amended on third reading 1267c
- Ordered to third reading rules cal.237
- Rules report cal.237
- Reported
- Amend and recommit to rules 1267b
- Reported referred to rules
- Print number 1267a
- Amend (t) and recommit 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.
Standardize Condo Application Process
In Senate Committee · Corporations, Authorities And Commissions · Sponsor Brian Kavanagh
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1267--D
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. PERRY, PAULIN, DiPIETRO, PEOPLES-STOKES, BRABE- NEC, SEAWRIGHT, BLAKE, RICHARDSON -- Multi-Sponsored by -- M. of A. COOK, GALEF, LUPARDO, McDONOUGH -- read once and referred to the Committee on Housing -- committee discharged, bill… Show allHide
Introduced by M. of A. PERRY, PAULIN, DiPIETRO, PEOPLES-STOKES, BRABE- NEC, SEAWRIGHT, BLAKE, RICHARDSON -- Multi-Sponsored by -- M. of A. COOK, GALEF, LUPARDO, McDONOUGH -- read once and referred to the Committee on Housing -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported and referred to the Committee on Rules -- Rules Committee discharged, bill amended, ordered reprinted as amended and recommitted to the Committee on Rules -- amended on the special order of third reading, ordered reprinted as amended, retaining its place on the special order of third reading -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading
AN ACT to amend the not-for-profit corporation law and the business corporation law, in relation to cooperative purchase applications
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The not-for-profit corporation law is amended by adding a new section 519-b to read as follows: § 519-b. Residential cooperative corporations; ownership interests.
(a) Any residential cooperative corporation incorporated pursuant to this chapter, shall establish uniform processes for applying to and considering applications for the purchase of certificates of stock, a proprietary lease or other evidence of an ownership interest in such residential cooperative corporation.
(b) Written notice of such processes shall be made available to any prospective purchasers and prospective sellers, or their respective real estate agents, promptly upon request.
(c) At a minimum, such processes shall require the cooperative corporation, upon receiving an application from a prospective purchaser, to acknowledge receipt of such application within twenty-one days and to include in such acknowledgement of receipt whether the application submitted fully satisfies the requirements therefor, the way or ways the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06684-11-0
A. 1267--D 2
submitted application is incomplete, and any additional materials necessary to effectuate consideration of the application.
(d) The processes established pursuant to this section shall further require that, following the submission of a completed application and all additional materials requested in the acknowledgement of receipt, the board of directors shall notify the prospective purchaser or their agent that the application is complete. Such notice shall state by what date review of the application will be complete and when the prospective purchaser or their agent will be notified whether consent to the sale is granted or denied.
(e) Written notice that consent to the sale has been granted or denied shall be provided to the prospective purchaser no more than ninety days after the submission of a completed application. In the event a sale is denied, such notice shall state the reason for the denial. If no written notice is provided within ninety days, consent to the sale shall be granted.
(f) Nothing in this section shall be construed to limit the rights or remedies provided by any other provision of law.
§ 2. The business corporation law is amended by adding a new section 728 to read as follows: § 728. Residential cooperative corporations; ownership interests.
(a) Any residential cooperative corporation incorporated pursuant to this chapter, shall establish uniform processes for applying to and considering applications for the purchase of certificates of stock, a proprietary lease or other evidence of an ownership interest in such residential cooperative corporation.
(b) Written notice of such processes shall be made available to any prospective purchasers and prospective sellers, or their respective real estate agents, promptly upon request.
(c) At a minimum, such processes shall require the cooperative corporation upon receiving an application from a prospective purchaser, to acknowledge receipt of such application and to include in such acknowledgement of receipt whether the application submitted fully satisfies the requirements therefor, the way or ways the submitted application is incomplete, and any additional materials necessary to effectuate consideration of the application.
(d) The processes established pursuant to this section shall further require that, following the submission of a completed application and all additional materials requested in the acknowledgement of receipt, the board of directors shall notify the prospective purchaser or their agent that the application is complete. Such notice shall state by what date review of the application will be complete and when the prospective purchaser or their agent will be notified whether consent to the sale is granted or denied.
(e) Written notice that consent to the sale has been granted or denied shall be provided to the prospective purchaser no more than ninety days after the submission of a completed application. In the event a sale is denied, such notice shall state the reason for the denial. If no written notice is provided within ninety days, consent to the sale shall be granted.
(f) Nothing in this section shall be construed to limit the rights or remedies provided by any other provision of law.
§ 3. This act shall take effect on the one hundred twentieth day after it shall have become a law.
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.