What's happening
The bill requires condominium and cooperative buildings to use standard accounting principles and annual audits for financial statements, with enforcement by the attorney general.
Why it matters
Mandates greater financial transparency and consistency. by requiring condos and co-ops to use industry-recognized accounting standards (GAAP or GAS), ensuring that financial data is presented in a uniform and reliable way for owners, buyers, and assessors.
Requires annual audits by licensed New York CPAs for larger buildings. (over ten units), improving accountability and making it more difficult for financial mismanagement or fraud to go undetected.
Empowers the attorney general to enforce these requirements. , adding a layer of oversight and providing a mechanism for residents or shareholders to seek redress if their building fails to comply.
Aligns reporting practices with potential future shifts in national accounting standards. (such as a transition to IFRS), ensuring that state requirements remain current and compatible with broader U.S. financial regulations.
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Who cares
Headline styles
Standardize Condo Financial Reports
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to real property taxation
- Referred to real property taxation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1379
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to financial statements for assessments of condominiums, cooperative buildings and cooperative communities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 581 of the real property tax law is amended by adding a new paragraph (f) to read as follows:
(f) (i) Notwithstanding any other provision of law, all financial statements prepared in the course of assessing the value of a condominium building, cooperative building or cooperative community shall be prepared using generally accepted accounting principles.
(ii) All financial statements provided annually to shareholders or to prospective purchasers of units or shares must be prepared using the accrual basis of accounting.
(iii) For purposes of this subdivision, "generally accepted accounting principles" shall mean the principles of either governmental accounting standards (GAS) or GAAP as specified by authoritative national standard-setting bodies.
(iv) Should International Financial Reporting Standards accounting standards (IFRS) be adopted for use in the United States of America by the U.S. Securities and Exchange Commission, these same standards shall constitute using generally accepted accounting principles for the purpose of this subdivision.
(v) For the purpose of this section, condominium buildings, cooperative buildings or cooperative communities with over ten units must have their financial statements annually audited by a fully licensed New York state certified public accountant.
(vi) The attorney general's office shall have the appropriate authority to enforce the provisions of this paragraph.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02585-01-9
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.