What's happening
This bill requires majority board control by resident shareholders or unit owners in large co-op or condo conversions within 36 months or after most units are sold.
Why it matters
Limits sponsor control and speeds up resident empowerment. By mandating that resident shareholders or unit owners must gain majority control of the board within 36 months or once most units are sold, this law prevents sponsors (i.e., developers or original owners) from indefinitely controlling building decisions, which can delay needed maintenance or improvements.
Improves governance transparency and accountability. With residents taking board control sooner, decisions about building finances, repairs, rules, and management are more likely to reflect the priorities and well-being of those actually living in the building, potentially leading to better oversight and responsiveness.
Applies to larger conversions, targeting high-impact scenarios. The threshold of 20 or more units means the law is focused on sizable buildings where the absence of resident control can have significant consequences for a large number of people—helping to ensure protections scale with building size.
Reduces legal loopholes and delays. By providing multiple triggers for resident control (either a majority of units are sold, or 36 months pass), the bill closes common loopholes used by sponsors to retain control by simply holding onto unsold units, ensuring residents aren't left waiting indefinitely for a say in building management.
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Who cares
Headline styles
Let Residents Elect Building 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
3171
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. DINOWITZ, COLTON -- Multi-Sponsored by -- M. of A. 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.
LBD01175-01-9
A. 3171 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.