What's happening
This bill requires residential cooperative and not-for-profit corporations to notify tenants in writing of by-law changes within ten days and to post changes that affect occupancy or building rules.
Why it matters
Increases transparency. By requiring written notification of by-law changes, residents gain clearer insight into decisions that could impact their living situation, making it harder for boards to enact rules without informing those affected.
Promotes tenant awareness and input. Mandating conspicuous posting of changes related to occupancy or building rules gives tenants a real opportunity to understand, question, or respond to new policies that could affect their daily lives or housing stability.
Reduces potential for disputes. Formal, prompt notification helps prevent misunderstandings or claims that residents were unaware of new or amended by-laws, potentially reducing legal and interpersonal conflicts between tenants and boards.
Applies to both co-ops and not-for-profits. The bill covers a broad range of residential buildings, ensuring that similar standards of communication and accountability apply across different types of residential corporations.
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Who cares
Headline styles
Notify Tenants of Bylaw Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.558
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.163
- Substituted for A456A
- Referred to housing
- Delivered to assembly
- Passed senateVote 61–0
- Amended on third reading (t) 4956a
- Ordered to third reading cal.1144
- Committee discharged and committed to rules
Show 1 earlier action
- Referred to corporations, authorities and commissions
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.
Notify Tenants of Bylaw Changes
Assembly Floor Calendar · Sponsor Linda Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4956--A Cal. No. 1144
2019-2020 Regular Sessions
IN SENATE
April 2, 2019
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- committee discharged and said bill committed to the Committee on Rules -- ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the business corporation law and the not-for-profit corporation law, in relation to requiring the board of directors of residential cooperative corporations and not-for-profit corporations to provide tenants with changes to the by-laws in writing within ten days of adoption; in relation to notification to tenants of changes affecting occupancy or the rules of the building
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 708 of the business corporation law is amended by adding two new subdivisions (e) and (f) to read as follows:
(e) In the case of corporations owning or leasing residential premises and operating the same on a cooperative basis, changes including the adoption, amendment or repeal of the by-laws by the board of directors shall be provided to the members, stockholders, and delegates of such corporation in writing, by physical or electronic means, within ten days of such adoption.
(f) Upon the adoption, amendment or repeal of by-laws by the board of directors of a corporation owning or leasing residential premises and operating the same on a cooperative basis pursuant to subdivision (e) of this section, where such change would have a direct effect on the resident's occupancy or the rules of the building, the board of directors shall post the adopted, amended, or repealed by-laws conspicuously to ensure tenants will be aware of such adoption.
§ 2. Section 602 of the not-for-profit corporation law is amended by adding a new paragraph (g) to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01517-03-9
S. 4956--A 2
(g) In the case of residential not-for-profit corporations, changes including the adoption, amendment or repeal of the by-laws by the board of directors shall be provided to the members, stockholders, and delegates of such corporation in writing, by physical or electronic means, within ten days of such adoption.
§ 3. The not-for-profit corporation law is amended by adding a new section 624 to read as follows: § 624. Notification to tenants.
Upon the adoption, amendment or repeal of the by-laws by the board of directors pursuant to paragraph (g) of section 602 (By-laws), where such change would have a direct effect on the resident's occupancy or the rules of the building, the board of directors shall post the adopted, amended, or repealed by-laws conspicuously to ensure tenants will be aware of such adoption.
§ 4. This act shall take effect on the sixtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Purpose
This bill ensures that residents are provided with timely written notification of changes to governing by-laws by their buildings' boards of directors.
Summary of provisions
Amends § 708 of the business corporation law to require cooperatives to notify members of changes in their by-laws.
Amends § 602 and § 624 of the not-for-profit corporation law to require cooperatives to notify members of changes in their by-laws.
Existing law
n/a
Justification
Individuals who own a condominium or shares in a cooperative are subject to rules and by-laws created by a board of directors. While this direct rulemaking is a democratic process, there is no legal requirement that the board of directors notify shareholders of new rules or changes to existing rules.
This bill requires boards of directors to provide residents with written notice of any changes to the building's governing by-laws within 10 days of the changes to ensure that each owner's interests are protected.
Legislative history
2017-18: A.3830 - Ordered to Third Reading Calendar 2015-16: A.6870 - Referred to Housing
Fiscal implications
None
Local fiscal implications
None
Effective date
This bill shall take effect on the sixtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.