What's happening
This bill requires residential cooperative corporations to establish transparent, uniform procedures for processing purchase applications and to provide timely, written reasons for sale denials.
Why it matters
Creates clear timelines and deadlines. for each step in the co-op application process, which can reduce uncertainty and prevent indefinite delays for both buyers and sellers.
Requires co-op boards to provide specific reasons for denial in writing. , giving applicants more transparency and potential recourse if they believe a denial was unfair or discriminatory.
Mandates that application requirements and procedures be shared promptly upon request. , helping level the playing field for all applicants, including those without extensive real estate knowledge or representation.
Imposes automatic approval if the board does not respond within 90 days. , protecting applicants from being stalled indefinitely by board inaction and encouraging boards to act in a timely manner.
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Who cares
Co-op boards
They would have to establish uniform application procedures, issue written decisions within 90 days of a completed application and state reasons for denials, with consent granted if no timely written notice is provided.
Prospective co-op buyers
They would receive notice of missing application materials, a review timeline and written reasons if their purchase is denied.
Co-op sellers
They could request written application procedures and would have a 90-day decision deadline once a buyer submits a completed application.
Real estate agents
They could request application procedures for buyers and sellers and receive notices confirming application completeness and the review timeline.
Headline styles
Standardize Condo Application Process
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 26
No co-sponsors yet.
History
- Print number 6408b
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Print number 6408a
- Amend and recommit to rules
- Referred to rules
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
Assembly Floor Calendar · Sponsor N. Nick Perry
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6408--B
2019-2020 Regular Sessions
IN SENATE
June 7, 2019
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06684-10-0
S. 6408--B 2
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.
Sponsor's memo
Purpose
This bill would ensure that the process of purchasing cooperative hous- ing is fair, transparent and does the utmost to protect against illegal discrimination.
Summary of provisions
Section one of the bill adds Section 519-B to the not-for-profit corpo- ration law. It requires any residential cooperative corporation formed as not-for-profits to create procedures for a uniform application proc- ess. Any residential cooperative corporation would need to provide writ- ten copies of these procedures to any prospective purchaser or seller who request them. The uniform application process must require the such cooperative corporation to notify the prospective purchaser that their application has been received and is either complete or is incomplete and what additional documentation is needed, within twenty-one days of receiving such application. In the notice telling the prospective purchaser the application is complete, the cooperative corporation must state what date they will complete their review and either approve or deny the application. Such date must be within ninety days of the receipt of a completed application. If a board fails to issue a final determination, the consent of the sale will be granted. This section also requires a written reason be provided for all denied sales.
Section two does the same but for cooperatives formed under the business corporation law, by adding a new section 728 to the business corporation law.
Section three of the bill sets forth the effective date.
Justification
Residential cooperative purchasers are subject to processes and condi- tions that apply to no other purchasers of single-family residences. These processes and conditions give the appearance and have the poten- tial to be misused to illegally discriminate against a potential purchaser of cooperative housing. Because NYS strongly opposes all ille- gal discrimination and wholeheartedly promotes fair housing laws and regulations, it is essential that the process for purchasing a cooper- ative dwelling include the additional safeguards of this bill to protect against illegal discrimination.
Legislative history
2017-2018:A3813(Perry)- Referred to Housing 2015-2016:A6395(Perry)- Referred to Housing 2013-2014:A4388(Perry)- Referred to Housing 2011-2012:A3053(Perry)- Referred to Housing 2009-2010:A3553(Perry)- Referred to Housing 2007-2008:A3994(Perry)- Referred to Housing 2005-2006: A3813/S3355 (Perry/Balboni) - Referred to Housing/Third Read- ing Calendar
Fiscal implications
None to the state.
Effective date
This act shall take effect on the one hundred twentieth 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.