What's happening
This bill requires condos and co-ops to use GAAP for financial statements, mandates annual audits for larger buildings, and grants enforcement authority to the attorney general.
Why it matters
Standardizing financial transparency. By mandating the use of GAAP (or equivalent standards) for condos and co-ops, the bill aims to ensure financial statements are prepared consistently and transparently, allowing owners, buyers, and assessors to more easily compare and understand the financial health of different buildings.
Accrual accounting requirement. Requiring the accrual basis of accounting (rather than cash basis) for annual statements means expenses and revenues must be recognized when incurred, not when paid, providing a more accurate picture of a building's ongoing obligations and financial position.
Annual audit for larger communities. The audit requirement for properties with over ten units ensures an independent review of financial statements, potentially uncovering mismanagement or financial irregularities, which protects both current and prospective owners.
State-level enforcement. Granting the attorney general enforcement authority adds a layer of accountability, signaling that compliance is mandatory and subject to oversight, which could deter fraud or negligent financial practices within housing boards.
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Who cares
Headline styles
Audit Condo and Co-op Finances
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
1524
2025-2026 Regular Sessions
IN ASSEMBLY
January 10, 2025
Introduced by M. of A. 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.
LBD04440-01-5
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.