S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10731

                          I N  A S S E M B L Y

                             April 16, 2010
                               ___________

Introduced by M. of A. LAVINE -- read once and referred to the Committee
  on Housing

AN  ACT  to  amend  the  real  property  law, in relation to cooperative
  purchase applications

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  findings.  The  legislature hereby finds and
declares that residential cooperative purchasers are  subject  to  proc-
esses  and  conditions  that  do  not  also apply to purchasers of other
single family residences. The legislature also finds  that  these  proc-
esses  and  conditions,  at  a minimum, give the appearance and have the
potential to be misused to illegally discriminate against a purchaser of
cooperative housing. Because this state  strongly  opposes  all  illegal
discrimination  and  promotes  fair  housing laws and regulations, it is
essential that the process for purchasing a cooperative dwelling include
additional safeguards to protect against  illegal  discrimination.  This
act is not intended and does not diminish the duty of cooperative boards
to uphold their established fiduciary duties. This act will significant-
ly  improve  the transparency of the cooperative purchase process to the
benefit of all parties involved in the transaction.
  S 2. The real property law is amended by adding a new  article  11  to
read as follows:
                               ARTICLE 11
                          COOPERATIVE PURCHASE
                              APPLICATIONS

SECTION 360. SHORT TITLE.
        361. DEFINITIONS.
        362. PURCHASE APPLICATIONS.
        363. ACTION UPON APPLICATIONS.
        364. PUBLIC POLICY.
  S  360.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "FAIRNESS IN COOPERATIVE HOME OWNERSHIP ACT".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11794-01-9
              

A. 10731                            2

  S 361. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHER-
WISE REQUIRES:
  1. "APPLICATION" MEANS THE STANDARDIZED FORM DEVELOPED AND UTILIZED BY
A  COOPERATIVE  FOR  THE  ACQUISITION  OF CERTIFICATES OF STOCK OR OTHER
EVIDENCE OF OWNERSHIP OF AN INTEREST IN THE COOPERATIVE.
  2. "COOPERATIVE" MEANS REAL PROPERTY WHICH IS  IMPROVED  AND  USED  OR
OCCUPIED,  OR  INTENDED TO BE USED OR OCCUPIED, AS THE HOME OR RESIDENCE
OF ONE OR MORE PERSONS, WHICH IS SUBJECT TO  ARTICLE  TWENTY-THREE-A  OF
THE  GENERAL BUSINESS LAW, AND SHALL INCLUDE ITS COOPERATIVE MANAGEMENT,
COOPERATIVE TENANTS,  COOPERATIVE  SHAREHOLDERS  OR  ANY  APPOINTEES  OR
SUCCESSORS IN INTEREST THEREOF.
  3.  "PERSON" MEANS A NATURAL PERSON, CORPORATION, PARTNERSHIP, ASSOCI-
ATE, TRUSTEE, LIMITED LIABILITY COMPANY OR OTHER LEGAL ENTITY.
  4. "PURCHASE" MEANS THE ACQUISITION OF CERTIFICATES OF STOCK OR  OTHER
EVIDENCE OF OWNERSHIP OF AN INTEREST IN A COOPERATIVE.
  5. "UNIT" MEANS A PART OF THE COOPERATIVE PROPERTY USED OR INTENDED TO
BE USED FOR THE HOME OR RESIDENCE OF ONE OR MORE PERSONS.
  S 362. PURCHASE APPLICATIONS. EVERY COOPERATIVE SHALL DEVELOP A STAND-
ARDIZED  FORM  APPLICATION  AND  SHALL  PROVIDE  SUCH APPLICATION TO ANY
PERSON SEEKING TO PURCHASE A UNIT IN SUCH COOPERATIVE. EVERY APPLICATION
SHALL SET FORTH THE REQUIREMENTS FOR PURCHASE OF A UNIT  AND  INCLUDE  A
NOTICE TO THE APPLICANT ADVISING HOW THEY MAY ACCESS INFORMATION ON FAIR
HOUSING  AND  ANTI-DISCRIMINATION LAWS. SUCH NOTICE SHALL BE PROMULGATED
BY THE DIVISION OF HUMAN RIGHTS.
  S 363. ACTION UPON APPLICATIONS. 1. WITHIN TEN DAYS OF  RECEIPT  OF  A
COMPLETED  APPLICATION, THE COOPERATIVE SHALL PROVIDE THE APPLICANT WITH
WRITTEN ACKNOWLEDGMENT OF RECEIPT OF THE APPLICATION AND, IF APPLICABLE,
WRITTEN NOTICE OF ANY WAY IN WHICH THE  APPLICATION  IS  INCOMPLETE.  AN
APPLICATION  SHALL  BE DEEMED COMPLETE UPON THE FAILURE OF A COOPERATIVE
TO TIMELY PROVIDE THE APPLICANT WITH SUCH NOTICE.
  2. WITHIN FORTY-FIVE DAYS OF RECEIPT OF AN  APPLICATION,  THE  COOPER-
ATIVE  SHALL  EITHER  REJECT  OR APPROVE THE APPLICATION AND PROVIDE THE
APPLICANT WITH WRITTEN NOTICE THEREOF.
  3. FOR EVERY APPLICATION SUBMITTED TO A COOPERATIVE, SUCH  COOPERATIVE
SHALL  BE  SUBJECT  TO THE PROVISIONS OF SUBDIVISION FIVE OF SECTION TWO
HUNDRED NINETY-SIX OF THE EXECUTIVE LAW.
  4. DEPOSIT BY A PURCHASER OF AN APPLICATION IN THE UNITED STATES  MAIL
CERTIFIED  AND  ADDRESSED TO THE REGISTERED OFFICE OF THE COOPERATIVE OR
ITS MANAGING AGENT SHALL BE DEEMED SUBMITTED AND RECEIVED BY THE COOPER-
ATIVE FIVE DAYS AFTER SUCH DEPOSIT.
  5. FAILURE BY A COOPERATIVE TO TAKE ACTION ON A COMPLETED  APPLICATION
WITHIN  FORTY-FIVE  DAYS  OF  RECEIPT  THEREOF  BY  EITHER NOTIFYING THE
PURCHASER OF ITS APPROVAL OR REJECTION SHALL BE DEEMED TO BE AN APPROVAL
OF THE APPLICATION.
  S 364. PUBLIC POLICY. EVERY AGREEMENT, NEGATIVE COVENANT,  RESTRICTIVE
COVENANT  OR  OTHER  PROVISION,  WHETHER  WRITTEN  OR  ORAL AND WHEREVER
CONTAINED, INCONSISTENT WITH THIS ARTICLE SHALL BE VOID AND  UNENFORCEA-
BLE.
  S  3.  This  act  shall take effect on the sixtieth day after it shall
have become a law and shall apply to applications submitted and received
on or after such date.