S T A T E   O F   N E W   Y O R K
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                                  1287

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of A. DINOWITZ, V. LOPEZ, COLTON, KAVANAGH -- Multi-
  Sponsored by -- M. of A.   BRENNAN, CLARK,  FARRELL,  GLICK,  PHEFFER,
  P. RIVERA,  WEISENBERG  --  read once and referred to the Committee on
  Housing

AN ACT to amend the general business law, in relation to the  rights  of
  cooperative  and  condominium  sponsors  and  purchasers regarding the
  rental of vacant dwelling units

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

  Section  1. Section 352-eeee of the general business law is amended by
adding a new subdivision 8 to read as follows:
  8. (A) WHENEVER ANY UNSOLD DWELLING UNIT IN A RESIDENTIAL  COOPERATIVE
OR  CONDOMINIUM  BUILDING  BECOMES VACANT, SUCH DWELLING UNIT MAY NOT BE
RENTED AND MUST BE OFFERED FOR SALE UNLESS EITHER:
  (I) THE ORIGINAL OFFERING PLAN WHICH WAS ACCEPTED FOR  FILING  BY  THE
ATTORNEY  GENERAL EXPRESSLY DISCLOSED THE POSSIBILITY THAT UNSOLD DWELL-
ING UNITS MIGHT NOT BE SOLD WHEN THEY BECOME VACANT,  AND  THE  OFFERING
PLAN  CONTAINED A WARNING TO PURCHASERS OF THE RISK ENTAILED IN PURCHAS-
ING A UNIT IN A BUILDING WHERE UNSOLD DWELLING UNITS ARE NOT OFFERED FOR
SALE; OR
  (II) THE SPONSOR OR OTHER OWNER OF  THE  UNSOLD  DWELLING  UNIT  FIRST
OBTAINS  THE  CONSENT  OF A MAJORITY OF THOSE MEMBERS OF THE COOPERATIVE
CORPORATION BOARD OF  DIRECTORS  OR  CONDOMINIUM  ASSOCIATION  BOARD  OF
MANAGERS  WHO  ARE  NOT  AFFILIATED WITH, EMPLOYED BY, OR RELATED TO THE
SPONSOR OR OWNER OF THE UNSOLD DWELLING UNIT OR UNITS TO SAID RENTAL.
  (B) IN THE EVENT THAT NEITHER OF THE CONDITIONS SET FORTH IN  SUBPARA-
GRAPHS  (I)  AND  (II) OF PARAGRAPH (A) OF THIS SUBDIVISION ARE MET, AND
SUCH DWELLING UNIT REMAINS UNSOLD AND UNOCCUPIED FOR  A  PERIOD  OF  ONE
YEAR  FROM  THE  DATE  IT  BECOMES VACANT, THEN THE DWELLING UNIT MAY BE
RENTED FOR A PERIOD OF UP TO ONE YEAR. AT THE  CONCLUSION  OF  SUCH  ONE

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

                                                           LBD04383-01-1

A. 1287                             2

YEAR  RENTAL PERIOD, THE UNSOLD DWELLING UNIT SHALL ONCE AGAIN BE DEEMED
TO HAVE BECOME VACANT, AND THE PROVISIONS OF THIS SUBDIVISION  SHALL  BE
APPLIED ONCE AGAIN. THE PROHIBITION AGAINST THE SALE OR RENTAL OF UNSOLD
DWELLING UNITS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVI-
SION SHALL CONTINUE UNTIL THE APARTMENT IS SOLD.
  (C)  IF ANY UNSOLD DWELLING UNIT WHICH BECOMES VACANT IS RENTED PURSU-
ANT TO THE PROVISIONS OF THIS SUBDIVISION, THEN THE OWNER  OF  THE  UNIT
BEING  RENTED SHALL IMMEDIATELY SEND A COPY OF THE FULLY EXECUTED LEASE,
AS WELL AS SUCH OTHER INFORMATION AS MAY BE NECESSARY SO THAT  BOTH  THE
OWNER OF THE UNIT AND THE TENANT CAN BE REACHED IN THE EVENT OF AN EMER-
GENCY,  TO  THE BOARD OF DIRECTORS OF THE COOPERATIVE CORPORATION OR THE
BOARD OF MANAGERS OF THE CONDOMINIUM ASSOCIATION.
  (D) THIS SUBDIVISION SHALL NOT APPLY TO ANY SHAREHOLDER OR UNIT  OWNER
WHO  ESTABLISHES  TO  THE REASONABLE SATISFACTION OF A MAJORITY OF THOSE
MEMBERS OF THE COOPERATIVE CORPORATION BOARD OF DIRECTORS OR CONDOMINIUM
ASSOCIATION BOARD OF MANAGERS WHO ARE NOT AFFILIATED WITH, EMPLOYED  BY,
OR RELATED TO, THE SPONSOR OR OWNER OF THE UNSOLD DWELLING UNIT OR UNITS
THAT  HE OR SHE PURCHASED A DWELLING UNIT FOR PERSONAL USE OR USE BY HIS
OR HER IMMEDIATE FAMILY MEMBER, BUT WHOSE IMMEDIATE FAMILY MEMBER IS NOT
PRESENTLY OCCUPYING THE DWELLING UNIT, NOR SHALL THIS SUBDIVISION  APPLY
TO  DWELLING  UNITS  OWNED  BY  A COOPERATIVE CORPORATION OR CONDOMINIUM
ASSOCIATION OR ENTITIES FORMED BY EITHER OF THEM TO HOLD UNITS  OBTAINED
FROM  A SPONSOR. IMMEDIATE FAMILY MEMBER AS USED IN THIS PARAGRAPH SHALL
BE  DEFINED  AS  THE  SHAREHOLDER'S  SPOUSE,  CHILDREN,   GRANDCHILDREN,
PARENTS, GRANDPARENTS, BROTHERS OR SISTERS.
  (E) AS USED IN THIS SUBDIVISION, THE TERM "UNSOLD DWELLING UNIT" SHALL
MEAN  AN  APARTMENT  IN A COOPERATIVE HOUSING CORPORATION OR A UNIT IN A
CONDOMINIUM THAT WAS NOT SOLD FOR OCCUPANCY BY THE PURCHASER  AND  SHALL
INCLUDE, BUT NOT BE LIMITED TO, COOPERATIVE SHARES AND CONDOMINIUM UNITS
DESIGNATED  BY THE SPONSOR OR HOLDER OF UNSOLD SHARES AS "UNSOLD SHARES"
OR "UNSOLD UNITS".
  S 2. This act shall take effect immediately and  shall  apply  to  all
dwelling  units  in  cooperative  and  condominium buildings that become
vacant on or after such effective  date;  provided,  however,  that  the
amendments  to  section  352-eeee  of  the  general business law made by
section one of this act shall not affect the expiration of such  section
and shall be deemed to expire therewith.