NY State Senate Bill 2013-S3152

Senate Bill S3152

2013-2014 Legislative Session

Creates the office of the cooperative and condominium ombudsman, authorizes the residential unit fee

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to finance
Jan 30, 2013	referred to finance

co-Sponsors

2013-S3152 (ACTIVE) - Details

See Assembly Version of this Bill:: A34
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 49-C §§996 - 996-i, Exec L; add §186-g, Tax L; add §81, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7958
2011-2012: S395, A6941
2015-2016: S2832, A1855
2017-2018: S5839, A11109
2019-2020: S2604, A1482
2021-2022: S494, A3157
2023-2024: S6242, A745, A6615

2013-S3152 (ACTIVE) - Summary

Creates the office of the cooperative and condominium ombudsman; authorizes the residential unit tax and establishes the office of the cooperative and condominium ombudsman fund.

2013-S3152 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3152

TITLE OF BILL:  An act to amend the executive law, in relation to creat-
ing  the  office  of the cooperative and condominium ombudsman; to amend
the tax law, in relation to authorizing the residential unit fee; and to
amend the state finance law, in relation to establishing the  office  of
the cooperative and condominium ombudsman fund

PURPOSE:  The bill creates the Office of the Cooperative and Condominium
Ombudsman  within  the  Department of Law to serve as a neutral, inform-
ative, and accessible resource available to cooperative and  condominium
residents, prospective shareholders and unit owners, boards of directors
and managers, and other affected parties.

SUMMARY OF PROVISIONS:

Section  1 of the bill would add a new article 49-C to the Executive Law
to create the Office of the Cooperative and Condominium Ombudsman within
the Department of Law. The Office would be headed by an Ombudsman who is
appointed for a fixed term by the Attorney General.  The Attorney Gener-
al would be responsible for the oversight of the Office.  The  Ombudsman
may  be  removed by the Attorney General for cause, after being given an
opportunity to be heard. The Office would work to  educate  shareholders
of  cooperatives  and  owners of condominiums, their boards of directors
and boards of managers, professionals working with and for such  boards,
property managers, and other interested parties about their legal rights

and  responsibilities  under  federal,  state  and  local laws and regu-
lations.  Other responsibilities of the office would include: to prepare
educational and reference materials, to organize  and  conduct  meetings
and public hearings, to provide mediation and other forms of alternative
dispute  resolution,  to  offer  monitors  and vote counting services to
assure fair elections for board membership, and to provide advice to the
Governor and Legislature regarding new and  existing  legislation  which
affects  cooperative shareholders or condo- minium owners. The Ombudsman
would  have  the  power  to  subpoena  and  enforce  the  attendance  of
witnesses,  administer oaths or affirmations and examine witnesses under
oath, and require the production of any books and papers deemed relevant
to any dispute rending before the office. The Secretary to the  Governor
is  to ensure that all state agencies provide the Ombudsman with assist-
ance in advancing the purposes of the Office, and  to  assure  that  the
activities  of  the  Office are fully coordinated with the activities of
state agencies providing related services.

Section 2 of the bill would add new section 186-g  to  the  Tax  Law  to
create  a  new  residential  unit  fee. Each cooperative corporation and
condominium owners association would be required to pay an annual fee of
six dollars per year for each residential unit located in a building  or
buildings  owned or operated by such corporation or association. The fee
would be paid to the Department of Taxation  and  Finance.  All  revenue
collected by the Department of Taxation and Finance would be paid to the

State comptroller to be deposited into the Office of the Cooperative and
Condominium ombudsman Fund.

Section  3  of  the bill would add a new section 81 to the State Finance
Law to establish a new Fund in the custody of the State  comptroller  to
be  known  as  the  "Office of the cooperative and Condominium Ombudsman
Fund. All monies in this fund would be  kept  separate  and  apart  from
other  monies in the custody of the State comptroller. The Fund would be
allocated and spent by the Department of Law solely for the staffing and
administration of the Office of the cooperative and Condominium  Ombuds-
man.

Section 4 of the bill provides for the effective date.

JUSTIFICATION:   The rights of condominium owners and cooperative share-
holders are derived from a complex  series  of  laws,  regulations,  and
individual  building by-laws and other corporate documents. Offerings of
condominiums and cooperatives are  regulated  by  the  Attorney  General
under  the General Business Law, a statute designed to protect potential
buyers from fraud through detailed disclosure requirements.  Once  coop-
erative  and condominium plans are declared effective, condominiums fall
under the New York State Condominium Act and cooperatives fall under the
state's Business Corporation Law - the same statute which regulates  all
the  state's  corporations. Although both of these statutes grant owners
and shareholders some rights, their primary objective is to require that
cooperatives and condominiums simply address  certain  issues  in  their
operating  documents:  for  cooperatives,  the  proprietary lease, house
rules, certificate of incorporation and by-laws  for  condominiums;  the
unit  deed  or  declaration,  house rules and by-laws of the condominium
association.

These multiple laws and regulations governing the rights of  cooperative
and   condominium  residents,  shareholders,  unit  owners,  association
members, and boards of directors are frequently  difficult  to  navigate
and  comprehend.  This  is  particularly true in the case of cooperative
buildings since they are governed by New York State Business Corporation
Law which was not designed to regulate residential real estate.  Cooper-
ative shareholders are often unaware that they do not own real property,
and  are  considered  tenants  of the corporation that owns the building
where they live.

The boards of directors in  cooperatives,  and  boards  of  managers  in
condominiums,  have a great deal of discretion over most issues involved
in the daily management and operation of their buildings.    While  many
cooperative  and  condominium  boards  act in the best interest of their
buildings, are financially prudent,  and  responsive  to  the  needs  of
shareholders  and  unit owners, significant problems arise for residents
when this is not the case. Many difficulties also emerge when boards  of
directors  and  managers  are  unable  or  unwilling  to remedy disputes
between residents which often leads to the diminution of quality of life
in the building and  significant  tension  between  neighbors.  Disputes
regarding transparency, finances, board elections, management decisions,

rules and regulations, construction, and other issues between individual
residents,  as  well  as between residents and their boards, are all too
common.

Because there is no government agency or other entity which oversees the
operation of cooperatives and condominiums, shareholders and unit owners
are left with only two options when serious problems develop:  to organ-
ize  other residents to change the board of directors or managers, or to
initiate legal action against the board or another shareholder  or  unit
owner.

Understandably,  neither  of these options is easy or appealing for most
residents. Changing the membership of the boards of directors or  manag-
ers  often  takes  an  extended period of time, and is difficult or even
impossible in buildings where the original  building  sponsor  or  other
party  controls  the majority of votes. As a result, problems in cooper-
ative and condominium buildings all too frequently  result  in  lengthy,
expensive,  and acrimonious litigation which harms all parties involved.
Such litigation diverts resources which  could  be  better  utilized  to
provide well maintained buildings and grounds for the common good of the
residents.  Litigation  between  neighbors  frequently detracts from the
quality of life in buildings, harms the sense of  community,  and  ulti-
mately  results  in  greater  expenses for everyone since boards have to
pass the costs of legal fees along to  all  residents.  In  cases  where
shareholders  and  unit owners do not have the economic resources needed
to pursue litigation, problems frequently remain unresolved for years.

Several other states, such as Florida, Nevada,  Texas,  and  New  Jersey
have created condominium Ombudsman Offices to address similar challenges
in  their  states.  New  York  is unique among the states in having both
cooperative and condominium housing. In 2008,  the  Florida  Condominium
Ombudsman's Office logged 16,000 phone calls regarding condominium owner
disputes  and  questions.  The  Nevada  Ombudsman Office also received a
large number of requests for assistance. The Ombudsman Offices in  these
states  provide  general  education to condominium owners, monitor board
elections, and  offer  alternative  dispute  resolution  processes  that
provide a fair and inexpensive means for unit owners to resolve disputes
between one another or with their condominium associations. Responses to
the  Condominium  Ombudsmen Offices in these states have been overwhelm-
ingly positive and has led both  Florida  and  New  Jersey  to  recently
expand the powers of their Offices. Additional states are in the process
of  considering  legislation  to  create their own condominium Ombudsman
Offices.

New York State has one of the largest, if not the  largest,  'number  of
cooperatives  and  condominiums  in  the  nation. In parts of the state,
cooperative shareholders and condominium owners substantially  outnumber
owners of single and two-family homes. These residents would see signif-
icant  benefits  from  the  creation of a New York state cooperative and
Condominium Ombudsman Office.

FISCAL IMPLICATIONS:  None. The Office of the Ombudsman  will  be  fully
funded by the creation of the six dollar residential unit fee.

EFFECTIVE DATE:  This act shall take effect on the one hundred eightieth
day after it becomes law.

2013-S3152 (ACTIVE) - Bill Text download pdf

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

                                  3152

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

Introduced  by  Sens.  KRUEGER,  ESPAILLAT, MONTGOMERY -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Finance

AN ACT to amend the executive law, in relation to creating the office of
  the  cooperative  and  condominium ombudsman; to amend the tax law, in
  relation to authorizing the residential unit fee;  and  to  amend  the
  state finance law, in relation to establishing the office of the coop-
  erative and condominium ombudsman fund

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

  Section 1. The executive law is amended by adding a new  article  49-C
to read as follows:
                              ARTICLE 49-C
           OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN
SECTION 996.   SHORT TITLE.
        996-A.  LEGISLATIVE DECLARATION.
        996-B. DEFINITIONS.
        996-C. OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN.
        996-D. FUNCTIONS, POWERS AND DUTIES OF THE OFFICE.
        996-E. PRINCIPAL OFFICE AND SATELLITE OFFICES.
        996-F. ASSISTANCE OF OTHER STATE AGENCIES.
        996-G. REPORTS  TO THE GOVERNOR, ATTORNEY GENERAL AND THE LEGIS-
                 LATURE.
        996-H. CONTRACT AUTHORITY.
        996-I. SEPARABILITY.
  S 996. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "COOPERATIVE AND CONDOMINIUM OMBUDSMAN ACT".
  S 996-A. LEGISLATIVE DECLARATION. THE LEGISLATURE FINDS AND DETERMINES
AS FOLLOWS:
  COOPERATIVE  AND CONDOMINIUM HOUSING CONSTITUTES A SIGNIFICANT PORTION
OF NEW YORK STATE'S RESIDENTIAL HOUSING STOCK. IT IS AND  HAS  BEEN  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03131-01-3

S. 3152                             2

PUBLIC POLICY OF THIS STATE TO ENCOURAGE SUCH FORMS OF HOME OWNERSHIP. A
WIDE  VARIETY  OF  LAWS  HAVE  BEEN  ENACTED  TO PROVIDE FAIRNESS IN THE
CONVERSION OF RENTAL PROPERTIES TO COOPERATIVE AND CONDOMINIUM OWNERSHIP
AND  IN  THE  REGULATION  AND TAXATION OF COOPERATIVES AND CONDOMINIUMS.
STATE AND LOCAL LAWS AND REGULATIONS ARE ALSO DESIGNED  TO  INSURE  THAT
THE  RESIDENTS  OF  SUCH  HOUSING  ARE  PROVIDED WITH SAFE AND HABITABLE
ACCOMMODATIONS.
  INEVITABLY, DISPUTES HAVE ARISEN  AMONG  COOPERATIVE  AND  CONDOMINIUM
SPONSORS  AND  DEVELOPERS, COOPERATIVE SHAREHOLDERS AND CONDOMINIUM UNIT
OWNERS, PROSPECTIVE SHAREHOLDERS AND UNIT OWNERS,  BOARDS  OF  DIRECTORS
AND BOARDS OF MANAGERS. SUCH DISPUTES OFTEN RESULT IN LENGTHY AND COSTLY
LITIGATION  AND  UNCERTAINTY AS TO THE RIGHTS OF THE PARTIES PENDING THE
OUTCOME OF LITIGATION. SUCH LITIGATION DIVERTS RESOURCES THAT  COULD  BE
BETTER  UTILIZED TO PROVIDE AFFORDABLE AND WELL-MAINTAINED BUILDINGS AND
GROUNDS FOR THE COMMON GOOD OF THE OWNERS.
  THIS ARTICLE IS NECESSARY TO PROVIDE A NEUTRAL, INFORMATIVE AND ACCES-
SIBLE RESOURCE AVAILABLE TO ALL PARTIES INVOLVED IN RESIDENTIAL  COOPER-
ATIVE  AND CONDOMINIUM OWNERSHIP AND GOVERNANCE. THE OMBUDSMAN APPOINTED
PURSUANT TO THIS ARTICLE WILL CONDUCT OUTREACH PROGRAMS TO EDUCATE  UNIT
OWNERS  AND BOARD MEMBERS AS TO THEIR LEGAL RIGHTS AND RESPONSIBILITIES.
THE  OMBUDSMAN  WILL  ENCOURAGE  ALTERNATIVE  DISPUTE  RESOLUTION   WHEN
DISPUTES  DO  ARISE.  THE OMBUDSMAN WILL BE AVAILABLE TO PROVIDE DISPUTE
RESOLUTION SERVICES ON CONSENT OF THE PARTIES. THE OMBUDSMAN  WILL  ALSO
PROVIDE  MONITORING  AND  SUPERVISION  OF  COOPERATIVE  AND  CONDOMINIUM
ELECTIONS.
  S 996-B. DEFINITIONS. 1. "COOPERATIVE" MEANS A  CORPORATION  ORGANIZED
AND  OPERATING  PURSUANT  TO THE GENERAL BUSINESS LAW OR THE COOPERATIVE
CORPORATIONS LAW FOR THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL  HOUS-
ING TO ITS SHAREHOLDERS.
  2.  "CONDOMINIUM"  MEANS  A  HOMEOWNERS ASSOCIATION OR ANY ASSOCIATION
ORGANIZED AND OPERATING PURSUANT TO ARTICLE NINE-B OF THE REAL  PROPERTY
LAW FOR THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL HOUSING TO ITS UNIT
OWNERS.
  3.  "OFFICE"  MEANS  THE  OFFICE  OF  THE  COOPERATIVE AND CONDOMINIUM
OMBUDSMAN CREATED BY THIS ARTICLE.
  4. "OMBUDSMAN" MEANS THE CHIEF ADMINISTRATIVE OFFICER OF THE OFFICE OF
THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN.
  5. "STATE AGENCY" MEANS ANY  DEPARTMENT,  BOARD,  BUREAU,  COMMISSION,
DIVISION,  OFFICE,  COUNCIL  OR AGENCY OF THE STATE, OR A PUBLIC BENEFIT
CORPORATION OR AUTHORITY AUTHORIZED BY THE LAWS OF THE STATE.
  6. "LOCAL AGENCY" MEANS ANY  DEPARTMENT,  BOARD,  BUREAU,  COMMISSION,
DIVISION, OFFICE, COUNCIL, OFFICER OR AGENCY OF A CITY, TOWN OR VILLAGE.
  S  996-C.  OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN. 1. THE
OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN  IS  HEREBY  CREATED
WITHIN  THE DEPARTMENT OF LAW TO HAVE AND EXERCISE THE FUNCTIONS, POWERS
AND DUTIES PROVIDED BY THE PROVISIONS OF  THIS  ARTICLE  AND  ANY  OTHER
PROVISION  OF  LAW.  THE ATTORNEY GENERAL SHALL BE RESPONSIBLE FOR OVER-
SIGHT OF THE OFFICE.
  2. THE HEAD OF THE OFFICE SHALL BE  THE  COOPERATIVE  AND  CONDOMINIUM
OMBUDSMAN  WHO SHALL BE APPOINTED BY THE ATTORNEY GENERAL. THE OMBUDSMAN
SHALL HOLD OFFICE UNTIL THE END OF THE TERM OF THE ATTORNEY  GENERAL  BY
WHOM HE OR SHE WAS APPOINTED AND UNTIL HIS OR HER SUCCESSOR IS APPOINTED
AND  HAS QUALIFIED. THE OMBUDSMAN MAY BE REMOVED BY THE ATTORNEY GENERAL
FOR CAUSE, AFTER BEING GIVEN AN OPPORTUNITY TO BE HEARD. A VACANCY SHALL
BE FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT.

S. 3152                             3

  3. THE OMBUDSMAN SHALL RECEIVE AN ANNUAL SALARY TO  BE  FIXED  BY  THE
ATTORNEY  GENERAL WITHIN THE AMOUNT MADE AVAILABLE THEREFOR BY AN APPRO-
PRIATION AND SHALL BE ALLOWED HIS OR HER ACTUAL AND  NECESSARY  EXPENSES
IN THE PERFORMANCE OF HIS OR HER DUTIES. THE OMBUDSMAN'S SALARY SHALL BE
NO  LESS  THAN  THE SALARIES OF CERTAIN STATE OFFICERS HOLDING THE POSI-
TIONS INDICATED IN PARAGRAPH (A)  OF  SUBDIVISION  ONE  OF  SECTION  ONE
HUNDRED SIXTY-NINE OF THIS CHAPTER.
  4.  THE  OMBUDSMAN  SHALL  BE AN ATTORNEY WITH EXTENSIVE EXPERIENCE IN
REAL ESTATE, COOPERATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND  ALTER-
NATIVE DISPUTE RESOLUTION.
  5.  THE OMBUDSMAN SHALL DIRECT THE WORK OF THE OFFICE AND SHALL BE THE
CHIEF EXECUTIVE OFFICER OF THE OFFICE. THE OMBUDSMAN  MAY  APPOINT  SUCH
OFFICERS  AND EMPLOYEES AS HE OR SHE MAY DEEM NECESSARY, PRESCRIBE THEIR
POWERS AND DUTIES, FIX THEIR COMPENSATION AND PROVIDE FOR THE REIMBURSE-
MENT OF THEIR EXPENSES, ALL WITHIN AMOUNTS MADE  AVAILABLE  THEREFOR  BY
APPROPRIATION.  SUCH  OFFICERS AND EMPLOYEES SHALL INCLUDE ATTORNEYS AND
OTHER PROFESSIONALS WITH EXTENSIVE EXPERIENCE IN  REAL  ESTATE,  COOPER-
ATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND ALTERNATIVE DISPUTE RESOL-
UTION.
  6. THE OMBUDSMAN AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL ADHERE
TO  A  CODE OF ETHICS IN ORDER TO INSPIRE PUBLIC CONFIDENCE AND TRUST IN
THE FAIRNESS  AND  IMPARTIALITY  OF  THE  OFFICE.  THE  OMBUDSMAN  SHALL
PRESCRIBE  SUCH CODE OF ETHICS. SUCH CODE SHALL REQUIRE THAT THE OMBUDS-
MAN AND OFFICERS AND EMPLOYEES OF THE OFFICE RESPECT AND COMPLY WITH THE
LAW; THAT THEY NOT USE OR ATTEMPT TO USE THEIR POSITIONS TO SECURE PRIV-
ILEGES OR EXEMPTIONS FOR THEMSELVES OR OTHERS; THAT  THEY  NOT  SOLICIT,
ACCEPT OR AGREE TO ACCEPT ANY GIFTS OR GRATUITIES FROM PERSONS HAVING OR
LIKELY  TO  HAVE ANY OFFICIAL TRANSACTION WITH THE OFFICE; THAT THEY NOT
REQUEST OR ACCEPT ANY PAYMENT IN ADDITION TO THEIR REGULAR  COMPENSATION
FOR  ASSISTANCE  GIVEN  AS  PART OF THEIR OFFICIAL DUTIES; AND THAT THEY
SHALL NOT PERFORM ANY FUNCTION IN A MANNER THAT  IMPROPERLY  FAVORS  ANY
PERSON OR PARTY.
  7.  THE  OMBUDSMAN  AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL NOT
SERVE AS OFFICERS OR EMPLOYEES OF A POLITICAL PARTY OR A CLUB OR  ORGAN-
IZATION  RELATED  TO  A POLITICAL PARTY, RECEIVE REMUNERATION FOR ACTIV-
ITIES ON BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE OR PARTY POSITION  OR
ENGAGE  IN SOLICITING VOTES OR OTHER ACTIVITIES ON BEHALF OF A CANDIDATE
FOR PUBLIC OFFICE OR PARTY POSITION.
  8. THE SECRETARY TO THE GOVERNOR SHALL ASSURE THAT ALL STATE  AGENCIES
PROVIDE  THE  OMBUDSMAN WITH ASSISTANCE IN ADVANCING THE PURPOSES OF THE
OFFICE AND TO ASSURE THAT THE ACTIVITIES OF THE OFFICE ARE FULLY COORDI-
NATED WITH THE ACTIVITIES OF STATE AGENCIES PROVIDING RELATED SERVICES.
  S 996-D. FUNCTIONS, POWERS AND DUTIES OF THE OFFICE. THE OFFICE  SHALL
HAVE THE FOLLOWING FUNCTIONS, POWERS AND DUTIES:
  1.  TO EDUCATE AND INFORM SHAREHOLDERS OF COOPERATIVES AND UNIT OWNERS
OF CONDOMINIUMS, THEIR BOARDS OF DIRECTORS AND BOARDS OF MANAGERS, PROP-
ERTY MANAGERS, PROFESSIONALS WORKING WITH AND FOR SUCH BOARDS AND  OTHER
INTERESTED  PARTIES OF THEIR LEGAL RIGHTS AND RESPONSIBILITIES UNDER THE
FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS APPLICABLE TO  COOPERATIVE
AND  CONDOMINIUM  HOUSING IN THE STATE OF NEW YORK AND UNDER THE COOPER-
ATIVE AND CONDOMINIUM DOCUMENTS GOVERNING THE RESPECTIVE PROPERTIES.
  2. TO COORDINATE AND ASSIST IN  THE  PREPARATION  AND  PUBLICATION  OF
EDUCATIONAL  AND  REFERENCE MATERIALS ABOUT RESIDENTIAL COOPERATIVES AND
CONDOMINIUMS, TO MAKE SUCH RESOURCES KNOWN AND AVAILABLE TO  THE  WIDEST
POSSIBLE AUDIENCE.

S. 3152                             4

  3.  TO  ORGANIZE  AND CONDUCT MEETINGS, WORKSHOPS, CONFERENCES, PUBLIC
HEARINGS AND FORUMS AND TO UTILIZE ALL FORMS OF COMMUNICATIONS MEDIA  TO
DISSEMINATE  ACCURATE  AND  TIMELY  INFORMATION  OF  INTEREST TO PERSONS
RESIDING IN, OWNING AND MANAGING COOPERATIVE AND CONDOMINIUM HOUSING.
  4.  TO  PROVIDE  MEETINGS,  MEDIATION,  ARBITRATION AND OTHER FORMS OF
ALTERNATIVE DISPUTE RESOLUTION SERVICES TO COOPERATIVE  AND  CONDOMINIUM
SPONSORS  AND  DEVELOPERS, COOPERATIVE SHAREHOLDERS, CONDOMINIUM OWNERS,
THEIR BOARDS OF DIRECTORS AND  MANAGERS,  PROSPECTIVE  SHAREHOLDERS  AND
UNIT  OWNERS  AND  OTHER PARTIES SO AS TO AVOID COSTLY AND LENGTHY LITI-
GATION AND REDUCE EXPENSES FOR THOSE INVOLVED IN DISPUTES.
  5. TO SUBPOENA AND ENFORCE THE  ATTENDANCE  OF  WITNESSES,  ADMINISTER
OATHS  OR  AFFIRMATIONS AND EXAMINE WITNESSES UNDER OATH AND REQUIRE THE
PRODUCTION OF ANY BOOKS AND PAPERS DEEMED RELEVANT OR  MATERIAL  TO  THE
RESOLUTION OF ANY DISPUTE PENDING BEFORE THE OFFICE.
  6.  TO  ENGAGE  WITH THE HOUSING COURTS, OTHER TRIAL COURTS, STATE AND
LOCAL AGENCIES AND WITH ALTERNATIVE DISPUTE  RESOLUTION  PROGRAMS  MAIN-
TAINED  BY  THE  OFFICE  OF  COURT  ADMINISTRATION  IN  ORDER TO PROVIDE
SPECIALIZED EXPERTISE IN THE RESOLUTION OF COOPERATIVE  AND  CONDOMINIUM
DISPUTES AS AN ALTERNATIVE TO LITIGATION.
  7.  TO OFFER PROCEDURES, MONITORS AND VOTE COUNTING SERVICES TO ASSURE
FAIR ELECTIONS FOR MEMBERS OF COOPERATIVE BOARDS OF DIRECTORS AND CONDO-
MINIUM BOARDS OF MANAGERS.  FIFTEEN PERCENT OF THE TOTAL  VOTING  INTER-
ESTS  IN  A  COOPERATIVE OR CONDOMINIUM OR SHAREHOLDERS OR OWNERS OF SIX
RESIDENTIAL UNITS, WHICHEVER IS GREATER,  MAY  PETITION  THE  OFFICE  TO
ATTEND AND CONDUCT AN ELECTION OF DIRECTORS OR MANAGERS. ALL COSTS ASSO-
CIATED WITH THE ELECTION MONITORING PROCESS SHALL BE PAID BY THE COOPER-
ATIVE OR CONDOMINIUM.
  8.  TO REFER ANY COMPLAINT RECEIVED TO THE APPROPRIATE LAW ENFORCEMENT
AGENCY FOR PROSECUTION, IF DEEMED APPROPRIATE BY THE OFFICE.
  9. TO PERFORM ANY OTHER FUNCTIONS THAT ARE NECESSARY OR APPROPRIATE TO
FULFILL THE DUTIES AND RESPONSIBILITIES OF THE OFFICE.
  S 996-E. PRINCIPAL OFFICE AND  SATELLITE  OFFICES.  THE  OFFICE  SHALL
MAINTAIN  ITS  PRINCIPAL  OFFICE  IN THE CITY OF NEW YORK AND SHALL HAVE
SATELLITE OFFICES IN OTHER LOCATIONS WITHIN THE STATE OF NEW YORK  WHERE
THERE ARE SIGNIFICANT CONCENTRATIONS OF COOPERATIVE OR CONDOMINIUM HOUS-
ING.
  S  996-F.  ASSISTANCE  OF  OTHER  STATE  AGENCIES.  TO  EFFECTUATE THE
PURPOSES OF THIS ARTICLE, THE OMBUDSMAN MAY REQUEST AND SHALL  BE  ENTI-
TLED  TO  RECEIVE  FROM ANY STATE AGENCY, AND THE SAME ARE AUTHORIZED TO
PROVIDE, SUCH ASSISTANCE, SERVICES, FACILITIES, AND DATA AS WILL  ENABLE
THE  OFFICE  TO  CARRY  OUT  ITS  FUNCTIONS, POWERS AND DUTIES, AND SUCH
TEMPORARILY OR PERMANENTLY ASSIGNED PERSONNEL AS  THE  DIRECTOR  OF  THE
BUDGET MAY APPROVE.
  S  996-G.  REPORTS  TO THE GOVERNOR, ATTORNEY GENERAL AND THE LEGISLA-
TURE. THE OFFICE SHALL MAKE AN ANNUAL  REPORT,  TO  BE  RECEIVED  ON  OR
BEFORE JANUARY FIRST, TO THE GOVERNOR, ATTORNEY GENERAL AND THE LEGISLA-
TURE CONCERNING THE ACTIVITIES UNDERTAKEN BY THE OFFICE, RECOMMENDATIONS
FOR  LEGISLATIVE PROPOSALS, DATA CONCERNING PROGRAM ACTIVITIES AND OTHER
PERTINENT INFORMATION AS MAY BE REQUIRED.
  S 996-H. CONTRACT AUTHORITY. THE OFFICE IS HEREBY EMPOWERED  TO  ENTER
INTO  ANY AGREEMENT OR CONTRACT WITH ANY STATE OR LOCAL AGENCY NECESSARY
OR CONVENIENT TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  S 996-I. SEPARABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR
PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO

S. 3152                             5

THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
RENDERED.
  S  2.  The tax law is amended by adding a new section 186-g to read as
follows:
  S 186-G. RESIDENTIAL UNIT FEE. A COOPERATIVE HOUSING CORPORATION OR  A
HOMEOWNERS ASSOCIATION, AS SUCH TERMS ARE DEFINED IN SECTION TWO HUNDRED
TEN OF THIS CHAPTER, SHALL PAY AN ANNUAL FEE OF SIX DOLLARS PER YEAR FOR
EACH  RESIDENTIAL UNIT LOCATED IN A BUILDING OR BUILDINGS OWNED OR OPER-
ATED BY SUCH CORPORATION OR ASSOCIATION. SUCH FEE SHALL  BE  PAYABLE  TO
THE  DEPARTMENT.  ALL  REVENUE  FROM  THE  FEE  IMPOSED PURSUANT TO THIS
SECTION SHALL BE PAID BY THE DEPARTMENT TO THE STATE COMPTROLLER  TO  BE
DEPOSITED TO AND CREDITED TO THE OFFICE OF THE COOPERATIVE AND CONDOMIN-
IUM  OMBUDSMAN  FUND,  ESTABLISHED PURSUANT TO SECTION EIGHTY-ONE OF THE
STATE FINANCE LAW.
  S 3. The state finance law is amended by adding a new  section  81  to
read as follows:
  S  81.  OFFICE  OF  THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE  STATE  COMPTROLLER  A
SPECIAL FUND TO BE KNOWN AS THE "OFFICE OF THE COOPERATIVE AND CONDOMIN-
IUM OMBUDSMAN FUND".
  2.  THE OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN FUND SHALL
CONSIST OF MONIES APPROPRIATED THERETO, FUNDS TRANSFERRED FROM ANY OTHER
FUND OR SOURCES, AND MONIES DEPOSITED THEREIN PURSUANT  TO  SECTION  ONE
HUNDRED EIGHTY-SIX-G OF THE TAX LAW.
  3. THE MONIES IN THE OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDS-
MAN  FUND  SHALL  BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH
ANY OTHER MONIES IN THE CUSTODY OF THE STATE  COMPTROLLER.  SUCH  MONIES
SHALL  BE  ALLOCATED TO AND EXPENDED BY THE DEPARTMENT OF LAW SOLELY FOR
THE STAFFING AND ADMINISTRATION OF THE OFFICE  OF  THE  COOPERATIVE  AND
CONDOMINIUM OMBUDSMAN OF SUCH DEPARTMENT.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S3152

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Liz Krueger