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

                                  1120

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced by M. of A. LAVINE, GIGLIO, LUPINACCI, PALUMBO -- Multi-Spon-
  sored  by  --  M. of A.  FINCH, PALMESANO -- 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02867-01-5
              

A. 1120                             2

        364. PUBLIC POLICY.
  S  360.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "FAIRNESS IN COOPERATIVE HOME OWNERSHIP ACT".
  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.