S T A T E   O F   N E W   Y O R K
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                                  3513

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2015
                               ___________

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

AN ACT to amend the general business law, in relation to enactment of  a
  residential condominium owner's bill of rights

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

  Section 1. The general business law is amended by adding a new section
352-eeeee to read as follows:
  S 352-EEEEE. RESIDENTIAL  CONDOMINIUM  OWNER'S  BILL  OF  RIGHTS.  THE
ORGANIZATIONAL  AND OPERATING DOCUMENTS OF EVERY RESIDENTIAL CONDOMINIUM
ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE STATE SHALL GUARAN-
TEE THE FOLLOWING TO EACH UNIT OWNER:
  1. THAT (A) ALL APPLICATIONS BY UNIT OWNERS IN CONNECTION WITH MATTERS
WHICH REQUIRE APPROVAL OF THE BOARD OF MANAGERS AND (B) ALL REQUESTS FOR
DETERMINATIONS BY THE BOARD OF MANAGERS INCLUDING  BUT  NOT  LIMITED  TO
REQUESTS  FOR  THE  RESOLUTION OF DISPUTES BETWEEN OR AMONG UNIT OWNERS,
DISPUTES BETWEEN UNIT OWNERS AND THE  CONDOMINIUM  ASSOCIATION  SUCH  AS
DISPUTES  CONCERNING  RESPONSIBILITY FOR REPAIRS SHALL BE PROCESSED IN A
REASONABLY EXPEDITIOUS MANNER PURSUANT TO UNIFORM PROCEDURES AND TIMETA-
BLES ADOPTED IN WRITING.  THE BOARD'S DECISION SHALL BE IN  WRITING  AND
SHALL  SET  FORTH  THE  REASONS THEREFOR, EXCEPT THAT NO REASON SHALL BE
REQUIRED WHEN APPROVAL IS GRANTED.
  2.  THAT THE FINAL RESULTS OF ELECTIONS  FOR  THE  BOARD  OF  MANAGERS
INCLUDING A TALLY OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE POST-
ED  WITHIN  ONE BUSINESS DAY FOLLOWING THE AVAILABILITY OF SUCH INFORMA-
TION IN A PROMINENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING
COMPRISING THE CONDOMINIUM.
  3. THAT THE BOARD OF MANAGERS SHALL CALL A MEETING TO FILL ANY  VACAN-
CIES  WHICH  OCCUR  ON SUCH BOARD WITHIN SIXTY DAYS OF THE OCCURRENCE OF
SUCH VACANCY IF THE VACANCY OCCURS MORE THAN SIX  MONTHS  PRIOR  TO  THE
ANNUAL MEETING OF UNIT OWNERS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05052-01-5
              

A. 3513                             2

  4.  THAT ANY MEMBER OF A BOARD OF MANAGERS WHO IS ELECTED WHILE A UNIT
OWNER IN THE CONDOMINIUM, WHO SELLS  HIS  OR  HER  APARTMENT,  AND  WHO,
SUBSEQUENT  TO  SUCH SALE SHALL NO LONGER BE A UNIT OWNER IN SUCH CONDO-
MINIUM, SHALL RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING  DATE  OF
SUCH SALE.
  5.  THAT  COMPLETE  AND  ACCURATE  FINANCIAL  STATEMENTS AND ANY OTHER
STATEMENTS ORDINARILY PROVIDED TO UNIT OWNERS BE PROVIDED  IN  A  TIMELY
FASHION  PURSUANT  TO ESTABLISHED TIMETABLES AT LEAST ONCE ANNUALLY. FOR
THE PURPOSES OF THIS SUBDIVISION "FINANCIAL  STATEMENTS"  SHALL  INCLUDE
THE  BALANCE SHEETS AND STATEMENTS OF INCOME AND EXPENSE FOR EACH OF THE
THREE MOST CURRENT FISCAL YEARS.  ATTACHED TO SAID FINANCIAL  STATEMENTS
SHALL  BE  A  STATEMENT  WHICH DISCLOSES (A) ANY CONTROLLING INTEREST OR
EMPLOYEE OR AGENCY RELATIONSHIP WHICH ANY BOARD MEMBER OR OFFICER OF THE
CONDOMINIUM ASSOCIATION OR THE SPOUSE OF SUCH PERSON HAS IN OR WITH  ANY
SUPPLIER  OF  SERVICES  OR  MATERIALS  TO  SAID  CONDOMINIUM AND (B) ANY
CONSIDERATION THE VALUE OF WHICH EXCEEDS ONE HUNDRED DOLLARS  WHICH  ANY
SUCH  BOARD MEMBER OR OFFICER OR THE SPOUSE OF SUCH PERSON RECEIVES FROM
SUCH SUPPLIER.
  6. THAT THE FOLLOWING DOCUMENTS BE MADE AVAILABLE  FOR  INSPECTION  OR
COPYING BY UNIT OWNERS DURING REGULAR BUSINESS HOURS ON NO MORE THAN TEN
DAYS WRITTEN NOTICE TO THE BOARD OF MANAGERS:
  (A) APPROVED MINUTES OF BOARD OF MANAGERS MEETINGS, PROVIDED THAT SUCH
BOARD SHALL HAVE THIRTY DAYS FROM THE DATES OF THE MEETINGS AT WHICH THE
MINUTES  ARE  APPROVED TO PREPARE SUCH MINUTES AND PROVIDED FURTHER THAT
THE BOARD MAY EXCLUDE MATTERS WHICH IT DEEMS CONFIDENTIAL OR WHICH  WERE
DISCUSSED IN EXECUTIVE SESSION;
  (B)  DETAILED,  ACCURATE  RECORDS,  IN  CHRONOLOGICAL  ORDER,  OF  THE
RECEIPTS AND EXPENDITURES ARISING FROM THE OPERATION OF THE PROPERTY;
  (C) BANK ACCOUNT AND FINANCIAL INVESTMENT STATEMENTS;
  (D) ALL PROPOSALS RECEIVED IN  RESPONSE  TO  A  REQUEST  FOR  BIDS  TO
PROVIDE  GOODS  OR  SERVICES  TO  THE  CONDOMINIUM  THE COST OF WHICH IS
REASONABLY EXPECTED TO EXCEED FIVE THOUSAND DOLLARS  IN  ANY  ONE  YEAR.
SUCH DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF RECEIPT UNLESS
THE  BOARD  CHOOSES  TO CONDUCT CLOSED COMPETITIVE BIDDING IN WHICH CASE
THE DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF  THE  SELECTION
OF THE SUCCESSFUL BID;
  (E)  REPORTS OF ACCOUNTANTS, CONSULTANTS AND EXPERTS RETAINED OR HIRED
TO PERFORM SERVICES FOR OR ON BEHALF OF THE ASSOCIATION INCLUDING FINAN-
CIAL STATEMENTS AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION PROVIDED,
HOWEVER, THAT SUCH REPORTS MAY  BE  WITHHELD  WHEN  A  MAJORITY  OF  THE
MEMBERS  OF  THE  BOARD HAS VOTED TO WITHHOLD SUCH INFORMATION. WHEN THE
MATTER CONCERNS ALLEGED CONFLICT OF INTEREST  OR  MALFEASANCE  INVOLVING
BOARD MEMBERS THE REPORT MAY BE WITHHELD ONLY UPON A VOTE OF THE MAJORI-
TY  OF  DISINTERESTED BOARD MEMBERS. IF ALL BOARD MEMBERS ARE INTERESTED
PARTIES THE REPORT MAY NOT BE WITHHELD;
  (F) REPORTS BY MUNICIPAL AND/OR COUNTY INSPECTORS  CONCERNING  COMPLI-
ANCE WITH HEALTH, BUILDING AND HOUSING CODES AND REGULATIONS; AND
  (G)  THE  RECORDS  OF DECISIONS BY THE BOARD OF MANAGERS TO EXCLUDE OR
WITHDRAW MATERIALS PURSUANT TO PARAGRAPH (A) OR (E) OF THIS SUBDIVISION.
SUCH RECORDS SHALL BE PREPARED IN  EVERY  INSTANCE  THAT  MATERIALS  ARE
WITHHELD OR EXCLUDED. THE RECORD SHALL INCLUDE THE GENERAL NATURE OF THE
MATERIALS AND THE REASON FOR WITHHOLDING OR EXCLUDING SAME.
  7.  THAT  IN  ADDITION TO ANY OTHER NOTICE REQUIRED BY THE CONDOMINIUM
ASSOCIATION'S ORGANIZATIONAL OR OPERATING DOCUMENTS, NOTICE OF ALL BOARD
AND UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMINENT PLACE  ACCESSIBLE
TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE CONDOMINIUM.

A. 3513                             3

  8.  (A)  THAT  THE  BOARD OF MANAGERS SHALL NOT IMPOSE SPECIAL ASSESS-
MENTS, OR ENTER INTO CONTRACTS FOR EXTRAORDINARY EXPENSES  THE  COST  OF
WHICH  EXCEEDS  LIMITS  ESTABLISHED  PURSUANT  TO  PARAGRAPH (B) OF THIS
SUBDIVISION BEYOND CUSTOMARY OPERATING  OR  MAINTENANCE  COSTS,  WITHOUT
APPROVAL  BY A VOTE OF THE UNIT OWNERS. A VOTE OF THE UNIT OWNERS MAY BE
WAIVED BY THE BOARD IN THE CASE OF (I)  AN  EMERGENCY  EVIDENCED  BY  AN
APPROVED  RESOLUTION  OF THE BOARD, OR (II) A REQUIRED REFINANCING OF AN
EXISTING MORTGAGE.
  (B) UNLESS THE BYLAWS REQUIRE A  UNIT  OWNER  VOTE  TO  ESTABLISH  THE
LIMITS  REFERRED  TO  IN  PARAGRAPH  (A) OF THIS SUBDIVISION, THE LIMITS
SHALL BE ESTABLISHED BY THE BOARD OF MANAGERS AS FOLLOWS. NO  LESS  THAN
ONCE  IN  EVERY FIVE YEARS THE BOARD SHALL PROPOSE LIMITS WHICH SHALL BE
INCLUDED IN THE NOTICE OF THE ANNUAL OR ANY OTHER MEETING  OF  THE  UNIT
OWNERS.  AN  OPPORTUNITY FOR UNIT OWNERS TO COMMENT ON SUCH PROPOSAL AND
TO OFFER LOWER LIMITS SHALL BE INCLUDED IN THE AGENDA FOR SUCH  MEETING.
AT  THE  CONCLUSION  OF  THE  COMMENT PERIOD THE BOARD SHALL, BY AN OPEN
VOTE, ADOPT LIMITS NOT TO EXCEED THOSE PROPOSED BY THE BOARD WHICH SHALL
BE EFFECTIVE UNTIL CHANGED PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH.
  9. THE ATTORNEY GENERAL IS AUTHORIZED TO  ENFORCE  THE  PROVISIONS  OF
THIS  SECTION AND MAY, UPON HIS OR HER OWN INITIATIVE, OR IN RESPONSE TO
A COMPLAINT BY ONE OR MORE UNIT OWNERS, INVESTIGATE ALLEGATIONS  OF  ANY
FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
  S  2. Within six months of the effective date of this act the attorney
general shall promulgate a  handbook  summarizing  the  rights  of  unit
owners  vis-a-vis  condominium associations and the procedures and proc-
esses available to unit owners to enforce such rights.
  S 3. This act shall take effect immediately; provided,  however,  that
as  to  residential  condominium  associations existing and operating as
such on the effective date of this act the boards of  managers  of  such
associations  shall  within  one  year of the effective date of this act
take all steps necessary to amend  the  appropriate  organizational  and
operating  documents of such associations to implement the provisions of
this act.