S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1815
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2017
                                ___________
 
 Introduced  by M. of A. DINOWITZ, COLTON, KAVANAGH -- Multi-Sponsored by
   -- M. of A.  FARRELL, GLICK -- 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
 YEAR  RENTAL PERIOD, THE UNSOLD DWELLING UNIT SHALL ONCE AGAIN BE DEEMED
 TO HAVE BECOME VACANT, AND THE PROVISIONS OF THIS SUBDIVISION  SHALL  BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03599-01-7

 A. 1815                             2
 
 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".
   § 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.