S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3813
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced  by  M. of A. PERRY, PAULIN, RAIA -- Multi-Sponsored by -- M.
   of A. COOK, GALEF,  HIKIND,  HOOPER,  LUPARDO,  LUPINACCI,  McDONOUGH,
   TITONE -- 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.
   § 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.
         364. PUBLIC POLICY.
   §  360.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "FAIRNESS IN COOPERATIVE HOME OWNERSHIP ACT".
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06398-01-7

 A. 3813                             2
 
   § 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.
   § 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.
   § 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. WHENEVER ANY COOPERATIVE SHALL REJECT AN APPLICATION, SUCH  COOPER-
 ATIVE  SHALL  PROVIDE  THE  APPLICANT  WITH  A  WRITTEN STATEMENT OF THE
 REASONS FOR SUCH REJECTION. NO COOPERATIVE SHALL REJECT  AN  APPLICATION
 BECAUSE  OF THE RACE, CREED, COLOR, NATIONAL ORIGIN, SEXUAL ORIENTATION,
 MILITARY STATUS, SEX, AGE, DISABILITY, MARITAL STATUS OR FAMILIAL STATUS
 OF THE PURCHASER.
   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.
   § 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.
   §  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.