S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5816
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 15, 2017
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- 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:
   § 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.
              

                                                            LBD09721-01-7

 A. 5816                             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. 5816                             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.
   §  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.
   § 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.