S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7111
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 10, 2017
                                ___________
 
 Introduced  by  M.  of A. LAVINE, O'DONNELL, SKOUFIS, GIGLIO, LUPINACCI,
   PALUMBO -- Multi-Sponsored 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.
   § 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.
              

                                                            LBD02957-01-7

 A. 7111                             2
 
         364. PUBLIC POLICY.
   §  360.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "FAIRNESS IN COOPERATIVE HOME OWNERSHIP ACT".
   § 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.  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.
   §  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.