S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2540
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02957-01-7

 S. 2540                             2
 
   § 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.