NY State Senate Bill 2019-S2604

Senate Bill S2604

2019-2020 Legislative Session

Creates the office of the cooperative and condominium ombudsman, authorizes the residential unit fee

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to finance
Jan 28, 2019	referred to finance

co-Sponsors

2019-S2604 (ACTIVE) - Details

See Assembly Version of this Bill:: A1482
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 49-C §§996 - 996-i, Exec L; add §186-h, Tax L; add §81-a, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7958
2011-2012: S395, A6941
2013-2014: S3152, A34
2015-2016: S2832, A1855
2017-2018: S5839, A11109
2021-2022: S494, A3157
2023-2024: S6242, A745, A6615

2019-S2604 (ACTIVE) - Summary

Creates the office of the cooperative and condominium ombudsman; authorizes the residential unit tax and establishes the office of the cooperative and condominium ombudsman fund.

2019-S2604 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2604

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the executive law, in relation to creating the office of
the cooperative and condominium ombudsman; to amend the tax law, in
relation to authorizing the residential unit fee; and to amend the state
finance law, in relation to establishing the office of the cooperative
and condominium ombudsman fund

 
PURPOSE:

The bill creates the Office of the Cooperative and Condominium Ombudsman
within the Department of Law to serve as a neutral, informative, and
accessible resource available to cooperative and condominium residents,
prospective shareholders and unit owners, boards of directors and manag-
ers, and other affected parties.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would add a new article 49-C to the Executive Law
to create the Office of the Cooperative and Condominium Ombudsman within
the Department of Law. The Office would be headed by an Ombudsman who is
appointed for a fixed term by the Attorney General.  The Attorney Gener-
al would be responsible for the oversight of the Office. The Ombudsman
may be removed by the Attorney General for cause, after being given an
opportunity to be heard. The Office would work to educate shareholders
of cooperatives and owners of condominiums, their boards of directors
and boards of managers, professionals working with and for such boards,
property managers, and other interested parties about their legal rights
and responsibilities under federal, state and local laws and regu-
lations.  Other responsibilities of the office would include: to prepare
educational and reference materials, to organize and conduct meetings
and public hearings, to provide mediation and other forms of alternative
dispute resolution, to offer monitors and vote counting services to
assure fair elections for board membership, and to provide advice to the
Governor and Legislature regarding new and existing legislation which
affects cooperative shareholders or condominium owners. The Ombudsman
would have the power to subpoena and enforce the attendance of
witnesses, administer oaths or affirmations and examine witnesses under
oath, and require the production of any books and papers deemed relevant
to any dispute rending before the office. The Secretary to the Governor
is to ensure that all state agencies provide the Ombudsman with assist-
ance in advancing the purposes of the Office, and to assure that the
activities of the Office are fully coordinated with the activities of
state agencies providing related services.

Section 2 of the bill would add new section 186-g to the Tax Law to
create a new residential unit fee. Each cooperative corporation and
condominium owners association would be required to pay an annual fee of
six dollars per year for each residential unit located in a building or
buildings owned or operated by such corporation or association. The fee
would be paid to the Department of Taxation and Finance. All revenue
collected by the Department of Taxation and Finance would be paid to the
State comptroller to be deposited into the Office of the Cooperative and
Condominium ombudsman Fund.


Section 3 of the bill would add a new section 81 to the State Finance
Law to establish a new Fund in the custody of the State comptroller to
be known as the "Office of the cooperative and Condominium Ombudsman
Fund. All monies in this fund would be kept separate and apart from
other monies in the custody of the State comptroller. The Fund would be
allocated and spent by the Department of Law solely for the staffing and
administration of the Office of the cooperative and Condominium Ombuds-
man.

Section 4 of the bill provides for the effective date.

 
JUSTIFICATION:

The rights of condominium owners and cooperative shareholders are
derived from a complex series of laws, regulations, and individual
building by-laws and other corporate documents. Offerings of condomin-
iums and cooperatives are regulated by the Attorney General under the
General Business Law, a statute designed to protect potential buyers
from fraud through detailed disclosure requirements.  Once cooperative
and condominium plans are declared effective, condominiums fall under
the New York State Condominium Act and cooperatives fall under the
state's Business Corporation Law - the same statute which regulates all
the state's corporations. Although both of these statutes grant owners
and shareholders some rights, their primary objective is to require that
cooperatives and condominiums simply address certain issues in their
operating documents: for cooperatives, the proprietary lease, house
rules, certificate of incorporation and by- laws for condominiums; the
unit deed or declaration, house rules and by-laws of the condominium
association.

These multiple laws and regulations governing the rights of cooperative
and condominium residents, shareholders, unit owners, association
members, and boards of directors are frequently difficult to navigate
and comprehend. This is particularly true in the case of cooperative
buildings since they are governed by New York State Business Corporation
Law which was not designed to regulate residential real estate. Cooper-
ative shareholders are often unaware that they do not own real property,
and are considered tenants of the corporation that owns the building
where they live.

The boards of directors in cooperatives, and boards of managers in
condominiums, have a great deal of discretion over most issues involved
in the daily management and operation of their buildings.  While many
cooperative and condominium boards act in the best interest of their
buildings, are financially prudent, and are responsive to the needs of
shareholders and unit owners, significant problems arise for residents
when this is not the case. Many difficulties also emerge when boards of
directors and managers are unable or unwilling to remedy disputes
between residents which often leads to the diminution of quality of life
in the building and significant tension between neighbors. Disputes
regarding transparency, finances, board elections, management decisions,
rules and regulations, construction, and other issues between individual
residents, as well as between residents and their boards, are all too
common.

Because there is no government agency or other entity which oversees the
operation of cooperatives and condominiums, shareholders and unit owners
are left with only two options when serious problems develop:  to organ-
ize other residents to change the board of directors or managers, or to
initiate legal action against the board or another shareholder or unit
owner.

Understandably, neither of these options is easy or appealing for most
residents. Changing the membership of the boards of directors or manag-
ers often takes an extended period of time, and is difficult or even
impossible in buildings where the original building sponsor or other
party controls the majority of votes. As a result, problems in cooper-
ative and condominium buildings all too frequently result in lengthy,
expensive, and acrimonious litigation which harms all parties involved.
Such litigation diverts resources which could be better utilized to
provide well maintained buildings and grounds for the common good of the
residents. Litigation between neighbors frequently detracts from the
quality of life in buildings, harms the sense of community, and ulti-
mately results in greater expenses for everyone since boards have to
pass the costs of legal fees along to all residents. In cases where
shareholders and unit owners do not have the economic resources needed
to pursue litigation, problems frequently remain unresolved for years.

Several other states, such as Florida, Nevada, Texas, and New Jersey
created condominium Ombudsman Offices to address similar challenges in
their states. The Ombudsman Offices in these states provide general
education to condominium owners, monitor board elections, and offer
alternative dispute resolution processes that provide a fair and inex-
pensive means for unit owners to resolve disputes between one another or
with their condominium associations. Responses to the Condominium
Ombudsmen Offices in these states have been overwhelmingly positive and
led both Florida and New Jersey to expand the powers of their Offices.
Additional states are in the process of considering legislation to
create their own condominium Ombudsman Offices.

New York State has one of the largest, if not the largest, number of
cooperatives and condominiums in the nation. New York is also unique in
having both cooperative and condominium housing. In parts of the state,
cooperative shareholders and condominium owners substantially outnumber
owners of single and two-family homes. These residents would see signif-
icant benefits from the creation of a New York state Cooperative and
Condominium Ombudsman Office.

 
FISCAL IMPLICATIONS:

None. The Office of the Ombudsman will be fully funded by the creation
of the six dollar residential unit fee.

 
LEGISLATIVE HISTORY:

2017-2018: S.5839/A.11109
2015-2016: S.2832/A.1855
2013-2014:  S.3152/A.34
2011-2012: S.395/A.6941
2009-2010: S.7958

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
becomes law.

2019-S2604 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2604
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2019
                                ___________
 
 Introduced  by  Sens.  KRUEGER, HOYLMAN, MAYER, MONTGOMERY -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Finance
 
 AN ACT to amend the executive law, in relation to creating the office of
   the cooperative and condominium ombudsman; to amend the  tax  law,  in
   relation  to  authorizing  the  residential unit fee; and to amend the
   state finance law, in relation to establishing the office of the coop-
   erative and condominium ombudsman fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The executive law is amended by adding a new article 49-C
 to read as follows:
                               ARTICLE 49-C
            OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN
 SECTION 996.   SHORT TITLE.
         996-A.  LEGISLATIVE DECLARATION.
         996-B. DEFINITIONS.
         996-C. OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN.
         996-D. FUNCTIONS, POWERS AND DUTIES OF THE OFFICE.
         996-E. PRINCIPAL OFFICE AND SATELLITE OFFICES.
         996-F. ASSISTANCE OF OTHER STATE AGENCIES.
         996-G. REPORTS TO THE GOVERNOR, ATTORNEY GENERAL AND THE  LEGIS-
                  LATURE.
         996-H. CONTRACT AUTHORITY.
         996-I. SEPARABILITY.
   §  996.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "COOPERATIVE AND CONDOMINIUM OMBUDSMAN ACT".
   § 996-A. LEGISLATIVE DECLARATION. THE LEGISLATURE FINDS AND DETERMINES
 AS FOLLOWS:
   COOPERATIVE AND CONDOMINIUM HOUSING CONSTITUTES A SIGNIFICANT  PORTION
 OF  NEW  YORK  STATE'S RESIDENTIAL HOUSING STOCK. IT IS AND HAS BEEN THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02535-01-9

 S. 2604                             2
 
 PUBLIC POLICY OF THIS STATE TO ENCOURAGE SUCH FORMS OF HOME OWNERSHIP. A
 WIDE VARIETY OF LAWS HAVE  BEEN  ENACTED  TO  PROVIDE  FAIRNESS  IN  THE
 CONVERSION OF RENTAL PROPERTIES TO COOPERATIVE AND CONDOMINIUM OWNERSHIP
 AND  IN  THE  REGULATION  AND TAXATION OF COOPERATIVES AND CONDOMINIUMS.
 STATE AND LOCAL LAWS AND REGULATIONS ARE ALSO DESIGNED  TO  ENSURE  THAT
 THE  RESIDENTS  OF  SUCH  HOUSING  ARE  PROVIDED WITH SAFE AND HABITABLE
 ACCOMMODATIONS.
   INEVITABLY, DISPUTES HAVE ARISEN  AMONG  COOPERATIVE  AND  CONDOMINIUM
 SPONSORS  AND  DEVELOPERS, COOPERATIVE SHAREHOLDERS AND CONDOMINIUM UNIT
 OWNERS, PROSPECTIVE SHAREHOLDERS AND UNIT OWNERS,  BOARDS  OF  DIRECTORS
 AND BOARDS OF MANAGERS. SUCH DISPUTES OFTEN RESULT IN LENGTHY AND COSTLY
 LITIGATION  AND  UNCERTAINTY AS TO THE RIGHTS OF THE PARTIES PENDING THE
 OUTCOME OF LITIGATION. SUCH LITIGATION DIVERTS RESOURCES THAT  COULD  BE
 BETTER  UTILIZED TO PROVIDE AFFORDABLE AND WELL-MAINTAINED BUILDINGS AND
 GROUNDS FOR THE COMMON GOOD OF THE OWNERS.
   THIS ARTICLE IS NECESSARY TO PROVIDE A NEUTRAL, INFORMATIVE AND ACCES-
 SIBLE RESOURCE AVAILABLE TO ALL PARTIES INVOLVED IN RESIDENTIAL  COOPER-
 ATIVE  AND CONDOMINIUM OWNERSHIP AND GOVERNANCE. THE OMBUDSMAN APPOINTED
 PURSUANT TO THIS ARTICLE WILL CONDUCT OUTREACH PROGRAMS TO EDUCATE  UNIT
 OWNERS  AND BOARD MEMBERS AS TO THEIR LEGAL RIGHTS AND RESPONSIBILITIES.
 THE  OMBUDSMAN  WILL  ENCOURAGE  ALTERNATIVE  DISPUTE  RESOLUTION   WHEN
 DISPUTES  DO  ARISE.  THE OMBUDSMAN WILL BE AVAILABLE TO PROVIDE DISPUTE
 RESOLUTION SERVICES ON CONSENT OF THE PARTIES. THE OMBUDSMAN  WILL  ALSO
 PROVIDE  MONITORING  AND  SUPERVISION  OF  COOPERATIVE  AND  CONDOMINIUM
 ELECTIONS.
   § 996-B. DEFINITIONS. 1. "COOPERATIVE" MEANS A  CORPORATION  ORGANIZED
 AND  OPERATING  PURSUANT  TO THE GENERAL BUSINESS LAW OR THE COOPERATIVE
 CORPORATIONS LAW FOR THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL  HOUS-
 ING TO ITS SHAREHOLDERS.
   2.  "CONDOMINIUM"  MEANS  A  HOMEOWNERS ASSOCIATION OR ANY ASSOCIATION
 ORGANIZED AND OPERATING PURSUANT TO ARTICLE NINE-B OF THE REAL  PROPERTY
 LAW FOR THE PRIMARY PURPOSE OF PROVIDING RESIDENTIAL HOUSING TO ITS UNIT
 OWNERS.
   3.  "OFFICE"  MEANS  THE  OFFICE  OF  THE  COOPERATIVE AND CONDOMINIUM
 OMBUDSMAN CREATED BY THIS ARTICLE.
   4. "OMBUDSMAN" MEANS THE CHIEF ADMINISTRATIVE OFFICER OF THE OFFICE OF
 THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN.
   5. "STATE AGENCY" MEANS ANY  DEPARTMENT,  BOARD,  BUREAU,  COMMISSION,
 DIVISION,  OFFICE,  COUNCIL  OR AGENCY OF THE STATE, OR A PUBLIC BENEFIT
 CORPORATION OR AUTHORITY AUTHORIZED BY THE LAWS OF THE STATE.
   6. "LOCAL AGENCY" MEANS ANY  DEPARTMENT,  BOARD,  BUREAU,  COMMISSION,
 DIVISION, OFFICE, COUNCIL, OFFICER OR AGENCY OF A CITY, TOWN OR VILLAGE.
   §  996-C.  OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN. 1. THE
 OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN  IS  HEREBY  CREATED
 WITHIN  THE DEPARTMENT OF LAW TO HAVE AND EXERCISE THE FUNCTIONS, POWERS
 AND DUTIES PROVIDED BY THE PROVISIONS OF  THIS  ARTICLE  AND  ANY  OTHER
 PROVISION  OF  LAW.  THE ATTORNEY GENERAL SHALL BE RESPONSIBLE FOR OVER-
 SIGHT OF THE OFFICE.
   2. THE HEAD OF THE OFFICE SHALL BE  THE  COOPERATIVE  AND  CONDOMINIUM
 OMBUDSMAN  WHO SHALL BE APPOINTED BY THE ATTORNEY GENERAL. THE OMBUDSMAN
 SHALL HOLD OFFICE UNTIL THE END OF THE TERM OF THE ATTORNEY  GENERAL  BY
 WHOM HE OR SHE WAS APPOINTED AND UNTIL HIS OR HER SUCCESSOR IS APPOINTED
 AND  HAS QUALIFIED. THE OMBUDSMAN MAY BE REMOVED BY THE ATTORNEY GENERAL
 FOR CAUSE, AFTER BEING GIVEN AN OPPORTUNITY TO BE HEARD. A VACANCY SHALL
 BE FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT.

 S. 2604                             3
 
   3. THE OMBUDSMAN SHALL RECEIVE AN ANNUAL SALARY TO  BE  FIXED  BY  THE
 ATTORNEY  GENERAL WITHIN THE AMOUNT MADE AVAILABLE THEREFOR BY AN APPRO-
 PRIATION AND SHALL BE ALLOWED HIS OR HER ACTUAL AND  NECESSARY  EXPENSES
 IN THE PERFORMANCE OF HIS OR HER DUTIES. THE OMBUDSMAN'S SALARY SHALL BE
 NO  LESS  THAN  THE SALARIES OF CERTAIN STATE OFFICERS HOLDING THE POSI-
 TIONS INDICATED IN PARAGRAPH (A)  OF  SUBDIVISION  ONE  OF  SECTION  ONE
 HUNDRED SIXTY-NINE OF THIS CHAPTER.
   4.  THE  OMBUDSMAN  SHALL  BE AN ATTORNEY WITH EXTENSIVE EXPERIENCE IN
 REAL ESTATE, COOPERATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND  ALTER-
 NATIVE DISPUTE RESOLUTION.
   5.  THE OMBUDSMAN SHALL DIRECT THE WORK OF THE OFFICE AND SHALL BE THE
 CHIEF EXECUTIVE OFFICER OF THE OFFICE. THE OMBUDSMAN  MAY  APPOINT  SUCH
 OFFICERS  AND EMPLOYEES AS HE OR SHE MAY DEEM NECESSARY, PRESCRIBE THEIR
 POWERS AND DUTIES, FIX THEIR COMPENSATION AND PROVIDE FOR THE REIMBURSE-
 MENT OF THEIR EXPENSES, ALL WITHIN AMOUNTS MADE  AVAILABLE  THEREFOR  BY
 APPROPRIATION.  SUCH  OFFICERS AND EMPLOYEES SHALL INCLUDE ATTORNEYS AND
 OTHER PROFESSIONALS WITH EXTENSIVE EXPERIENCE IN  REAL  ESTATE,  COOPER-
 ATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND ALTERNATIVE DISPUTE RESOL-
 UTION.
   6. THE OMBUDSMAN AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL ADHERE
 TO  A  CODE OF ETHICS IN ORDER TO INSPIRE PUBLIC CONFIDENCE AND TRUST IN
 THE FAIRNESS  AND  IMPARTIALITY  OF  THE  OFFICE.  THE  OMBUDSMAN  SHALL
 PRESCRIBE  SUCH CODE OF ETHICS. SUCH CODE SHALL REQUIRE THAT THE OMBUDS-
 MAN AND OFFICERS AND EMPLOYEES OF THE OFFICE RESPECT AND COMPLY WITH THE
 LAW; THAT THEY NOT USE OR ATTEMPT TO USE THEIR POSITIONS TO SECURE PRIV-
 ILEGES OR EXEMPTIONS FOR THEMSELVES OR OTHERS; THAT  THEY  NOT  SOLICIT,
 ACCEPT OR AGREE TO ACCEPT ANY GIFTS OR GRATUITIES FROM PERSONS HAVING OR
 LIKELY  TO  HAVE ANY OFFICIAL TRANSACTION WITH THE OFFICE; THAT THEY NOT
 REQUEST OR ACCEPT ANY PAYMENT IN ADDITION TO THEIR REGULAR  COMPENSATION
 FOR  ASSISTANCE  GIVEN  AS  PART OF THEIR OFFICIAL DUTIES; AND THAT THEY
 SHALL NOT PERFORM ANY FUNCTION IN A MANNER THAT  IMPROPERLY  FAVORS  ANY
 PERSON OR PARTY.
   7.  THE  OMBUDSMAN  AND OFFICERS AND EMPLOYEES OF THE OFFICE SHALL NOT
 SERVE AS OFFICERS OR EMPLOYEES OF A POLITICAL PARTY OR A CLUB OR  ORGAN-
 IZATION  RELATED  TO  A POLITICAL PARTY, RECEIVE REMUNERATION FOR ACTIV-
 ITIES ON BEHALF OF ANY CANDIDATE FOR PUBLIC OFFICE OR PARTY POSITION  OR
 ENGAGE  IN SOLICITING VOTES OR OTHER ACTIVITIES ON BEHALF OF A CANDIDATE
 FOR PUBLIC OFFICE OR PARTY POSITION.
   8. THE SECRETARY TO THE GOVERNOR SHALL ASSURE THAT ALL STATE  AGENCIES
 PROVIDE  THE  OMBUDSMAN WITH ASSISTANCE IN ADVANCING THE PURPOSES OF THE
 OFFICE AND TO ASSURE THAT THE ACTIVITIES OF THE OFFICE ARE FULLY COORDI-
 NATED WITH THE ACTIVITIES OF STATE AGENCIES PROVIDING RELATED SERVICES.
   § 996-D. FUNCTIONS, POWERS AND DUTIES OF THE OFFICE. THE OFFICE  SHALL
 HAVE THE FOLLOWING FUNCTIONS, POWERS AND DUTIES:
   1.  TO EDUCATE AND INFORM SHAREHOLDERS OF COOPERATIVES AND UNIT OWNERS
 OF CONDOMINIUMS, THEIR BOARDS OF DIRECTORS AND BOARDS OF MANAGERS, PROP-
 ERTY MANAGERS, PROFESSIONALS WORKING WITH AND FOR SUCH BOARDS AND  OTHER
 INTERESTED  PARTIES OF THEIR LEGAL RIGHTS AND RESPONSIBILITIES UNDER THE
 FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS APPLICABLE TO  COOPERATIVE
 AND  CONDOMINIUM  HOUSING IN THE STATE OF NEW YORK AND UNDER THE COOPER-
 ATIVE AND CONDOMINIUM DOCUMENTS GOVERNING THE RESPECTIVE PROPERTIES.
   2. TO COORDINATE AND ASSIST IN  THE  PREPARATION  AND  PUBLICATION  OF
 EDUCATIONAL  AND  REFERENCE MATERIALS ABOUT RESIDENTIAL COOPERATIVES AND
 CONDOMINIUMS, TO MAKE SUCH RESOURCES KNOWN AND AVAILABLE TO  THE  WIDEST
 POSSIBLE AUDIENCE.

 S. 2604                             4
 
   3.  TO  ORGANIZE  AND CONDUCT MEETINGS, WORKSHOPS, CONFERENCES, PUBLIC
 HEARINGS AND FORUMS AND TO UTILIZE ALL FORMS OF COMMUNICATIONS MEDIA  TO
 DISSEMINATE  ACCURATE  AND  TIMELY  INFORMATION  OF  INTEREST TO PERSONS
 RESIDING IN, OWNING AND MANAGING COOPERATIVE AND CONDOMINIUM HOUSING.
   4.  TO  PROVIDE  MEETINGS,  MEDIATION,  ARBITRATION AND OTHER FORMS OF
 ALTERNATIVE DISPUTE RESOLUTION SERVICES TO COOPERATIVE  AND  CONDOMINIUM
 SPONSORS  AND  DEVELOPERS, COOPERATIVE SHAREHOLDERS, CONDOMINIUM OWNERS,
 THEIR BOARDS OF DIRECTORS AND  MANAGERS,  PROSPECTIVE  SHAREHOLDERS  AND
 UNIT  OWNERS  AND  OTHER PARTIES SO AS TO AVOID COSTLY AND LENGTHY LITI-
 GATION AND REDUCE EXPENSES FOR THOSE INVOLVED IN DISPUTES.
   5. TO SUBPOENA AND ENFORCE THE  ATTENDANCE  OF  WITNESSES,  ADMINISTER
 OATHS  OR  AFFIRMATIONS AND EXAMINE WITNESSES UNDER OATH AND REQUIRE THE
 PRODUCTION OF ANY BOOKS AND PAPERS DEEMED RELEVANT OR  MATERIAL  TO  THE
 RESOLUTION OF ANY DISPUTE PENDING BEFORE THE OFFICE.
   6.  TO  ENGAGE  WITH THE HOUSING COURTS, OTHER TRIAL COURTS, STATE AND
 LOCAL AGENCIES AND WITH ALTERNATIVE DISPUTE  RESOLUTION  PROGRAMS  MAIN-
 TAINED  BY  THE  OFFICE  OF  COURT  ADMINISTRATION  IN  ORDER TO PROVIDE
 SPECIALIZED EXPERTISE IN THE RESOLUTION OF COOPERATIVE  AND  CONDOMINIUM
 DISPUTES AS AN ALTERNATIVE TO LITIGATION.
   7.  TO OFFER PROCEDURES, MONITORS AND VOTE COUNTING SERVICES TO ASSURE
 FAIR ELECTIONS FOR MEMBERS OF COOPERATIVE BOARDS OF DIRECTORS AND CONDO-
 MINIUM BOARDS OF MANAGERS.  FIFTEEN PERCENT OF THE TOTAL  VOTING  INTER-
 ESTS  IN  A  COOPERATIVE OR CONDOMINIUM OR SHAREHOLDERS OR OWNERS OF SIX
 RESIDENTIAL UNITS, WHICHEVER IS GREATER,  MAY  PETITION  THE  OFFICE  TO
 ATTEND AND CONDUCT AN ELECTION OF DIRECTORS OR MANAGERS. ALL COSTS ASSO-
 CIATED WITH THE ELECTION MONITORING PROCESS SHALL BE PAID BY THE COOPER-
 ATIVE OR CONDOMINIUM.
   8.  TO REFER ANY COMPLAINT RECEIVED TO THE APPROPRIATE LAW ENFORCEMENT
 AGENCY FOR PROSECUTION, IF DEEMED APPROPRIATE BY THE OFFICE.
   9. TO PERFORM ANY OTHER FUNCTIONS THAT ARE NECESSARY OR APPROPRIATE TO
 FULFILL THE DUTIES AND RESPONSIBILITIES OF THE OFFICE.
   § 996-E. PRINCIPAL OFFICE AND  SATELLITE  OFFICES.  THE  OFFICE  SHALL
 MAINTAIN  ITS  PRINCIPAL  OFFICE  IN THE CITY OF NEW YORK AND SHALL HAVE
 SATELLITE OFFICES IN OTHER LOCATIONS WITHIN THE STATE OF NEW YORK  WHERE
 THERE ARE SIGNIFICANT CONCENTRATIONS OF COOPERATIVE OR CONDOMINIUM HOUS-
 ING.
   §  996-F.  ASSISTANCE  OF  OTHER  STATE  AGENCIES.  TO  EFFECTUATE THE
 PURPOSES OF THIS ARTICLE, THE OMBUDSMAN MAY REQUEST AND SHALL  BE  ENTI-
 TLED  TO  RECEIVE  FROM ANY STATE AGENCY, AND THE SAME ARE AUTHORIZED TO
 PROVIDE, SUCH ASSISTANCE, SERVICES, FACILITIES, AND DATA AS WILL  ENABLE
 THE  OFFICE  TO  CARRY  OUT  ITS  FUNCTIONS, POWERS AND DUTIES, AND SUCH
 TEMPORARILY OR PERMANENTLY ASSIGNED PERSONNEL AS  THE  DIRECTOR  OF  THE
 BUDGET MAY APPROVE.
   §  996-G.  REPORTS  TO THE GOVERNOR, ATTORNEY GENERAL AND THE LEGISLA-
 TURE. THE OFFICE SHALL MAKE AN ANNUAL  REPORT,  TO  BE  RECEIVED  ON  OR
 BEFORE JANUARY FIRST, TO THE GOVERNOR, ATTORNEY GENERAL AND THE LEGISLA-
 TURE CONCERNING THE ACTIVITIES UNDERTAKEN BY THE OFFICE, RECOMMENDATIONS
 FOR  LEGISLATIVE PROPOSALS, DATA CONCERNING PROGRAM ACTIVITIES AND OTHER
 PERTINENT INFORMATION AS MAY BE REQUIRED.
   § 996-H. CONTRACT AUTHORITY. THE OFFICE IS HEREBY EMPOWERED  TO  ENTER
 INTO  ANY AGREEMENT OR CONTRACT WITH ANY STATE OR LOCAL AGENCY NECESSARY
 OR CONVENIENT TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 996-I. SEPARABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
 DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO

 S. 2604                             5
 
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
 INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   §  2.  The tax law is amended by adding a new section 186-h to read as
 follows:
   § 186-H. RESIDENTIAL UNIT FEE. A COOPERATIVE HOUSING CORPORATION OR  A
 HOMEOWNERS ASSOCIATION, AS SUCH TERMS ARE DEFINED IN SECTION TWO HUNDRED
 TEN OF THIS CHAPTER, SHALL PAY AN ANNUAL FEE OF SIX DOLLARS PER YEAR FOR
 EACH  RESIDENTIAL UNIT LOCATED IN A BUILDING OR BUILDINGS OWNED OR OPER-
 ATED BY SUCH CORPORATION OR ASSOCIATION. SUCH FEE SHALL  BE  PAYABLE  TO
 THE  DEPARTMENT.  ALL  REVENUE  FROM  THE  FEE  IMPOSED PURSUANT TO THIS
 SECTION SHALL BE PAID BY THE DEPARTMENT TO THE STATE COMPTROLLER  TO  BE
 DEPOSITED TO AND CREDITED TO THE OFFICE OF THE COOPERATIVE AND CONDOMIN-
 IUM  OMBUDSMAN FUND, ESTABLISHED PURSUANT TO SECTION EIGHTY-ONE-A OF THE
 STATE FINANCE LAW.
   § 3. The state finance law is amended by adding a new section 81-a  to
 read as follows:
   §  81-A.  OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE  STATE  COMPTROLLER  A
 SPECIAL FUND TO BE KNOWN AS THE "OFFICE OF THE COOPERATIVE AND CONDOMIN-
 IUM OMBUDSMAN FUND".
   2.  THE OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN FUND SHALL
 CONSIST OF MONIES APPROPRIATED THERETO, FUNDS TRANSFERRED FROM ANY OTHER
 FUND OR SOURCES, AND MONIES DEPOSITED THEREIN PURSUANT  TO  SECTION  ONE
 HUNDRED EIGHTY-SIX-H OF THE TAX LAW.
   3. THE MONIES IN THE OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDS-
 MAN  FUND  SHALL  BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH
 ANY OTHER MONIES IN THE CUSTODY OF THE STATE  COMPTROLLER.  SUCH  MONIES
 SHALL  BE  ALLOCATED TO AND EXPENDED BY THE DEPARTMENT OF LAW SOLELY FOR
 THE STAFFING AND ADMINISTRATION OF THE OFFICE  OF  THE  COOPERATIVE  AND
 CONDOMINIUM OMBUDSMAN OF SUCH DEPARTMENT.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S2604

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

Brad Hoylman-Sigal

John C. Liu

Shelley B. Mayer

Velmanette Montgomery

2019-S2604 (ACTIVE) - Details

2019-S2604 (ACTIVE) - Summary

2019-S2604 (ACTIVE) - Sponsor Memo

2019-S2604 (ACTIVE) - Bill Text download pdf

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