NY State Senate Bill 2019-S4316A

Senate Bill S4316A

2019-2020 Legislative Session

Defines lease-hold retirement community and proscribes rules and regulations for ownership and operation thereof

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary 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
Feb 20, 2020	print number 4316a
Feb 20, 2020	amend and recommit to judiciary
Jan 08, 2020	referred to judiciary
Mar 07, 2019	referred to judiciary

Bill Amendments

Original

A (Active)

2019-S4316 - Details

See Assembly Version of this Bill:: A6364
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §238-b, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3142
2011-2012: S1941, A2136
2013-2014: S3660, A4769
2015-2016: S4435, A6268
2017-2018: S3818, A3145
2021-2022: S8312, A9213
2023-2024: A4955

2019-S4316 - Summary

Sets up rules and regulations for the operation of lease-hold retirement communities to provide adequate housing for senior citizens wishing to retire and locate in a lease-hold retirement community; grants owners of homes in lease-hold retirement communities the right to sell their homes by methods common to sales of residential property; requires that owners of lease-hold retirement communities offer owners of homes the option to sign a long-term ninety-nine year lease.

2019-S4316 - Sponsor Memo

                                
 
BILL NUMBER: S4316

SPONSOR: LAVALLE
 
TITLE OF BILL:  An act to amend the real property law, in relation to
lease-hold retirement communities

 
PURPOSE:

This legislation would provide protections to retired persons who
purchase homes on ground leases.

 
SUMMARY OF PROVISIONS:

Specifically, the bill would:

1.Call for 99 year leases

2. Require rules and regulations to be given to prospective buyers and
attached to lease

3. A presumption that rules and regulations not uniformly enforced are

arbitrary and capricious.

4. Rules and regulations cannot be changed without the consent of the
homeowners and tenants

5. No fees may be added by the retirement community owner in Suffolk
County unless approved by three fourths of the tenants

6. All rent and utilities must be reasonable related to the value of the
facility or the services rendered.

7. Rent and utility fees must be fully explained when the deposit is
made; failure to do so will result in a failure of the owner to collect
them.

8. Any increases in rent or utilities must be in conformance with lease

9. The owner shall not:  Require tenants to purchase gods or services
from the owner Require installation and maintenance or repair services
to specific vendors Charge a fee to anyone who installs goods Restrict
interior improvements Interfere with the sale of a home Retaliate
against tenants for their lawful pursuits

10. Makes it a misdemeanor to deny utilities to tenants

11. Tenants damaged by a violation of those provisions may bring an
action for recovery of damages, plus attorney's fees.

 
JUSTIFICATION:

This bill would afford to individuals residing in planned retirement
communities the same protections as persons who are mobile home owners
or multiple dwelling tenants.

 
LEGISLATIVE HISTORY:

2017-18 S.3818A/A.3145A;
2015-16 S.4435/A.6268;
2013-14 S.3660/A.4795;
2011-12 S.1941;
2009-10 5.3142;
2007-2008 5.3815;

 
FISCAL IMPLICATIONS:

None

2019-S4316 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 4316                                                  A. 6364
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                               March 7, 2019
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Judiciary
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee on Aging
 
 AN ACT to amend the real property law, in relation to lease-hold retire-
   ment communities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real property law is amended by adding a new section
 238-a to read as follows:
   § 238-A. LEASE-HOLD RETIREMENT COMMUNITY. 1. DEFINITIONS. AS  USED  IN
 THIS SECTION:
   (A) A "LEASE-HOLD RETIREMENT COMMUNITY" SHALL MEAN A CONTIGUOUS PARCEL
 OF  PRIVATELY  OWNED  REAL  PROPERTY CONTAINING TWO HUNDRED OR MORE LOTS
 WHICH ARE LEASED TO OWNERS  OF  YEAR-ROUND  HOMES  ERECTED  THEREON  AND
 AFFIXED  THERETO  WHEREIN  THE  OCCUPATION  IS RESTRICTED TO INDIVIDUALS
 BASED ON AGE PURSUANT TO PARAGRAPH (H)  OF  SUBDIVISION  THREE  OF  THIS
 SECTION.
   A  "LEASE-HOLD  RETIREMENT  COMMUNITY" SHALL NOT INCLUDE A MOBILE HOME
 PARK, OR CONDOMINIUM, AS DEFINED IN  THIS  CHAPTER,  A  CONTINUING  CARE
 RETIREMENT  COMMUNITY  AUTHORIZED UNDER ARTICLE FORTY-SIX OR FORTY-SIX-A
 OF THE PUBLIC HEALTH LAW, OR A COOPERATIVE HOUSING  CORPORATION  CREATED
 PURSUANT TO THE BUSINESS CORPORATION LAW.
   (B) "HOME OWNER" SHALL MEAN ONE WHO HOLDS TITLE TO A HOME.
   (C)  "TENANT"  SHALL  MEAN  ONE  WHO  OCCUPIES  A HOME IN A LEASE-HOLD
 RETIREMENT COMMUNITY FOR THIRTY DAYS OR MORE, AND  WHOSE  OCCUPATION  OF
 THE  HOME  IN THE LEASE-HOLD RETIREMENT COMMUNITY IS KNOWN TO THE LEASE-
 HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   2. LEASES. (A) ANY LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 SHALL  OFFER  EVERY HOME OWNER THE OPPORTUNITY TO SIGN A LONG TERM LEASE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03207-01-9

 S. 4316                             2                            A. 6364
 
 FOR NINETY-NINE YEARS, WITH AN OPTION OF THE HOME OWNER TO  CANCEL  SAID
 LEASE ON NINETY DAYS WRITTEN NOTICE TO SAID OWNER OR OPERATOR.
   (B)  A  COPY OF SUCH LEASE-HOLD RETIREMENT COMMUNITY'S RULES AND REGU-
 LATIONS, IF ANY, SHALL BE ATTACHED TO AND BECOME A  PART  OF  THE  LEASE
 PROVIDED FOR BY THIS SECTION, AS IF FULLY SET FORTH THEREIN.
   (C)  NO  RULES  OR  REGULATIONS  SHALL  BE INCONSISTENT WITH THE LEASE
 PROVISIONS IN EFFECT AT THE COMMENCEMENT OF SUCH LEASE.
   (D) A COPY OF THE LEASE SHALL BE DELIVERED BY SUCH LEASE-HOLD  RETIRE-
 MENT  COMMUNITY  OWNER  OR OPERATOR TO ALL HOME OWNERS OR TENANTS AT THE
 TIME OF THE FIRST DEPOSIT MADE PAYABLE  TO  SAID  LEASE-HOLD  RETIREMENT
 COMMUNITY OWNER OR OPERATOR.
   3.  RULES  AND  REGULATIONS.  (A)  THE LEASE-HOLD RETIREMENT COMMUNITY
 OWNER OR OPERATOR MAY PROMULGATE RULES OR REGULATIONS GOVERNING THE RENT
 AND USE OR OCCUPATION OF THE HOME LOT, PROVIDED THAT SUCH RULES OR REGU-
 LATIONS SHALL NOT BE UNREASONABLE, ARBITRARY OR CAPRICIOUS.
   (B) A COPY OF ALL RULES AND REGULATIONS  SHALL  BE  DELIVERED  BY  THE
 LEASE-HOLD  RETIREMENT COMMUNITY OWNER OR OPERATOR TO ALL HOME OWNERS OR
 TENANTS AT THE TIME OF THE FIRST DEPOSIT MADE PAYABLE TO SAID LEASE-HOLD
 RETIREMENT COMMUNITY OWNER OR OPERATOR.
   (C) A COPY OF ALL RULES AND REGULATIONS SHALL BE POSTED IN A CONSPICU-
 OUS PUBLIC LOCATION UPON THE GROUNDS OF THE LEASE-HOLD RETIREMENT COMMU-
 NITY.
   (D) IF A RULE OR REGULATION IS  NOT  APPLIED  UNIFORMLY  TO  ALL  HOME
 OWNERS  OR  TENANTS,  THERE  SHALL BE A REBUTTABLE PRESUMPTION THAT SUCH
 RULE OR REGULATION IS UNREASONABLE, ARBITRARY OR CAPRICIOUS.
   (E) ANY RULE OR REGULATION WHICH DOES NOT CONFORM TO THE  REQUIREMENTS
 OF  THIS SECTION OR WHICH HAS NOT BEEN SUPPLIED OR POSTED AS REQUIRED BY
 THIS SECTION, SHALL NOT BE ENFORCEABLE.
   (F) NO RULE OR REGULATION MAY BE ADDED, AMENDED, REPEALED  OR  CHANGED
 BY  THE  LEASE-HOLD  RETIREMENT  COMMUNITY OWNER OR OPERATOR WITHOUT THE
 WRITTEN CONSENT OF SIXTY PERCENT OF THE HOME OWNERS.
   (G) RULES AND REGULATIONS SHALL NOT TAKE  EFFECT  UNTIL  SUPPLIED  AND
 POSTED PURSUANT TO THIS SUBDIVISION.
   (H)  SUCH  RULES AND REGULATIONS MAY ESTABLISH A MINIMUM AGE FOR INDI-
 VIDUALS TO OCCUPY A HOME  WITHIN  THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 SUBJECT TO ANY APPLICABLE LAW.
   4.  FEES.  (A) NO LEASE-HOLD RETIREMENT COMMUNITY HOME OWNER OR TENANT
 SHALL BE CHARGED A FEE, CHARGE, OR ASSESSMENT THAT IS NOT ALREADY SPECI-
 FIED IN THEIR CURRENT LEASE AGREEMENT, EXCEPT FOR RENT,  UTILITIES,  AND
 FEES  FOR SERVICES NECESSARY FOR THE OPERATION OF THE LEASE-HOLD RETIRE-
 MENT COMMUNITY, UNLESS AGREED TO BY SIXTY PERCENT OF  ALL  OF  THE  HOME
 OWNERS, SUCH AS FOR FACILITIES AVAILABLE TO THE HOMEOWNERS AND TENANTS.
   (B)  ALL  SUCH CHARGES FOR RENT, UTILITIES, SERVICES NECESSARY FOR THE
 OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND FACILITIES  AVAIL-
 ABLE  TO  THE  HOMEOWNERS  AND TENANTS MUST BE REASONABLY RELATED TO THE
 VALUE OF THE FACILITY AVAILABLE OR THE SERVICES ACTUALLY RENDERED.
   (C) A LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR  MUST  FULLY
 DISCLOSE  ALL  CHARGES  FOR  RENT, UTILITIES, SERVICES NECESSARY FOR THE
 OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND FACILITIES  AVAIL-
 ABLE TO THE HOMEOWNERS AND TENANTS TO ALL HOME OWNERS AT THE TIME OF THE
 FIRST  DEPOSIT  MADE  PAYABLE TO SAID COMMUNITY OWNER OR OPERATOR. A NEW
 FEE, CHARGE, OR ASSESSMENT THAT IS NOT SPECIFIED IN A HOMEOWNER'S  LEASE
 AGREEMENT  SHALL  NOT  BE  COLLECTABLE  UNTIL  THE LEASE-HOLD RETIREMENT
 COMMUNITY OWNER OR OPERATOR PROVIDES THE HOMEOWNER WITH A  WRITTEN  COPY
 DETAILING SUCH FEE, CHARGE, OR ASSESSMENT.

 S. 4316                             3                            A. 6364
 
   (D)  FAILURE  ON THE PART OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER
 OR OPERATOR TO FULLY DISCLOSE ALL CHARGES FOR RENT, UTILITIES,  SERVICES
 NECESSARY  FOR THE OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND
 FACILITIES AVAILABLE TO THE HOMEOWNERS AND TENANTS PURSUANT TO PARAGRAPH
 (C) OF THIS SUBDIVISION SHALL PREVENT THE SAID COMMUNITY OWNER OR OPERA-
 TOR FROM COLLECTING SUCH CHARGES.
   5.  PROHIBITION.  NO LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR
 SHALL:
   (A) RESTRICT THE PURCHASE  AND/OR  INSTALLATION  OF  ANY  COMMODITIES,
 GOODS  OR  SERVICES  BY  THE  HOME  OWNER  OR  AGENT THEREOF TO SPECIFIC
 VENDORS, INCLUDING, BUT NOT  LIMITED  TO,  EMPLOYEES,  AGENTS  OR  OTHER
 PERSONS  ACTING  FOR OR ON BEHALF OF THE LEASE-HOLD RETIREMENT COMMUNITY
 OWNER OR OPERATOR.
   (B) RESTRICT THE  IMPROVEMENT,  INCLUDING  BUT  NOT  LIMITED  TO,  THE
 INSTALLATION  OF APPLIANCES, TO ANY PROPERTY OF THE HOMEOWNER OR TENANT,
 SO LONG AS SUCH IMPROVEMENT IS IN COMPLIANCE  WITH  APPLICABLE  BUILDING
 CODES,  OTHER  PROVISIONS  OF  LAW, AND THE RULES AND REGULATIONS OF THE
 LEASE-HOLD RETIREMENT COMMUNITY.
   (C) RESTRICT THE INSTALLATION, MAINTENANCE OR REPAIR OF  ANY  PROPERTY
 OF  THE  HOME  OWNER  OR  TENANT  TO SPECIFIC VENDORS INCLUDING, BUT NOT
 LIMITED TO, EMPLOYEES, AGENTS OR OTHER PERSONS ACTING FOR OR  ON  BEHALF
 OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   (D) CHARGE A FEE OR IMPOSE OTHER CHARGES ON A HOME OWNER OR TENANT WHO
 CHOOSES  TO  INSTALL APPLIANCES AND/OR FIXTURES. THIS SHALL NOT RESTRICT
 THE ABILITY OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR  TO
 COLLECT INCREASED UTILITY CHARGES RESULTING FROM THE INSTALLATION OF ANY
 APPLIANCE OR FIXTURE.
   (E)  IMPOSE  ANY  CHARGE  FOR OR RESTRICT THE INGRESS OR EGRESS TO THE
 LEASE-HOLD RETIREMENT COMMUNITY OF, ANY PERSON  EMPLOYED,  RETAINED,  OR
 INVITED BY THE HOME OWNER OR TENANT.
   6. SALE OF HOMES. (A) A LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPER-
 ATOR  SHALL  NOT  PLACE RESTRICTIONS ON THE SALE OF A HOME IN THE LEASE-
 HOLD RETIREMENT COMMUNITY.
   (B) THE RIGHT TO SELL A LEASE-HOLD RETIREMENT COMMUNITY HOME  INCLUDES
 THE INCIDENTAL RIGHT TO USE ANY AND ALL METHODS COMMON TO SALES OF RESI-
 DENTIAL PROPERTY.
   (C)  THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR SHALL ENTER
 INTO A LEASE AGREEMENT WITHIN A REASONABLE TIME FROM THE  COMPLETION  OF
 THE SALE PURSUANT TO SUBDIVISION TWO OF THIS SECTION WITH THE SUBSEQUENT
 PURCHASER OF A HOME IN THE LEASE-HOLD RETIREMENT COMMUNITY.
   (D)  THE  LEASE-HOLD  RETIREMENT COMMUNITY OWNER OR OPERATOR SHALL NOT
 EXACT A COMMISSION OR FEE WITH RESPECT TO  THE  PRICE  REALIZED  BY  THE
 SELLER UNLESS THE COMMUNITY OWNER OR OPERATOR HAS ACTED AS AGENT FOR THE
 SAID HOME OWNER IN THE SALE PURSUANT TO A WRITTEN CONTRACT.
   7.  (A)  THE  LEASE-HOLD  RETIREMENT  COMMUNITY  OWNER OR OPERATOR MAY
 RESERVE THE RIGHT TO APPROVE ANY TENANTS  WHO  LEASE  OR  SUBLEASE  REAL
 PROPERTY AND ANY IMPROVEMENTS THEREON FROM A HOMEOWNER WITHIN THE LEASE-
 HOLD RETIREMENT COMMUNITY.  THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR
 OPERATOR  MAY  ONLY WITHHOLD APPROVAL IF THE PROPOSED TENANT OR PROPOSED
 LEASE OR SUBLEASE IS NOT IN CONFORMITY WITH THE  ESTABLISHED  RULES  AND
 REGULATIONS OF SUCH LEASE-HOLD RETIREMENT COMMUNITY.
   (B)  IF  A HOMEOWNER WISHES TO LEASE OR SUBLEASE REAL PROPERTY AND ANY
 IMPROVEMENTS THEREON WITHIN A LEASE-HOLD RETIREMENT COMMUNITY:
   (1) THE HOMEOWNER MUST  INFORM  THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR OPERATOR NO LESS THAN THIRTY DAYS PRIOR TO THE PROPOSED EFFEC-
 TIVE DATE OF SUCH LEASE OR SUBLEASE.

 S. 4316                             4                            A. 6364
 
   (2) THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR MAY  REQUEST
 ADDITIONAL INFORMATION FROM THE HOMEOWNER WITHIN TEN DAYS. IF SUCH ADDI-
 TIONAL  INFORMATION  IS  NOT  UNDULY BURDENSOME, FAILURE TO PROVIDE SUCH
 ADDITIONAL INFORMATION WILL ALLOW THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR  OPERATOR TO WITHHOLD THEIR APPROVAL OF THE PROPOSED TENANT OR
 PROPOSED LEASE OR SUBLEASE.
   (3) IF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR DOES  NOT
 RESPOND  BY  APPROVING OR WITHHOLDING APPROVAL OF THE PROPOSED TENANT OR
 PROPOSED LEASE OR SUBLEASE WITHIN THIRTY DAYS OF THE INITIAL REQUEST  BY
 THE  HOMEOWNER,  THE PROPOSED TENANT OR PROPOSED LEASE OR SUBLEASE SHALL
 BE DEEMED APPROVED.
   8. EMERGENCIES.  A LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 SHALL  DESIGNATE  A PHONE NUMBER THAT IS AVAILABLE ON A TWENTY-FOUR HOUR
 BASIS TO INSURE  THE  AVAILABILITY  OF  EMERGENCY  RESPONSE  IN  MATTERS
 AFFECTING  THE  HEALTH,  SAFETY,  WELL-BEING,  AND/OR GENERAL WELFARE OF
 LEASE-HOLD RETIREMENT COMMUNITY TENANTS.  THE TELEPHONE NUMBER SHALL  BE
 POSTED  IN  A  CONSPICUOUS  PUBLIC LOCATION IN THE LEASE-HOLD RETIREMENT
 COMMUNITY, GIVEN IN WRITING TO EACH HOMEOWNER AND TENANT, AND REGISTERED
 WITH APPROPRIATE MUNICIPAL LAW ENFORCEMENT, HEALTH AND FIRE OFFICIALS.
   9. RETALIATION. NO LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 MAY  THREATEN  REPRISAL  AGAINST ANY OF SUCH HOME OWNERS OR TENANTS AS A
 RESULT OF THEIR LAWFUL PURSUITS AND ACTIVITIES.
   10. REFUSAL TO FURNISH SERVICE. ANY  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR  OPERATOR  WHO  HAS AGREED TO PROVIDE HOT OR COLD WATER, HEAT,
 LIGHT, POWER, OR ANY OTHER SERVICE OR FACILITY TO  AN  OCCUPANT  OF  THE
 LEASE-HOLD  RETIREMENT  COMMUNITY  SHALL  NOT WILLFULLY OR INTENTIONALLY
 FAIL TO FURNISH SUCH WATER, HEAT,  LIGHT,  POWER  OR  OTHER  SERVICE  OR
 FACILITY, OR INTERFERE WITH THE QUIET ENJOYMENT OF THE LEASED PREMISES.
   11.  RECEIPTS.  UPON  RECEIPT  OF RENT, FEES, CHARGES OR OTHER ASSESS-
 MENTS, IN THE FORM OF CASH OR ANY INSTRUMENT  OTHER  THAN  THE  PERSONAL
 CHECK  OF  THE TENANT, IT SHALL BE THE DUTY OF THE LEASE-HOLD RETIREMENT
 COMMUNITY OWNER OR OPERATOR TO PROVIDE THE PAYOR WITH A WRITTEN  RECEIPT
 CONTAINING THE FOLLOWING:
   (A) THE DATE;
   (B) THE AMOUNT;
   (C) THE IDENTITY OF THE PREMISES AND THE PURPOSE FOR WHICH PAID;
   (D) THE SIGNATURE AND TITLE OF THE PERSON RECEIVING PAYMENT.
   12.  REMEDIES.  (A)  ANY LEASE-HOLD RETIREMENT COMMUNITY HOME OWNER OR
 TENANT INJURED OR DAMAGED IN WHOLE OR IN PART AS A RESULT OF A VIOLATION
 OF ANY OF THE PROVISIONS OF THIS SECTION MAY BRING AN ACTION FOR  RECOV-
 ERY  OF  ACTUAL  DAMAGES  PLUS  REASONABLE ATTORNEY'S FEES OR INJUNCTIVE
 RELIEF AS APPROPRIATE. THE REMEDY SHALL BE IN ADDITION TO AND SHALL  NOT
 PRECLUDE OR DIMINISH ANY ACTION THAT AN INDIVIDUAL MAY HAVE UNDER COMMON
 LAW OR ANY LOCAL, STATE OR FEDERAL LAW OR REGULATION.
   (B)  THE  COUNTY ATTORNEY MAY COMMENCE AN ACTION TO RESTRAIN, PREVENT,
 AND/OR ENJOIN A VIOLATION OF THIS  SECTION  OR  A  CONTINUANCE  OF  SUCH
 VIOLATION OF THIS SECTION OR A CONTINUANCE OF SUCH VIOLATION BY A LEASE-
 HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   §  2. Separability. If any part or provision of this act or the appli-
 cation thereof to a person or circumstance is adjudged  invalid  by  any
 court  of competent jurisdiction, such judgment shall be confined in its
 operation to the part or the provision or application directly  involved
 in  the  controversy in which such judgment shall have been rendered and
 shall not affect or impair the validity of the remainder of this act  or
 application thereof to other persons or circumstances.

 S. 4316                             5                            A. 6364

   §  3. This act shall take effect on the first of October next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 sales,  actions,  or  leases  involving  lease-hold retirement community
 homes occurring or entered into on or after such date.

2019-S4316A (ACTIVE) - Details

See Assembly Version of this Bill:: A6364
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §238-b, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3142
2011-2012: S1941, A2136
2013-2014: S3660, A4769
2015-2016: S4435, A6268
2017-2018: S3818, A3145
2021-2022: S8312, A9213
2023-2024: A4955

2019-S4316A (ACTIVE) - Summary

2019-S4316A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4316A

SPONSOR: LAVALLE
 
TITLE OF BILL:

An act to amend the real property law, in relation to lease-hold retire-
ment communities

 
PURPOSE:

This legislation would provide protections to retired persons who
purchase homes on ground leases.

 
SUMMARY OF PROVISIONS:

Specifically, the bill would:

1.Call for 99 year leases

2. Require rules and regulations to be given to prospective buyers and
attached to lease

3. A presumption that rules and regulations not uniformly enforced are
arbitrary and capricious.

4. Rules and regulations cannot be changed without the consent of the
homeowners and tenants

5. No fees may be added by the retirement community owner in Suffolk
County unless approved by three fourths of the tenants

6. All rent and utilities must be reasonable related to the value of the
facility or the services rendered.

7. Rent and utility fees must be fully explained when the deposit is
made; failure to do so will result in a failure of the owner to collect
them.

8. Any increases in rent or utilities must be in conformance with lease

9. The owner shall not:

     Require tenants to purchase gods or services from the owner
     Require installation and maintenance or repair services to specific
     vendors
     Charge a fee to anyone who installs goods
     Restrict interior improvements
     Interfere with the sale of a home
     Retaliate against tenants for their lawful pursuits

10. Makes it a misdemeanor to deny utilities to tenants

11. Tenants damaged by a violation of those provisions may bring an
action for recovery of damages, plus attorney's fees.

 
JUSTIFICATION:



This bill would afford to individuals residing in planned retirement
communities the same protections as persons who are mobile home owners
or multiple dwelling tenants.

 
LEGISLATIVE HISTORY:

2017-18 S.3818A/A.3145A;
2015-16 S.4435/A.6268;
2013-14 S.3660/A.4795;
2011-12 S.1941;
2009-10 S.3142;
2007-08 S.3815

 
FISCAL IMPLICATIONS:

None  
EFFECTIVE DATE:
This act shall take effect on the first of October next succeeding the
date on which it shall have become a law and shall apply to sales,
actions or leases involving lease-hold retirement community homes occur-
ring or entered into on or after such date.

2019-S4316A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4316--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 7, 2019
                                ___________
 
 Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary  --  recommitted
   to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee

 AN ACT to amend the real property law, in relation to lease-hold retire-
   ment communities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real property law is amended by adding a new section
 238-b to read as follows:
   § 238-B. LEASE-HOLD RETIREMENT COMMUNITY. 1. DEFINITIONS. AS  USED  IN
 THIS SECTION:
   (A) A "LEASE-HOLD RETIREMENT COMMUNITY" SHALL MEAN A CONTIGUOUS PARCEL
 OF  PRIVATELY  OWNED  REAL  PROPERTY CONTAINING TWO HUNDRED OR MORE LOTS
 WHICH ARE LEASED TO OWNERS  OF  YEAR-ROUND  HOMES  ERECTED  THEREON  AND
 AFFIXED  THERETO  WHEREIN  THE  OCCUPATION  IS RESTRICTED TO INDIVIDUALS
 BASED ON AGE PURSUANT TO PARAGRAPH (H)  OF  SUBDIVISION  THREE  OF  THIS
 SECTION.
   A  "LEASE-HOLD  RETIREMENT  COMMUNITY" SHALL NOT INCLUDE A MOBILE HOME
 PARK, OR CONDOMINIUM, AS DEFINED IN  THIS  CHAPTER,  A  CONTINUING  CARE
 RETIREMENT  COMMUNITY  AUTHORIZED UNDER ARTICLE FORTY-SIX OR FORTY-SIX-A
 OF THE PUBLIC HEALTH LAW, OR A COOPERATIVE HOUSING  CORPORATION  CREATED
 PURSUANT TO THE BUSINESS CORPORATION LAW.
   (B) "HOME OWNER" SHALL MEAN ONE WHO HOLDS TITLE TO A HOME.
   (C)  "TENANT"  SHALL  MEAN  ONE  WHO  OCCUPIES  A HOME IN A LEASE-HOLD
 RETIREMENT COMMUNITY FOR THIRTY DAYS OR MORE, AND  WHOSE  OCCUPATION  OF
 THE  HOME  IN THE LEASE-HOLD RETIREMENT COMMUNITY IS KNOWN TO THE LEASE-
 HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   2. LEASES. (A) ANY LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 SHALL  OFFER  EVERY HOME OWNER THE OPPORTUNITY TO SIGN A LONG TERM LEASE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03207-03-0

 S. 4316--A                          2
 
 FOR NINETY-NINE YEARS, WITH AN OPTION OF THE HOME OWNER TO  CANCEL  SAID
 LEASE ON NINETY DAYS WRITTEN NOTICE TO SAID OWNER OR OPERATOR.
   (B)  A  COPY OF SUCH LEASE-HOLD RETIREMENT COMMUNITY'S RULES AND REGU-
 LATIONS, IF ANY, SHALL BE ATTACHED TO AND BECOME A  PART  OF  THE  LEASE
 PROVIDED FOR BY THIS SECTION, AS IF FULLY SET FORTH THEREIN.
   (C)  NO  RULES  OR  REGULATIONS  SHALL  BE INCONSISTENT WITH THE LEASE
 PROVISIONS IN EFFECT AT THE COMMENCEMENT OF SUCH LEASE.
   (D) A COPY OF THE LEASE SHALL BE DELIVERED BY SUCH LEASE-HOLD  RETIRE-
 MENT  COMMUNITY  OWNER  OR OPERATOR TO ALL HOME OWNERS OR TENANTS AT THE
 TIME OF THE FIRST DEPOSIT MADE PAYABLE  TO  SAID  LEASE-HOLD  RETIREMENT
 COMMUNITY OWNER OR OPERATOR.
   3.  RULES  AND  REGULATIONS.  (A)  THE LEASE-HOLD RETIREMENT COMMUNITY
 OWNER OR OPERATOR MAY PROMULGATE RULES OR REGULATIONS GOVERNING THE RENT
 AND USE OR OCCUPATION OF THE HOME LOT, PROVIDED THAT SUCH RULES OR REGU-
 LATIONS SHALL NOT BE UNREASONABLE, ARBITRARY OR CAPRICIOUS.
   (B) A COPY OF ALL RULES AND REGULATIONS  SHALL  BE  DELIVERED  BY  THE
 LEASE-HOLD  RETIREMENT COMMUNITY OWNER OR OPERATOR TO ALL HOME OWNERS OR
 TENANTS AT THE TIME OF THE FIRST DEPOSIT MADE PAYABLE TO SAID LEASE-HOLD
 RETIREMENT COMMUNITY OWNER OR OPERATOR.
   (C) A COPY OF ALL RULES AND REGULATIONS SHALL BE POSTED IN A CONSPICU-
 OUS PUBLIC LOCATION UPON THE GROUNDS OF THE LEASE-HOLD RETIREMENT COMMU-
 NITY.
   (D) IF A RULE OR REGULATION IS  NOT  APPLIED  UNIFORMLY  TO  ALL  HOME
 OWNERS  OR  TENANTS,  THERE  SHALL BE A REBUTTABLE PRESUMPTION THAT SUCH
 RULE OR REGULATION IS UNREASONABLE, ARBITRARY OR CAPRICIOUS.
   (E) ANY RULE OR REGULATION WHICH DOES NOT CONFORM TO THE  REQUIREMENTS
 OF  THIS SECTION OR WHICH HAS NOT BEEN SUPPLIED OR POSTED AS REQUIRED BY
 THIS SECTION, SHALL NOT BE ENFORCEABLE.
   (F) NO RULE OR REGULATION MAY BE ADDED, AMENDED, REPEALED  OR  CHANGED
 BY  THE  LEASE-HOLD  RETIREMENT  COMMUNITY OWNER OR OPERATOR WITHOUT THE
 WRITTEN CONSENT OF SIXTY PERCENT OF THE HOME OWNERS.
   (G) RULES AND REGULATIONS SHALL NOT TAKE  EFFECT  UNTIL  SUPPLIED  AND
 POSTED PURSUANT TO THIS SUBDIVISION.
   (H)  SUCH  RULES AND REGULATIONS MAY ESTABLISH A MINIMUM AGE FOR INDI-
 VIDUALS TO OCCUPY A HOME  WITHIN  THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 SUBJECT TO ANY APPLICABLE LAW.
   4.  FEES.  (A) NO LEASE-HOLD RETIREMENT COMMUNITY HOME OWNER OR TENANT
 SHALL BE CHARGED A FEE, CHARGE, OR ASSESSMENT THAT IS NOT ALREADY SPECI-
 FIED IN THEIR CURRENT LEASE AGREEMENT, EXCEPT FOR RENT,  UTILITIES,  AND
 FEES  FOR SERVICES NECESSARY FOR THE OPERATION OF THE LEASE-HOLD RETIRE-
 MENT COMMUNITY, UNLESS AGREED TO BY SIXTY PERCENT OF  ALL  OF  THE  HOME
 OWNERS, SUCH AS FOR FACILITIES AVAILABLE TO THE HOMEOWNERS AND TENANTS.
   (B)  ALL  SUCH CHARGES FOR RENT, UTILITIES, SERVICES NECESSARY FOR THE
 OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND FACILITIES  AVAIL-
 ABLE  TO  THE  HOMEOWNERS  AND TENANTS MUST BE REASONABLY RELATED TO THE
 VALUE OF THE FACILITY AVAILABLE OR THE SERVICES ACTUALLY RENDERED.
   (C) A LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR  MUST  FULLY
 DISCLOSE  ALL  CHARGES  FOR  RENT, UTILITIES, SERVICES NECESSARY FOR THE
 OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND FACILITIES  AVAIL-
 ABLE TO THE HOMEOWNERS AND TENANTS TO ALL HOME OWNERS AT THE TIME OF THE
 FIRST  DEPOSIT  MADE  PAYABLE TO SAID COMMUNITY OWNER OR OPERATOR. A NEW
 FEE, CHARGE, OR ASSESSMENT THAT IS NOT SPECIFIED IN A HOMEOWNER'S  LEASE
 AGREEMENT  SHALL  NOT  BE  COLLECTABLE  UNTIL  THE LEASE-HOLD RETIREMENT
 COMMUNITY OWNER OR OPERATOR PROVIDES THE HOMEOWNER WITH A  WRITTEN  COPY
 DETAILING SUCH FEE, CHARGE, OR ASSESSMENT.

 S. 4316--A                          3
 
   (D)  FAILURE  ON THE PART OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER
 OR OPERATOR TO FULLY DISCLOSE ALL CHARGES FOR RENT, UTILITIES,  SERVICES
 NECESSARY  FOR THE OPERATION OF THE LEASE-HOLD RETIREMENT COMMUNITY, AND
 FACILITIES AVAILABLE TO THE HOMEOWNERS AND TENANTS PURSUANT TO PARAGRAPH
 (C) OF THIS SUBDIVISION SHALL PREVENT THE SAID COMMUNITY OWNER OR OPERA-
 TOR FROM COLLECTING SUCH CHARGES.
   5.  PROHIBITION.  NO LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR
 SHALL:
   (A) RESTRICT THE PURCHASE  AND/OR  INSTALLATION  OF  ANY  COMMODITIES,
 GOODS  OR  SERVICES  BY  THE  HOME  OWNER  OR  AGENT THEREOF TO SPECIFIC
 VENDORS, INCLUDING, BUT NOT  LIMITED  TO,  EMPLOYEES,  AGENTS  OR  OTHER
 PERSONS  ACTING  FOR OR ON BEHALF OF THE LEASE-HOLD RETIREMENT COMMUNITY
 OWNER OR OPERATOR.
   (B) RESTRICT THE  IMPROVEMENT,  INCLUDING  BUT  NOT  LIMITED  TO,  THE
 INSTALLATION  OF APPLIANCES, TO ANY PROPERTY OF THE HOMEOWNER OR TENANT,
 SO LONG AS SUCH IMPROVEMENT IS IN COMPLIANCE  WITH  APPLICABLE  BUILDING
 CODES,  OTHER  PROVISIONS  OF  LAW, AND THE RULES AND REGULATIONS OF THE
 LEASE-HOLD RETIREMENT COMMUNITY.
   (C) RESTRICT THE INSTALLATION, MAINTENANCE OR REPAIR OF  ANY  PROPERTY
 OF  THE  HOME  OWNER  OR  TENANT  TO SPECIFIC VENDORS INCLUDING, BUT NOT
 LIMITED TO, EMPLOYEES, AGENTS OR OTHER PERSONS ACTING FOR OR  ON  BEHALF
 OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   (D) CHARGE A FEE OR IMPOSE OTHER CHARGES ON A HOME OWNER OR TENANT WHO
 CHOOSES  TO  INSTALL APPLIANCES AND/OR FIXTURES. THIS SHALL NOT RESTRICT
 THE ABILITY OF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR  TO
 COLLECT INCREASED UTILITY CHARGES RESULTING FROM THE INSTALLATION OF ANY
 APPLIANCE OR FIXTURE.
   (E)  IMPOSE  ANY  CHARGE  FOR OR RESTRICT THE INGRESS OR EGRESS TO THE
 LEASE-HOLD RETIREMENT COMMUNITY OF, ANY PERSON  EMPLOYED,  RETAINED,  OR
 INVITED BY THE HOME OWNER OR TENANT.
   6. SALE OF HOMES. (A) A LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPER-
 ATOR  SHALL  NOT  PLACE RESTRICTIONS ON THE SALE OF A HOME IN THE LEASE-
 HOLD RETIREMENT COMMUNITY.
   (B) THE RIGHT TO SELL A LEASE-HOLD RETIREMENT COMMUNITY HOME  INCLUDES
 THE INCIDENTAL RIGHT TO USE ANY AND ALL METHODS COMMON TO SALES OF RESI-
 DENTIAL PROPERTY.
   (C)  THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR SHALL ENTER
 INTO A LEASE AGREEMENT WITHIN A REASONABLE TIME FROM THE  COMPLETION  OF
 THE SALE PURSUANT TO SUBDIVISION TWO OF THIS SECTION WITH THE SUBSEQUENT
 PURCHASER OF A HOME IN THE LEASE-HOLD RETIREMENT COMMUNITY.
   (D)  THE  LEASE-HOLD  RETIREMENT COMMUNITY OWNER OR OPERATOR SHALL NOT
 EXACT A COMMISSION OR FEE WITH RESPECT TO  THE  PRICE  REALIZED  BY  THE
 SELLER UNLESS THE COMMUNITY OWNER OR OPERATOR HAS ACTED AS AGENT FOR THE
 SAID HOME OWNER IN THE SALE PURSUANT TO A WRITTEN CONTRACT.
   7.  (A)  THE  LEASE-HOLD  RETIREMENT  COMMUNITY  OWNER OR OPERATOR MAY
 RESERVE THE RIGHT TO APPROVE ANY TENANTS  WHO  LEASE  OR  SUBLEASE  REAL
 PROPERTY AND ANY IMPROVEMENTS THEREON FROM A HOMEOWNER WITHIN THE LEASE-
 HOLD RETIREMENT COMMUNITY.  THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR
 OPERATOR  MAY  ONLY WITHHOLD APPROVAL IF THE PROPOSED TENANT OR PROPOSED
 LEASE OR SUBLEASE IS NOT IN CONFORMITY WITH THE  ESTABLISHED  RULES  AND
 REGULATIONS OF SUCH LEASE-HOLD RETIREMENT COMMUNITY.
   (B)  IF  A HOMEOWNER WISHES TO LEASE OR SUBLEASE REAL PROPERTY AND ANY
 IMPROVEMENTS THEREON WITHIN A LEASE-HOLD RETIREMENT COMMUNITY:
   (1) THE HOMEOWNER MUST  INFORM  THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR OPERATOR NO LESS THAN THIRTY DAYS PRIOR TO THE PROPOSED EFFEC-
 TIVE DATE OF SUCH LEASE OR SUBLEASE.

 S. 4316--A                          4
 
   (2) THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR MAY  REQUEST
 ADDITIONAL INFORMATION FROM THE HOMEOWNER WITHIN TEN DAYS. IF SUCH ADDI-
 TIONAL  INFORMATION  IS  NOT  UNDULY BURDENSOME, FAILURE TO PROVIDE SUCH
 ADDITIONAL INFORMATION WILL ALLOW THE  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR  OPERATOR TO WITHHOLD THEIR APPROVAL OF THE PROPOSED TENANT OR
 PROPOSED LEASE OR SUBLEASE.
   (3) IF THE LEASE-HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR DOES  NOT
 RESPOND  BY  APPROVING OR WITHHOLDING APPROVAL OF THE PROPOSED TENANT OR
 PROPOSED LEASE OR SUBLEASE WITHIN THIRTY DAYS OF THE INITIAL REQUEST  BY
 THE  HOMEOWNER,  THE PROPOSED TENANT OR PROPOSED LEASE OR SUBLEASE SHALL
 BE DEEMED APPROVED.
   8. EMERGENCIES.  A LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 SHALL  DESIGNATE  A PHONE NUMBER THAT IS AVAILABLE ON A TWENTY-FOUR HOUR
 BASIS TO INSURE  THE  AVAILABILITY  OF  EMERGENCY  RESPONSE  IN  MATTERS
 AFFECTING  THE  HEALTH,  SAFETY,  WELL-BEING,  AND/OR GENERAL WELFARE OF
 LEASE-HOLD RETIREMENT COMMUNITY TENANTS.  THE TELEPHONE NUMBER SHALL  BE
 POSTED  IN  A  CONSPICUOUS  PUBLIC LOCATION IN THE LEASE-HOLD RETIREMENT
 COMMUNITY, GIVEN IN WRITING TO EACH HOMEOWNER AND TENANT, AND REGISTERED
 WITH APPROPRIATE MUNICIPAL LAW ENFORCEMENT, HEALTH AND FIRE OFFICIALS.
   9. RETALIATION. NO LEASE-HOLD RETIREMENT COMMUNITY OWNER  OR  OPERATOR
 MAY  THREATEN  REPRISAL  AGAINST ANY OF SUCH HOME OWNERS OR TENANTS AS A
 RESULT OF THEIR LAWFUL PURSUITS AND ACTIVITIES.
   10. REFUSAL TO FURNISH SERVICE. ANY  LEASE-HOLD  RETIREMENT  COMMUNITY
 OWNER  OR  OPERATOR  WHO  HAS AGREED TO PROVIDE HOT OR COLD WATER, HEAT,
 LIGHT, POWER, OR ANY OTHER SERVICE OR FACILITY TO  AN  OCCUPANT  OF  THE
 LEASE-HOLD  RETIREMENT  COMMUNITY  SHALL  NOT WILLFULLY OR INTENTIONALLY
 FAIL TO FURNISH SUCH WATER, HEAT,  LIGHT,  POWER  OR  OTHER  SERVICE  OR
 FACILITY, OR INTERFERE WITH THE QUIET ENJOYMENT OF THE LEASED PREMISES.
   11.  RECEIPTS.  UPON  RECEIPT  OF RENT, FEES, CHARGES OR OTHER ASSESS-
 MENTS, IN THE FORM OF CASH OR ANY INSTRUMENT  OTHER  THAN  THE  PERSONAL
 CHECK  OF  THE TENANT, IT SHALL BE THE DUTY OF THE LEASE-HOLD RETIREMENT
 COMMUNITY OWNER OR OPERATOR TO PROVIDE THE PAYOR WITH A WRITTEN  RECEIPT
 CONTAINING THE FOLLOWING:
   (A) THE DATE;
   (B) THE AMOUNT;
   (C) THE IDENTITY OF THE PREMISES AND THE PURPOSE FOR WHICH PAID; AND
   (D) THE SIGNATURE AND TITLE OF THE PERSON RECEIVING PAYMENT.
   12.  REMEDIES.  (A)  ANY LEASE-HOLD RETIREMENT COMMUNITY HOME OWNER OR
 TENANT INJURED OR DAMAGED IN WHOLE OR IN PART AS A RESULT OF A VIOLATION
 OF ANY OF THE PROVISIONS OF THIS SECTION MAY BRING AN ACTION FOR  RECOV-
 ERY  OF  ACTUAL  DAMAGES  PLUS  REASONABLE ATTORNEY'S FEES OR INJUNCTIVE
 RELIEF AS APPROPRIATE. THE REMEDY SHALL BE IN ADDITION TO AND SHALL  NOT
 PRECLUDE OR DIMINISH ANY ACTION THAT AN INDIVIDUAL MAY HAVE UNDER COMMON
 LAW OR ANY LOCAL, STATE OR FEDERAL LAW OR REGULATION.
   (B)  THE  COUNTY ATTORNEY MAY COMMENCE AN ACTION TO RESTRAIN, PREVENT,
 AND/OR ENJOIN A VIOLATION OF THIS  SECTION  OR  A  CONTINUANCE  OF  SUCH
 VIOLATION OF THIS SECTION OR A CONTINUANCE OF SUCH VIOLATION BY A LEASE-
 HOLD RETIREMENT COMMUNITY OWNER OR OPERATOR.
   §  2. Separability. If any part or provision of this act or the appli-
 cation thereof to a person or circumstance is adjudged  invalid  by  any
 court  of competent jurisdiction, such judgment shall be confined in its
 operation to the part or the provision or application directly  involved
 in  the  controversy in which such judgment shall have been rendered and
 shall not affect or impair the validity of the remainder of this act  or
 application thereof to other persons or circumstances.

 S. 4316--A                          5
 
   §  3. This act shall take effect on the first of October next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 sales,  actions,  or  leases  involving  lease-hold retirement community
 homes occurring or entered into on or after such date.

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