NY State Senate Bill 2019-S6408B

Senate Bill S6408B

2019-2020 Legislative Session

Requires a uniform processes for considering applications to purchase condominiums or cooperatives

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 20, 2020	print number 6408b
Jul 20, 2020	amend and recommit to corporations, authorities and commissions
Jan 08, 2020	referred to corporations, authorities and commissions
Jun 14, 2019	print number 6408a
Jun 14, 2019	amend and recommit to rules
Jun 07, 2019	referred to rules

Bill Amendments

Original

B (Active)

2019-S6408 - Details

See Assembly Version of this Bill:: A1267
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-b, N-PC L; add §728, BC L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3553
2011-2012: A3053
2013-2014: A4388
2015-2016: A6395
2017-2018: A3813
2021-2022: S2874, A1623
2023-2024: A6647

2019-S6408 - Summary

Requires a uniform process for considering applications to purchase condominiums or cooperatives.

2019-S6408 - Sponsor Memo

                                
 
BILL NUMBER: S6408

SPONSOR: KAVANAGH
 
TITLE OF BILL:  An act to amend the not-for-profit corporation law and
the business corporation law, in relation to cooperative purchase appli-
cations

 
PURPOSE:

This bill would ensure that the process of purchasing cooperative hous-
ing is fair, transparent and does the utmost to protect against illegal
discrimination.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds Section 519-B to the not-for-profit corpo-
ration law.

It requires housing cooperatives formed as not-for-profits to create
procedures for a uniform application process.

Boards of these cooperatives would need to provide written copies of
these procedures to any prospective purchaser or seller who request
them.

The uniform application process must require the board to notify the
prospective purchaser that their application has been received and is
either complete or is incomplete and what additional documentation is
needed.

In the notice telling the prospective purchaser the application is
complete, the board must state what date they will complete their review
and either approve or deny the application.

Section two does the same but for cooperatives formed under the business
corporation law, by adding a new section 728 to the business corporation
law.

Section three of the bill provides the effective date.   
PURPOSE AND
JUSTIFICATION:

Residential cooperative purchasers are subject to processes and condi-
tions that do not also apply to purchasers of other single family resi-
dences. These processes and conditions give the appearance and have the
potential to be misused to illegally discriminate against a purchaser of
cooperative housing. Because NYS strongly opposes all illegal discrimi-
nation and promotes fair housing laws and regulations, it is essential
that the process for purchasing a cooperative dwelling include the addi-
tional safeguards of this bill to protect against illegal discrimi-
nation.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018:A.3813 - Referred to Housing
2015-2016:A.6395 - Referred to Housing
2013-2014:A.4388 - Referred to Housing
2011-2012:A.3053 - Referred to Housing
2009-2010:A.3553 - Referred to Housing
2007-2008:A.3994 - Referred to Housing
2005-2006:A.3813-A/5.3355 - Referred to Housing/Third Reading Calendar

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
Immediately.

2019-S6408 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6408
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the not-for-profit  corporation  law  and  the  business
   corporation 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. The not-for-profit corporation law is amended by  adding  a
 new section 519-b to read as follows:
 § 519-B. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) THE BOARD OF DIRECTORS OF ANY RESIDENTIAL COOPERATIVE CORPORATION,
 INCORPORATED  PURSUANT  TO  THIS CHAPTER, SHALL ESTABLISH THROUGH AMEND-
 MENTS TO ITS BY-LAWS UNIFORM PROCESSES FOR APPLYING TO  AND  CONSIDERING
 APPLICATIONS FOR THE PURCHASE CERTIFICATES OF STOCK, A PROPRIETARY LEASE
 OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH RESIDENTIAL COOPER-
 ATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE  AGENTS,  PROMPTLY  UPON REQUEST. PROSPECTIVE PURCHASERS SHALL BE
 REQUIRED TO CONFIRM RECEIPT OF SUCH NOTICE IN WRITING.
   (C) AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE BOARD OF DIRECTORS,
 UPON RECEIVING AN APPLICATION FROM A PROSPECTIVE PURCHASER, TO  ACKNOWL-
 EDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWLEDGEMENT
 OF  RECEIPT  WHETHER  THE  APPLICATION  SUBMITTED  FULLY  SATISFIES  THE
 REQUIREMENTS  THEREFOR,  THE  WAY  OR  WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND/OR ANY  ADDITIONAL  MATERIALS  NECESSARY  TO  EFFECTUATE
 CONSIDERATION OF THE APPLICATION.
   (D)  THE  PROCESSES ESTABLISHED PURSUANT TO THIS SECTION SHALL FURTHER
 REQUIRE THAT, FOLLOWING THE SUBMISSION OF A  COMPLETED  APPLICATION  AND
 ALL  ADDITIONAL  MATERIALS  REQUESTED IN THE ACKNOWLEDGEMENT OF RECEIPT,
 THE BOARD OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER  OR  THEIR
 AGENT  THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY WHAT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06684-07-9

 S. 6408                             2
 
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WHETHER ITS CONSENT TO THE SALE IS  GRANTED  OR
 DENIED.
   (E)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 2. The business corporation law is amended by adding a  new  section
 728 to read as follows:
 § 728. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) THE BOARD OF DIRECTORS OF ANY RESIDENTIAL COOPERATIVE CORPORATION,
 INCORPORATED  PURSUANT  TO  THIS CHAPTER, SHALL ESTABLISH THROUGH AMEND-
 MENTS TO ITS BY-LAWS UNIFORM PROCESSES FOR APPLYING TO  AND  CONSIDERING
 APPLICATIONS FOR THE PURCHASE CERTIFICATES OF STOCK, A PROPRIETARY LEASE
 OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH RESIDENTIAL COOPER-
 ATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE  AGENTS,  PROMPTLY  UPON REQUEST. PROSPECTIVE PURCHASERS SHALL BE
 REQUIRED TO CONFIRM RECEIPT OF SUCH NOTICE IN WRITING.
   (C) AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE BOARD OF DIRECTORS,
 UPON RECEIVING AN APPLICATION FROM A PROSPECTIVE PURCHASER, TO  ACKNOWL-
 EDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWLEDGEMENT
 OF  RECEIPT  WHETHER  THE  APPLICATION  SUBMITTED  FULLY  SATISFIES  THE
 REQUIREMENTS  THEREFOR,  THE  WAY  OR  WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND/OR ANY  ADDITIONAL  MATERIALS  NECESSARY  TO  EFFECTUATE
 CONSIDERATION OF THE APPLICATION.
   (D)  THE  PROCESSES ESTABLISHED PURSUANT TO THIS SECTION SHALL FURTHER
 REQUIRE THAT, FOLLOWING THE SUBMISSION OF A  COMPLETED  APPLICATION  AND
 ALL  ADDITIONAL  MATERIALS  REQUESTED IN THE ACKNOWLEDGEMENT OF RECEIPT,
 THE BOARD OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER  OR  THEIR
 AGENT  THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WHETHER ITS CONSENT TO THE SALE IS  GRANTED  OR
 DENIED.
   (E)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 3. This act shall take effect immediately.

2019-S6408A - Details

See Assembly Version of this Bill:: A1267
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-b, N-PC L; add §728, BC L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3553
2011-2012: A3053
2013-2014: A4388
2015-2016: A6395
2017-2018: A3813
2021-2022: S2874, A1623
2023-2024: A6647

2019-S6408A - Summary

Requires a uniform process for considering applications to purchase condominiums or cooperatives.

2019-S6408A - Sponsor Memo

                                
 
BILL NUMBER: S6408A

SPONSOR: KAVANAGH
 
TITLE OF BILL:  An act to amend the not-for-profit corporation law and
the business corporation law, in relation to cooperative purchase appli-
cations

 
PURPOSE:

This bill would ensure that the process of purchasing cooperative hous-
ing is fair, transparent and does the utmost to protect against illegal
discrimination.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds Section 519-B to the not-for-profit corpo-
ration law. It requires any residential cooperative corporation formed
as not-for-profits to create procedures for a uniform application proc-
ess. Any residential cooperative corporation would need to provide writ-
ten copies of these procedures to any prospective purchaser or seller
who request them. The uniform application process must require the such

cooperative corporation to notify the prospective purchaser that their
application has been received and is either complete or is incomplete
and what additional documentation is needed. In the notice telling the
prospective purchaser the application is complete, the cooperative
corporation must state what date they will complete their review and
either approve or deny the application.

Section two does the same but for cooperatives formed under the business
corporation law, by adding a new section 728 to the business corporation
law.

Section three of the bill sets forth the effective date.

 
JUSTIFICATION:

Residential cooperative purchasers are subject to processes and condi-
tions that do not also apply to purchasers of other single family resi-
dences. These processes and conditions give the appearance and have the
potential to be misused to illegally discriminate against a purchaser of
cooperative housing. Because NYS strongly opposes all illegal discrimi-
nation and promotes fair housing laws and regulations, it is essential
that the process for purchasing a cooperative dwelling include the addi-
tional safeguards of this bill to protect against illegal discrimi-
nation.

 
LEGISLATIVE HISTORY:

2017-2018:A3813- Referred to Housing
2015-2016:A6395- Referred to Housing
2013-2014:A4388- Referred to Housing
2011-2012:A3053- Referred to Housing
2009-2010:A3553- Referred to Housing
2007-2008:A3994- Referred to Housing
2005-2006:A3813/S3355 - Referred to Housing/Third Reading Calendar

 
FISCAL IMPLICATIONS:

None to the state.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2019-S6408A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6408--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  not-for-profit corporation law and the business
   corporation 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.  The not-for-profit corporation law is amended by adding a
 new section 519-b to read as follows:
 § 519-B. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE  AGENTS,  PROMPTLY  UPON REQUEST. PROSPECTIVE PURCHASERS SHALL BE
 REQUIRED TO CONFIRM RECEIPT OF SUCH NOTICE IN WRITING.
   (C) AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE  CORPO-
 RATION,  UPON  RECEIVING AN APPLICATION FROM A PROSPECTIVE PURCHASER, TO
 ACKNOWLEDGE RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH  ACKNOWL-
 EDGEMENT  OF  RECEIPT  WHETHER THE APPLICATION SUBMITTED FULLY SATISFIES
 THE REQUIREMENTS THEREFOR, THE WAY OR WAYS THE SUBMITTED APPLICATION  IS
 INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECESSARY TO EFFECTUATE CONSID-
 ERATION OF THE APPLICATION.
   (D)  THE  PROCESSES ESTABLISHED PURSUANT TO THIS SECTION SHALL FURTHER
 REQUIRE THAT, FOLLOWING THE SUBMISSION OF A  COMPLETED  APPLICATION  AND
 ALL  ADDITIONAL  MATERIALS  REQUESTED IN THE ACKNOWLEDGEMENT OF RECEIPT,
 THE BOARD OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER  OR  THEIR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06684-08-9

 S. 6408--A                          2
 
 AGENT  THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 2. The business corporation law is amended by adding a  new  section
 728 to read as follows:
 § 728. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A)  ANY  RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED PURSUANT TO
 THIS CHAPTER, SHALL ESTABLISH UNIFORM  PROCESSES  FOR  APPLYING  TO  AND
 CONSIDERING  APPLICATIONS  FOR  THE PURCHASE OF CERTIFICATES OF STOCK, A
 PROPRIETARY LEASE OR OTHER EVIDENCE OF AN  OWNERSHIP  INTEREST  IN  SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B)  WRITTEN  NOTICE  OF SUCH PROCESSES SHALL BE MADE AVAILABLE TO ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST. PROSPECTIVE  PURCHASERS  SHALL  BE
 REQUIRED TO CONFIRM RECEIPT OF SUCH NOTICE IN WRITING.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION UPON RECEIVING AN APPLICATION FROM A  PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWL-
 EDGEMENT OF RECEIPT WHETHER THE APPLICATION  SUBMITTED  FULLY  SATISFIES
 THE  REQUIREMENTS THEREFOR, THE WAY OR WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECESSARY TO EFFECTUATE CONSID-
 ERATION OF THE APPLICATION.
   (D) THE PROCESSES ESTABLISHED PURSUANT TO THIS SECTION  SHALL  FURTHER
 REQUIRE  THAT,  FOLLOWING  THE SUBMISSION OF A COMPLETED APPLICATION AND
 ALL ADDITIONAL MATERIALS REQUESTED IN THE  ACKNOWLEDGEMENT  OF  RECEIPT,
 THE  BOARD  OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER OR THEIR
 AGENT THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY  WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

2019-S6408B (ACTIVE) - Details

See Assembly Version of this Bill:: A1267
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-b, N-PC L; add §728, BC L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3553
2011-2012: A3053
2013-2014: A4388
2015-2016: A6395
2017-2018: A3813
2021-2022: S2874, A1623
2023-2024: A6647

2019-S6408B (ACTIVE) - Summary

Requires a uniform process for considering applications to purchase condominiums or cooperatives.

2019-S6408B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6408b

SPONSOR: KAVANAGH
 
PURPOSE:

This bill would ensure that the process of purchasing cooperative hous-
ing is fair, transparent and does the utmost to protect against illegal
discrimination.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds Section 519-B to the not-for-profit corpo-
ration law. It requires any residential cooperative corporation formed
as not-for-profits to create procedures for a uniform application proc-
ess. Any residential cooperative corporation would need to provide writ-
ten copies of these procedures to any prospective purchaser or seller
who request them. The uniform application process must require the such
cooperative corporation to notify the prospective purchaser that their
application has been received and is either complete or is incomplete
and what additional documentation is needed, within twenty-one days of
receiving such application. In the notice telling the prospective
purchaser the application is complete, the cooperative corporation must

state what date they will complete their review and either approve or
deny the application. Such date must be within ninety days of the
receipt of a completed application.  If a board fails to issue a final
determination, the consent of the sale will be granted. This section
also requires a written reason be provided for all denied sales.

Section two does the same but for cooperatives formed under the business
corporation law, by adding a new section 728 to the business corporation
law.

Section three of the bill sets forth the effective date.

 
JUSTIFICATION:

Residential cooperative purchasers are subject to processes and condi-
tions that apply to no other purchasers of single-family residences.
These processes and conditions give the appearance and have the poten-
tial to be misused to illegally discriminate against a potential
purchaser of cooperative housing. Because NYS strongly opposes all ille-
gal discrimination and wholeheartedly promotes fair housing laws and
regulations, it is essential that the process for purchasing a cooper-
ative dwelling include the additional safeguards of this bill to protect
against illegal discrimination.

 
LEGISLATIVE HISTORY:

2017-2018:A3813(Perry)- Referred to Housing
2015-2016:A6395(Perry)- Referred to Housing
2013-2014:A4388(Perry)- Referred to Housing
2011-2012:A3053(Perry)- Referred to Housing
2009-2010:A3553(Perry)- Referred to Housing
2007-2008:A3994(Perry)- Referred to Housing
2005-2006: A3813/S3355 (Perry/Balboni) - Referred to Housing/Third Read-
ing Calendar

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2019-S6408B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6408--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  recommitted to the Committee on Corporations,
   Authorities and Commissions 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 not-for-profit  corporation  law  and  the  business
   corporation 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. The not-for-profit corporation law is amended by  adding  a
 new section 519-b to read as follows:
 § 519-B. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A)  ANY  RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED PURSUANT TO
 THIS CHAPTER, SHALL ESTABLISH UNIFORM  PROCESSES  FOR  APPLYING  TO  AND
 CONSIDERING  APPLICATIONS  FOR  THE PURCHASE OF CERTIFICATES OF STOCK, A
 PROPRIETARY LEASE OR OTHER EVIDENCE OF AN  OWNERSHIP  INTEREST  IN  SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B)  WRITTEN  NOTICE  OF SUCH PROCESSES SHALL BE MADE AVAILABLE TO ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C) AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE  CORPO-
 RATION,  UPON  RECEIVING AN APPLICATION FROM A PROSPECTIVE PURCHASER, TO
 ACKNOWLEDGE RECEIPT OF SUCH APPLICATION WITHIN TWENTY-ONE  DAYS  AND  TO
 INCLUDE  IN  SUCH  ACKNOWLEDGEMENT  OF  RECEIPT  WHETHER THE APPLICATION
 SUBMITTED FULLY SATISFIES THE REQUIREMENTS THEREFOR, THE WAY OR WAYS THE
 SUBMITTED APPLICATION IS INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECES-
 SARY TO EFFECTUATE CONSIDERATION OF THE APPLICATION.
   (D) THE PROCESSES ESTABLISHED PURSUANT TO THIS SECTION  SHALL  FURTHER
 REQUIRE  THAT,  FOLLOWING  THE SUBMISSION OF A COMPLETED APPLICATION AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06684-10-0

 S. 6408--B                          2
 
 ALL ADDITIONAL MATERIALS REQUESTED IN THE  ACKNOWLEDGEMENT  OF  RECEIPT,
 THE  BOARD  OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER OR THEIR
 AGENT THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY  WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   §  2.  The business corporation law is amended by adding a new section
 728 to read as follows:
 § 728. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION UPON RECEIVING AN APPLICATION FROM A  PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWL-
 EDGEMENT OF RECEIPT WHETHER THE APPLICATION  SUBMITTED  FULLY  SATISFIES
 THE  REQUIREMENTS THEREFOR, THE WAY OR WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECESSARY TO EFFECTUATE CONSID-
 ERATION OF THE APPLICATION.
   (D) THE PROCESSES ESTABLISHED PURSUANT TO THIS SECTION  SHALL  FURTHER
 REQUIRE  THAT,  FOLLOWING  THE SUBMISSION OF A COMPLETED APPLICATION AND
 ALL ADDITIONAL MATERIALS REQUESTED IN THE  ACKNOWLEDGEMENT  OF  RECEIPT,
 THE  BOARD  OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER OR THEIR
 AGENT THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY  WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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Senate Bill S6408B

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Sponsored By

Brian Kavanagh

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Bill Amendments

2019-S6408 - Details

2019-S6408 - Summary

2019-S6408 - Sponsor Memo

2019-S6408 - Bill Text download pdf

2019-S6408A - Details

2019-S6408A - Summary

2019-S6408A - Sponsor Memo

2019-S6408A - Bill Text download pdf

2019-S6408B (ACTIVE) - Details

2019-S6408B (ACTIVE) - Summary

2019-S6408B (ACTIVE) - Sponsor Memo

2019-S6408B (ACTIVE) - Bill Text download pdf

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