S T A T E O F N E W Y O R K
________________________________________________________________________
9020
I N A S S E M B L Y
January 20, 2022
___________
Introduced by M. of A. BRAUNSTEIN -- read once and referred to the
Committee on Judiciary
AN ACT to amend the general obligations law and the real property law,
in relation to excluding tenant-shareholders in cooperative housing
corporations from certain housing provisions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1-a of section 7-108 of the
general obligations law, as separately amended by chapter 428 and a
chapter of the laws of 2021 amending the general obligations law, the
real property law, and the real property actions and proceedings law
relating to excluding tenant-shareholders in cooperative housing corpo-
rations from certain housing provisions, as proposed in legislative
bills numbers S. 5105-C and A. 350-C, is amended to read as follows:
(a) No deposit or advance shall exceed the amount of one month's rent,
unless the deposit or advance is for a seasonal use dwelling unit as
provided for in subdivisions four and five of this section, OR unless
the deposit or advance is for an owner-occupied cooperative apartment as
provided for in subdivision [four] SIX of this section.
§ 2. Subdivision 4 of section 7-108 of the general obligations law, as
amended by a chapter of the laws of 2021 amending the general obli-
gations law, the real property law, and the real property actions and
proceedings law relating to excluding tenant-shareholders in cooperative
housing corporations from certain housing provisions, as proposed in
legislative bills numbers S. 5105-C and A. 350-C, is renumbered subdivi-
sion 6 and is amended to read as follows:
6. A dwelling unit shall qualify as an owner-occupied cooperative
apartment for the purpose of paragraph (a) of subdivision one-a of this
section if it meets all of the following conditions:
(a) the tenant is the dwelling unit owner, purchaser or shareholder of
such a cooperative housing corporation;
(b) such tenant has or will have after purchase exclusive occupancy of
such dwelling unit individually and with the permitted occupants pursu-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03421-16-2
A. 9020 2
ant to a proprietary lease or occupancy agreement and established and
delimited rights under such lease or agreement; and
(c) such dwelling unit is not subject to the provisions of article
two, article four, article five, or article eleven of the private hous-
ing finance law. FOR THE PURPOSES OF THIS PARAGRAPH, "DEPOSIT OR
ADVANCE", AS USED IN PARAGRAPH (A) OF SUBDIVISION ONE-A OF THIS SECTION,
SHALL NOT INCLUDE ANY PAYMENTS OR ADVANCES THAT ARE PART OF THE PURCHASE
PRICE OF THE UNIT OR SHARES.
§ 3. Paragraph (b) of subdivision 1 of section 238-a of the real prop-
erty law, as amended by a chapter of the laws of 2021 amending the
general obligations law, the real property law, and the real property
actions and proceedings law relating to excluding tenant-shareholders in
cooperative housing corporations from certain housing provisions, as
proposed in legislative bills numbers S. 5105-C and A. 350-C, is amended
to read as follows:
(b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
to reimburse costs associated with conducting a background check and
credit check, provided the cumulative fee or fees for such checks is no
more than the actual cost of the background check and credit check or
twenty dollars, whichever is less, and the landlord, lessor, sub-lessor
or grantor shall waive the fee or fees if the potential tenant provides
a copy of a background check or credit check conducted within the past
thirty days. The landlord, lessor, sub-lessor or grantor may not collect
the fee or fees unless the landlord, lessor, sub-lessor or grantor
provides the potential tenant with a copy of the background check or
credit check and the receipt or invoice from the entity conducting the
background check or credit check. Notwithstanding the provisions of
this paragraph, a cooperative housing corporation[, other than a cooper-
ative housing corporation subject to the provisions of article two,
article four, article five or article eleven of the private housing
finance law,] shall be permitted to charge a fee or fees to reimburse
costs associated with conducting a background check and credit check in
excess of twenty dollars, where the potential tenant would become a
dwelling unit owner or shareholder of such cooperative housing corpo-
ration, provided the cumulative fee or fees for such checks is no more
than the actual cost of such background check and/or credit check.
FURTHER, WITH REGARD TO A COOPERATIVE HOUSING CORPORATION SUBJECT TO THE
PROVISIONS OF ARTICLE TWO, ARTICLE FOUR, ARTICLE FIVE OR ARTICLE ELEVEN
OF THE PRIVATE HOUSING FINANCE LAW, ALL SUCH FEES MUST BE REASONABLE AND
APPROVED BY THE AGENCY SUPERVISING SUCH COOPERATIVE HOUSING CORPORATION.
§ 4. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2021 amending the general obligations
law, the real property law, and the real property actions and
proceedings law relating to excluding tenant-shareholders in cooperative
housing corporations from certain housing provisions, as proposed in
legislative bills numbers S. 5105-C and A. 350-C, takes effect.