S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7735
 
                             I N  S E N A T E
 
                              January 7, 2022
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
              

 S. 7735                             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.