NY State Senate Bill 2023-S6242

Senate Bill S6242

2023-2024 Legislative Session

Creates the office of the cooperative and condominium ombudsperson and authorizes the residential unit fee

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Current 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 03, 2024	referred to finance
Apr 06, 2023	referred to finance

co-Sponsors

2023-S6242 (ACTIVE) - Details

See Assembly Version of this Bill:: A6615
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
2019-2020: S2604, A1482
2021-2022: S494, A3157

2023-S6242 (ACTIVE) - Summary

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

2023-S6242 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6242

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the executive law, in relation to creating the office of
the cooperative and condominium ombudsperson; 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 ombudsperson fund

 
PURPOSE:

The bill creates the Office of the Cooperative and Condominium Ombud-
sperson within the Department of Law to serve as a neutral, informative,
and accessible resource available to cooperative and condominium resi-
dents, prospective shareholders and unit owners, boards of directors and
managers, 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 Ombudsperson
within the Department of Law. The Office would be headed by an Ombud-
sperson who is appointed for a fixed term by the Attorney General. The
Attorney General would be responsible for the oversight of the Office.
The Ombudsperson 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 regulations. 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 the legislature regarding new and existing
legislation affecting cooperative shareholders or condominium owners.
The Ombudsperson 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 pending before the Office. The Secretary
to the Governor is to ensure that all state agencies provide the Ombud-
sperson with assistance 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 Ombudsperson 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 Ombudsperson
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 Ombud-
sperson.

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
organizational by-laws and other corporate documents. Offerings of
condominiums 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 coop-
erative 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 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 the Business Corporation Law which
was not designed to regulate residential real estate. Cooperative share-
holders 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 quali-
ty 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 board of directors or managers
often takes an extended period of time, and is difficult or even impos-
sible in buildings where the original building sponsor or other party
controls the majority of votes. As a result, problems in cooperative and
condominium buildings all too frequently result in lengthy, expensive,
and acrimonious litigation which harms all parties involved. Such liti-
gation 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 ultimately 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 may remain unresolved for years, finances are mishandled, and
buildings deteriorate.

Several other states, such as Florida, Nevada, and New Jersey have
created condominium ombudsperson or ombudsperson-type offices to address
similar challenges in their states.(1) These offices 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. Other states have passed or are
considering legislation to create condominium or community association
ombudspersons.(2)

New York has one of the largest, if not the largest, number of cooper-
atives and condominiums in the nation. New York is also unique in having
both cooperative and condominium housing. In parts of the state, cooper-
ative shareholders and condominium owners substantially outnumber owners
of single and two-family homes. These residents would see significant
benefits from the creation of a New York State Cooperative and Condomin-
ium Ombudsperson's Office.

 
FISCAL IMPLICATIONS:

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

 
LEGISLATIVE HISTORY:

2021-2022: S.494/A.3157; died in Finance

2019-2020: S.2604/A.1482; died in Finance

2017-2018: S.5839/A.11109; died in Finance

2015-2016: S.2832/A.1855; died in Finance

2013-2014: S.3152/A.34; died in Finance

2011-2012: S.395/A.6941; died in Finance
2009-2010: S.7958; died in Finance

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
becomes law.
(1) See, e.g., Nev. Rev. Stat. § 116.625,et seq (creating the office of
Ombudsman for Owners in Common-Interest Communities and Condominium
Hotels); NJ Rev. Stat. § 46:8B-13.1 - 16 (directing the Commissioner of
Consumer Affairs to provide guidance to associations and vesting that
office with power to direct boards of associations "to provide a fair
and efficient procedure for the resolution of disputes," and to order
compliance with records requests); Fla. Stat. § 718.5011 et
seq.(establishing the Office of the Condominium Ombudsman and delineat-
ing its powers and duties).
(2) See Joni Lucas, Ombudsman Programs Being Considered, HOA Resources,
Community Associations Institute available at
https://hoaresources.caionline.org/considering- hoa-ombudsman-program/.

2023-S6242 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6242
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               April 6, 2023
                                ___________
 
 Introduced  by  Sens.  MAYER, KRUEGER -- 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 ombudsperson; 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 ombudsperson 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 OMBUDSPERSON
 SECTION 996.   SHORT TITLE.
         996-A.  LEGISLATIVE DECLARATION.
         996-B. DEFINITIONS.
         996-C. OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSPERSON.
         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 OMBUDSPERSON 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
 PUBLIC POLICY OF THIS STATE TO ENCOURAGE SUCH FORMS OF HOME OWNERSHIP. A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00046-02-3

 S. 6242                             2
 
 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   OMBUDSPERSON
 APPOINTED  PURSUANT  TO  THIS  ARTICLE WILL CONDUCT OUTREACH PROGRAMS TO
 EDUCATE UNIT OWNERS AND BOARD MEMBERS  AS  TO  THEIR  LEGAL  RIGHTS  AND
 RESPONSIBILITIES.  THE  OMBUDSPERSON  WILL ENCOURAGE ALTERNATIVE DISPUTE
 RESOLUTION WHEN DISPUTES DO ARISE. THE OMBUDSPERSON WILL BE AVAILABLE TO
 PROVIDE DISPUTE RESOLUTION SERVICES  ON  CONSENT  OF  THE  PARTIES.  THE
 OMBUDSPERSON 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 OMBUD-
 SPERSON CREATED BY THIS ARTICLE.
   4. "OMBUDSPERSON" MEANS THE CHIEF ADMINISTRATIVE OFFICER OF THE OFFICE
 OF THE COOPERATIVE AND CONDOMINIUM OMBUDSPERSON.
   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 OMBUDSPERSON. 1.
 THE OFFICE OF THE COOPERATIVE AND  CONDOMINIUM  OMBUDSPERSON  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
 OVERSIGHT OF THE OFFICE.
   2.  THE  HEAD  OF  THE OFFICE SHALL BE THE COOPERATIVE AND CONDOMINIUM
 OMBUDSPERSON WHO SHALL BE APPOINTED BY THE ATTORNEY GENERAL. THE  OMBUD-
 SPERSON  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 OMBUDSPERSON 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. 6242                             3
 
   3. THE OMBUDSPERSON 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 OMBUDSPERSON'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 OMBUDSPERSON SHALL BE AN ATTORNEY WITH EXTENSIVE EXPERIENCE  IN
 REAL  ESTATE, COOPERATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND ALTER-
 NATIVE DISPUTE RESOLUTION.
   5. THE OMBUDSPERSON SHALL DIRECT THE WORK OF THE OFFICE AND  SHALL  BE
 THE  CHIEF EXECUTIVE OFFICER OF THE OFFICE. THE OMBUDSPERSON 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
 REIMBURSEMENT 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,  COOPERATIVE AND CONDOMINIUM LAW AND IN CONFLICT AND ALTERNATIVE
 DISPUTE RESOLUTION.
   6. THE OMBUDSPERSON 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  OMBUDSPERSON
 SHALL  PRESCRIBE  SUCH  CODE OF ETHICS. SUCH CODE SHALL REQUIRE THAT THE
 OMBUDSPERSON 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  PRIVILEGES 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 OMBUDSPERSON 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 OMBUDSPERSON WITH ASSISTANCE 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.
   §  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. 6242                             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 OMBUDSPERSON  MAY  REQUEST  AND  SHALL  BE
 ENTITLED  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. 6242                             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  OMBUDSPERSON  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 OMBUDSPERSON 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 CONDO-
 MINIUM OMBUDSPERSON FUND".
   2. THE OFFICE OF THE COOPERATIVE  AND  CONDOMINIUM  OMBUDSPERSON  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  OMBUD-
 SPERSON  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 SOLE-
 LY  FOR THE STAFFING AND ADMINISTRATION OF THE OFFICE OF THE COOPERATIVE
 AND CONDOMINIUM OMBUDSPERSON 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 S6242

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Sponsored By

Shelley B. Mayer