NY State Senate Bill 2023-S663

Current Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to judiciary
Jan 05, 2023	referred to judiciary

2023-S663 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add Art 12-D §448, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5301
2011-2012: S87
2013-2014: S184
2015-2016: S198
2017-2018: S2027, S7104
2019-2020: S2340
2021-2022: S3092
2025-2026: S71

2023-S663 (ACTIVE) - Summary

Requires residential real property managers or any firm employing a property manager, contracting with a property manager or contracting to provide a property manager to file a registration statement with the secretary of state and to be certified from an approved certifying organization.

2023-S663 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S663

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property law, in relation to providing certif-
ication and registration requirements for property managers of cooper-
atives and condominiums

 
PURPOSE:

To assure property managers and those performing property management
duties for certain cooperatives or condominiums have the training,
competency and integrity to adequately perform their duties.

 
SUMMARY OF PROVISIONS:

The bill adds a new article 12-D to the real property law.

Section 1: Defines "certification," "property manager," and "residential
realty management" for purposes of the section.

Section 2: States that no property manager of cooperatives or condomin-
iums, or entities employing such property manager shall perform residen-
tial realty management unless such property manager or entity has filed
a registration statement with the Secretary of State; and those perform-
ing property management duties for the property manager have been certi-
fied by an approved certifying organization.

Section 3: Sets forth the information that must be contained in the
"property manager registration statement."

Section 4: States that the registration statement must be filed every
two years with the Secretary of State. This section also authorizes the
Secretary of State to collect a $50 fee for each filing.

Section 5: States that the Secretary of State must be notified of any
change of information, including but not limited to: changes in employ-
ment, retirement, resignation or termination, within 45-days.

Section 6: Authorizes the Secretary of State to issue a certification to
those applicants who have completed the necessary requirements.

Section 7: Requires the Secretary of State to establish procedures for
approving or disapproving applications from organizations to act as.
approved certifying organizations, and for periodically reviewing the
certification programs of approved organizations.

Section 8: Allows for the suspension and revocation of certification it,
after notice and hearing, the Secretary determines the property manager
is in violation of provisions of the article or the law.

Section 9: States that this section shall not apply to any property
manager, or entity employing a property manager, if all the condominiums
or cooperative units for which such property manager or entity performs
services comprising less than twenty-five residential units.

Section 10: Provides for graduated civil penalties.

Section 11: Mandates the segregation of funds for each managed unit. A
violation of this provision would constitute a misdemeanor punishable by
a fine not to exceed five thousand dollars.

Section 12: Mandates the turning over of all property records within ten
days upon cessation of performing realty management, except funds and
records requiring bank reconciliation which allows for 45 days.

Section 13: states that the Attorney General shall have the power to
enforce the provisions of the article.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Currently, there is no legal requirement that property managers have
training or experience in property management. In the past, unscrupulous
or untrained property managers have bilked cooperative shareholders of
millions of dollars in elaborate schemes of fraud.  This bill would
require property managers to disclose whether the individual or his or
her principals have been convicted of crimes involving fraudulent prac-
tices or crimes arising out of their duties as a property manager. Such
disclosure will enhance the ability of cooperatives and condominium
boards to determine the integrity of property managers which they may
employ.

This bill would also establish a procedure to ensure that those perform-
ing property management duties possess the skills and training essential
to satisfactorily perform their duties. It would require the certifying
organization to annually review the credentials of all certified indi-
viduals to determine that those holding a certification continue to meet
the standards established by the organization

 
LEGISLATIVE HISTORY:

2022: S3092 - Judiciary

2021: S3092 - Judiciary

2021: S3092 - Judiciary

2020: S2340 - Judiciary

2019: S2340 - Judiciary

2018: S7104 - REFERRED TO JUDICIARY

2017: S2027 - REFERRED TO JUDICIARY

2016: S198A/A5693 - REFERRED TO JUDICIARY/ referred to housing

2015: S198/A5693 - REFERRED TO JUDICIARY/ referred to housing

2014: S184/A2110 - REFERRED TO JUDICIARY/referred to housing

 
FISCAL IMPACT ON THE STATE:

The Secretary of state shall collect a $50 fee with each registration.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law, except that any rules and regulations necessary for the
timely implementation of this act on its effective date shall be promul-
gated on or before such date; provided, however, that subdivision 2 of
section 448 of the real property law, as added by section one of this
act, shall take effect on the first January next succeeding the date
upon which it shall have become law.

2023-S663 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    663
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to providing  certif-
   ication and registration requirements for property managers of cooper-
   atives and condominiums

   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  article
 12-D to read as follows:
                                ARTICLE 12-D
                       RESIDENTIAL REALTY MANAGEMENT
 SECTION 448. RESIDENTIAL REALTY MANAGEMENT.
   §  448.  RESIDENTIAL  REALTY  MANAGEMENT.  1. AS USED IN THIS ARTICLE,
 UNLESS THE CONTEXT OTHERWISE REQUIRES:
   (A) "CERTIFICATION" SHALL MEAN A DESIGNATION BY THE SECRETARY OF STATE
 THAT AN INDIVIDUAL HAS MET THE PREDETERMINED  QUALIFICATIONS  WHICH  ARE
 DEEMED  TO  CONSTITUTE  A  LEVEL  OF PROFICIENCY ADEQUATE TO PERFORM THE
 DAY-TO-DAY MANAGEMENT AND OPERATION OF REAL PROPERTY USED  FOR  RESIDEN-
 TIAL PURPOSES AND OWNED AS A COOPERATIVE OR CONDOMINIUM.
   (B) "PROPERTY MANAGER" SHALL MEAN ANY PERSON WHO, IN RETURN FOR REMUN-
 ERATION OR COMPENSATION OF ANY KIND, PERFORMS RESIDENTIAL REALTY MANAGE-
 MENT  FOR REAL PROPERTY OWNED AS A CONDOMINIUM OR COOPERATIVE.  PROPERTY
 MANAGER SHALL NOT MEAN OR INCLUDE:
   (1) A SHAREHOLDER OR OWNER OF THE COOPERATIVE OR CONDOMINIUM ACTING AS
 A PROPERTY MANAGER WITHOUT REMUNERATION OR COMPENSATION OF ANY KIND; OR
   (2) ANY DEVELOPER OR SPONSOR OF A COOPERATIVE  OR  CONDOMINIUM  DURING
 THE  PERIOD THAT THE DEVELOPER OR SPONSOR RETAINS CONTROL OF THE COOPER-
 ATIVE OR CONDOMINIUM; PROVIDED THAT THE DEVELOPER OR SPONSOR HAS IN  ITS
 EMPLOY OR HAS RETAINED A PROPERTY MANAGER CERTIFIED UNDER THIS ARTICLE.
   (C) "RESIDENTIAL REALTY MANAGEMENT" SHALL MEAN EITHER:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02999-01-3
 S. 663                              2

 
   (1)  THE  PERFORMANCE  OF  PRINCIPAL MANAGERIAL RESPONSIBILITIES FOR A
 COOPERATIVE OR CONDOMINIUM; AND THE AUTHORITY FOR  POLICY  OR  FINANCIAL
 DECISION  MAKING  FOR  ANY  ONE  OF THE FOLLOWING SERVICES: MAINTENANCE,
 SECURITY, ENERGY CONSERVATION, CODE COMPLIANCE, LABOR RELATIONS,  FISCAL
 BUDGETARY  RESPONSIBILITIES,  TENANT  RELATIONS, GOVERNMENTAL RELATIONS,
 JANITORIAL SERVICES OR ANY OTHER PROVIDED SERVICE; OR
   (2) THE RESPONSIBILITY FOR THE COLLECTION AND  EXPENDITURE  OF  MONIES
 FOR  AND ON BEHALF OF SUCH COOPERATIVE OR CONDOMINIUM, ITS OWNERS AND/OR
 MANAGING BOARD, UNDER WHATEVER NAME KNOWN.
   2. NO PERSON SHALL PERFORM RESIDENTIAL REALTY MANAGEMENT  UNLESS  SUCH
 PERSON  SHALL  HAVE FILED A PROPERTY MANAGER REGISTRATION STATEMENT WITH
 THE SECRETARY OF STATE AS REQUIRED BY THIS SECTION AND HAS  BEEN  ISSUED
 BY  THE  SECRETARY OF STATE A CERTIFICATE DEMONSTRATING THAT SUCH REGIS-
 TRANT HAS SATISFIED ALL THE REQUIREMENTS FOR CERTIFICATION AS A PROPERTY
 MANAGER AS SET FORTH BY THIS ARTICLE.
   NO COOPERATIVE OR CONDOMINIUM BOARD SHALL EMPLOY ANY  PERSON  FOR  THE
 PURPOSE  OF  PERFORMING RESIDENTIAL REALTY MANAGEMENT UNLESS SUCH PERSON
 HAS BEEN CERTIFIED BY THE OFFICE OF THE SECRETARY OF  STATE.  NOR  SHALL
 THE  COOPERATIVE  OR  CONDOMINIUM  BOARD  EMPLOY  ANY FIRM, PARTNERSHIP,
 CORPORATION OR OTHER ENTITY UNLESS ITS PROPERTY MANAGERS  ARE  CERTIFIED
 BY THE OFFICE OF THE SECRETARY OF STATE.
   3.  THE  SECRETARY OF STATE SHALL PROMULGATE THE FORM OF THE REGISTRA-
 TION STATEMENT TO BE KNOWN AS THE "PROPERTY MANAGER REGISTRATION  STATE-
 MENT."  THE  PROPERTY MANAGER REGISTRATION STATEMENT FORM SHALL REQUIRE,
 BUT NEED NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
   (A) THE NAME AND ADDRESS OF THE  PERSON  FILING  THE  REGISTRATION  TO
 OBTAIN CERTIFICATION PURSUANT TO THIS ARTICLE;
   (B)  THE NAME AND ADDRESS OF THE CORPORATION, FIRM, ASSOCIATION, PART-
 NERSHIP OR OTHER ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
   (C) THE NAME AND ADDRESS OF  ALL  PARTNERS,  OFFICERS,  DIRECTORS  AND
 PRINCIPALS  OF SUCH CORPORATION, FIRM, ASSOCIATION, PARTNERSHIP OR OTHER
 ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
   (D) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   (1) BEEN CONVICTED OF ANY CRIME INVOLVING FRAUD OR DISHONESTY  OR  HAD
 ANY CIVIL JUDGMENTS RELATING TO WORK AS A REAL PROPERTY MANAGER;
   (2)  EVER  HAD A REAL ESTATE BROKER'S LICENSE, AND IF SO, WHETHER SUCH
 LICENSE WAS EVER REVOKED OR SUSPENDED;
   (3) AT ANY TIME IN THE PAST BEEN ISSUED A  CERTIFICATION  PURSUANT  TO
 THIS  SECTION, AND IF SO, WHETHER SUCH CERTIFICATION WAS EVER REVOKED OR
 SUSPENDED;
   (E) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN ENGAGED IN RESIDEN-
 TIAL REALTY MANAGEMENT WHERE APPLICABLE AND A LIST OF EACH BUILDING  FOR
 WHICH THE REGISTRANT HAS PERFORMED RESIDENTIAL REALTY MANAGEMENT AND THE
 DATES AND ADDRESSES THEREOF;
   (F)  THE  NAME  AND  ADDRESS OF THE APPROVED PROPERTY MANAGER TRAINING
 PROGRAM THAT THE APPLICANT HAS SATISFACTORILY COMPLETED AND THE DATE  OF
 SUCH COMPLETION, IF REQUIRED; AND
   (G) A SWORN STATEMENT BY THE PROPERTY MANAGER THAT THE INFORMATION SET
 FORTH IN THE STATEMENT IS CURRENT AND ACCURATE.
   4.  EVERY  CERTIFICATION  ISSUED  PURSUANT  TO  THIS  SECTION SHALL BE
 RENEWED AS SET FORTH BY THE SECRETARY OF STATE BUT IN NO EVENT SHALL THE
 TERM OF SUCH CERTIFICATION EXCEED TWO  YEARS.  THE  SECRETARY  OF  STATE
 SHALL  COLLECT  A  FEE  OF FIFTY DOLLARS FOR EACH CERTIFICATION AND EACH
 RENEWAL PURSUANT TO THIS SECTION.
   5. A CERTIFIED PROPERTY MANAGER SHALL  GIVE  THE  SECRETARY  OF  STATE
 WRITTEN  NOTIFICATION  WITHIN  FORTY-FIVE DAYS OF ANY MATERIAL CHANGE OF
 S. 663                              3
 
 CIRCUMSTANCES WHICH VARIES FROM THE INFORMATION CONTAINED IN HIS OR  HER
 SWORN PROPERTY MANAGER REGISTRATION STATEMENT PREVIOUSLY PROVIDED TO THE
 SECRETARY OF STATE INCLUDING, BUT NOT LIMITED TO, CHANGES IN EMPLOYMENT,
 RETIREMENT, RESIGNATION OR TERMINATION.
   6.  THE SECRETARY OF STATE, UPON THE RECEIPT AND REVIEW OF A SATISFAC-
 TORILY COMPLETED PROPERTY MANAGER REGISTRATION STATEMENT,  MAY  ISSUE  A
 CERTIFICATION TO ANY APPLICANT WHO HAS:
   (A)  (1)  SUCCESSFULLY COMPLETED A   PROPERTY MANAGER TRAINING PROGRAM
 APPROVED BY THE SECRETARY OF STATE WHICH PROVIDES THE APPLICANT WITH THE
 REQUISITE SKILLS, KNOWLEDGE AND TRAINING NECESSARY TO  PERFORM  RESIDEN-
 TIAL REALTY MANAGEMENT AS DEFINED BY PARAGRAPH (C) OF SUBDIVISION ONE OF
 THIS  SECTION,  OR  (2) BEEN GAINFULLY EMPLOYED AS A PROPERTY MANAGER AS
 DEFINED IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION FOR THE FIVE
 YEARS IMMEDIATELY PRECEDING ENACTMENT OF THIS SECTION; AND
   (B) HAS MET ANY OTHER CRITERIA ESTABLISHED BY THE SECRETARY  OF  STATE
 IN  ORDER TO BE ELIGIBLE TO RECEIVE CERTIFICATION AS A PROPERTY MANAGER;
 OR
   (C) HAS DEMONSTRATED, IN THE CASE  OF  A  CERTIFIED  PROPERTY  MANAGER
 APPLYING  FOR  RECERTIFICATION, THE COMPETENCY AND INTEGRITY TO CONTINUE
 TO PERFORM THE DUTIES OF A PROPERTY MANAGER AND HAS NOT HAD SUCH CERTIF-
 ICATION REVOKED.
   THE SECRETARY OF STATE MAY REFUSE   TO  ISSUE  A  CERTIFICATE  TO  ANY
 PERSON WHO HE OR SHE FINDS, AFTER NOTICE AND HEARING, HAS BEEN CONVICTED
 OF ANY CRIME INVOLVING FRAUD OR DISHONESTY, OR WHERE REFUSAL WILL IN HIS
 OR HER JUDGMENT, BEST PROMOTE THE INTERESTS OF THE PEOPLE OF THIS STATE.
   7. THE SECRETARY OF STATE SHALL ESTABLISH PROCEDURES AND CRITERIA, AND
 SHALL  PROMULGATE REGULATIONS, FOR: (A) APPROVING OR DISAPPROVING APPLI-
 CATIONS FOR CERTIFICATIONS TO ACT AS A PROPERTY  MANAGER;  AND  (B)  THE
 APPROVAL  OF AND THE PERIODIC REVIEW OF CERTIFICATION TRAINING PROGRAMS.
 ANY COMPLAINT IN CONNECTION WITH AN ACTION  TAKEN  OR  INACTION  BY  THE
 SECRETARY  OF STATE PURSUANT TO THIS ARTICLE SHALL BE WITHIN THE PURVIEW
 OF THE SECRETARY OF STATE.  IN ESTABLISHING THE PROCEDURES  REQUIRED  BY
 THIS  SUBDIVISION, THE SECRETARY OF STATE MAY PROVIDE THAT ANY ORGANIZA-
 TION WHICH HAS BEEN DESIGNATED BY THE FEDERAL DEPARTMENT OF HOUSING  AND
 URBAN  DEVELOPMENT AS AN APPROVED CERTIFICATION TRAINING PROGRAM MAY ACT
 AS SUCH PURSUANT TO THIS ARTICLE.
   8. THE SECRETARY OF STATE MAY  REFUSE  TO  RENEW,  OR  MAY  REVOKE  OR
 SUSPEND  THE CERTIFICATION OF ANY PROPERTY MANAGER, IF, AFTER NOTICE AND
 HEARING, HE OR SHE FINDS THAT SUCH PROPERTY MANAGER HAS FAILED TO COMPLY
 WITH ANY OF THE REQUIREMENTS IMPOSED BY THE PROVISIONS HEREIN AND IF  IN
 HIS  OR  HER JUDGMENT SUCH SUSPENSION OR REVOCATION IS REASONABLY NECES-
 SARY TO PROTECT THE INTERESTS OF THE PEOPLE OF THIS STATE. THE SECRETARY
 OF STATE MAY IN HIS OR HER DISCRETION REINSTATE SUCH CERTIFICATION WHERE
 SUCH GROUNDS FOR SUSPENSION OR REVOCATION NO LONGER EXISTS.
   9. THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  ANY  PROPERTY
 MANAGER  OR ANY FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY AFFILIATE
 OF SUCH FIRM, ASSOCIATION, PARTNERSHIP OR ENTITY  EMPLOYING  A  PROPERTY
 MANAGER, CONTRACTING WITH A PROPERTY MANAGER OR CONTRACTING TO PROVIDE A
 PROPERTY MANAGER, IF ALL THE CONDOMINIUMS OR COOPERATIVES FOR WHICH SUCH
 PROPERTY  MANAGER, FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY AFFIL-
 IATE OF SUCH FIRM, ASSOCIATION, PARTNERSHIP OR ENTITY PERFORMS  SERVICES
 COMPRISES LESS THAN TWENTY-FIVE RESIDENTIAL UNITS.
   10. ANY PROPERTY MANAGER OR ANY FIRM, ASSOCIATION, PARTNERSHIP, CORPO-
 RATION  OR  OTHER ENTITY, OTHER THAN A COOPERATIVE OR CONDOMINIUM BOARD,
 EMPLOYING A PROPERTY MANAGER, CONTRACTING WITH  A  PROPERTY  MANAGER  OR
 CONTRACTING  TO PROVIDE A PROPERTY MANAGER THAT FAILS TO COMPLY WITH THE
 S. 663                              4
 
 REQUIREMENTS OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY NOT  TO
 EXCEED  ONE  THOUSAND  DOLLARS  FOR A FIRST VIOLATION, TWO THOUSAND FIVE
 HUNDRED DOLLARS FOR A SECOND VIOLATION, AND FIVE THOUSAND DOLLARS FOR  A
 THIRD OR SUBSEQUENT VIOLATION.
   ANY COOPERATIVE OR CONDOMINIUM BOARD WHICH KNOWINGLY HIRES AN UNREGIS-
 TERED  PROPERTY  MANAGER MAY BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED
 ONE THOUSAND DOLLARS.
   11. ALL MONIES COLLECTED WHILE PERFORMING RESIDENTIAL  REALTY  MANAGE-
 MENT  SHALL  BE SEGREGATED AND SEPARATE ACCOUNTS SHALL BE MAINTAINED FOR
 EACH CONDOMINIUM OR COOPERATIVE BEING MANAGED.  ANY  VIOLATION  OF  THIS
 PROVISION  SHALL  CONSTITUTE  A  MISDEMEANOR PUNISHABLE BY A FINE NOT TO
 EXCEED FIVE THOUSAND DOLLARS.
   12. WHEN A PROPERTY  MANAGER  CEASES  TO  PERFORM  RESIDENTIAL  REALTY
 MANAGEMENT  SERVICES  FOR  A  COOPERATIVE  OR  CONDOMINIUM, THE PROPERTY
 MANAGER WITHIN TEN BUSINESS DAYS SHALL BE  REQUIRED  TO  TURN  OVER  ALL
 BUILDING  RECORDS  AND ALL FUNDS, WHICH HAVE BEEN PLACED INTO HIS OR HER
 CARE OR ARE IN HIS OR HER POSSESSION, TO THE BOARD OF DIRECTORS  OF  THE
 COOPERATIVE  OR  BOARD OF MANAGERS OF THE CONDOMINIUM OR THEIR DESIGNEE.
 NEVERTHELESS, SUCH FUNDS AND/OR RECORDS  REQUIRING  BANK  RECONCILIATION
 SHALL BE TURNED OVER WITHIN FORTY-FIVE DAYS OF TERMINATION.
   13.  THE  ATTORNEY  GENERAL  SHALL  HAVE  THE  POWER  TO  ENFORCE  THE
 PROVISIONS OF THIS ARTICLE.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have  become a law; provided, however, that subdivision 2 of section 448
 of the real property law, as added by section one  of  this  act,  shall
 take  effect on the first of January next succeeding the date upon which
 it shall have become a law. Effective immediately the  addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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Senate Bill S663

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee

2023-S663 (ACTIVE) - Details

2023-S663 (ACTIVE) - Summary

2023-S663 (ACTIVE) - Sponsor Memo

2023-S663 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S663

Share this bill

Sponsored By

Brian Kavanagh

Current Bill Status - In Senate Committee Judiciary Committee

2023-S663 (ACTIVE) - Details

2023-S663 (ACTIVE) - Summary

2023-S663 (ACTIVE) - Sponsor Memo

2023-S663 (ACTIVE) - Bill Text download pdf

Comments