NY State Senate Bill 2023-S9426

Senate Bill S9426

2023-2024 Legislative Session

Requires the board of directors of a cooperative apartment corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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
May 15, 2024	referred to housing, construction and community development

2023-S9426 (ACTIVE) - Details

See Assembly Version of this Bill:: A1064
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: General Business Law
Laws Affected:: Add §352-m, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7512
2021-2022: A7773

2023-S9426 (ACTIVE) - Summary

2023-S9426 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9426

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring the
board of directors of a cooperative apartment corporation to notify
applicants seeking to purchase shares of the corporation of the reason
or reasons the board of directors has refused such request

 
PURPOSE:

This bill aims to ensure transparency and fairness in the process of
purchasing shares in cooperative apartment corporations by requiring the
board of directors to provide specific reasons for the denial of appli-
cations to purchase shares.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends the general business law by adding a new section
352-m, which requires cooperative corporation boards to provide a writ-
ten explanation to applicants detailing the reasons for the denial of

their share purchase requests within thirty days of the decision.

Section 2. Establishes the effective date of the act.

 
JUSTIFICATION:

Current laws do not obligate cooperative boards to disclose reasons for
denying share purchase applications, often leaving rejected applicants
without a clear understanding of the decision, which can sometimes stem
from discrimination or personal biases. By requiring boards to provide
reasons, this bill promotes accountability and prevents arbitrary or
discriminatory rejections. The need for such transparency was high-
lighted in the case of 40 West 67th Street v.  Pullman, which under-
scored the unique legal position of cooperative corporations and their
ability to act without the same procedural checks required in tradi-
tional landlord-tenant relationships.

Enhancing transparency in cooperative share transactions ensures fair
treatment of potential buyers and supports a more inclusive housing
market. This measure could lead to a decrease in discrimination and
increase the diversity of cooperative communities.

 
LEGISLATIVE HISTORY:

This is a new bill in the Senate.

2021-22: A07773; Referred to housing.

2019-20: A7512; Referred to housing.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S9426 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9426
 
                             I N  S E N A T E
 
                               May 15, 2024
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to amend the general business law, in relation to requiring the
   board of directors of a cooperative apartment  corporation  to  notify
   applicants seeking to purchase shares of the corporation of the reason
   or reasons the board of directors has refused such request
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 352-m to read as follows:
   § 352-M. DENIAL OF RIGHT TO PURCHASE SHARES OF  A  COOPERATIVE  CORPO-
 RATION. IN THE EVENT THAT THE BOARD OF DIRECTORS OF A COOPERATIVE CORPO-
 RATION  DENIES  THE  REQUEST  OF AN APPLICANT TO PURCHASE SHARES OF SUCH
 CORPORATION ALLOTTED TO A PARTICULAR DWELLING UNIT, THE BOARD OF  DIREC-
 TORS SHALL NOTIFY SUCH APPLICANT IN WRITING OF THE REASON OR REASONS THE
 BOARD  OF  DIRECTORS HAS DENIED THE REQUEST TO PURCHASE THE SHARES. SUCH
 NOTIFICATION SHALL BE PROVIDED TO THE APPLICANT WITHIN  THIRTY  DAYS  OF
 THE  BOARD'S  DECISION  TO  DENY THE APPLICANT'S REQUEST TO PURCHASE THE
 SHARES.
   § 2. This act shall take effect immediately.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01170-01-3

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