Senate Bill S9865A

2023-2024 Legislative Session

Relates to transition of control of certain homeowners' associations

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Rules 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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Bill Amendments

2023-S9865 - Details

Current Committee:
Senate Rules
Law Section:
Real Property Law
Laws Affected:
Add Art 16 §§500 & 501, RP L

2023-S9865 - Summary

Enacts provisions governing the transition of control of certain homeowners' associations; requires owner election of board members upon the occurrence of certain events, including the conveyance of title to 90% of the parcels in the community.

2023-S9865 - Sponsor Memo

2023-S9865 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9865
 
                             I N  S E N A T E
 
                               June 7, 2024
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property law,  in  relation  to  transition  of
   control of certain homeowners' associations
 
   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 16
 to read as follows:
                                ARTICLE 16
               TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL
 SECTION 500. TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL.
         501. DEFINITIONS.
   § 500. TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL.  1.  HOMEOWNERS,
 OTHER  THAN THE REAL ESTATE DEVELOPER OF A RESIDENTIAL HOUSING COMMUNITY
 ARE ENTITLED TO ELECT AT LEAST A MAJORITY OF THE MEMBERS OF THE BOARD OF
 DIRECTORS OF THE HOMEOWNERS' ASSOCIATION WHEN THE EARLIER OF THE FOLLOW-
 ING EVENTS OCCURS:
   (A) THREE MONTHS AFTER NINETY PERCENT OF THE PARCELS IN ALL PHASES  OF
 THE  RESIDENTIAL  HOUSING  COMMUNITY THAT WILL ULTIMATELY BE OPERATED BY
 THE HOMEOWNERS' ASSOCIATION HAVE BEEN CONVEYED TO MEMBERS OTHER THAN THE
 DEVELOPER;
   (B) SUCH OTHER PERCENTAGE OF THE PARCELS HAS BEEN CONVEYED TO MEMBERS,
 OR SUCH OTHER DATE OR EVENT HAS OCCURRED, AS IS SET FORTH IN  THE  ARTI-
 CLES OF INCORPORATION AND BYLAWS OF THE HOMEOWNERS' ASSOCIATION IN ORDER
 TO  COMPLY  WITH THE REQUIREMENTS OF ANY GOVERNMENTALLY CHARTERED ENTITY
 WITH REGARD TO THE MORTGAGE FINANCING OF PARCELS;
   (C) UPON THE DEVELOPER ABANDONING OR DESERTING ITS  RESPONSIBILITY  TO
 MAINTAIN  AND  COMPLETE  THE AMENITIES OR INFRASTRUCTURE AS DISCLOSED IN
 THE ARTICLES OF INCORPORATION AND BYLAWS OF THE HOMEOWNERS' ASSOCIATION.
 THERE IS A REBUTTABLE PRESUMPTION THAT THE DEVELOPER HAS  ABANDONED  AND
 DESERTED THE PROPERTY IF THE DEVELOPER HAS UNPAID ASSESSMENTS OR GUARAN-
 TEED AMOUNTS A PERIOD OF MORE THAN TWO YEARS;
   (D)  UPON  THE  DEVELOPER  FILING  A PETITION SEEKING PROTECTION UNDER
 CHAPTER SEVEN OF THE FEDERAL BANKRUPTCY CODE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

2023-S9865A (ACTIVE) - Details

Current Committee:
Senate Rules
Law Section:
Real Property Law
Laws Affected:
Add Art 16 §§500 & 501, RP L

2023-S9865A (ACTIVE) - Summary

Enacts provisions governing the transition of control of certain homeowners' associations; requires owner election of board members upon the occurrence of certain events, including the conveyance of title to 90% of the parcels in the community.

2023-S9865A (ACTIVE) - Sponsor Memo

2023-S9865A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9865--A
 
                             I N  S E N A T E
 
                               June 7, 2024
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  real property law, in relation to transition of
   control of certain homeowners' associations

   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 16
 to read as follows:
                                ARTICLE 16
               TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL
 SECTION 500. TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL.
         501. DEFINITIONS.
   §  500.  TRANSITION TO HOMEOWNERS' ASSOCIATION CONTROL. 1. HOMEOWNERS,
 OTHER THAN THE REAL ESTATE DEVELOPER OF A RESIDENTIAL HOUSING  COMMUNITY
 ARE ENTITLED TO ELECT AT LEAST A MAJORITY OF THE MEMBERS OF THE BOARD OF
 DIRECTORS OF THE HOMEOWNERS' ASSOCIATION WHEN THE EARLIER OF THE FOLLOW-
 ING EVENTS OCCURS:
   (A)  THREE MONTHS AFTER NINETY PERCENT OF THE PARCELS IN ALL PHASES OF
 THE RESIDENTIAL HOUSING COMMUNITY THAT WILL ULTIMATELY  BE  OPERATED  BY
 THE HOMEOWNERS' ASSOCIATION HAVE BEEN CONVEYED TO MEMBERS OTHER THAN THE
 DEVELOPER;
   (B) SUCH OTHER PERCENTAGE OF THE PARCELS HAS BEEN CONVEYED TO MEMBERS,
 OR  SUCH  OTHER DATE OR EVENT HAS OCCURRED, AS IS SET FORTH IN THE ARTI-
 CLES OF INCORPORATION AND BYLAWS OF THE HOMEOWNERS' ASSOCIATION IN ORDER
 TO COMPLY WITH THE REQUIREMENTS OF ANY GOVERNMENTALLY  CHARTERED  ENTITY
 WITH REGARD TO THE MORTGAGE FINANCING OF PARCELS;
   (C)  UPON  THE DEVELOPER ABANDONING OR DESERTING ITS RESPONSIBILITY TO
 MAINTAIN AND COMPLETE THE AMENITIES OR INFRASTRUCTURE  AS  DISCLOSED  IN
 THE ARTICLES OF INCORPORATION AND BYLAWS OF THE HOMEOWNERS' ASSOCIATION.
 THERE  IS  A REBUTTABLE PRESUMPTION THAT THE DEVELOPER HAS ABANDONED AND
 DESERTED THE PROPERTY IF THE DEVELOPER HAS UNPAID ASSESSMENTS OR GUARAN-
 TEED AMOUNTS A PERIOD OF MORE THAN TWO YEARS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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