NY State Senate Bill 2025-S5089

Current Bill Status - In Senate Committee Judiciary 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
Feb 18, 2025	referred to judiciary

co-Sponsors

2025-S5089 (ACTIVE) - Details

See Assembly Version of this Bill:: A5227
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §339-mm, RP L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8643
2019-2020: S1751
2021-2022: S3017
2023-2024: S3320, A6241

2025-S5089 (ACTIVE) - Summary

Creates a residential condominium owner's bill of rights that includes the right to transparency, the right to timely decisions, voting rights, the right to notice, and the right against extraordinary expenses.

2025-S5089 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5089

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the real property law, in relation to creating a resi-
dential condominium owner bill of rights

 
PURPOSE:

To amend provisions in the not-for-profit corporation law, general busi-
ness law, and real property law in relation to the enactment of a resi-
dential condominium owner's bill of rights.

 
SUMMARY OF PROVISIONS:

This bill will also enact a bill of rights for owners of residential
condominium units with respect to managing the common charges, elements,
expenses, or profits of thirty-five hundred or more units. This bill
will provide condo-owners both privately owned and not-for-profit condo-
minium associations the right to transparency which includes the right
for condo unit owners to review a complete accounting for all expendi-

tures, capital improvement and or anything in excess of the contingency
fund including the budget, a comparison of any and all bidding processes
for work to be done in the condominium including work that was conducted
and the amounts of contributions of each owner whether individual or
group sponsors, billings estimate overages and proof of the expenditures
that comprise the total of the surcharge and minutes of each meeting
where the planning and voting on the proposal was discussed with all
owners and for any and all expenditures not made in the ordinary course
of business.

This bill will also require for the Condominium Board of any not-for-
profit condominium board to make available for inspection and review to
all condo unit owners the IRS Form 990 when they are filed annually.

This bill would require that all applications and requests by condomin-
ium owners that require approval by the board of managers regarding
disputes between owners and the condominium association be processed in
a reasonably expeditious manner pursuant to uniform procedures and time-
tables adopted in writing.

The final results of elections for the board of managers would be
required to be posted in a prominent location within one business day
following the availability of such information.  The board of managers
would be required to call a meeting within sixty days of a vacancy to
fill a vacancy if it occurs more than six months prior to the annual
unit owners meeting.  The bill would require any board member, who sells
his or her apartment and is no longer a unit holder in the condominium,
to resign from the board no later than the closing date of such sale.
Furthermore, the bill would ensure that accurate financial statements
and other statements normally provided to unit owners of privately owned
and not-for-profit condominiums would need to be provided in a timely
fashion.

The bill would require that proper documentation be made available for
inspection or copying by unit owners; including approved minutes of
board of managers meetings; accurate records of the receipts and expend-
itures arising from the operation of the property; bank account and
financial investment statements; proposals received for bids on goods
and services for the condominium; reports of hired accountants and
consultants on behalf of the association and reports by municipal or
county inspectors concerning health, building, and safety codes and
regulations.

The bill would require that a notice of all condominium board meetings
be posted in a prominent location.

The bill would direct the board members to propose expense limits every
five years. The board would be prohibited from, by vote, entering into
contracts for extraordinary expenses without approval of the unit
owners, unless It is deemed to be an emergency or doing so is required
for refinancing the mortgage.

Finally, the bill directs the attorney general to update the handbook
summary of the rights of condominium owners vis-a-vis condominium asso-
ciations and the procedures and processes available to unit owners to
enforce such rights.  The Attorney General would be authorized to
enforce the provisions of this section.

 
EXISTING LAW:

The current law in the State does not sufficiently protect the condo
owners/residents of both privately owned and not for profit condo
boards.

 
JUSTIFICATION:

Too many condo boards do not provide sufficient transparency and disclo-
sure of their records, fostering ill will among condo owners.  This bill
is an incentive for condominium management and their boards to be fully
accountable so that condominium ownership will be profitable, manageable
and stable.

 
LEGISLATIVE HISTORY:

S.3320 of Housing;2023-2024; Passed Senate,Delivered to Assembly,
Referred to

S.3017 of 2022: Passed Senate, Referred to Housing;

S.3017 of 2021:Referred to Judiciary;

S.1751 of 2020:Died in Assembly, Referred to Judiciary;

S.1751 of 2019:Passed Senate, Delivered to Senate

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that as to
residential condominium associations existing and operating as such on
the effective date of this act the boards of managers of such associ-
ations shall within one year of the effective date of this act take all
steps necessary to amend the appropriate organizational and operating
documents of such associations to implement the provisions of this act.

2025-S5089 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5089
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 18, 2025
                                ___________
 
 Introduced  by  Sens.  SEPULVEDA,  CLEARE, FERNANDEZ, LIU, RAMOS -- 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 creating a resi-
   dential condominium owner bill of rights

   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 section
 339-mm to read as follows:
   § 339-MM. RESIDENTIAL CONDOMINIUM OWNER'S BILL OF RIGHTS.  THE  ORGAN-
 IZATIONAL AND OPERATING DOCUMENTS OF A NOT-FOR-PROFIT RESIDENTIAL CONDO-
 MINIUM  ASSOCIATION ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE
 STATE AND MANAGING THE COMMON CHARGES, ELEMENTS, EXPENSES, OR PROFITS OF
 THIRTY-FIVE HUNDRED OR MORE UNITS SHALL GUARANTEE THE  FOLLOWING  RIGHTS
 TO EACH UNIT OWNER.
   1.  THE  RIGHT TO TRANSPARENCY. COMPLETE AND ACCURATE FINANCIAL STATE-
 MENTS, REPORTS OF HIRED ACCOUNTANTS AND CONSULTANTS  ON  BEHALF  OF  THE
 ASSOCIATION,  REPORTS  BY  MUNICIPAL  OR COUNTY INSPECTORS, AND APPROVED
 MINUTES OF THE BOARD OF MANAGERS' MEETINGS SHALL BE AVAILABLE FOR REVIEW
 WITHIN A TIMELY FASHION OF A REQUEST TO REVIEW, INSPECT,  OR  COPY.  ANY
 FINANCIAL  STATEMENTS,  REPORTS,  OR MINUTES ORDINARILY PROVIDED TO UNIT
 OWNERS SHALL BE PROVIDED IN A TIMELY  FASHION  PURSUANT  TO  ESTABLISHED
 TIMETABLES.  IN  ADDITION  TO  ANY  OTHER  NOTICE REQUIRED, THE APPROVED
 MINUTES OF ALL BOARD AND UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMI-
 NENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE
 CONDOMINIUM WITHIN ONE DAY OF THEIR APPROVAL. FOR THE PURPOSES  OF  THIS
 SUBDIVISION,  "FINANCIAL STATEMENTS" SHALL INCLUDE A COMPLETE ACCOUNTING
 FOR ALL EXPENDITURES, CAPITAL IMPROVEMENTS, OR ANYTHING IN EXCESS OF THE
 CONTINGENCY FUND INCLUDING THE BUDGET,  A  COMPARISON  OF  ANY  AND  ALL
 BIDDING  PROCESSES FOR WORK TO BE DONE ON THE CONDOMINIUM INCLUDING WORK
 THAT WAS CONDUCTED AND THE AMOUNTS OF THE CONTRIBUTIONS  OF  EACH  OWNER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08079-01-5

 S. 5089                             2
 
 WHETHER  INDIVIDUAL  OR  GROUP SPONSORED, BILLINGS, ESTIMATES, OVERAGES,
 AND PROOF OF THE EXPENDITURES THAT COMPRISE THE TOTAL OF  THE  SURCHARGE
 AND  MINUTES  OF  EACH  MEETING  WHERE  THE  PLANNING  AND VOTING ON THE
 PROPOSAL WAS DISCUSSED WITH ALL THE OWNERS, FOR ANY AND ALL EXPENDITURES
 NOT  MADE IN THE ORDINARY COURSE OF BUSINESS, BANK ACCOUNT AND FINANCIAL
 INVESTMENT STATEMENTS, AND THE ASSOCIATION'S IRS FORM NINE-HUNDRED-NINE-
 TY, IF APPLICABLE, FOR EACH OF THE THREE MOST CURRENT FISCAL YEARS.
   2. THE RIGHT TO TIMELY DECISIONS. ALL APPLICATIONS BY UNIT  OWNERS  IN
 CONNECTION  WITH MATTERS WHICH REQUIRE APPROVAL OF THE BOARD OF MANAGERS
 AND ALL REQUESTS FOR DETERMINATIONS BY THE BOARD OF MANAGERS  INCLUDING,
 BUT  NOT  LIMITED TO, REQUESTS FOR THE RESOLUTION OF DISPUTES BETWEEN OR
 AMONG UNIT OWNERS, DISPUTES BETWEEN  UNIT  OWNERS  AND  THE  CONDOMINIUM
 ASSOCIATION SUCH AS DISPUTES CONCERNING RESPONSIBILITY FOR REPAIRS SHALL
 BE  PROCESSED  IN  A  REASONABLY  EXPEDITIOUS MANNER PURSUANT TO UNIFORM
 PROCEDURES AND TIMETABLES ADOPTED IN WRITING. THE BOARD'S DECISION SHALL
 BE IN WRITING AND SHALL SET FORTH THE REASONS THEREFOR, EXCEPT  THAT  NO
 REASON SHALL BE REQUIRED WHEN APPROVAL IS GRANTED.
   3.  VOTING RIGHTS.   (A) THE BOARD OF MANAGERS SHALL CALL A MEETING TO
 FILL ANY VACANCIES WHICH OCCUR ON SUCH BOARD WITHIN SIXTY  DAYS  OF  THE
 OCCURRENCE  OF  SUCH  VACANCY IF THE VACANCY OCCURS MORE THAN SIX MONTHS
 PRIOR TO THE ANNUAL MEETING OF UNIT OWNERS.
   (B) THE FINAL RESULTS OF ELECTIONS FOR THE BOARD OF MANAGERS INCLUDING
 A TALLY OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE  POSTED  WITHIN
 ONE  BUSINESS  DAY  FOLLOWING  THE AVAILABILITY OF SUCH INFORMATION IN A
 PROMINENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING  COMPRIS-
 ING THE CONDOMINIUM.
   (C)  ANY  MEMBER  OF  A  BOARD OF MANAGERS WHO IS ELECTED WHILE A UNIT
 OWNER IN THE CONDOMINIUM, WHO SELLS SUCH MEMBER'S  APARTMENT,  AND  WHO,
 SUBSEQUENT  TO  SUCH SALE SHALL NO LONGER BE A UNIT OWNER IN SUCH CONDO-
 MINIUM, SHALL RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING  DATE  OF
 SUCH SALE.
   4.  THE  RIGHT  TO  NOTICE.  IN ADDITION TO ANY OTHER NOTICE REQUIRED,
 NOTICE OF ALL BOARD AND UNIT OWNER MEETINGS SHALL BE POSTED IN A  PROMI-
 NENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE
 CONDOMINIUM.
   5.  THE  RIGHT  AGAINST  EXTRAORDINARY  EXPENSES. NO LESS THAN ONCE IN
 EVERY FIVE YEARS THE BOARD SHALL PROPOSE EXPENSE LIMITS WHICH  SHALL  BE
 INCLUDED  IN  THE  NOTICE OF THE ANNUAL OR ANY OTHER MEETING OF THE UNIT
 OWNERS. AN OPPORTUNITY FOR UNIT OWNERS TO COMMENT ON SUCH  PROPOSAL  AND
 TO  OFFER  LOWER EXPENSE LIMITS SHALL BE INCLUDED IN THE AGENDA FOR SUCH
 MEETING.  AT THE CONCLUSION OF THE COMMENT PERIOD THE BOARD SHALL, BY AN
 OPEN VOTE, ADOPT EXPENSE LIMITS NOT TO  EXCEED  THOSE  PROPOSED  BY  THE
 BOARD WHICH SHALL BE EFFECTIVE UNTIL CHANGED. ONCE APPROVED BY VOTE, THE
 BOARD  SHALL NOT ENTER INTO CONTRACTS FOR EXTRAORDINARY EXPENSES WITHOUT
 APPROVAL OF THE UNIT OWNERS, UNLESS IT IS DEEMED TO BE AN  EMERGENCY  OR
 IS REQUIRED FOR REFINANCING OF THE MORTGAGE.
   6.  THE  ATTORNEY  GENERAL  IS AUTHORIZED TO ENFORCE THE PROVISIONS OF
 THIS SECTION AND MAY, UPON THE ATTORNEY GENERAL'S OWN INITIATIVE, OR  IN
 RESPONSE  TO A COMPLAINT BY ONE OR MORE UNIT OWNERS, INVESTIGATE ALLEGA-
 TIONS OF ANY FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
   § 2. Within six months of the effective date of this act the  attorney
 general  shall  promulgate  a  handbook  summarizing  the rights of unit
 owners vis-a-vis condominium associations and the procedures  and  proc-
 esses available to unit owners to enforce such rights.
   §  3.  This act shall take effect immediately; provided, however, that
 as to residential condominium associations  existing  and  operating  as
 S. 5089                             3

 such  on  the  effective date of this act the boards of managers of such
 associations shall within one year of the effective  date  of  this  act
 take  all  steps  necessary  to amend the appropriate organizational and
 operating  documents of such associations to implement the provisions of
 this act.

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Senate Bill S5089

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

2025-S5089 (ACTIVE) - Details

2025-S5089 (ACTIVE) - Summary

2025-S5089 (ACTIVE) - Sponsor Memo

2025-S5089 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5089

Share this bill

Sponsored By

Luis R. Sepúlveda

Current Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

Cordell Cleare

Nathalia Fernandez

John C. Liu

Jessica Ramos

2025-S5089 (ACTIVE) - Details

2025-S5089 (ACTIVE) - Summary

2025-S5089 (ACTIVE) - Sponsor Memo

2025-S5089 (ACTIVE) - Bill Text download pdf

Comments