S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    71
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 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.
              

                                                            LBD00299-01-5
 S. 71                               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. 71                               3
 
 CIRCUMSTANCES WHICH VARIES FROM THE INFORMATION CONTAINED IN SUCH CERTI-
 FIED PROPERTY MANAGER'S 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) MET ANY OTHER CRITERIA ESTABLISHED BY THE SECRETARY  OF  STATE  IN
 ORDER TO BE ELIGIBLE TO RECEIVE CERTIFICATION AS A PROPERTY MANAGER; OR
   (C) 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 CERTIFICATION
 REVOKED.
   THE SECRETARY OF STATE MAY REFUSE   TO  ISSUE  A  CERTIFICATE  TO  ANY
 PERSON  WHO SUCH SECRETARY OF STATE FINDS, AFTER NOTICE AND HEARING, HAS
 BEEN CONVICTED OF ANY CRIME INVOLVING  FRAUD  OR  DISHONESTY,  OR  WHERE
 REFUSAL  WILL  IN  SUCH  SECRETARY OF STATE'S 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,  SUCH  SECRETARY  OF STATE FINDS THAT SUCH PROPERTY MANAGER HAS
 FAILED TO COMPLY WITH ANY OF THE REQUIREMENTS IMPOSED BY THE  PROVISIONS
 HEREIN  AND  IF IN SUCH SECRETARY OF STATE'S JUDGMENT SUCH SUSPENSION OR
 REVOCATION IS REASONABLY NECESSARY  TO  PROTECT  THE  INTERESTS  OF  THE
 PEOPLE  OF  THIS  STATE. THE SECRETARY OF STATE MAY IN SUCH SECRETARY OF
 STATE'S 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
 S. 71                               4
 
 CONTRACTING TO PROVIDE A PROPERTY MANAGER THAT FAILS TO COMPLY WITH  THE
 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 SUCH PROPER-
 TY MANAGER'S CARE OR ARE IN SUCH PROPERTY MANAGER'S POSSESSION,  TO  THE
 BOARD OF DIRECTORS OF THE COOPERATIVE OR BOARD OF MANAGERS OF THE CONDO-
 MINIUM  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.