NY State Senate Bill 2025-S7600

Senate Bill S7600

2025-2026 Legislative Session

Directs condominium and cooperative housing associations to complete capital reserve studies

download bill text pdf

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
Apr 23, 2025	referred to judiciary

2025-S7600 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §339-mm, RP L

2025-S7600 (ACTIVE) - Summary

Directs condominium and cooperative housing associations to complete capital reserve studies, including a thirty-year funding plan, in order to ensure that the condominium or cooperative housing association has adequate reserve funds available to repair or replace the assets located on the property that the association is obligated to maintain without the need to create any special assessment or loan obligation; specifies the content of the study; requires the study to be filed with the attorney general.

2025-S7600 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7600

SPONSOR: BYNOE
 
TITLE OF BILL:

An act to amend the real property law, in relation to directing condo-
minium and cooperative housing associations to complete capital reserve
studies

 
PURPOSE OR GENERAL IDEA OF BILL:

To require condominium and cooperative housing associations to complete
capital reserve studies as to prepare a sustainable funding plan to
complete any repairs or maintenance to any assets the association is
obligated to maintain.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 creates a new section within the Condominium Law within the
real property law to create a requirement that any condominium or coop-
erative housing association conduct a capital reserve study in order to
ensure the association has proper funding to make any repairs. This

section outlines the procedures required to conduct a capital reserve
study and sets requirements for what information shall be included in
the study, including:

a. The association's current fund reserve balance.

b. The association's income and expenses.

c. An analysis of the physical status and of the common area components
of the building or property overseen by the association.

d. The anticipated costs of maintenance.

e. An estimate of the cost of any future reserve studies, updates, or
engineering reports.

f. An estimate of the costs of corrective maintenance.

g. The proposed thirty-year funding plan.

h. Any other information necessary to perform an analysis.

Unless an association had a reserve capital study completed in the past
five years, all associations would be required to conduct a survey with-
in one year of this law's effective date, while new associations would
have to complete a study within two years.  Property management compa-
nies would have to ensure that any capital reserve study is conducted by
a licensed architect, engineer or credentialed reserve specialist.

This would only apply to an association with more than $25,000 in total
assets, and based on the results of the capital reserve study, any asso-
ciation would be required to bring their reserves in line with the esti-
mated balance set for a particular year in the capital reserve study.

Any capital reserve studies completed under this act, would have to be
filed with the Office of the Attorney General who would have jurisdic-

tion to review and audit any such documents and compel any association
to complete a study if they have not done SO.

Section 2 provides the effective date.

 
JUSTIFICATION:

On June 24th, 2021, Champlain Towers South, a 12-story condominium in
Surfside, Florida experienced a partial collapse that resulted in the
deaths of 98 residents, becoming the third-deadliest non-deliberate
structural engineering failure in United States history. In the wake of
this tragedy there is more awareness of the need for oversight of condo-
minium and cooperative housing associations in order to ensure they are
up to building, health, safety, and fire standards. As part of a wider
condominium and cooperative housing regulation passed last year, New
Jersey has likewise required these associations to complete a capital
reserve study.

This bill would require condominium and cooperative housing associations
to complete capital reserve studies as to determine if associations will
have the funding to complete necessary structural and mechanical repairs
to the properties which they have authority over. Capital reserve
studies are comprehensive planning tools for condominiums and cooper-
ative housing associations which provide long-range planning that can
help these associations anticipate and prepare for the repair and
replacement of the community's common assets. These studies provide an
analysis of the property's physical condition as well as a financial
analysis of the association.

By requiring capital reserve studies to be completed for any condominium
or cooperative housing association, the State of New York would be
ensuring that theses associations have plans prepared that would be able
to guide the board of managers and unit owners to make informed deci-
sions about any repairs, and give these associations the opportunity to
better plan for necessary repairs and understand the costs and expecta-
tions that may be placed on unit owners to maintain the property they
own within any association.

 
PRIOR LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

Minimal to New York State.

 
EFFECTIVE DATE:
This act shall take effect on the one hundredth and eightieth day after
it shall have become a law.

2025-S7600 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7600
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 23, 2025
                                ___________
 
 Introduced  by  Sen.  BYNOE  -- 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  directing  condo-
   minium  and  cooperative  housing  associations  to  complete  capital
   reserve studies

   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. CAPITOL RESERVE STUDY. 1.  ANY  CONDOMINIUM  OR  COOPERATIVE
 HOUSING  ASSOCIATION  CREATED PURSUANT TO THIS ARTICLE SHALL UNDERTAKE A
 CAPITAL RESERVE STUDY, INCLUDING A THIRTY-YEAR FUNDING PLAN, IN ORDER TO
 ENSURE THAT THE  CONDOMINIUM  OR  COOPERATIVE  HOUSING  ASSOCIATION  HAS
 ADEQUATE RESERVE FUNDS AVAILABLE TO REPAIR OR REPLACE THE ASSETS LOCATED
 ON  THE  PROPERTY  THAT THE ASSOCIATION IS OBLIGATED TO MAINTAIN WITHOUT
 THE NEED TO CREATE ANY SPECIAL ASSESSMENT OR LOAN OBLIGATION. ALL  CAPI-
 TAL  RESERVE  STUDIES  SHALL  BE  PREPARED IN CONFORMITY WITH THE LATEST
 EDITION OF THE NATIONAL RESERVE STUDY STANDARDS OF THE COMMUNITY ASSOCI-
 ATIONS INSTITUTE OR SIMILAR STANDARDS  BY  ANOTHER  RECOGNIZED  NATIONAL
 ORGANIZATION.
   2. A CAPITAL RESERVE STUDY CONDUCTED PURSUANT TO THIS SECTION SHALL BE
 PERFORMED  OR  OVERSEEN BY A RESERVE SPECIALIST CREDENTIALED THROUGH THE
 ASSOCIATION OF PROFESSIONAL RESERVE ANALYSTS OR AN ENGINEER OR ARCHITECT
 WHO IS IN GOOD  STANDING  WITH  THE  STATE.  SUCH  RESERVE  STUDY  SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
   (A) THE ASSOCIATION'S CAPITAL RESERVE FUND BALANCES;
   (B) THE ASSOCIATION'S ANTICIPATED INCOME AND EXPENSES;
   (C)  AN  ANALYSIS OF THE PHYSICAL STATUS AND OF THE COMMON AREA COMPO-
 NENTS OF THE BUILDINGS AND OTHER COMMON AREAS THAT  THE  ASSOCIATION  IS
 OBLIGATED TO MAINTAIN;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11718-02-5
 S. 7600                             2

 
   (D) THE ANTICIPATED COSTS ASSOCIATED WITH THE BUILDING MAINTENANCE, AS
 WELL  AS THE ANTICIPATED COSTS OF REPAIR OR REPLACEMENT OF COMMON BUILD-
 ING COMPONENTS, WHICH ARE NECESSARY TO MAINTAIN THE STRUCTURAL INTEGRITY
 OF THE BUILDINGS AND OTHER COMMON AREAS THAT THE  ASSOCIATION  IS  OBLI-
 GATED TO MAINTAIN;
   (E)  A  REASONABLE ESTIMATE OF THE COST OF ANY FUTURE RESERVE STUDIES,
 RESERVE STUDY UPDATES, OR ENGINEERING REPORTS;
   (F) A REASONABLE ESTIMATE OF THE COSTS  ASSOCIATED  WITH  IMPLEMENTING
 ANY CORRECTIVE MAINTENANCE;
   (G)  A PROPOSED THIRTY-YEAR FUNDING PLAN THAT ESTABLISHES THE ADEQUATE
 PROPOSED CAPITAL RESERVE FUNDING OVER A THIRTY-YEAR PERIOD; AND
   (H) ANY OTHER INFORMATION NECESSARY TO  PERFORM  AN  ANALYSIS  OF  THE
 ADEQUACY  OF  THE  ASSOCIATION'S CAPITAL RESERVE FUNDS RELATIVE TO MAIN-
 TAINING THE STRUCTURAL INTEGRITY OF BUILDINGS AND COMMON AREAS IN  WHICH
 THE ASSOCIATION IS OBLIGATED TO MAINTAIN.
   3.  ASSOCIATIONS WHICH HAVE NOT UNDERTAKEN A RESERVE STUDY WITHIN FIVE
 YEARS OF THE EFFECTIVE DATE OF THIS SECTION SHALL  UNDERTAKE  A  RESERVE
 STUDY  WITHIN  ONE  YEAR OF THIS LEGISLATION GOING INTO EFFECT.  ASSOCI-
 ATIONS FORMED AFTER THE EFFECTIVE DATE OF THIS SECTION  SHALL  HAVE  TWO
 YEARS  AFTER  THE  ELECTION  OF  A  MAJORITY  OF  A BOARD OF MANAGERS TO
 COMPLETE A RESERVE STUDY.
   4. A PROPERTY MANAGEMENT COMPANY OR OWNER SHALL ENSURE THAT A  CAPITAL
 RESERVE  STUDY CONDUCTED PURSUANT TO THIS SECTION SHALL BE REVIEWED BY A
 LICENSED ARCHITECT, ENGINEER, OR CREDENTIALED RESERVE SPECIALIST.
   5. THIS SECTION SHALL NOT APPLY TO AN ASSOCIATION WITH LESS THAN TWEN-
 TY-FIVE THOUSAND DOLLARS IN TOTAL COMMON AREA CAPITAL ASSETS.
   6. IF A CONDOMINIUM OR COOPERATIVE HOUSING ASSOCIATION DOES  NOT  HAVE
 AN ADEQUATE RESERVE FUND AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION
 AND  WOULD  REQUIRE  AN  INCREASE  OF MORE THAN TEN PERCENT OF THE PRIOR
 YEAR'S COMMON EXPENSE ASSESSMENT, THE DEFICIENCY SHALL BE MADE  ADEQUATE
 WITHIN  TEN  FISCAL YEARS OR THE PROJECTED DATE PREDICTED BY THE RESERVE
 STUDY BY WHICH ABSENT INCREASED FUNDING,  THE  BALANCE  IN  THE  ASSOCI-
 ATION'S RESERVE ACCOUNT WOULD FALL BELOW ZERO. IN EITHER CASE, THE ANNU-
 AL  INCREASE IN RESERVE FUNDING DURING THE REQUIRED PERIOD OF TIME SHALL
 BE AN EQUAL ANNUAL LINE ITEM INCREASE IN  THE  RESERVE  FUND  UNTIL  THE
 RESERVE  FUND  IS  MADE ADEQUATE, NOTWITHSTANDING CAUSING AN INCREASE OF
 MORE THAN TEN PERCENT IN THE ANNUAL COMMON EXPENSE ASSESSMENT.
   7. IF A CONDOMINIUM OR COOPERATIVE HOUSING ASSOCIATION DOES  NOT  HAVE
 AN ADEQUATE RESERVE FUND AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION
 AND  WOULD  REQUIRE  AN  INCREASE  OF LESS THAN TEN PERCENT OF THE PRIOR
 YEAR'S COMMON EXPENSE ASSESSMENT, THE DEFICIENCY SHALL BE MADE  ADEQUATE
 WITHIN THREE FISCAL YEARS.
   8. ALL CAPITAL RESERVE FUND STUDIES COMPLETED PURSUANT TO THIS SECTION
 SHALL  BE  REVIEWED  ON AN ANNUAL BASIS BY THE BOARD OF MANAGERS AND THE
 PROPERTY MANAGEMENT COMPANY TO DETERMINE IF THE RESERVE FUND BALANCE  IS
 ADEQUATE TO COVER ESTIMATED COSTS FOR THE YEAR.
   9.  ANY  CAPITAL RESERVE STUDY COMPLETED PURSUANT TO THIS SECTION MUST
 BE FILED WITH THE OFFICE OF THE ATTORNEY GENERAL WITHIN  SIXTY  DAYS  OF
 COMPLETION.  THE ATTORNEY GENERAL SHALL HAVE THE AUTHORITY TO REVIEW AND
 AUDIT SUCH DOCUMENTS AND COMPEL A PROPERTY MANAGEMENT COMPANY, BOARD  OF
 MANAGERS,  OR  ANY  CONDOMINIUM  OR  COOPERATIVE  HOUSING ASSOCIATION TO
 COMPLETE A CAPITAL RESERVE STUDY IF THEY HAVE NOT DONE  SO  PURSUANT  TO
 THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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