Bill Text: NY A03231 | 2025-2026 | General Assembly | Introduced
Bill Title: Prohibits upon the vacancy of an unsold condominium or cooperative dwelling unit, the rental of such unit unless the original offering plan provided for such rental and a majority of the members of the condominium or cooperative agree thereto; generally requires the sale of such units.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2025-01-27 - referred to housing [A03231 Detail]
Download: New_York-2025-A03231-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3231 2025-2026 Regular Sessions IN ASSEMBLY January 27, 2025 ___________ Introduced by M. of A. DINOWITZ, COLTON -- Multi-Sponsored by -- M. of A. GLICK -- read once and referred to the Committee on Housing AN ACT to amend the general business law, in relation to the rights of cooperative and condominium sponsors and purchasers regarding the rental of vacant dwelling units The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 352-eeee of the general business law is amended by 2 adding a new subdivision 9 to read as follows: 3 9. (a) Whenever any unsold dwelling unit in a residential cooperative 4 or condominium building becomes vacant, such dwelling unit may not be 5 rented and must be offered for sale unless either: 6 (i) the original offering plan which was accepted for filing by the 7 attorney general expressly disclosed the possibility that unsold dwell- 8 ing units might not be sold when they become vacant, and the offering 9 plan contained a warning to purchasers of the risk entailed in purchas- 10 ing a unit in a building where unsold dwelling units are not offered for 11 sale; or 12 (ii) the sponsor or other owner of the unsold dwelling unit first 13 obtains the consent of a majority of those members of the cooperative 14 corporation board of directors or condominium association board of 15 managers who are not affiliated with, employed by, or related to the 16 sponsor or owner of the unsold dwelling unit or units to said rental. 17 (b) In the event that neither of the conditions set forth in subpara- 18 graphs (i) and (ii) of paragraph (a) of this subdivision are met, and 19 such dwelling unit remains unsold and unoccupied for a period of one 20 year from the date it becomes vacant, then the dwelling unit may be 21 rented for a period of up to one year. At the conclusion of such one 22 year rental period, the unsold dwelling unit shall once again be deemed 23 to have become vacant, and the provisions of this subdivision shall be 24 applied once again. The prohibition against the sale or rental of unsold EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07145-01-5A. 3231 2 1 dwelling units except in accordance with the provisions of this subdivi- 2 sion shall continue until the apartment is sold. 3 (c) If any unsold dwelling unit which becomes vacant is rented pursu- 4 ant to the provisions of this subdivision, then the owner of the unit 5 being rented shall immediately send a copy of the fully executed lease, 6 as well as such other information as may be necessary so that both the 7 owner of the unit and the tenant can be reached in the event of an emer- 8 gency, to the board of directors of the cooperative corporation or the 9 board of managers of the condominium association. 10 (d) This subdivision shall not apply to any shareholder or unit owner 11 who establishes to the reasonable satisfaction of a majority of those 12 members of the cooperative corporation board of directors or condominium 13 association board of managers who are not affiliated with, employed by, 14 or related to, the sponsor or owner of the unsold dwelling unit or units 15 that such shareholder or owner purchased a dwelling unit for personal 16 use or use by their immediate family member, but whose immediate family 17 member is not presently occupying the dwelling unit, nor shall this 18 subdivision apply to dwelling units owned by a cooperative corporation 19 or condominium association or entities formed by either of them to hold 20 units obtained from a sponsor. Immediate family member as used in this 21 paragraph shall be defined as the shareholder's spouse, children, grand- 22 children, parents, grandparents, or siblings. 23 (e) As used in this subdivision, the term "unsold dwelling unit" shall 24 mean an apartment in a cooperative housing corporation or a unit in a 25 condominium that was not sold for occupancy by the purchaser and shall 26 include, but not be limited to, cooperative shares and condominium units 27 designated by the sponsor or holder of unsold shares as "unsold shares" 28 or "unsold units". 29 § 2. This act shall take effect immediately and shall apply to all 30 dwelling units in cooperative and condominium buildings that become 31 vacant on or after such effective date.
