Bill Text: NY S06408 | 2019-2020 | General Assembly | Amended
Bill Title: Requires a uniform process for considering applications to purchase condominiums or cooperatives.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-07-20 - PRINT NUMBER 6408B [S06408 Detail]
Download: New_York-2019-S06408-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6408--B 2019-2020 Regular Sessions IN SENATE June 7, 2019 ___________ Introduced by Sen. KAVANAGH -- 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 -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the not-for-profit corporation law and the business corporation law, in relation to cooperative purchase applications The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The not-for-profit corporation law is amended by adding a 2 new section 519-b to read as follows: 3 § 519-b. Residential cooperative corporations; ownership interests. 4 (a) Any residential cooperative corporation incorporated pursuant to 5 this chapter, shall establish uniform processes for applying to and 6 considering applications for the purchase of certificates of stock, a 7 proprietary lease or other evidence of an ownership interest in such 8 residential cooperative corporation. 9 (b) Written notice of such processes shall be made available to any 10 prospective purchasers and prospective sellers, or their respective real 11 estate agents, promptly upon request. 12 (c) At a minimum, such processes shall require the cooperative corpo- 13 ration, upon receiving an application from a prospective purchaser, to 14 acknowledge receipt of such application within twenty-one days and to 15 include in such acknowledgement of receipt whether the application 16 submitted fully satisfies the requirements therefor, the way or ways the 17 submitted application is incomplete, and any additional materials neces- 18 sary to effectuate consideration of the application. 19 (d) The processes established pursuant to this section shall further 20 require that, following the submission of a completed application and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06684-10-0S. 6408--B 2 1 all additional materials requested in the acknowledgement of receipt, 2 the board of directors shall notify the prospective purchaser or their 3 agent that the application is complete. Such notice shall state by what 4 date review of the application will be complete and when the prospective 5 purchaser or their agent will be notified whether consent to the sale is 6 granted or denied. 7 (e) Written notice that consent to the sale has been granted or denied 8 shall be provided to the prospective purchaser no more than ninety days 9 after the submission of a completed application. In the event a sale is 10 denied, such notice shall state the reason for the denial. If no written 11 notice is provided within ninety days, consent to the sale shall be 12 granted. 13 (f) Nothing in this section shall be construed to limit the rights or 14 remedies provided by any other provision of law. 15 § 2. The business corporation law is amended by adding a new section 16 728 to read as follows: 17 § 728. Residential cooperative corporations; ownership interests. 18 (a) Any residential cooperative corporation incorporated pursuant to 19 this chapter, shall establish uniform processes for applying to and 20 considering applications for the purchase of certificates of stock, a 21 proprietary lease or other evidence of an ownership interest in such 22 residential cooperative corporation. 23 (b) Written notice of such processes shall be made available to any 24 prospective purchasers and prospective sellers, or their respective real 25 estate agents, promptly upon request. 26 (c) At a minimum, such processes shall require the cooperative corpo- 27 ration upon receiving an application from a prospective purchaser, to 28 acknowledge receipt of such application and to include in such acknowl- 29 edgement of receipt whether the application submitted fully satisfies 30 the requirements therefor, the way or ways the submitted application is 31 incomplete, and any additional materials necessary to effectuate consid- 32 eration of the application. 33 (d) The processes established pursuant to this section shall further 34 require that, following the submission of a completed application and 35 all additional materials requested in the acknowledgement of receipt, 36 the board of directors shall notify the prospective purchaser or their 37 agent that the application is complete. Such notice shall state by what 38 date review of the application will be complete and when the prospective 39 purchaser or their agent will be notified whether consent to the sale is 40 granted or denied. 41 (e) Written notice that consent to the sale has been granted or denied 42 shall be provided to the prospective purchaser no more than ninety days 43 after the submission of a completed application. In the event a sale is 44 denied, such notice shall state the reason for the denial. If no written 45 notice is provided within ninety days, consent to the sale shall be 46 granted. 47 (f) Nothing in this section shall be construed to limit the rights or 48 remedies provided by any other provision of law. 49 § 3. This act shall take effect on the one hundred twentieth day after 50 it shall have become a law.
