A2915-2011 Actions

• Jan 4, 2012: referred to judiciary
• Jan 21, 2011: referred to judiciary

A2915-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2915
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 January 21, 2011
 
 Introduced  by  M. of A. MENG -- read once and referred to the Committee
 on Judiciary
 

AN ACT to amend the real property law, in relation  to  the  preparation
 and recording of restrictive covenant declarations
 

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
 291-i to read as follows:

 

S  291-I.  PROHIBITED RESTRICTIVE COVENANTS. 1. (A) ANY PROVISION IN A
 WRITTEN INSTRUMENT RELATING TO OR AFFECTING REAL PROPERTY THAT  PURPORTS
 TO  FORBID  OR RESTRICT CONVEYING, MORTGAGING, ENCUMBERING OR LEASING OF
 SUCH REAL PROPERTY TO ANY PERSON ON THE BASIS OF RACE, COLOR,  RELIGION,
 GENDER OR ANY OTHER CRITERIA IN VIOLATION OF APPLICABLE FEDERAL OR STATE
 LAW, SHALL BE VOID.
 (B)  NOTWITHSTANDING  PARAGRAPH (A) OF THIS SUBDIVISION, THE FOLLOWING
 PROVISIONS ARE NOT PROHIBITED BY THIS SECTION:

 (I) A LIMITATION, ON THE BASIS OF RELIGION, ON THE USE OF REAL PROPER
 TY HELD BY A RELIGIOUS INSTITUTION OR ORGANIZATION OR BY  ANY  RELIGIOUS
 OR  CHARITABLE  ORGANIZATION,  OPERATED,  SUPERVISED  OR CONTROLLED BY A
 RELIGIOUS INSTITUTION OR ORGANIZATION AND USED FOR RELIGIOUS OR CHARITA
 BLE PURPOSES; AND
 (II) A LIMITATION, IN ACCORDANCE  WITH  THE  PROVISIONS  OF  STATE  OR
 FEDERAL  LAW, ON THE BASIS OF SOURCE OF INCOME OR SOCIO-ECONOMIC STATUS,
 ON THE USE OF REAL PROPERTY DESIGNATED  AS  HOUSING  ACCOMMODATIONS  FOR
 PERSONS  IN  LOW  INCOME  CATEGORIES,  WHICH LIMITATION RESTRICTS USE OR
 OCCUPANCY OF SUCH PROPERTY TO PERSONS IN SUCH CATEGORIES, INCLUDING, BUT
 NOT LIMITED TO LIMITATIONS ON PROPERTY:

 (A) DESIGNATED AS PUBLICLY-ASSISTED HOUSING ACCOMMODATIONS AS PROVIDED
 IN SECTION TWO HUNDRED NINETY-TWO OF THE HUMAN RIGHTS LAW; OR
 (B) SUBJECT TO RENT CONTROL OR RENT STABILIZATION PURSUANT TO  CHAPTER
 FIVE  HUNDRED  SEVENTY-SIX OF THE LAWS OF NINETEEN HUNDRED SEVENTY-FOUR,
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02157-01-1
 
       A. 2915                             2
 CONSTITUTING  THE  EMERGENCY   TENANT   PROTECTION   ACT   OF   NINETEEN
 SEVENTY-FOUR,  CHAPTER  TWO HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN
 HUNDRED FORTY-SIX, CONSTITUTING THE EMERGENCY HOUSING RENT CONTROL  LAW,
 OR THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
 (C)  THE  VOIDING  OF  A  PROVISION  PURSUANT TO PARAGRAPH (A) OF THIS
 SUBDIVISION SHALL NOT AFFECT THE VALIDITY OF  THE  INSTRUMENT,  AND  THE
 INSTRUMENT  SHALL  HAVE FULL FORCE AND EFFECT IN ALL OTHER RESPECTS, AND
 SHALL BE CONSTRUED AS IF NO SUCH PROVISION WERE CONTAINED THEREIN.
 2. NO WRITTEN INSTRUMENT HEREAFTER MADE, RELATING TO OR AFFECTING REAL
 PROPERTY, SHALL BE FILED OR RECORDED IN A FORM CONTAINING ANY  PROVISION
 IN VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION UNLESS
 SUCH  INSTRUMENT  IS  ACCOMPANIED BY A RESTRICTIVE COVENANT DECLARATION.
 UPON THE TRANSFER OR SALE OF REAL PROPERTY, OR UPON  THE  OCCURRENCE  OF
 ANY OTHER CIRCUMSTANCES ENTAILING THE FILING OF A NEW DEED PERTAINING TO
 REAL  PROPERTY,  WHICHEVER  OCCURS  FIRST, OR UPON THE FILING OF A LEASE
 PERTAINING TO REAL PROPERTY, THE ATTORNEY, TITLE  INSURANCE  COMPANY  OR
 TITLE  INSURANCE  AGENT  PREPARING THE NEW DEED OR LEASE SHALL PREPARE A
 RESTRICTIVE COVENANT DECLARATION AS PROVIDED  IN  SUBDIVISION  THREE  OF
 THIS SECTION, TO BE SIGNED BY THE PROSPECTIVE PURCHASER OR LESSOR OF THE
 PROPERTY,  AND  SHALL FILE THE SAME AT THE TIME THE NEW DEED OR LEASE IS
 FILED.
 3. A RESTRICTIVE COVENANT DECLARATION SHALL:

 (A) BEAR THE HEADING "UNLAWFUL RESTRICTIVE COVENANT DECLARATION";
 (B) INCLUDE A COMPLETE COPY OF THE ORIGINAL  DOCUMENT  CONTAINING  THE
 UNLAWFUL  RESTRICTIVE  COVENANT  AND REFERENCE SUCH DOCUMENT BY BOOK AND
 PAGE OR INSTRUMENT NUMBER AND THE DATE OF RECORDING, AND SET  FORTH  THE
 NAMES OF THE SIGNATORIES TO THE ORIGINAL DOCUMENT, IF ANY;
 (C) IDENTIFY THE LANGUAGE OF THE UNLAWFUL RESTRICTIVE COVENANT;
 (D)  SET FORTH THE FOLLOWING STATEMENT IN AT LEAST EIGHTEEN-POINT BOLD
 FACED TYPE: "THIS DOCUMENT CONTAINS ONE  OR  MORE  ILLEGAL  RESTRICTIONS
 THAT  VIOLATE  STATE  AND/OR  FEDERAL  LAW.  TO  THE  EXTENT  THAT THESE
 PROVISIONS VIOLATE STATE OR FEDERAL LAW, THEY ARE DEEMED TO BE VOID  AND
 UNENFORCEABLE";
 (E)  BE  FILED  AND RECORDED WITH THE DOCUMENT CONTAINING THE UNLAWFUL
 RESTRICTIVE COVENANT AT THE TIME OF FILING AND RECORDING OF  SUCH  DOCU
 MENT; AND
 (F)  BE INDEXED IN THE SAME MANNER AS ANY PREVIOUSLY RECORDED DOCUMENT
 OR DOCUMENTS TO WHICH THE RESTRICTIVE COVENANT  DECLARATION  REFERS  AND
 SHALL  REFERENCE  THE  ORIGINAL  DOCUMENT BY BOOK AND PAGE OR INSTRUMENT
 NUMBER AND THE DATE OF RECORDING.
 4. THE COUNTY RECORDER SHALL MAKE AVAILABLE TO THE  PUBLIC  FORMS  FOR
 PREPARATION  OF  A  RESTRICTIVE  COVENANT  DECLARATION.  ALL RESTRICTIVE
 COVENANT DECLARATIONS SHALL BE ACCEPTED FOR FILING BY THE COUNTY RECORD
 ER WITHOUT PAYMENT OF A FILING FEE.
 5. DEFINITIONS. AS USED IN THIS SECTION:

 (A) "PROVISION" MEANS ALL CLAUSES, STIPULATIONS, RESTRICTIONS,  PROHI
 BITIONS,  COVENANTS AND CONDITIONS OF ANY KIND OR CHARACTER, INCLUDING A
 RIGHT OF ENTRY OR A POSSIBILITY OF REVERTER, WHICH DIRECTLY OR INDIRECT
 LY LIMIT THE USE OR OCCUPANCY OF REAL PROPERTY; AND
 (B) "WRITTEN INSTRUMENT" OR  "INSTRUMENT"  MEANS  EVERY  WRITING  THAT
 RELATES  TO  OR  AFFECTS  ANY  RIGHT,  TITLE, INTEREST IN REAL PROPERTY,
 INCLUDING, BUT NOT LIMITED TO, DEEDS, MORTGAGES, LEASES, LIENS, MAPS AND
 PLATS.
 6. APPLICATION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT
 THE INCLUSION IN WRITTEN INSTRUMENTS OF  PROVISIONS  NECESSARY  TO  GIVE
 EFFECT TO STATE OR FEDERAL STATUTES.
 
       A. 2915                             3
 7. LIABILITY. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY PERSON WHO,
 IN  GOOD  FAITH  AND IN THE USUAL COURSE OF BUSINESS, DELIVERS ANY DEED,
 CONTRACT, SECURITY INSTRUMENT, OR OTHER INSTRUMENT AFFECTING THE  TRANS
 FER  OR  SALE  OF,  OR  ANY  INTEREST IN, REAL PROPERTY WHICH CONTAINS A
 RESTRICTIVE  COVENANT  AS  DESCRIBED IN SUBDIVISION ONE OF THIS SECTION,
 SHALL BE IMMUNE FROM CIVIL LIABILITY. IN ADDITION, SUCH  DELIVERY  SHALL
 NOT CONSTITUTE AN UNFAIR HOUSING PRACTICE. THE PROVISIONS OF THIS SUBDI
 VISION SHALL NOT APPLY TO ANY PERSON WHO:

 (A)  REPRESENTS  OR ATTEMPTS TO REPRESENT THAT SUCH RESTRICTIVE COVEN
 ANTS ARE VALID AND ENFORCEABLE; OR
 (B) HONORS OR EXERCISES OR ATTEMPTS TO HONOR OR EXERCISE SUCH RESTRIC
 TIVE COVENANTS.
 

S 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however that effective  immediate
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized  and  directed  to  be  made  and completed on or before such
 effective date.

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