Bill S604-2011

Relates to voting rights in cooperative apartments

Provides that the sponsor of a cooperative apartment building or condominium units may not continue to sit on the board or to vote after the transfer to the cooperative corporation or condominium ownership.

Details

Actions

  • Mar 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Mar 8, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
  • Jan 5, 2011: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S604

TITLE OF BILL: An act to amend the general business law, in relation to prohibiting a sponsor from becoming a director or voting on the board after a building has been converted to a cooperative apartment building or condominium ownership

PURPOSE: To prevent the landlord of an apartment or building that has been converted to a co-op from becoming a director or voting member on the co-op board.

SUMMARY OF PROVISIONS: Amends the General Business Law by adding a new paragraph (vi) to subdivision 1 of section 352-ee, paragraph (g) to subdivision 2 of section 352-eee, and paragraph (g) to subdivision 2 of section 352-eeee.

JUSTIFICATION: This bill would eliminate the possibility of landlords holding a seat on the board of directors or be allowed to vote any shares after conversion to cooperative ownership. Presently there are no laws that state that once a landlord sells apartments from his or her apartment building, thus establishing a cooperative apartment building, he or she cannot hold a seat on the board of directors or be allowed to vote any shares after conversion to cooperative ownership. This bill would prohibit landlords from holding a seat on board of directors and voting on matters which rightfully are no longer under the landlords' jurisdiction.

LEGISLATIVE HISTORY: 2010: S.7545/A.834 2007-08: A.3232 - Referred to Housing 2005-06: A.1461 - Referred to Housing 2003-04: A.3031 - Referred to Housing 2001-02: A.1130 - Referred to Housing 1999-2000: A.2018 - Referred to Housing

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to plans submitted on and after such date; provided, however, that the amendments to sections 352-eee and 352-eeee of the general business law made by sections two and three of this act shall not affect the expiration of such sections and shall be deemed to expire therewith.


Text

STATE OF NEW YORK ________________________________________________________________________ 604 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to prohibiting a sponsor from becoming a director or voting on the board after a build- ing has been converted to a cooperative apartment building or condo- minium ownership THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs (iv) and (v) of subdivision 1 of section 352-ee of the general business law, as added by chapter 509 of the laws of 1978, are amended and a new paragraph (vi) is added to read as follows: (iv) a statement, satisfactory to the attorney general, that it is the obligation of the sponsor to complete all alterations and improvements to individual spaces or dwelling units in compliance with such approved plans within the time specified in the plan or, if the sponsor does not undertake such obligation, that it is the obligation of the individual owners of shares in the cooperative corporation or of condominium units, under the supervision of the cooperative corporation or, in the case of a condominium, under the supervision of the board of managers, to complete such alterations and improvements within the time specified in the plan; [and] (v) a statement that a permanent certificate of occupancy is required for permanent residential use of the premises, that a temporary certif- icate of occupancy may only be renewed for a total period of two years from the date of its original issuance and that, if the temporary certificate of occupancy shall have expired prior to obtaining a perma- nent certificate of occupancy, residential occupancy of the premises will be in violation of the multiple dwelling law, subjecting the occu- pants and the cooperative corporation and its board of directors or, in the case of a condominium, the unit owners and board of managers, to
penalties under the multiple dwelling law including eviction of residen- tial occupants[.]; AND (VI) A STATEMENT THAT THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD OF DIRECTORS OR BE ALLOWED TO VOTE ANY SHARES AFTER CONVERSION TO COOP- ERATIVE OR CONDOMINIUM OWNERSHIP. S 2. Subdivision 2 of section 352-eee of the general business law is amended by adding a new paragraph (g) to read as follows: (G) THE PLAN PROVIDES THAT AFTER THE CONVERSION TO COOPERATIVE OR CONDOMINIUM OWNERSHIP THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD OF DIRECTORS NOR VOTE ANY SHARES. S 3. Subdivision 2 of section 352-eeee of the general business law is amended by adding a new paragraph (g) to read as follows: (G) THE PLAN PROVIDES THAT AFTER THE CONVERSION TO COOPERATIVE OR CONDOMINIUM OWNERSHIP THE SPONSOR SHALL NOT HOLD A SEAT ON THE BOARD OF DIRECTORS NOR VOTE ANY SHARES. S 4. This act shall take effect immediately and shall apply to plans submitted on and after such date; provided, however, that the amendments to sections 352-eee and 352-eeee of the general business law made by sections two and three of this act shall not affect the expiration of such sections and shall be deemed to expire therewith.

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