S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2387
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the general business law and  the  business  corporation
   law, in relation to enactment of a residential condominium and cooper-
   ative owner's bill of rights

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 352-eeeee to read as follows:
   § 352-EEEEE. RESIDENTIAL  CONDOMINIUM  OWNER'S  BILL  OF  RIGHTS.  THE
 ORGANIZATIONAL  AND OPERATING DOCUMENTS OF EVERY RESIDENTIAL CONDOMINIUM
 ESTABLISHED OR OPERATING PURSUANT TO THE LAWS OF THE STATE SHALL GUARAN-
 TEE THE FOLLOWING TO EACH UNIT OWNER:
   1. THAT (A) ALL APPLICATIONS BY UNIT OWNERS IN CONNECTION WITH MATTERS
 WHICH REQUIRE APPROVAL OF THE BOARD OF MANAGERS AND (B) ALL REQUESTS FOR
 DETERMINATIONS BY THE BOARD OF MANAGERS INCLUDING  BUT  NOT  LIMITED  TO
 REQUESTS  FOR  THE  RESOLUTION OF DISPUTES BETWEEN OR AMONG UNIT OWNERS,
 DISPUTES BETWEEN UNIT OWNERS AND THE  CONDOMINIUM  ASSOCIATION  SUCH  AS
 DISPUTES  CONCERNING  RESPONSIBILITY FOR REPAIRS SHALL BE PROCESSED IN A
 REASONABLY EXPEDITIOUS MANNER PURSUANT TO UNIFORM PROCEDURES AND TIMETA-
 BLES ADOPTED IN WRITING.  THE BOARD'S DECISION SHALL BE IN  WRITING  AND
 SHALL  SET  FORTH  THE  REASONS THEREFOR, EXCEPT THAT NO REASON SHALL BE
 REQUIRED WHEN APPROVAL IS GRANTED.
   2.  THAT THE FINAL RESULTS OF ELECTIONS  FOR  THE  BOARD  OF  MANAGERS
 INCLUDING A TALLY OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE POST-
 ED  WITHIN  ONE BUSINESS DAY FOLLOWING THE AVAILABILITY OF SUCH INFORMA-
 TION IN A PROMINENT PLACE ACCESSIBLE TO ALL UNIT OWNERS IN EACH BUILDING
 COMPRISING THE CONDOMINIUM.
   3. THAT THE BOARD OF MANAGERS SHALL CALL A MEETING TO FILL ANY  VACAN-
 CIES  WHICH  OCCUR  ON SUCH BOARD WITHIN SIXTY DAYS OF THE OCCURRENCE OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07047-01-1
              

 A. 2387                             2
 
 SUCH VACANCY IF THE VACANCY OCCURS MORE THAN SIX  MONTHS  PRIOR  TO  THE
 ANNUAL MEETING OF UNIT OWNERS.
   4.  THAT ANY MEMBER OF A BOARD OF MANAGERS WHO IS ELECTED WHILE A UNIT
 OWNER IN THE CONDOMINIUM, WHO SELLS  HIS  OR  HER  APARTMENT,  AND  WHO,
 SUBSEQUENT  TO  SUCH SALE SHALL NO LONGER BE A UNIT OWNER IN SUCH CONDO-
 MINIUM, SHALL RESIGN FROM SUCH BOARD NO LATER THAN THE CLOSING  DATE  OF
 SUCH SALE.
   5.  THAT  COMPLETE  AND  ACCURATE  FINANCIAL  STATEMENTS AND ANY OTHER
 STATEMENTS ORDINARILY PROVIDED TO UNIT OWNERS BE PROVIDED  IN  A  TIMELY
 FASHION  PURSUANT  TO ESTABLISHED TIMETABLES AT LEAST ONCE ANNUALLY. FOR
 THE PURPOSES OF THIS SUBDIVISION "FINANCIAL  STATEMENTS"  SHALL  INCLUDE
 THE  BALANCE SHEETS AND STATEMENTS OF INCOME AND EXPENSE FOR EACH OF THE
 THREE MOST CURRENT FISCAL YEARS.  ATTACHED TO SAID FINANCIAL  STATEMENTS
 SHALL  BE  A  STATEMENT  WHICH DISCLOSES (A) ANY CONTROLLING INTEREST OR
 EMPLOYEE OR AGENCY RELATIONSHIP WHICH ANY BOARD MEMBER OR OFFICER OF THE
 CONDOMINIUM ASSOCIATION OR THE SPOUSE OF SUCH PERSON HAS IN OR WITH  ANY
 SUPPLIER  OF  SERVICES  OR  MATERIALS  TO  SAID  CONDOMINIUM AND (B) ANY
 CONSIDERATION THE VALUE OF WHICH EXCEEDS ONE HUNDRED DOLLARS  WHICH  ANY
 SUCH  BOARD MEMBER OR OFFICER OR THE SPOUSE OF SUCH PERSON RECEIVES FROM
 SUCH SUPPLIER.
   6. THAT THE FOLLOWING DOCUMENTS BE MADE AVAILABLE  FOR  INSPECTION  OR
 COPYING, BY ANY REASONABLE ELECTRONIC OR PHYSICAL MEANS INCLUDING CAMERA
 OR  PHOTOCOPIER, BY UNIT OWNERS DURING REGULAR BUSINESS HOURS ON NO MORE
 THAN TEN DAYS WRITTEN NOTICE TO THE BOARD OF MANAGERS:
   (A) APPROVED MINUTES OF BOARD OF MANAGERS MEETINGS, PROVIDED THAT SUCH
 BOARD SHALL HAVE THIRTY DAYS FROM THE DATES OF THE MEETINGS AT WHICH THE
 MINUTES ARE APPROVED TO PREPARE SUCH MINUTES AND PROVIDED  FURTHER  THAT
 THE  BOARD MAY EXCLUDE MATTERS WHICH IT DEEMS CONFIDENTIAL OR WHICH WERE
 DISCUSSED IN EXECUTIVE SESSION;
   (B)  DETAILED,  ACCURATE  RECORDS,  IN  CHRONOLOGICAL  ORDER,  OF  THE
 RECEIPTS AND EXPENDITURES ARISING FROM THE OPERATION OF THE PROPERTY;
   (C) BANK ACCOUNT AND FINANCIAL INVESTMENT STATEMENTS;
   (D)  ALL  PROPOSALS  RECEIVED  IN  RESPONSE  TO  A REQUEST FOR BIDS TO
 PROVIDE GOODS OR SERVICES TO  THE  CONDOMINIUM  THE  COST  OF  WHICH  IS
 REASONABLY  EXPECTED  TO  EXCEED  FIVE THOUSAND DOLLARS IN ANY ONE YEAR.
 SUCH DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF RECEIPT UNLESS
 THE BOARD CHOOSES TO CONDUCT CLOSED COMPETITIVE BIDDING  IN  WHICH  CASE
 THE  DOCUMENTS  SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF THE SELECTION
 OF THE SUCCESSFUL BID;
   (E) REPORTS OF ACCOUNTANTS, CONSULTANTS AND EXPERTS RETAINED OR  HIRED
 TO PERFORM SERVICES FOR OR ON BEHALF OF THE ASSOCIATION INCLUDING FINAN-
 CIAL STATEMENTS AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION PROVIDED,
 HOWEVER,  THAT  SUCH  REPORTS  MAY  BE  WITHHELD  WHEN A MAJORITY OF THE
 MEMBERS OF THE BOARD HAS VOTED TO WITHHOLD SUCH  INFORMATION.  WHEN  THE
 MATTER  CONCERNS  ALLEGED  CONFLICT OF INTEREST OR MALFEASANCE INVOLVING
 BOARD MEMBERS THE REPORT MAY BE WITHHELD ONLY UPON A VOTE OF THE MAJORI-
 TY OF DISINTERESTED BOARD MEMBERS. IF ALL BOARD MEMBERS  ARE  INTERESTED
 PARTIES THE REPORT MAY NOT BE WITHHELD;
   (F)  REPORTS  BY MUNICIPAL AND/OR COUNTY INSPECTORS CONCERNING COMPLI-
 ANCE WITH HEALTH, BUILDING AND HOUSING CODES AND REGULATIONS; AND
   (G) THE RECORDS OF DECISIONS BY THE BOARD OF MANAGERS  TO  EXCLUDE  OR
 WITHDRAW MATERIALS PURSUANT TO PARAGRAPH (A) OR (E) OF THIS SUBDIVISION.
 SUCH  RECORDS  SHALL  BE  PREPARED  IN EVERY INSTANCE THAT MATERIALS ARE
 WITHHELD OR EXCLUDED. THE RECORD SHALL INCLUDE THE GENERAL NATURE OF THE
 MATERIALS AND THE REASON FOR WITHHOLDING OR EXCLUDING SAME.

 A. 2387                             3
 
   7. THAT IN ADDITION TO ANY OTHER NOTICE REQUIRED  BY  THE  CONDOMINIUM
 ASSOCIATION'S ORGANIZATIONAL OR OPERATING DOCUMENTS, NOTICE OF ALL BOARD
 AND  UNIT OWNER MEETINGS SHALL BE POSTED IN A PROMINENT PLACE ACCESSIBLE
 TO ALL UNIT OWNERS IN EACH BUILDING COMPRISING THE CONDOMINIUM.
   8.  THE  ATTORNEY  GENERAL  IS AUTHORIZED TO ENFORCE THE PROVISIONS OF
 THIS SECTION AND MAY, UPON HIS OR HER OWN INITIATIVE, OR IN RESPONSE  TO
 A  COMPLAINT  BY ONE OR MORE UNIT OWNERS, INVESTIGATE ALLEGATIONS OF ANY
 FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
   § 2. The business corporation law is amended by adding a  new  section
 708-a to read as follows:
 § 708-A. RESIDENTIAL COOPERATIVE OWNER'S BILL OF RIGHTS.
   (A)  FOR  THE  PURPOSES  OF THIS SECTION, THE TERM "COOPERATIVE" SHALL
 MEAN A CORPORATION OWNING OR LEASING RESIDENTIAL PREMISES AND  OPERATING
 THE SAME ON A COOPERATIVE BASIS.
   (B)  (1)  THE ORGANIZATIONAL AND OPERATING DOCUMENTS OF EVERY RESIDEN-
 TIAL COOPERATIVE ESTABLISHED OR OPERATING PURSUANT TO THE  LAWS  OF  THE
 STATE SHALL GUARANTEE THE FOLLOWING TO EACH SHAREHOLDER:
   (2)  THAT  (I)  ALL  APPLICATIONS  BY  SHAREHOLDERS IN CONNECTION WITH
 MATTERS WHICH REQUIRE APPROVAL OF THE BOARD OF DIRECTORS  AND  (II)  ALL
 REQUESTS  FOR DETERMINATIONS BY THE BOARD OF DIRECTORS INCLUDING BUT NOT
 LIMITED TO REQUESTS FOR THE RESOLUTION  OF  DISPUTES  BETWEEN  OR  AMONG
 SHAREHOLDERS,  DISPUTES  BETWEEN  SHAREHOLDERS  AND  THE  BOARD  SUCH AS
 DISPUTES CONCERNING RESPONSIBILITY FOR REPAIRS SHALL BE PROCESSED  IN  A
 REASONABLY EXPEDITIOUS MANNER PURSUANT TO UNIFORM PROCEDURES AND TIMETA-
 BLES  ADOPTED  IN WRITING.  THE BOARD'S DECISION SHALL BE IN WRITING AND
 SHALL SET FORTH THE REASONS THEREFOR, EXCEPT THAT  NO  REASON  SHALL  BE
 REQUIRED WHEN APPROVAL IS GRANTED.
   (3)  THAT  THE  FINAL  RESULTS OF ELECTIONS FOR THE BOARD OF DIRECTORS
 INCLUDING A TALLY OF THE VOTES RECEIVED BY EACH CANDIDATE SHALL BE POST-
 ED WITHIN ONE BUSINESS DAY FOLLOWING THE AVAILABILITY OF  SUCH  INFORMA-
 TION  IN A PROMINENT PLACE ACCESSIBLE TO ALL SHAREHOLDERS IN EACH BUILD-
 ING COMPRISING THE COOPERATIVE.
   (4) THAT THE BOARD OF DIRECTORS SHALL  CALL  A  MEETING  TO  FILL  ANY
 VACANCIES  WHICH OCCUR ON SUCH BOARD WITHIN SIXTY DAYS OF THE OCCURRENCE
 OF SUCH VACANCY IF THE VACANCY OCCURS MORE THAN SIX MONTHS PRIOR TO  THE
 ANNUAL MEETING OF SHAREHOLDERS.
   (5)  THAT  ANY  MEMBER  OF A BOARD OF DIRECTORS WHO IS ELECTED WHILE A
 SHAREHOLDER IN THE COOPERATIVE, WHO SELLS HIS OR HER APARTMENT, AND WHO,
 SUBSEQUENT TO SUCH SALE SHALL NO LONGER BE A SHAREHOLDER IN SUCH COOPER-
 ATIVE, SHALL RESIGN FROM SUCH BOARD NO LATER THAN THE  CLOSING  DATE  OF
 SUCH SALE.
   (6)  THAT  COMPLETE  AND  ACCURATE  FINANCIAL STATEMENTS AND ANY OTHER
 STATEMENTS ORDINARILY PROVIDED TO SHAREHOLDERS BE PROVIDED IN  A  TIMELY
 FASHION  PURSUANT  TO ESTABLISHED TIMETABLES AT LEAST ONCE ANNUALLY. FOR
 THE PURPOSES OF THIS PARAGRAPH "FINANCIAL STATEMENTS" SHALL INCLUDE  THE
 BALANCE  SHEETS  AND  STATEMENTS  OF  INCOME AND EXPENSE FOR EACH OF THE
 THREE MOST CURRENT FISCAL YEARS. ATTACHED TO SAID  FINANCIAL  STATEMENTS
 SHALL  BE  A  STATEMENT  WHICH DISCLOSES (I) ANY CONTROLLING INTEREST OR
 EMPLOYEE OR AGENCY RELATIONSHIP WHICH ANY BOARD MEMBER OR OFFICER OF THE
 COOPERATIVE BOARD OR THE SPOUSE OF  SUCH  PERSON  HAS  IN  OR  WITH  ANY
 SUPPLIER  OF  SERVICES  OR  MATERIALS  TO  SAID COOPERATIVE AND (II) ANY
 CONSIDERATION THE VALUE OF WHICH EXCEEDS ONE HUNDRED DOLLARS  WHICH  ANY
 SUCH  BOARD MEMBER OR OFFICER OR THE SPOUSE OF SUCH PERSON RECEIVES FROM
 SUCH SUPPLIER.
   (7) THAT THE FOLLOWING DOCUMENTS BE MADE AVAILABLE FOR  INSPECTION  OR
 COPYING, BY ANY REASONABLE ELECTRONIC OR PHYSICAL MEANS INCLUDING CAMERA

 A. 2387                             4
 
 OR PHOTOCOPIER, BY SHAREHOLDERS DURING REGULAR BUSINESS HOURS ON NO MORE
 THAN TEN DAYS WRITTEN NOTICE TO THE BOARD OF DIRECTORS:
   (I)  APPROVED  MINUTES  OF  BOARD OF DIRECTORS MEETINGS, PROVIDED THAT
 SUCH BOARD SHALL HAVE THIRTY DAYS FROM THE  DATES  OF  THE  MEETINGS  AT
 WHICH  THE  MINUTES  ARE  APPROVED  TO PREPARE SUCH MINUTES AND PROVIDED
 FURTHER THAT THE BOARD MAY EXCLUDE MATTERS WHICH IT  DEEMS  CONFIDENTIAL
 OR WHICH WERE DISCUSSED IN EXECUTIVE SESSION;
   (II)  DETAILED,  ACCURATE  RECORDS,  IN  CHRONOLOGICAL  ORDER,  OF THE
 RECEIPTS AND EXPENDITURES ARISING FROM THE OPERATION OF THE PROPERTY;
   (III) BANK ACCOUNT AND FINANCIAL INVESTMENT STATEMENTS;
   (IV) ALL PROPOSALS RECEIVED IN RESPONSE  TO  A  REQUEST  FOR  BIDS  TO
 PROVIDE  GOODS  OR  SERVICES  TO  THE  COOPERATIVE  THE COST OF WHICH IS
 REASONABLY EXPECTED TO EXCEED FIVE THOUSAND DOLLARS  IN  ANY  ONE  YEAR.
 SUCH DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF RECEIPT UNLESS
 THE  BOARD  CHOOSES  TO CONDUCT CLOSED COMPETITIVE BIDDING IN WHICH CASE
 THE DOCUMENTS SHALL BE MADE AVAILABLE WITHIN TEN DAYS OF  THE  SELECTION
 OF THE SUCCESSFUL BID;
   (V)  REPORTS OF ACCOUNTANTS, CONSULTANTS AND EXPERTS RETAINED OR HIRED
 TO PERFORM SERVICES FOR OR ON BEHALF OF THE COOPERATIVE INCLUDING FINAN-
 CIAL STATEMENTS  AS  DEFINED  IN  PARAGRAPH  FIVE  OF  THIS  SUBDIVISION
 PROVIDED,  HOWEVER, THAT SUCH REPORTS MAY BE WITHHELD WHEN A MAJORITY OF
 THE MEMBERS OF THE BOARD HAS VOTED TO WITHHOLD SUCH INFORMATION.    WHEN
 THE  MATTER CONCERNS ALLEGED CONFLICT OF INTEREST OR MALFEASANCE INVOLV-
 ING BOARD MEMBERS THE REPORT MAY BE WITHHELD ONLY UPON  A  VOTE  OF  THE
 MAJORITY OF DISINTERESTED BOARD MEMBERS. IF ALL BOARD MEMBERS ARE INTER-
 ESTED PARTIES THE REPORT MAY NOT BE WITHHELD;
   (VI)  REPORTS BY MUNICIPAL AND/OR COUNTY INSPECTORS CONCERNING COMPLI-
 ANCE WITH HEALTH, BUILDING AND HOUSING CODES AND REGULATIONS; AND
   (VII) THE RECORDS OF DECISIONS BY THE BOARD OF DIRECTORS TO EXCLUDE OR
 WITHDRAW MATERIALS PURSUANT TO SUBPARAGRAPH (I) OR  (V)  OF  THIS  PARA-
 GRAPH.  SUCH  RECORDS SHALL BE PREPARED IN EVERY INSTANCE THAT MATERIALS
 ARE WITHHELD OR EXCLUDED.  THE RECORD SHALL INCLUDE THE  GENERAL  NATURE
 OF THE MATERIALS AND THE REASON FOR WITHHOLDING OR EXCLUDING SAME.
   (8) THAT IN ADDITION TO ANY OTHER NOTICE REQUIRED BY THE COOPERATIVE'S
 ORGANIZATIONAL  OR  OPERATING  DOCUMENTS, NOTICE OF ALL BOARD AND SHARE-
 HOLDER MEETINGS SHALL BE POSTED IN A PROMINENT PLACE ACCESSIBLE  TO  ALL
 SHAREHOLDERS IN EACH BUILDING COMPRISING THE COOPERATIVE.
   (9)  THE  ATTORNEY  GENERAL IS AUTHORIZED TO ENFORCE THE PROVISIONS OF
 THIS SECTION AND MAY, UPON HIS OR HER OWN INITIATIVE, OR IN RESPONSE  TO
 A  COMPLAINT BY ONE OR MORE SHAREHOLDERS, INVESTIGATE ALLEGATIONS OF ANY
 FAILURE TO COMPLY WITH THE PROVISIONS HEREOF.
   § 3. Within six months of the effective date of this act the  attorney
 general  shall  promulgate  a  handbook  summarizing  the rights of unit
 owners vis-a-vis condominium associations and the procedures  and  proc-
 esses available to unit owners to enforce such rights.
   §  4.  This act shall take effect immediately; provided, however, that
 as to residential condominium associations  existing  and  operating  as
 such  on  the  effective date of this act the boards of managers of such
 associations shall within one year of the effective  date  of  this  act
 take  all  steps  necessary  to amend the appropriate organizational and
 operating documents of such associations to implement the provisions  of
 this act.