NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7183
SPONSOR: Chandler-Waterman TITLE OF BILL:
An act to amend the not-for-profit corporation law and the business
corporation law, in relation to cooperative purchase applications
PURPOSE OR GENERAL IDEA OF BILL:
An act to amend the not-for-profit corporation law and the business
corporation law, in relation to cooperative purchase applications.
SUMMARY OF PROVISIONS:
Section one of the bill adds Section 519-b to the not-for-profit corpo-
ration law. It requires any residential cooperative corporation formed
as not-for-profits to create procedures for a uniform application proc-
ess. Any residential cooperative corporation would need to provide writ-
ten copies of these procedures to any prospective purchaser or seller
who request them. The uniform application process must require such
cooperative corporation to notify the prospective purchaser that their
application has been received and is either complete or is incomplete
and what additional documentation is needed; within twenty-one days of
receiving such application. In the notice telling the prospective
purchaser the application is complete, the cooperative corporation must
state what date they will complete their review and either approve or
deny the application. Such date must be within ninety days of the
receipt of a completed application. •
If a board fails to issue a final determination, the consent of the sale
will be granted... This section also requires a written reason be
provided for all denied sales. Section two adds section 728 to the busi-
ness corporation law to do the same but for cooperatives formed under
the business corporation law.
JUSTIFICATION:
This bill is to protect against illegal discrimination within housing.
These processes and conditions give the appearance and have the poten-
tial to be misused to illegally discriminate against a potential
purchaser of cooperative housing.
LEGISLATIVE HISTORY:
2024-2025: A6647 Referred to housing
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
7183
2025-2026 Regular Sessions
IN ASSEMBLY
March 21, 2025
___________
Introduced by M. of A. CHANDLER-WATERMAN -- read once and referred to
the Committee on Housing
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
21 all additional materials requested in the acknowledgement of receipt,
22 the board of directors shall notify the prospective purchaser or their
23 agent that the application is complete. Such notice shall state by what
24 date review of the application will be complete and when the prospective
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08033-01-5
A. 7183 2
1 purchaser or their agent will be notified whether consent to the sale is
2 granted or denied.
3 (e) Written notice that consent to the sale has been granted or denied
4 shall be provided to the prospective purchaser no more than ninety days
5 after the submission of a completed application. In the event a sale is
6 denied, such notice shall state the reason for the denial. If no written
7 notice is provided within ninety days, consent to the sale shall be
8 granted.
9 (f) Nothing in this section shall be construed to limit the rights or
10 remedies provided by any other provision of law.
11 § 2. The business corporation law is amended by adding a new section
12 728 to read as follows:
13 § 728. Residential cooperative corporations; ownership interests.
14 (a) Any residential cooperative corporation incorporated pursuant to
15 this chapter, shall establish uniform processes for applying to and
16 considering applications for the purchase of certificates of stock, a
17 proprietary lease or other evidence of an ownership interest in such
18 residential cooperative corporation.
19 (b) Written notice of such processes shall be made available to any
20 prospective purchasers and prospective sellers, or their respective real
21 estate agents, promptly upon request.
22 (c) At a minimum, such processes shall require the cooperative corpo-
23 ration upon receiving an application from a prospective purchaser, to
24 acknowledge receipt of such application and to include in such acknowl-
25 edgement of receipt whether the application submitted fully satisfies
26 the requirements therefor, the way or ways the submitted application is
27 incomplete, and any additional materials necessary to effectuate consid-
28 eration of the application.
29 (d) The processes established pursuant to this section shall further
30 require that, following the submission of a completed application and
31 all additional materials requested in the acknowledgement of receipt,
32 the board of directors shall notify the prospective purchaser or their
33 agent that the application is complete. Such notice shall state by what
34 date review of the application will be complete and when the prospective
35 purchaser or their agent will be notified whether consent to the sale is
36 granted or denied.
37 (e) Written notice that consent to the sale has been granted or denied
38 shall be provided to the prospective purchaser no more than ninety days
39 after the submission of a completed application. In the event a sale is
40 denied, such notice shall state the reason for the denial. If no written
41 notice is provided within ninety days, consent to the sale shall be
42 granted.
43 (f) Nothing in this section shall be construed to limit the rights or
44 remedies provided by any other provision of law.
45 § 3. This act shall take effect on the one hundred twentieth day after
46 it shall have become a law.
