NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10790
SPONSOR: Blumencranz TITLE OF BILL:
An act to amend the education law, in relation to courses of instruction
on the constitution of the United States and the federalist papers
PURPOSE OF GENERAL IDEA OF BILL:
To clarify and ensure that the cooperative housing corporation may
recover legal fees and related charges in summary proceedings against
shareholders or occupants, where the proprietary lease or occupancy
agreement authorizes such recovery.
SUMMARY OF PROVISION:
Section 1 of the bill amends subdivision 2 of section 702 of the real
property actions and proceedings law to provide that the exemption
contained in such subdivision applies to summary proceedings between a
cooperative housing corporation and a shareholder or occupant of a
dwelling unit, where the proprietary lease or occupancy agreement
provides for the recovery of fees, legal fees, charges, surcharges,
penalties or assessments other than rent.
Section 2 provides that the act shall take effect immediately.
JUSTIFICATION:
Under the current law, there is vagueness regarding whether a cooper-
ative housing corporation may recover fees, such as legal fees, and
surcharges in summary proceedings involving shareholders or occupants.
This vagueness leads to inconsistent interpretation and outcomes in
housing courts.
This bill clarifies that, if a proprietary lease or occupancy agreement
expressly provides for the recovery of such fees, cooperative housing
corporations may seek to recover them in summary proceedings. This clar-
ification promotes consistency in the application of the law and ensures
that contractual provisions are enforced as intended.
By resolving this vagueness, the bill reduces unnecessary litigation and
provides greater certainty to cooperative housing corporations and their
shareholders or occupants.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
