S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         1211

                              2009-2010 Regular Sessions

                                 I N  A S S E M B L Y

                                      (PREFILED)

                                    January 7, 2009
                                      ___________

       Introduced  by  M. of A. DESTITO, PRETLOW -- Multi-Sponsored by -- M. of
         A. AUBRY,  COOK,  CYMBROWITZ,  DIAZ,  EDDINGTON,  ENGLEBRIGHT,  GALEF,
         GLICK, HEASTIE, JACOBS, KOON, MAYERSOHN, MILLMAN, TOWNS, WEISENBERG --
         read once and referred to the Committee on Governmental Operations

       AN  ACT  to amend the civil rights law, in relation to discrimination in
         the ownership of cooperative housing

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1. Legislative findings and declaration of intent. The legis-
    2  lature recognizes that cooperative ownership in  multi-family  dwellings
    3  is  a  popular  form  of  home  ownership  in New York state. An ongoing
    4  concern for consumers dealing in the cooperative housing market  is  the
    5  potential for the unlawful rejection by a board of directors of a buyer.
    6    The  legislature  finds and determines that, not infrequently, a co-op
    7  board rejects what appears to be a well-qualified customer.  Often,  the
    8  prospective purchaser has concerns that the rejection was in fact unlaw-
    9  ful  discrimination.  Both  federal  and state laws protect our citizens
   10  from unfair housing practices, which include discrimination  based  upon
   11  race, ethnicity, gender, age or family status.
   12    For  such reasons, it is the legislature's intent to require boards of
   13  directors of cooperative housing to disclose to proposed purchasers, the
   14  reasons for rejecting a sale.
   15    S 2.  Section 19-a of the civil rights law, as added by chapter 376 of
   16  the laws of 1971, is amended to read as follows:
   17    S 19-a.   Prohibition against  unreasonable  withholding  of  consent.
   18  WHENEVER  ANY  CORPORATION  FORMED  FOR  THE  PURPOSE OF THE COOPERATIVE
   19  OWNERSHIP OF REAL ESTATE WITHIN THE STATE WITHHOLDS CONSENT TO THE  SALE
   20  OR PROPOSED SALE OF CERTIFICATES OF STOCK OR OTHER EVIDENCE OF OWNERSHIP
   21  OF  AN  INTEREST IN SUCH CORPORATION, SUCH CORPORATION SHALL PROVIDE THE
   22  PROSPECTIVE PURCHASER WITH A WRITTEN STATEMENT OF ITS REASONS FOR  WITH-

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03873-01-9

       A. 1211                             2

    1  HOLDING  CONSENT  NO LATER THAN FIVE BUSINESS DAYS AFTER ITS DECISION TO
    2  WITHHOLD CONSENT.
    3    1.  No  SUCH  corporation  [formed  for the purpose of the cooperative
    4  ownership of real estate within the state]  shall  withhold  [its]  SUCH
    5  consent  [to the sale or proposed sale of certificates of stock or other
    6  evidence of ownership of an interest in such corporation] because of the
    7  race, creed, national origin, or sex of the purchaser.
    8    2. For the purposes of this section a "corporation" shall include  the
    9  cooperative  management,  cooperative tenants, cooperative shareholders,
   10  or any appointee or successor in interest of a corporation.
   11    3. This section shall apply to every sale or proposed sale whether  by
   12  a  corporation  directly,  its  successor  in  interest, or by any other
   13  lawfully entitled party.
   14    4. Every agreement, negative covenant, restrictive covenant  or  other
   15  provision,  whether written or oral and wherever contained, inconsistent
   16  with this section shall be void and unenforceable.
   17    S 3. This act shall take effect on the ninetieth day  after  it  shall
   18  have become a law.