A06941 Summary:

BILL NOA06941
 
SAME ASSAME AS S00395
 
SPONSORFarrell
 
COSPNSR
 
MLTSPNSR
 
Add Art 49-C SS996 - 996-i, Exec L; add S186-g, Tax L; add S81, St Fin L
 
Creates the office of the cooperative and condominium ombudsman; authorizes the residential unit tax and establishes the office of the cooperative and condominium ombudsman fund.
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A06941 Actions:

BILL NOA06941
 
04/06/2011referred to housing
01/04/2012referred to housing
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A06941 Floor Votes:

There are no votes for this bill in this legislative session.
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A06941 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6941
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 6, 2011
                                       ___________
 
        Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
          tee on Housing
 
        AN ACT to amend the executive law, in relation to creating the office of
          the cooperative and condominium ombudsman; to amend the  tax  law,  in
          relation  to  authorizing  the  residential unit fee; and to amend the

          state finance law, in relation to establishing the office of the coop-
          erative and condominium ombudsman fund
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The executive law is amended by adding a new article 49-C
     2  to read as follows:
     3                                ARTICLE 49-C
     4             OFFICE OF THE COOPERATIVE AND CONDOMINIUM OMBUDSMAN
     5  Section 996.   Short title.
     6          996-a.  Legislative declaration.
     7          996-b. Definitions.
     8          996-c. Office of the cooperative and condominium ombudsman.
     9          996-d. Functions, powers and duties of the office.
    10          996-e. Principal office and satellite offices.

    11          996-f. Assistance of other state agencies.
    12          996-g. Reports to the governor, attorney general and the  legis-
    13                   lature.
    14          996-h. Contract authority.
    15          996-i. Separability.
    16    §  996.  Short  title. This article shall be known and may be cited as
    17  the "cooperative and condominium ombudsman act".
    18    § 996-a. Legislative declaration. The legislature finds and determines
    19  as follows:
    20    Cooperative and condominium housing constitutes a significant  portion
    21  of  New  York  state's residential housing stock. It is and has been the
    22  public policy of this state to encourage such forms of home ownership. A
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00717-01-1

        A. 6941                             2
 
     1  wide variety of laws have  been  enacted  to  provide  fairness  in  the
     2  conversion of rental properties to cooperative and condominium ownership
     3  and  in  the  regulation  and taxation of cooperatives and condominiums.
     4  State  and  local  laws and regulations are also designed to insure that
     5  the residents of such housing  are  provided  with  safe  and  habitable
     6  accommodations.
     7    Inevitably,  disputes  have  arisen  among cooperative and condominium

     8  sponsors and developers, cooperative shareholders and  condominium  unit
     9  owners,  prospective  shareholders  and unit owners, boards of directors
    10  and boards of managers. Such disputes often result in lengthy and costly
    11  litigation and uncertainty as to the rights of the parties  pending  the
    12  outcome  of  litigation. Such litigation diverts resources that could be
    13  better utilized to provide affordable and well-maintained buildings  and
    14  grounds for the common good of the owners.
    15    This article is necessary to provide a neutral, informative and acces-
    16  sible  resource available to all parties involved in residential cooper-
    17  ative and condominium ownership and governance. The ombudsman  appointed

    18  pursuant  to this article will conduct outreach programs to educate unit
    19  owners and board members as to their legal rights and  responsibilities.
    20  The   ombudsman  will  encourage  alternative  dispute  resolution  when
    21  disputes do arise. The ombudsman will be available  to  provide  dispute
    22  resolution  services  on consent of the parties. The ombudsman will also
    23  provide  monitoring  and  supervision  of  cooperative  and  condominium
    24  elections.
    25    §  996-b.  Definitions. 1. "Cooperative" means a corporation organized
    26  and operating pursuant to the general business law  or  the  cooperative
    27  corporations  law for the primary purpose of providing residential hous-
    28  ing to its shareholders.

    29    2. "Condominium" means a homeowners  association  or  any  association
    30  organized  and operating pursuant to article nine-B of the real property
    31  law for the primary purpose of providing residential housing to its unit
    32  owners.
    33    3. "Office" means  the  office  of  the  cooperative  and  condominium
    34  ombudsman created by this article.
    35    4. "Ombudsman" means the chief administrative officer of the office of
    36  the cooperative and condominium ombudsman.
    37    5.  "State  agency"  means  any department, board, bureau, commission,
    38  division, office, council or agency of the state, or  a  public  benefit
    39  corporation or authority authorized by the laws of the state.
    40    6.  "Local  agency"  means  any department, board, bureau, commission,

    41  division, office, council, officer or agency of a city, town or village.
    42    § 996-c. Office of the cooperative and condominium ombudsman.  1.  The
    43  office  of  the  cooperative and condominium ombudsman is hereby created
    44  within the department of law to have and exercise the functions,  powers
    45  and  duties  provided  by  the  provisions of this article and any other
    46  provision of law. The attorney general shall be  responsible  for  over-
    47  sight of the office.
    48    2.  The  head  of  the office shall be the cooperative and condominium
    49  ombudsman who shall be appointed by the attorney general. The  ombudsman
    50  shall  hold  office until the end of the term of the attorney general by
    51  whom he or she was appointed and until his or her successor is appointed

    52  and has qualified. The ombudsman may be removed by the attorney  general
    53  for cause, after being given an opportunity to be heard. A vacancy shall
    54  be filled in the same manner as the original appointment.
    55    3.  The  ombudsman  shall  receive an annual salary to be fixed by the
    56  attorney general within the amount made available therefor by an  appro-

        A. 6941                             3
 
     1  priation  and  shall be allowed his or her actual and necessary expenses
     2  in the performance of his or her duties. The ombudsman's salary shall be
     3  no less than the salaries of certain state officers  holding  the  posi-
     4  tions  indicated  in  paragraph  (a)  of  subdivision one of section one
     5  hundred sixty-nine of this chapter.

     6    4. The ombudsman shall be an attorney  with  extensive  experience  in
     7  real  estate, cooperative and condominium law and in conflict and alter-
     8  native dispute resolution.
     9    5. The ombudsman shall direct the work of the office and shall be  the
    10  chief  executive  officer  of the office. The ombudsman may appoint such
    11  officers and employees as he or she may deem necessary, prescribe  their
    12  powers and duties, fix their compensation and provide for the reimburse-
    13  ment  of  their  expenses, all within amounts made available therefor by
    14  appropriation. Such officers and employees shall include  attorneys  and
    15  other  professionals  with  extensive experience in real estate, cooper-
    16  ative and condominium law and in conflict and alternative dispute resol-

    17  ution.
    18    6. The ombudsman and officers and employees of the office shall adhere
    19  to a code of ethics in order to inspire public confidence and  trust  in
    20  the  fairness  and  impartiality  of  the  office.  The  ombudsman shall
    21  prescribe such code of ethics. Such code shall require that the  ombuds-
    22  man and officers and employees of the office respect and comply with the
    23  law; that they not use or attempt to use their positions to secure priv-
    24  ileges  or  exemptions  for themselves or others; that they not solicit,
    25  accept or agree to accept any gifts or gratuities from persons having or
    26  likely to have any official transaction with the office; that  they  not
    27  request  or accept any payment in addition to their regular compensation

    28  for assistance given as part of their official  duties;  and  that  they
    29  shall  not  perform  any function in a manner that improperly favors any
    30  person or party.
    31    7. The ombudsman and officers and employees of the  office  shall  not
    32  serve  as officers or employees of a political party or a club or organ-
    33  ization related to a political party, receive  remuneration  for  activ-
    34  ities  on behalf of any candidate for public office or party position or
    35  engage in soliciting votes or other activities on behalf of a  candidate
    36  for public office or party position.
    37    8.  The secretary to the governor shall assure that all state agencies
    38  provide the ombudsman with assistance in advancing the purposes  of  the

    39  office and to assure that the activities of the office are fully coordi-
    40  nated with the activities of state agencies providing related services.
    41    §  996-d. Functions, powers and duties of the office. The office shall
    42  have the following functions, powers and duties:
    43    1. To educate and inform shareholders of cooperatives and unit  owners
    44  of condominiums, their boards of directors and boards of managers, prop-
    45  erty  managers, professionals working with and for such boards and other
    46  interested parties of their legal rights and responsibilities under  the
    47  federal,  state and local laws and regulations applicable to cooperative
    48  and condominium housing in the state of New York and under  the  cooper-

    49  ative and condominium documents governing the respective properties.
    50    2.  To  coordinate  and  assist  in the preparation and publication of
    51  educational and reference materials about residential  cooperatives  and
    52  condominiums,  to  make such resources known and available to the widest
    53  possible audience.
    54    3. To organize and conduct meetings,  workshops,  conferences,  public
    55  hearings  and forums and to utilize all forms of communications media to

        A. 6941                             4
 
     1  disseminate accurate and  timely  information  of  interest  to  persons
     2  residing in, owning and managing cooperative and condominium housing.
     3    4.  To  provide  meetings,  mediation,  arbitration and other forms of

     4  alternative dispute resolution services to cooperative  and  condominium
     5  sponsors  and  developers, cooperative shareholders, condominium owners,
     6  their boards of directors and  managers,  prospective  shareholders  and
     7  unit  owners  and  other parties so as to avoid costly and lengthy liti-
     8  gation and reduce expenses for those involved in disputes.
     9    5. To subpoena and enforce the  attendance  of  witnesses,  administer
    10  oaths  or  affirmations and examine witnesses under oath and require the
    11  production of any books and papers deemed relevant or  material  to  the
    12  resolution of any dispute pending before the office.
    13    6.  To  engage  with the housing courts, other trial courts, state and

    14  local agencies and with alternative dispute  resolution  programs  main-
    15  tained  by  the  office  of  court  administration  in  order to provide
    16  specialized expertise in the resolution of cooperative  and  condominium
    17  disputes as an alternative to litigation.
    18    7.  To offer procedures, monitors and vote counting services to assure
    19  fair elections for members of cooperative boards of directors and condo-
    20  minium boards of managers.  Fifteen percent of the total  voting  inter-
    21  ests  in  a  cooperative or condominium or shareholders or owners of six
    22  residential units, whichever is greater,  may  petition  the  office  to
    23  attend and conduct an election of directors or managers. All costs asso-

    24  ciated with the election monitoring process shall be paid by the cooper-
    25  ative or condominium.
    26    8.  To refer any complaint received to the appropriate law enforcement
    27  agency for prosecution, if deemed appropriate by the office.
    28    9. To perform any other functions that are necessary or appropriate to
    29  fulfill the duties and responsibilities of the office.
    30    § 996-e. Principal office and  satellite  offices.  The  office  shall
    31  maintain  its  principal  office  in the city of New York and shall have
    32  satellite offices in other locations within the state of New York  where
    33  there are significant concentrations of cooperative or condominium hous-
    34  ing.

    35    §  996-f.  Assistance  of  other  state  agencies.  To  effectuate the
    36  purposes of this article, the ombudsman may request and shall  be  enti-
    37  tled  to  receive  from any state agency, and the same are authorized to
    38  provide, such assistance, services, facilities, and data as will  enable
    39  the  office  to  carry  out  its  functions, powers and duties, and such
    40  temporarily or permanently assigned personnel as  the  director  of  the
    41  budget may approve.
    42    §  996-g.  Reports  to the governor, attorney general and the legisla-
    43  ture. The office shall make an annual  report,  to  be  received  on  or
    44  before January first, to the governor, attorney general and the legisla-

    45  ture concerning the activities undertaken by the office, recommendations
    46  for  legislative proposals, data concerning program activities and other
    47  pertinent information as may be required.
    48    § 996-h. Contract authority. The office is hereby empowered  to  enter
    49  into  any agreement or contract with any state or local agency necessary
    50  or convenient to carry out the provisions of this article.
    51    § 996-i. Separability. If any clause, sentence, paragraph, section  or
    52  part  of this article shall be adjudged by any court of competent juris-
    53  diction to be invalid, such judgment shall not affect, impair or invali-
    54  date the remainder thereof, but shall be confined in  its  operation  to

    55  the  clause,  sentence,  paragraph,  section  or  part  thereof directly

        A. 6941                             5
 
     1  involved in the controversy in  which  such  judgment  shall  have  been
     2  rendered.
     3    §  2.  The tax law is amended by adding a new section 186-g to read as
     4  follows:
     5    § 186-g. Residential unit fee. A cooperative housing corporation or  a
     6  homeowners association, as such terms are defined in section two hundred
     7  ten of this chapter, shall pay an annual fee of six dollars per year for
     8  each  residential unit located in a building or buildings owned or oper-
     9  ated by such corporation or association. Such fee shall  be  payable  to
    10  the  department.  All  revenue  from  the  fee  imposed pursuant to this

    11  section shall be paid by the department to the state comptroller  to  be
    12  deposited to and credited to the office of the cooperative and condomin-
    13  ium  ombudsman  fund,  established pursuant to section eighty-one of the
    14  state finance law.
    15    § 3. The state finance law is amended by adding a new  section  81  to
    16  read as follows:
    17    §  81.  Office  of  the cooperative and condominium ombudsman fund. 1.
    18  There is hereby established in the custody of the  state  comptroller  a
    19  special fund to be known as the "office of the cooperative and condomin-
    20  ium ombudsman fund".
    21    2.  The office of the cooperative and condominium ombudsman fund shall
    22  consist of monies appropriated thereto, funds transferred from any other

    23  fund or sources, and monies deposited therein pursuant  to  section  one
    24  hundred eighty-six-g of the tax law.
    25    3. The monies in the office of the cooperative and condominium ombuds-
    26  man  fund  shall  be kept separate from and shall not be commingled with
    27  any other monies in the custody of the state  comptroller.  Such  monies
    28  shall  be  allocated to and expended by the department of law solely for
    29  the staffing and administration of the office  of  the  cooperative  and
    30  condominium ombudsman of such department.
    31    § 4. This act shall take effect on the one hundred eightieth day after
    32  it shall have become a law.
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