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A02685 Summary:

Amd §19-a, Civ Rts L
Requires cooperative housing corporations provide a prospective purchaser with a written statement of reasons when withholding consent to a purchase; voids any agreement inconsistent with such requirement.
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A02685 Actions:

01/26/2023referred to governmental operations
01/03/2024referred to governmental operations
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A02685 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    January 26, 2023
        Introduced by M. of A. WALKER -- 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    § 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    § 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-
    23  holding consent no later than thirty days after its decision to withhold
    24  consent.

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

        A. 2685                             2
     1    1.  No  such  corporation  [formed  for the purpose of the cooperative
     2  ownership of real estate within the state]  shall  withhold  [its]  such
     3  consent  [to the sale or proposed sale of certificates of stock or other
     4  evidence of ownership of an interest in such corporation] because of the
     5  race, creed, national origin, or sex of the purchaser.
     6    2.  For the purposes of this section a "corporation" shall include the
     7  cooperative management, cooperative tenants,  cooperative  shareholders,
     8  or any appointee or successor in interest of a corporation.
     9    3.  This section shall apply to every sale or proposed sale whether by
    10  a corporation directly, its successor  in  interest,  or  by  any  other
    11  lawfully entitled party.
    12    4.  Every  agreement, negative covenant, restrictive covenant or other
    13  provision, whether written or oral and wherever contained,  inconsistent
    14  with this section shall be void and unenforceable.
    15    §  3.  This  act shall take effect on the ninetieth day after it shall
    16  have become a law.
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