S06242 Summary:

BILL NOS06242
 
SAME ASSAME AS A06615
 
SPONSORMAYER
 
COSPNSRKRUEGER
 
MLTSPNSR
 
Add Art 49-C §§996 - 996-i, Exec L; add §186-h, Tax L; add §81-a, St Fin L
 
Creates the office of the cooperative and condominium ombudsperson; authorizes the residential unit tax; establishes the office of the cooperative and condominium ombudsperson fund.
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S06242 Actions:

BILL NOS06242
 
04/06/2023REFERRED TO FINANCE
01/03/2024REFERRED TO FINANCE
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S06242 Committee Votes:

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S06242 Floor Votes:

There are no votes for this bill in this legislative session.
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S06242 Memo:

Memo not available
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S06242 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6242
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      April 6, 2023
                                       ___________
 
        Introduced  by  Sens.  MAYER, KRUEGER -- read twice and ordered printed,
          and when printed to be committed to the Committee on Finance
 
        AN ACT to amend the executive law, in relation to creating the office of
          the cooperative and condominium ombudsperson; 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 ombudsperson 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 OMBUDSPERSON
     5  Section 996.   Short title.
     6          996-a.  Legislative declaration.
     7          996-b. Definitions.
     8          996-c. Office of the cooperative and condominium ombudsperson.
     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 ombudsperson 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.
                                                                   LBD00046-02-3

        S. 6242                             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 ensure 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   ombudsperson
    18  appointed  pursuant  to  this  article will conduct outreach programs to
    19  educate unit owners and board members  as  to  their  legal  rights  and
    20  responsibilities.  The  ombudsperson  will encourage alternative dispute
    21  resolution when disputes do arise. The ombudsperson will be available to
    22  provide dispute resolution services  on  consent  of  the  parties.  The
    23  ombudsperson will also provide monitoring and supervision of cooperative
    24  and condominium 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 ombud-
    34  sperson created by this article.
    35    4. "Ombudsperson" means the chief administrative officer of the office
    36  of the cooperative and condominium ombudsperson.
    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 ombudsperson. 1.
    43  The office of the cooperative and  condominium  ombudsperson  is  hereby
    44  created within the department of law to have and exercise the functions,
    45  powers  and  duties  provided  by the provisions of this article and any
    46  other provision of law. The attorney general shall  be  responsible  for
    47  oversight of the office.
    48    2.  The  head  of  the office shall be the cooperative and condominium
    49  ombudsperson who shall be appointed by the attorney general. The  ombud-
    50  sperson  shall  hold  office  until  the end of the term of the attorney
    51  general by whom he or she was appointed and until his or  her  successor
    52  is  appointed  and has qualified. The ombudsperson may be removed by the
    53  attorney general for cause, after  being  given  an  opportunity  to  be
    54  heard.  A  vacancy  shall  be  filled in the same manner as the original
    55  appointment.

        S. 6242                             3
 
     1    3. The ombudsperson shall receive an annual salary to be fixed by  the
     2  attorney  general within the amount made available therefor by an appro-
     3  priation and shall be allowed his or her actual and  necessary  expenses
     4  in the performance of his or her duties. The ombudsperson's salary shall
     5  be no less than the salaries of certain state officers holding the posi-
     6  tions  indicated  in  paragraph  (a)  of  subdivision one of section one
     7  hundred sixty-nine of this chapter.
     8    4. The ombudsperson shall be an attorney with extensive experience  in
     9  real  estate, cooperative and condominium law and in conflict and alter-
    10  native dispute resolution.
    11    5. The ombudsperson shall direct the work of the office and  shall  be
    12  the  chief executive officer of the office. The ombudsperson may appoint
    13  such officers and employees as he or she may deem  necessary,  prescribe
    14  their  powers  and  duties,  fix  their compensation and provide for the
    15  reimbursement of their  expenses,  all  within  amounts  made  available
    16  therefor  by  appropriation.  Such  officers and employees shall include
    17  attorneys and other professionals  with  extensive  experience  in  real
    18  estate,  cooperative and condominium law and in conflict and alternative
    19  dispute resolution.
    20    6. The ombudsperson and officers and employees  of  the  office  shall
    21  adhere  to  a  code  of ethics in order to inspire public confidence and
    22  trust in the fairness and impartiality of the office.  The  ombudsperson
    23  shall  prescribe  such  code of ethics. Such code shall require that the
    24  ombudsperson and officers and employees of the office respect and comply
    25  with the law; that they not use or attempt to  use  their  positions  to
    26  secure  privileges or exemptions for themselves or others; that they not
    27  solicit, accept or agree to accept any gifts or gratuities from  persons
    28  having  or likely to have any official transaction with the office; that
    29  they not request or accept any payment  in  addition  to  their  regular
    30  compensation  for assistance given as part of their official duties; and
    31  that they shall not perform any function in  a  manner  that  improperly
    32  favors any person or party.
    33    7. The ombudsperson and officers and employees of the office shall not
    34  serve  as officers or employees of a political party or a club or organ-
    35  ization related to a political party, receive  remuneration  for  activ-
    36  ities  on behalf of any candidate for public office or party position or
    37  engage in soliciting votes or other activities on behalf of a  candidate
    38  for public office or party position.
    39    8.  The secretary to the governor shall assure that all state agencies
    40  provide the ombudsperson with assistance in advancing  the  purposes  of
    41  the  office  and  to  assure that the activities of the office are fully
    42  coordinated with the activities  of  state  agencies  providing  related
    43  services.
    44    §  996-d. Functions, powers and duties of the office. The office shall
    45  have the following functions, powers and duties:
    46    1. To educate and inform shareholders of cooperatives and unit  owners
    47  of condominiums, their boards of directors and boards of managers, prop-
    48  erty  managers, professionals working with and for such boards and other
    49  interested parties of their legal rights and responsibilities under  the
    50  federal,  state and local laws and regulations applicable to cooperative
    51  and condominium housing in the state of New York and under  the  cooper-
    52  ative and condominium documents governing the respective properties.
    53    2.  To  coordinate  and  assist  in the preparation and publication of
    54  educational and reference materials about residential  cooperatives  and
    55  condominiums,  to  make such resources known and available to the widest
    56  possible audience.

        S. 6242                             4
 
     1    3. To organize and conduct meetings,  workshops,  conferences,  public
     2  hearings  and forums and to utilize all forms of communications media to
     3  disseminate accurate and  timely  information  of  interest  to  persons
     4  residing in, owning and managing cooperative and condominium housing.
     5    4.  To  provide  meetings,  mediation,  arbitration and other forms of
     6  alternative dispute resolution services to cooperative  and  condominium
     7  sponsors  and  developers, cooperative shareholders, condominium owners,
     8  their boards of directors and  managers,  prospective  shareholders  and
     9  unit  owners  and  other parties so as to avoid costly and lengthy liti-
    10  gation and reduce expenses for those involved in disputes.
    11    5. To subpoena and enforce the  attendance  of  witnesses,  administer
    12  oaths  or  affirmations and examine witnesses under oath and require the
    13  production of any books and papers deemed relevant or  material  to  the
    14  resolution of any dispute pending before the office.
    15    6.  To  engage  with the housing courts, other trial courts, state and
    16  local agencies and with alternative dispute  resolution  programs  main-
    17  tained  by  the  office  of  court  administration  in  order to provide
    18  specialized expertise in the resolution of cooperative  and  condominium
    19  disputes as an alternative to litigation.
    20    7.  To offer procedures, monitors and vote counting services to assure
    21  fair elections for members of cooperative boards of directors and condo-
    22  minium boards of managers.  Fifteen percent of the total  voting  inter-
    23  ests  in  a  cooperative or condominium or shareholders or owners of six
    24  residential units, whichever is greater,  may  petition  the  office  to
    25  attend and conduct an election of directors or managers. All costs asso-
    26  ciated with the election monitoring process shall be paid by the cooper-
    27  ative or condominium.
    28    8.  To refer any complaint received to the appropriate law enforcement
    29  agency for prosecution, if deemed appropriate by the office.
    30    9. To perform any other functions that are necessary or appropriate to
    31  fulfill the duties and responsibilities of the office.
    32    § 996-e. Principal office and  satellite  offices.  The  office  shall
    33  maintain  its  principal  office  in the city of New York and shall have
    34  satellite offices in other locations within the state of New York  where
    35  there are significant concentrations of cooperative or condominium hous-
    36  ing.
    37    §  996-f.  Assistance  of  other  state  agencies.  To  effectuate the
    38  purposes of this article, the ombudsperson  may  request  and  shall  be
    39  entitled  to  receive from any state agency, and the same are authorized
    40  to provide, such assistance, services,  facilities,  and  data  as  will
    41  enable  the  office  to  carry out its functions, powers and duties, and
    42  such temporarily or permanently assigned personnel as  the  director  of
    43  the budget may approve.
    44    §  996-g.  Reports  to the governor, attorney general and the legisla-
    45  ture. The office shall make an annual  report,  to  be  received  on  or
    46  before January first, to the governor, attorney general and the legisla-
    47  ture concerning the activities undertaken by the office, recommendations
    48  for  legislative proposals, data concerning program activities and other
    49  pertinent information as may be required.
    50    § 996-h. Contract authority. The office is hereby empowered  to  enter
    51  into  any agreement or contract with any state or local agency necessary
    52  or convenient to carry out the provisions of this article.
    53    § 996-i. Separability. If any clause, sentence, paragraph, section  or
    54  part  of this article shall be adjudged by any court of competent juris-
    55  diction to be invalid, such judgment shall not affect, impair or invali-
    56  date the remainder thereof, but shall be confined in  its  operation  to

        S. 6242                             5

     1  the  clause,  sentence,  paragraph,  section  or  part  thereof directly
     2  involved in the controversy in  which  such  judgment  shall  have  been
     3  rendered.
     4    §  2.  The tax law is amended by adding a new section 186-h to read as
     5  follows:
     6    § 186-h. Residential unit fee. A cooperative housing corporation or  a
     7  homeowners association, as such terms are defined in section two hundred
     8  ten of this chapter, shall pay an annual fee of six dollars per year for
     9  each  residential unit located in a building or buildings owned or oper-
    10  ated by such corporation or association. Such fee shall  be  payable  to
    11  the  department.  All  revenue  from  the  fee  imposed pursuant to this
    12  section shall be paid by the department to the state comptroller  to  be
    13  deposited to and credited to the office of the cooperative and condomin-
    14  ium  ombudsperson  fund, established pursuant to section eighty-one-a of
    15  the state finance law.
    16    § 3. The state finance law is amended by adding a new section 81-a  to
    17  read as follows:
    18    §  81-a.  Office of the cooperative and condominium ombudsperson fund.
    19  1.  There is hereby established in the custody of the state  comptroller
    20  a  special fund to be known as the "office of the cooperative and condo-
    21  minium ombudsperson fund".
    22    2. The office of the cooperative  and  condominium  ombudsperson  fund
    23  shall consist of monies appropriated thereto, funds transferred from any
    24  other  fund or sources, and monies deposited therein pursuant to section
    25  one hundred eighty-six-h of the tax law.
    26    3. The monies in the office of the cooperative and condominium  ombud-
    27  sperson  fund  shall  be  kept separate from and shall not be commingled
    28  with any other monies in the custody  of  the  state  comptroller.  Such
    29  monies shall be allocated to and expended by the department of law sole-
    30  ly  for the staffing and administration of the office of the cooperative
    31  and condominium ombudsperson of such department.
    32    § 4. This act shall take effect on the one hundred eightieth day after
    33  it shall have become a law.
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