File #: Int 0438-2024    Version: * Name: Requiring cooperative corporations to provide financial information to prospective purchasers of cooperative apartments.
Type: Introduction Status: Committee
Committee: Committee on Housing and Buildings
On agenda: 2/28/2024
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to requiring cooperative corporations to provide financial information to prospective purchasers of cooperative apartments
Sponsors: Pierina Ana Sanchez, Public Advocate Jumaane Williams, Lincoln Restler, Julie Won, Amanda Farías, Tiffany Cabán, Diana I. Ayala, Farah N. Louis, Yusef Salaam, Crystal Hudson, Alexa Avilés, Sandy Nurse, Althea V. Stevens, Jennifer Gutiérrez
Council Member Sponsors: 14
Summary: This bill would require any cooperative corporation to disclose its finances to a prospective purchaser whose offer to purchase an interest and right to reside in the cooperative corporation has been accepted. The financial information would have to be provided within 14 days of a request by the prospective purchaser.
Attachments: 1. Summary of Int. No. 438, 2. Int. No. 438, 3. February 28, 2024 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 2-28-24

Int. No. 438

 

By Council Members Sanchez, the Public Advocate (Mr. Williams), Restler, Won, Farías, Cabán, Ayala, Louis, Salaam, Hudson, Avilés, Nurse, Stevens and Gutiérrez

 

A Local Law to amend the administrative code of the city of New York, in relation to requiring cooperative corporations to provide financial information to prospective purchasers of cooperative apartments

 

Be it enacted by the Council as follows:

 

Section 1. Title 26 of the administrative code of the city of New York is amended by adding a new chapter 35 to read as follows:

CHAPTER 35

SALES OF COOPERATIVE APARTMENTS

§ 26-3501 Definitions. As used in this chapter, the following terms have the following meanings:

Cooperative corporation. The term “cooperative corporation” means any corporation that grants persons the right to reside in a cooperative apartment, that right existing by such person’s ownership of certificates of stock, proprietary lease, or other evidence of ownership of an interest in such entity.

Prospective purchaser. The term “prospective purchaser” means a person who has made an offer to purchase the proprietary lease and the ownership interest in a cooperative corporation from a prospective seller.

Prospective seller. The term “prospective seller” means a person who has a proprietary lease and an ownership interest in a cooperative corporation and who is offering to sell such proprietary lease and ownership interest.

§ 26-3502 Financial disclosure by a cooperative corporation. a. After an offer to purchase a proprietary lease and an ownership interest in a cooperative corporation from a prospective seller by a prospective purchaser has been accepted by the prospective seller, the cooperative corporation must provide disclosure of its finances to the prospective purchaser within 14 days of a request for such information by the prospective purchaser or an agent of the prospective purchaser. Such financial disclosure must include, at a minimum:

1. The assets and liabilities of the cooperative corporation, including current cash flow, debt and operating expenses;

2. Any capital improvements underway or planned, and the cost of such improvements;

3. The amount in the reserve fund, if any; and

4. The most recent budget, or a statement that the cooperative corporation does not prepare a budget.

b. Any cooperative corporation that fails to provide financial disclosure to a prospective purchaser in accordance with subdivision a of this section shall be liable for a civil penalty in the amount of $500. The civil penalty established by this section may be recovered in a proceeding before the office of administrative trials and hearings.

§ 2. This local law takes effect 60 days after it becomes law.

 

 

Session 13

LS #8956

01/18/24

 

Session 12

NAB

LS #8956

06/15/22 11:05AM