The long-awaited Fairness in Cooperative Home Ownership Act (the “Co-op Act”) may very well see its way to becoming law this year. The legislation passed the New York State Senate (Senate Bill S.5644) in June 2016, at which time it was also delivered to the New York State Assembly (Assembly Bill A.6395) (the “Bill”). The Bill was subsequently referred to the Assembly’s Housing Committee for consideration, but failed to advance. It is currently still in the Housing Committee and it remains to be seen whether the Assembly will move the Bill to the floor for a vote in 2017 so that it may finally be sent to Governor Cuomo for signature and enactment.
The Co-op Act will amend the Real Property Law of the State of New York by adding a new Article 11 entitled “Cooperative Purchase Applications”. As the legislature explains, “…residential cooperative purchasers are subject to processes and conditions that do not also apply to purchasers of other single family residences. The legislature also finds that these processes and conditions, at a minimum, give the appearance and have the potential to be misused to illegally discriminate against a purchaser of cooperative housing….” (See http://bit.ly/2ix7loQ). The Co-op Act seeks to protect prospective purchasers from potential abuses that do not exist with other types of real property, such as single-family dwellings and condominiums.
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