Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
Impact
If enacted, A07090 could significantly impact the practices of residential cooperative housing corporations across New York State. By mandating that boards provide written reasons for denying share purchase requests, the bill aims to protect the rights of potential shareholders and increase accountability within cooperative governance. This change may help reduce instances of arbitrary or discriminatory denials, fostering a fairer housing environment for all applicants.
Summary
Bill A07090, introduced in the New York Assembly, aims to amend both the business corporation law and the not-for-profit corporation law. The primary purpose of the bill is to require the board of directors of a residential cooperative housing corporation to notify applicants who are seeking to purchase shares of the corporation, detailing the reasons for any denied requests. This requirement is intended to promote transparency in the decision-making process of cooperative housing boards and ensure that applicants are informed of the grounds for refusal.
Contention
While the bill has the potential to enhance consumer protections for individuals seeking to buy into cooperative housing, it may also face opposition from housing corporations. Some may argue that this requirement could complicate board operations and deter them from denying questionable applicants for legitimate reasons. The balance between protecting applicant rights and allowing cooperative boards to maintain their governing autonomy will likely be a point of contention as discussions surrounding this bill progress.
Same As
Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
Requires the board of directors of a cooperative apartment corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
Requires the board of directors of a cooperative apartment corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
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.
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.
Provides for the appeal of disputes between shareholders and boards of directors of residential cooperatives to a hearing officer appointed by the attorney general.
Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Increases transparency in cooperative housing corporations by giving shareholders more rights to information of the co-op and limiting the powers of management companies and boards.