Bill > S08912

This bill aims to increase transparency and shareholder rights within cooperative housing corporations, which are entities that own or lease residential properties and operate them on a cooperative basis, by adding a new article to the cooperative corporations law. Key provisions include allowing members (shareholders) to remove a management company, which is an entity hired to run the corporation's business, after the initial sponsor's control diminishes, and requiring board meetings to be held at least four times annually with members allowed to attend most sessions. Furthermore, the bill mandates that detailed board meeting minutes be shared with members within 24 hours of approval, and that an annual budget, written in plain language, be submitted for member approval at least a month before the fiscal year ends. It also prohibits employees of management companies, unless they are also residents and shareholders, from serving on the cooperative's board of directors. For significant non-emergency capital improvements or renovations costing over $50,000, the bill requires board approval and a bidding process where all bids are shared with directors before a decision is made. Financial reports provided to members must be in plain language and include itemized receipts for expenditures, which must be kept for at least seven years and made available for inspection within five business days of a member's request. Any official notices of violations received by the corporation from government bodies must be shared with members and residents within two weeks, as must any written responses from the corporation. Finally, all members and residents will receive a brochure from the New York State Attorney General's office about understanding co-op boards upon purchasing shares or before occupancy, and annually thereafter. Notably, any city with a population of one million or more can choose to opt out of these provisions.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S8912