Co-op and Condo Advocates Cheer Demise of Transparency Bill

A bill designed to increase transparency in the sale of co-op and condo apartments was sailing through the state Legislature — when its Assembly sponsor suddenly withdrew her support, dooming the bill.

Co-op and condo advocates loudly applauded the bill's surprising demise.

Inspired by the deadly Champlain Towers South condominium collapse in Florida in 2021, the Co-op and Condo Transparency Act sailed through the New York State Senate on a 58-1 vote. Sponsored by Siela Bynoe, a Long Island Democrat, the bill required that that when a buyer enters into a contract to purchase a condominium or cooperative housing unit, the property management company or board of managers must provide the buyer with records of the most recent inspection and engineering reports and permits for the subject property.

While this might not seem like a heavy lift, it was the bill's enforcement power that most alarmed the co-op and condo community.

"Should the board of managers fail to comply with any item within this section," the bill states, "the office of the Attorney General of the State of New York shall reserve the right to void any offering plan permitting the operation of the condominium or cooperative."

The Council of New York Cooperatives & Condominiums (NYCC), the Presidents Co-op and Condo Council (PCCC) and other activists quickly launched a lobbying initiative to kill the bill in the Assembly and keep it from reaching Gov. Kathy Hochul's desk.

Calling the bill "the equivalent of a death sentence," the PCCC sent a memo to legislators urging them to reject it. The memo argues that the bill offers a remedy that already exists: "Contrary to the rationale for (this legislation), shareholders and unit-owners already have the legal right to access building records under their co-op or condo bylaws, the New York State Business Corporation Law, and The New York Condominium Act. Moreover, building permits, facade inspection reports (Local Law 11/FISP), and most safety filings are already accessible online via the NYC Department of Buildings database."

The memo continues: "New York has one of the most mature and well-regulated co-op and condo sectors in the country. Unlike jurisdictions that recently experienced structural failures, New York buildings have been subject to scrutiny and inspection for years. This legislation assumes systemic neglect where decades of safeguards already exist."

The lobbying push worked. After the bill moved to the Assembly's Housing Committee, its sponsor, Assemblymember Linda Rosenthal, a Manhattan Democrat abruptly withdrew her support, killing the bill — "enacting clause stricken," in legislative parlance.

"Great news!" crowed the CNYC website. "We accomplished this TOGETHER! Thank-you to everyone who reached out to their elected officials and spread the word to others. Our voices were heard! Let’s continue standing up for our rights as homeowners."