New Landlord-Tenant Law Hammers Co-op Boards, Shareholders and Condo Investors

Co-Op, Condo & Real Estate Advisor

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PUBLISHED ON: August 7, 2019

New York’s Housing Stability and Tenant Protect ion Act of 2019, which was enacted and became effective on June 14, 2019, profoundly impacts the residential real estate sector throughout our state. Inasmuch as the new law refers to “all rentals,” its provisions govern the conduct of co-op boards, shareholders who sublease their apartments, and condo owners who rent their units, among other types of landlords. The new law does not affect condo boards.

 

Compliance with this new law will uproot well-established norms of co-op operations, particularly in the realms of admissions policy, administrative practices, collection of arrears, and prosecution of eviction proceedings. Although lobbying efforts are underway to either exclude co-ops from the application of the law or modify its provisions as to co-op operations, until such time as the law is changed either by legislative action or judicial construction, compliance with the new law will be complicated and expensive.

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