Currently active in New York’s Assembly is A07388, a proposed amendment to New York’s Real Property Law. If enacted, all residential real property managers and any firm employing, contracting with or contracting to provide a common interest community property manager would be required to file a registration statement with New York’s Secretary of State and be certified by an approved certifying organization. The proposed law would permit New York to collect a $50 fee for each filing and require a registration filing every two (2) years. If enacted, the law would compel the "turning over of all property records within then days upon cessation of performing realty management, except funds and records requiring bank reconciliation which allows for 45 days." It would also require property managers to disclose whether he or his principals have been convicted of crimes involving fraudulent practices or arising out of their duties as property manager. However, the law would exempt any "property manager, or entity employing a property manager, if all the condominiums or cooperative units for which such property or entity performs services comprising less than 25 residential units."
The proposed law’s drafters provide that in the "past, unscrupulous or untrained property managers have bilked cooperative shareholders of millions of dollars in elaborate schemes of fraud." Stark & Stark’s Condominium & Cooperative Group will continue to track this proposed law, as well as all of those that affect New York’s condominiums and cooperatives.