Subscribe for Daily Updates!
Bill A4090Sep 28, 2018

Does anyone know if Bill A4090 has become a law?

This bill would allow shareholders to fine up to $500.00 each the managing agent or board who did not distribute heir Star exemption(s) in a timely manner or used the credits for other purpose.

https://www.nysenate.gov/legislation/bills/2013/A4090

Join the Conversation Comments (1)
Bill A4090 - Steven424 Oct 01, 2018

Although I am definitely not an attorney, my reading of this bill is that it is essentially toothless.

Most of the wording in the bill addresses how a co-op can avoid having to pay the fine. It can claim that that it received the STAR abatement list late, that there are errors in the notice, or that it (the co-op) has an action pending in the courts. Good luck in proving otherwise.

I'm not sure how anyone could prove that the co-op "used the credits for other purposes." For abatements like STAR or the Real Estate Tax abatement, no money is actually sent from the Dept of Finance to the co-op. Instead, the co-op receives a list showing the value of each apartment's total abatement. It is then the responsibility of the co-op to disburse funds from its own accounts to the shareholders. In practice, this is usually done via a credit against monthly maintenance. To make up for the lost of maintenance income, co-op boards usually approve a one-time assessment of approximately the same dollar amount as the total for the abatements.

I cannot see any value or purpose for this bill unless the author is trying to win points with her/his constituents. In practicality, shareholders will receive little to no financial value from it.

Thank you for rating!

You have already rated this page, you can only rate it once!

Your rating has been changed, thanks for rating!

Introduce yourself to other members of Board Talk! Login below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Register

Forgot your password? Click here

> Join the conversation

Introduce yourself to other members of Board Talk! Log in below or register here.

Board Talk members who registered prior to March 9th, 2016 will need to reset their password.

Introduce yourself to other members of Board Talk! Login below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Powered by eZ Publish™ CMS Open Source Web Content Management. Copyright © 1999-2014 eZ Systems AS (except where otherwise noted). All rights reserved.