NYS Condo & Co-Op Conflict of Interest Law Goes Into Effect Jan. 1
Starting in 2018, condos and co-ops in New York State will have another annual requirement to comply with.
An Act passed earlier this year will require condos and co-ops associated with either the not-for-profit corporation law (Section 715) or the business corporation law (Section 713) to create and distribute an annual report regarding conflicts of interest for contracts.
The requirement for either rule of law is generally the same: every condo or co-op incorporated pursuant to either body of law shall create and send out these reports to members/the governing board at least once per year.
While New York State hasn’t provided form documentation on how to create these Reports, they do outline what needs to be included:
If there is no information to report pursuant to a related party transaction, a document must be prepared and signed by the directors listing, “No actions taken by the board were subject to the annual report required pursuant to section 519-A of the Not-For-Profit Corporation law,” OR, “No actions taken by the board were subject to the annual report required pursuant to section 727 of the Business Corporation Law.”
In addition, each director of the condo/co-op must receive a copy of either of the above chapters annually (715 or 713), depending on their incorporation type.
There’s no specification on when the reports should be sent (beginning of the year, or as an end-of-year recap?), though with language mentioning “at least” and requirements detailing contracts and contract votes, your organization may find it within your best interest to send this type of report more than once per year. We recommend touching base with your counsel to strategize about how to best comply with this regulation.
One final note – the State isn’t asking for a copy, nor are they requiring you to keep copies (per this rule anyway). That said, to maintain compliance with this law, we recommend any strategy you consider includes keeping receipts (email, snail mail, or otherwise) to document when Reports were delivered and to whom.
Read and review the full text of the law here, and don’t hesitate to reach out to firstname.lastname@example.org if you have any questions!
Don’t Miss Out on Critical Compliance Changes!
Stay up to date on real estate news, critical compliance changes, and industry-wide best practices.
Enter your email here and we’ll contact you right away!
Communicate with Ease
Too much of a property management team’s day is wasted with unnecessary follow-up and calling to chase down loose ends. With InCheck, your whole team knows what needs to be worked on, and you can see what other people have done. Get rid of the lost post it notes, missed emails, and old voicemails.
Control Your Day
See what’s next today, with a task list that tells you what to do HERE and NOW. When you walk into a building, InCheck instantly tells you what’s outstanding and what’s assigned to whom.
Say Goodbye to Missed Deadlines
InCheck reminds you of what needs to be done – before it’s too late. The answers to “who is following up?” and “when will it be done?” are in the palm of your hand, for every building.
Automate Your Operations
InCheck brings the power of AI and automation to your property management team. Implement pre-made or custom templates to define consistency throughout your organization. Your team will do better – without having to just constantly hire more people.
More Proactive & Productive
With InCheck, you’ll get things done faster, cheaper, and better. Auto-assign tasks to members of a team or many sequential tasks to different employees related to the same issue. InCheck makes sure that no one drops the ball.
Designed for Property Managers
The life of a property manager is unlike any other career. InCheck is designed by property managers, for property managers, with the ability to capture items on the go – via text, pictures or email – and report, export, and connect to the systems a property manager uses every day.