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A 1524

Relates to financial statements for assessments of condos, cooperative buildings and cooperative communities

2025 Regular Session Introduced by Linda Rosenthal

Requires condos and co-ops to prepare, audit, and publicly disclose financial statements on assessments, boosting transparency for owners, buyers, and lenders.

REFERRED TO REAL PROPERTY TAXATION
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Bill Summary · A 1524

Bill Summary — A 1524

Relates to financial statements for assessments of condos, cooperative buildings and cooperative communities

Status: Referred to Real Property Taxation
Introduced: January 10, 2025
Sponsor: Linda Rosenthal (primary)
Committee: Real Property Taxation
Related bills (prior sessions): A 549, A 894, A 10369, A 2897, A 1379, A 3277, A 3830

Purpose and intent

  • The bill's title indicates it would address the preparation, availability, and use of financial statements related to assessments levied by condominium associations, cooperative (co-op) buildings, and cooperative communities.
  • Broad aim suggested by the title is to promote transparency and accountability in how assessments are calculated and how funds are reported to unit owners and other stakeholders.

Key provisions (inferred from the bill’s title and typical structure of related proposals)

Note: The actual text of A 1524 is not provided here. The following reflects common elements in similar bills and what such a measure would likely include. Please consult the bill text for precise language.

  • Financial statements required: Condos and co-ops would likely be required to prepare and provide financial statements related to assessments (e.g., annual financial statements, budget-to-actual reports, and reserve fund status).
  • Content standards: Statements may need to include balance sheets, income and expense statements, reserve fund analyses, and notes explaining significant variances or funding decisions.
  • Audit or review requirements: Depending on party size or assessment level, the bill might require annual independent audits or reviews by a certified public accountant or auditor.
  • Access and distribution: Provisions could mandate timely distribution to unit owners, with access for prospective buyers and lenders, and clear deadlines for delivery (e.g., within a set number of days after fiscal year-end).
  • Transparency to buyers and residents: Possible requirements for disclosures to current and prospective buyers about financial health, reserve adequacy, delinquencies, and pending assessments or special assessments.
  • Definitions: Clear definitions of terms such as “financial statements,” “assessments,” “condo associations,” “cooperative buildings,” and “cooperative communities.”
  • Enforcement and penalties: Mechanisms to enforce requirements and potential penalties for noncompliance or late reporting.

Who would be affected

  • Condominium associations and boards
  • Cooperative (co-op) boards and managers
  • Unit owners and residents
  • Prospective buyers and mortgage lenders
  • Real estate professionals and assessors reviewing financial health

Procedural and timeline aspects

  • Introduced January 10, 2025 and immediately referred to the Real Property Taxation committee.
  • No further committee actions or floor actions are listed in the provided information; standard next steps would include committee hearings, possible amendments, and a floor vote in the chamber.
  • The bill has several related prior-session bills, indicating ongoing interest in enhancing transparency of condo/co-op finances (A 549, A 894, A 10369, A 2897, A 1379, A 3277, A 3830).

Context and next steps

  • To understand exact requirements, readers should review the bill text and any committee reports or fiscal notes once available.
  • Stakeholders may want to track scheduling for Real Property Taxation hearings to assess potential amendments or scope refinements.

If you’d like, I can update this summary with the actual text and specific provisions as soon as the official bill language is published.

Compiled from official sources — confirm details with the bill’s official record.

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