NY S09865

Homeowners (excluding real estate developers) are entitled to elect at least a majority of the homeowners' association board when 90% of all parcels have been conveyed to non-developers, or upon the earlier occurrence of alternative events specified in the articles of incorporation, developer abandonment of amenities, bankruptcy filing, foreclosure, or appointment of a receiver.

Homeowners must be able to elect at least one board member once 50% of parcels are conveyed to non-developers, and developers retain the right to elect at least one member as long as they hold 5% or more of parcels for sale in the ordinary course of business.

Upon transition of control, developers must deliver within 90 days all deeds, governing documents, financial records, contracts, insurance policies, warranties, and other association materials to the board at the developer's expense.

All financial records must be audited by an independent certified public accountant in accordance with generally accepted accounting principles and auditing standards, examining whether expenditures were for association purposes and if the developer paid proper assessment amounts.

The act takes effect 60 days after becoming law and defines key terms including "residential housing community," "developer," and "homeowners' association."