People who control limited liability corporations (LLCs) that own residential rental properties in New York state can no longer hide their identities.
Sen. James Skoufis, D-Woodbury, and Assemblyman Ken Zebrowski, D-New City, announced this week that their legislation requiring the disclosure of such LLC operators' names has been signed by Gov. Andrew Cuomo.
Under the new law, which takes effect immediately, LLCs that own residential properties containing one to four units "will now be required to share the names and contact information for all owners, managers and agents associated with the company at the time of a real estate transaction,” the legislators said in a prepared statement.
“Currently, it is difficult, if not impossible, to ascertain the true ownership of anonymous LLCs, leaving municipalities with no person to hold responsible for code violations, illegal building or fines,” the statement continued.
Until now, a limited liability corporation buying, say, a residential property at 1234 Main St., had been allowed to identify itself only vaguely, such as 1234 Main Street LLC.
Skoufis, whose Senate district includes parts of Ulster, Orange and Rockland counties, said the new law “will rip the mask off of these anonymous LLCs that continue to purchase massive amounts of real estate in the Hudson Valley."
“Neighbors have a fundamental right to know who owns the home next door to them,” Skoufis said.
“Likewise, municipalities are desperate for this disclosure when they seek to hold property owners accountable for ... violations."