SENATE PASSES STACHOWSKI BILL TO ASSIST LOCALITIES
Measure Holds Limited Liability Corporations To Increased Disclosure
Requirements

The New York State Senate has passed legislation (S.1946) sponsored
by Senator William T. Stachowski (D-C, 58th District) that would require
limited liability corporations (LLC’s)to provide certain information to
local municipalities during the purchase of real estate.

The bill stipulates that in cases where limited liability
corporations purchase residential properties, they must disclose the full
name of the company, its address, necessary telephone numbers, and the name
and address of the member responsible so that local municipalities can more
easily enforce codes, properly administer the assessment process and
collect judgments and taxes.

Current law does not require an LLC to specify its actual place of
business or to provide the name of a responsible party for example.

Senator Stachowski explained, “Residential properties are routinely
acquired by Limited Liability Companies and very often the buyer's
signature on the legal paperwork is illegible. Also, many times, the LLC
will only use a post office box for an address. This situation is creating
serious problems for municipal code enforcement officials in cases when
they must collect fines, judgments and delinquent taxes. This legislation
would rectify this problem as well as improve the quality of life in those
neighborhoods where multiple properties are owned by LLC's.”