Senator James Skoufis (D-Hudson Valley) and Assemblyman Ken Zebrowski (D-Rockland) announced this week that their legislation to require disclosure of residential properties owned by limited liability companies (LLCs) was signed into law by the Governor.
Under the new law, anonymous LLCs 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.
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.
“Finally, this new law will rip the mask off of these anonymous LLCs that continue to purchase massive amounts of real estate in the Hudson Valley," Skoufis said in the press release announcing the development. "Neighbors have a fundamental right to know who owns the home next-door to them.
"Likewise, municipalities are desperate for this disclosure when they seek to hold property owners accountable for illegal building, code violations, and fines; my investigation into code enforcement found that local governments have a difficult if not impossible time tracking down who is responsible for bad-acting LLCs," the senator added. "This new law will help protect the quality of life in our neighborhoods by injecting much-needed transparency into an area of real estate that currently operates in the shadows.”
Kevin Radday, co-founder of Preserve Blooming Grove, welcomed the new LLC disclosure law.
"It is about time the veil of secrecy comes off these rouge LLC's, especially those in residential neighborhoods.”Radday said,
The new law, which takes effect immediately, applies to one-to-four family residential real estate transactions involving LLCs.
The law is being lauded by local officials, first responders and community groups as a major step forward in the effort to protect the quality of life in the Hudson Valley and New York State.