A bill aiming to modernize disclosure laws for limited liability companies in New York State has passed both houses of the legislature and now awaits the consideration of governor Kathy Hochul. Known as the LLC Transparency Act and co-sponsored by first term assemblymember Sarahana Shrestha, the bill passed during the extended legislative session on June 21.
The legislation would require the disclosure of the identities of beneficial owners in all limited liability companies through the maintenance of a state data base outing all parties in any LLC owning property in New York State.
Shrestha alleges that the proliferation of LLC owners investing in the Hudson Valley housing market undermines a sense of community. “We have very little idea as to who is benefiting from rent increases while hiding behind LLCs,” she noted.
New Paltz village deputy mayor Alex Wojcik concurs. “Knowing who your landlord is and being able to reach them,” said Wojcik, “is a matter of public safety and should be a basic tenant right.”
Shrestha is eager for the governor to unmask the identities of all the players in New York State’s housing markets.
The American system of ethics in government allows individuals seeking public office to explain professional and private entanglements after the fact, should they come to light.
The governor can call the bill before her at any time between now and the December recess. If she never calls it, the bill dies from indifference. If she calls it before her and then ignores it, the bill passes via indifference.
The main sponsors have been Brad Hoylman Segal in the State Senate and Emily Gallagher in the Assembly. Gallagher says the intent of the bill is to strike a blow against slumlords, human traffickers, fentanyl importers, tax cheats, terrorists, political corruption, kleptocrats and Russian oligarchs.
Join the family! 
