[Added 9-12-2023 by L.L. No. 10-2023]
A. 
The intent of this article is to institute a filing requirement disclosing beneficial owners of all entities that own residential real estate in the Town of Clarkstown. The Town Board recognizes many benefits that beneficial ownership transparency of entities holding residential real property in the Town of Clarkstown offers, and wishes to require the disclosure of LLC members, corporations or similar entities involved in residential real estate transactions by instituting a filing requirement disclosing beneficial owners and company applicants of all entities that own residential real estate in the Town of Clarkstown.
B. 
Anonymous LLCs, corporations or similar entities owning and leasing residential real property is correlated with numerous code violations, high rents and evictions. They hamper routine code enforcement, burdening the Town government. Anonymous ownership of a significant portion of residential real estate hampers policy making and upends centuries of precedent by obscuring the answer to the question: Who owns what?
C. 
Instituting a filing requirement disclosing beneficial owners of all entities that own residential real estate in the Town of Clarkstown will advance:
(1) 
The protection of the character and stability of residential areas;
(2) 
The correction and prevention of housing conditions/violations that adversely affect, or are likely to adversely affect, the life, safety, general welfare and health, including the physical, mental and social well-being of persons occupying dwellings; and
(3) 
The preservation of the value of land and buildings throughout the Town of Clarkstown.
For use in this article only, the following words and phrases shall have the meanings respectively ascribed to them in this section:
BENEFICIAL OWNER
A. 
With respect to a legally organized entity, an individual who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise:
(1) 
Exercises substantial control over the entity; or
(2) 
Owns or controls not less than 5% of the ownership interests of the entity; and
B. 
does not include:
(1) 
A minor child, as defined in the state in which the entity is formed, if the information of the parent or guardian of the minor child is reported in accordance with this section;
(2) 
An individual acting as a nominee, intermediary, custodian, or agent on behalf of another individual;
(3) 
An individual acting solely as an employee of a corporation, limited liability company, or other similar entity and whose control over or economic benefits from such entity is derived solely from the employment status of the person;
(4) 
A creditor of a corporation, limited-liability company, or other similar entity, unless the creditor meets the requirements of Subsection A.
OWNER
Any entity that owns any legally cognizable interest in any residential real property, including, but not limited to, outright ownership or ownership through a partnership, corporation or limited-liability company.
REPORTING COMPANIES
Corporations, partnerships, joint ventures, limited-liability companies, professional limited-liability companies or other similar entities that are:
A. 
Created by the filing of a document with a secretary of state or a similar office under the law of a state or Indian tribe; or
B. 
Formed under the law of a foreign country and registered to do business in the United States by the filing of a document with a secretary of state or a similar office under the laws of a state or Indian tribe.
A. 
All entities, excluding natural persons, that own residential real estate in the Town of Clarkstown are considered reporting companies, as defined herein, and must file with the Building Department of the Town of Clarkstown within 90 days of the effective date of this article disclosing all beneficial owners, as defined herein, on a form approved by the Town of Clarkstown. In the event a beneficial owner is yet another legally organized entity, each subsequent entity must likewise disclose all beneficial owners to reach the level of the identities of natural persons who own or control the entity.
B. 
It shall be unlawful and a violation of this article for any entity, exclusive of natural persons, to own residential real property within the Town of Clarkstown after the effective date of this chapter without having filed as an owner of said property with the Building Department.
C. 
This article shall not be construed to require the filing by any owner of residential real property in the Town of Clarkstown so long as the owner of record is a natural person and not an organized legal entity.
A. 
It shall be the responsibility of the owner of each residential real property which is subject to the provisions of this chapter to timely file a form with the Building Department, which form shall require the following information:
(1) 
The full legal name of the reporting company, any trade name or d/b/a, business street address of principal place of business, and the state or Tribal jurisdiction of formation.
(2) 
The legal name, residential street address, phone number, date of birth, and driver's license or passport number of all beneficial owners, as defined herein, of the residential real property.
(3) 
A statement of the designated agent of the entity attesting to the truth of matters asserted in the filing.
B. 
Filings shall be on forms provided by the Clarkstown Building Department. Each filing shall be accompanied by a fee which shall be set by resolution from time to time by the Town Board.
C. 
If the status of the information changes during the course of ownership of the residential real property, it is the responsibility of the reporting company to submit such changes to the Building Department in writing within 30 days of the occurrence of such change. Failure to do so shall be deemed a violation of this article.
The general public shall have access to said owner filings upon submitting the proper Freedom of Information Law form.
A. 
Any entity that shall violate any of the provisions of this article or that fails to comply with any of the requirements thereof shall be guilty of a violation, punishable by a fine of not less than $3,500 and not exceeding $5,000 upon conviction.
B. 
Each week a violation continues shall be deemed a separate offense subjecting the offender to additional fines in the amount equaling the original fine.
C. 
Civil remedies. In the event an owner fails or refuses to correct a violation under this chapter, the Town may commence a civil action and seek money damages to compensate the Town for the costs it has and will incur because of the violation including reasonable attorney's fees expended by the Town.
D. 
Other remedies. The remedies provided for in this section are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the Town to address any violation of the Town Code.
Should the aforesaid penalties not be paid within 30 days of being assessed, and after notice of said failure is served as provided by law, then the property covered by this article will be assessed for the unpaid penalties and shall be collected in the same manner and time as Town taxes.
A. 
The Building Inspector and/or Code Enforcement Officer and/or his or her assistants shall be responsible for documenting violations of any case of this article within the Town of Clarkstown.
B. 
Prosecutions for violations of this article may be instituted in the Town Justice Court of the Town of Clarkstown or any other court of competent jurisdiction.
If any section, paragraph, clause, provision or portion of this article shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of the balance of this article as a whole or any part or provision other than the part held to be invalid or unenforceable.