S 8718: Provides that a homeowners' association may include in its declaration, bylaws, or recorded covenants and restrictions a provision expressly prohibiting the use of a no-impact home-based business; provides that any such provision shall be approved by at least ninety percent of the total eligible voters of the homeowner's association; provides that any declaration, bylaws, or recorded covenants and restrictions prohibiting such use shall also include a provision stating that such prohibition may be eliminated by a simple majority vote.

  
  STATE OF NEW YORK ________________________________________________________________________ 8718  IN SENATE January 7, 2026 ___________ Introduced by Sen. HINCHEY -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to the use of a resi- dence as a no-impact home-based business within a homeowners' associ- ation The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property law is amended by adding a new article 2 9-E to read as follows: 3 ARTICLE 9-E 4 NO-IMPACT HOME-BASED BUSINESS RIGHTS ACT 5 Section 344. Certain covenants, conditions, and restrictions of homeown- 6 ers' associations prohibited. 7 § 344. Certain covenants, conditions, and restrictions of homeowners' 8 associations prohibited. 1. Definitions. For the purposes of this 9 section: 10 (a) "No-impact home-based business" means a business that: 11 (i) is consistent with the residential character of the dwelling unit; 12 (ii) is subordinate to the use of the dwelling unit for residential 13 purposes and requires no external modifications that detract from the 14 residential appearance of the dwelling unit; 15 (iii) uses no equipment or process that creates noise, vibration, 16 glare, fumes, odors, or electrical or electronic interference detectable 17 by neighbors or that causes an increase of common expenses that can be 18 solely and directly attributable to a no-impact home-based business; and 19 (iv) does not involve use, storage, or disposal of any grouping or 20 classification of materials that the United States secretary of trans- 21 portation or the state or any local governing body designates as a 22 hazardous material. 23 2. (a) Subject to the provisions of subdivisions three and four of 24 this section, a recorded covenant or restriction, a provision in a 25 declaration, or a provision of the bylaws or rules of a homeowners' 26 association that prohibits or restricts commercial or business activity 27 in general, but does not expressly apply to no-impact home-based busi- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14110-01-5 
 S. 8718 2 1 nesses, may not be construed to prohibit or restrict the establishment 2 and operation of a no-impact home-based business. 3 (b) Subject to the provisions of subdivisions three and four of this 4 section, the operation of a no-impact home-based business shall be: 5 (i) considered a residential activity; and 6 (ii) a permitted activity. 7 3. (a)(i) Except as provided in subparagraph (ii) of this paragraph 8 and subject to the provisions of paragraph (b) of this subdivision, a 9 homeowners' association may include in its declaration, bylaws, or 10 recorded covenants and restrictions a provision expressly prohibiting 11 the use of a residence for the operation of a no-impact home-based busi- 12 ness. 13 (ii) A homeowners' association may not include a provision described 14 under subparagraph (i) of this paragraph expressly prohibiting the use 15 of a residence for the operation of a no-impact home-based business in 16 its declaration, bylaws, or recorded covenants and restrictions unless 17 such provision is approved by at least ninety percent of the total 18 eligible voters of the homeowners' association, not including the devel- 19 oper, under the voting procedures contained in the declaration or bylaws 20 of the homeowners' association. 21 (iii) A provision described under subparagraph (i) of this paragraph 22 expressly prohibiting the use of a residence for the operation of a 23 no-impact home-based business shall apply to an existing no-impact home- 24 based business in the homeowners' association. 25 (b) If a homeowners' association includes in its declaration, bylaws, 26 or recorded covenants and restrictions a provision prohibiting the use 27 of a residence as a no-impact home-based business, the homeowners' asso- 28 ciation shall also include a provision stating that such prohibition may 29 be eliminated and individual no-impact home-based businesses may be 30 approved by a simple majority of the total eligible voters of the home- 31 owners' association under the voting procedures contained in the decla- 32 ration or bylaws of the homeowners' association. 33 (c) If a homeowners' association includes in its declaration, bylaws, 34 or recorded covenants and restrictions a provision expressly prohibiting 35 the use of a residence as a no-impact home-based business, such prohibi- 36 tion may be eliminated and no-impact home-based business activities may 37 be permitted by the approval of a simple majority of the total eligible 38 voters of the homeowners' association under the voting procedures 39 contained in the declaration or bylaws of the homeowners' association. 40 4. A homeowners' association may restrict or prohibit a no-impact 41 home-based business in any common areas. 42 § 2. This act shall take effect on the sixtieth day after it shall 43 have become a law.