2006 New York Code - Conversions To Cooperative Or Condominium Ownership In Certain Cities, Towns And Villages Located In The Counties Of Nassau, Westchester And Rockland.



 
    * §  352-eee.  Conversions  to cooperative or condominium ownership in
  certain cities, towns and villages located in the  counties  of  Nassau,
  Westchester  and  Rockland.  1.  As  used in this section, the following
  words and terms shall have the following meanings:
    (a) "Plan". Every offering statement or prospectus  submitted  to  the
  department  of law pursuant to section three hundred fifty-two-e of this
  article for the conversion of  a  building  or  group  of  buildings  or
  development from residential rental status to cooperative or condominium
  ownership or other form of cooperative interest in realty, other than an
  offering statement or prospectus for such conversion pursuant to article
  two, eight or eleven of the private housing finance law.
    (b)  "Non-eviction  plan".  A plan which may not be declared effective
  until at least fifteen percent of those bona fide tenants  in  occupancy
  of  all  dwelling  units  in  the  building  or  group  of  buildings or
  development on the date  the  plan  is  declared  effective  shall  have
  executed and delivered written agreements to purchase under the plan. As
  to  tenants who were in occupancy on the date a letter was issued by the
  attorney general accepting the plan for filing, the  purchase  agreement
  shall  be  executed  and  delivered pursuant to an offering made in good
  faith without fraud and discriminatory repurchase  agreements  or  other
  discriminatory inducements.
    (c)  "Eviction plan". A plan which, pursuant to the provisions of this
  section, can result in the eviction of a non-purchasing tenant by reason
  of the tenant failing to purchase pursuant thereto, and which may not be
  declared effective until written agreements to purchase under  the  plan
  pursuant  to  an  offering  made in good faith without fraud and with no
  discriminatory repurchase agreements or other discriminatory inducements
  shall have been executed  and  delivered  by:  (i)  at  least  fifty-one
  percent  of  the bona fide tenants in occupancy of all dwelling units in
  the building or group of  buildings  or  development  on  the  date  the
  offering statement or prospectus was accepted for filing by the attorney
  general  excluding,  for  the purposes of determining the number of bona
  fide tenants in occupancy on such date,  eligible  senior  citizens  and
  eligible  disabled persons; and (ii) at least thirty-five percent of the
  bona fide tenants in occupancy of all dwelling units in the building  or
  group  of buildings or development on the date the offering statement or
  prospectus was accepted for filing by the  attorney  general  including,
  for  the  purposes  of  determining  the  number of bona fide tenants in
  occupancy on such date eligible senior citizens  and  eligible  disabled
  persons.
    (d) "Purchaser under the plan". A person who owns the shares allocated
  to a dwelling unit or who owns such dwelling unit itself.
    (e)  "Non-purchasing tenant". A person who has not purchased under the
  plan and who is a tenant entitled to possession at the time the plan  is
  declared  effective  or  a  person  to  whom  a  dwelling unit is rented
  subsequent to the effective date. A person who sublets a  dwelling  unit
  from  a  purchaser  under  the plan shall not be deemed a non-purchasing
  tenant.
    (f)  "Eligible  senior  citizens".  Non-purchasing  tenants  who   are
  sixty-two  years  of  age  or  older  on  the  date the plan is declared
  effective and the spouses of any such tenants  on  such  date;  provided
  that such tenant shall not be precluded from subsequently purchasing the
  dwelling unit on the terms then offered to tenants in occupancy.
    (g)  "Eligible  disabled  persons". Non-purchasing tenants who have an
  impairment which results from anatomical, physiological or psychological
  conditions, other than addiction to alcohol, gambling, or any controlled
  substance, which are demonstrable by medically acceptable  clinical  and
  laboratory diagnostic techniques, and which are expected to be permanent
  and  which  prevent  the tenant from engaging in any substantial gainful
  employment on the date the attorney general has accepted  the  plan  for
  filing,  and  the spouses of any such tenants on such date, and who have
  elected, within sixty days of the date the attorney general has accepted
  the  plan  for  filing, on forms promulgated by the attorney general and
  presented to such tenants  by  the  offeror,  to  become  non-purchasing
  tenants under the provisions of this section; provided, however, that if
  the  disability  first  occurs  after acceptance of the plan for filing,
  then such election may be made within sixty days following the onset  of
  such  disability  unless  during  the  period  subsequent  to sixty days
  following the acceptance of the  plan  for  filing  but  prior  to  such
  election,  the  offeror  accepts  a  written  agreement  to purchase the
  apartment from a bona fide purchaser; and  provided  further  that  such
  election shall not preclude any such tenant from subsequently purchasing
  the  dwelling  unit  or  the  shares allocated thereto on the terms then
  offered to tenants in occupancy.
    2. The attorney general shall refuse to issue a  letter  stating  that
  the  offering  statement  or  prospectus  required in subdivision one of
  section three  hundred  fifty-two-e  of  this  chapter  has  been  filed
  whenever it appears that the offering statement or prospectus offers for
  sale residential cooperative apartments or condominium units pursuant to
  a plan unless:
    (a) The plan provides that it will be deemed abandoned, void and of no
  effect  if  it  does  not become effective within twelve months from the
  date of issue of the letter of the attorney  general  stating  that  the
  offering  statement  or  prospectus has been accepted for filing and, in
  the event of such abandonment, no new plan for the  conversion  of  such
  building  or group of buildings or development shall be submitted to the
  attorney general for at least fifteen months after such abandonment.
    (b) The plan provides either that it is an eviction plan or that it is
  a non-eviction plan.
    (c) The plan provides, if it is a non-eviction plan, as follows:
    (i) The plan may not be declared  effective  until  at  least  fifteen
  percent of those bona fide tenants in occupancy of all dwelling units in
  the  building  or group of buildings or development on the date the plan
  is  declared  effective  shall  have  executed  and  delivered   written
  agreements  to  purchase  under  the  plan.  As  to  tenants who were in
  occupancy on the date a  letter  was  issued  by  the  attorney  general
  accepting  the plan for filing, the purchase agreement shall be executed
  and delivered pursuant to an offering made in good faith  without  fraud
  and   discriminatory   repurchase  agreements  or  other  discriminatory
  inducements.
    (ii) No eviction proceedings will be commenced  at  any  time  against
  non-purchasing  tenants  for  failure  to  purchase  or any other reason
  applicable to expiration of tenancy; provided that such proceedings  may
  be  commenced  for  non-payment of rent, illegal use or occupancy of the
  premises, refusal of reasonable access to the owner or a similar  breach
  by  the  non-purchasing  tenant  of  his obligations to the owner of the
  dwelling unit or the shares allocated thereto; and provided further that
  an owner of a unit or of the shares allocated thereto may  not  commence
  an action to recover possession of a dwelling unit from a non-purchasing
  tenant  on  the  grounds that he seeks the dwelling unit for the use and
  occupancy of himself or his family.
    (iii) Non-purchasing tenants who reside in dwelling units  subject  to
  government regulation as to rentals and continued occupancy prior to the
  conversion  of  the  building  or  group  of buildings or development to
  cooperative or  condominium  ownership  shall  continue  to  be  subject
  thereto.
    (iv)  The  rentals  of  non-purchasing  tenants who reside in dwelling
  units not subject to government regulation as to rentals  and  continued
  occupancy  and  non-purchasing tenants who reside in dwelling units with
  respect to which government  regulation  as  to  rentals  and  continued
  occupancy  is eliminated or becomes inapplicable after the plan has been
  accepted for filing by the attorney general  shall  not  be  subject  to
  unconscionable   increases   beyond   ordinary  rentals  for  comparable
  apartments  during  the  period  of  their  occupancy.  In   determining
  comparability,  consideration shall be given to such factors as building
  services, level of maintenance and operating expenses.
    (v) The plan may not be amended at any time to provide that  it  shall
  be an eviction plan.
    (vi)  The  rights  granted under the plan to purchasers under the plan
  and  to  non-purchasing  tenants  may  not  be  abrogated   or   reduced
  notwithstanding any expiration of, or amendment to, this section.
    (vii)  After  the  issuance  of  the  letter from the attorney general
  stating  that  the  offering  statement  or   prospectus   required   in
  subdivision one of section three hundred fifty-two-e of this article has
  been filed, the offeror shall, on the thirtieth, sixtieth, eighty-eighth
  and  ninetieth  day  after such date and at least once every thirty days
  until the plan is declared effective or is abandoned, as  the  case  may
  be,  and  on  the  second  day  before  the  expiration of any exclusive
  purchase period provided in a substantial amendment  to  the  plan,  (1)
  file  with the attorney general a written statement, under oath, setting
  forth the percentage of bona fide tenants in occupancy of  all  dwelling
  units  in  the  building  or  group of buildings or development who have
  executed and delivered written agreements to purchase under the plan  as
  of the date of such statement, (2) before noon on the day such statement
  is  filed  post a copy of such statement in a prominent place accessible
  to all tenants in each building covered by the plan.
    (d) The plan provides, if it is an eviction plan, as follows:
    (i) The plan may not  be  declared  effective  unless:  (1)  at  least
  fifty-one  percent of the bona fide tenants in occupancy of all dwelling
  units in the building or group of buildings or development on  the  date
  the  offering  statement  or  prospectus  was accepted for filing by the
  attorney general excluding, for the purposes of determining  the  number
  of bona fide tenants in occupancy on such date, eligible senior citizens
  and  eligible  disabled persons; and (2) at least thirty-five percent of
  the bona fide tenants in occupancy of all dwelling units in the building
  or group of buildings or development on the date the offering  statement
  or prospectus was accepted for filing by the attorney general including,
  for  the  purposes  of  determining  the  number of bona fide tenants in
  occupancy on such date eligible senior citizens  and  eligible  disabled
  persons;  shall  have  executed  and  delivered  written  agreements  to
  purchase under the plan pursuant to  an  offering  made  in  good  faith
  without  fraud and with no discriminatory repurchase agreements or other
  discriminatory inducements.
    (ii)  No  eviction   proceedings   will   be   commenced   against   a
  non-purchasing  tenant  for  failure  to  purchase  or  any other reason
  applicable to expiration of tenancy until the later to occur of (1)  the
  date  which  is  the  expiration  date  provided  in such non-purchasing
  tenant's lease or rental agreement, and (2)  the  date  which  is  three
  years   after  the  date  on  which  the  plan  is  declared  effective.
  Non-purchasing  tenants  who  reside  in  dwelling  units   subject   to
  government  regulation  as  to  rentals and continued occupancy prior to
  conversion shall continue to be subject thereto  during  the  period  of
  occupancy  provided  in this paragraph.  Thereafter, if a tenant has not
  purchased, he may be removed by the owner of the dwelling  unit  or  the
  shares allocated to such dwelling unit.
    (iii) No eviction proceedings will be commenced, except as hereinafter
  provided,  at  any  time  against  either  eligible  senior  citizens or
  eligible disabled persons. The rentals of eligible senior  citizens  and
  eligible  disabled  persons  who reside in dwelling units not subject to
  government regulation as to rentals and continued occupancy and eligible
  senior citizens and eligible disabled persons  who  reside  in  dwelling
  units  with  respect  to  which  government regulation as to rentals and
  continued occupancy is eliminated or becomes inapplicable after the plan
  has been accepted for filing shall  not  be  subject  to  unconscionable
  increases  beyond  ordinary rentals for comparable apartments during the
  period of their occupancy  considering,  in  determining  comparability,
  such  factors  as  building services, level of maintenance and operating
  expenses; provided that such proceedings may be commenced  against  such
  tenants  for  non-payment  of  rent,  illegal  use  or  occupancy of the
  premises, refusal of reasonable access to the owner or a similar  breach
  by  the  tenant  of his obligations to the owner of the dwelling unit or
  the shares allocated thereto; and provided further that an  owner  of  a
  unit  or  of  the shares allocated thereto may not commence an action to
  recover possession of a dwelling unit from a  non-purchasing  tenant  on
  the grounds that he seeks the dwelling unit for the use and occupancy of
  himself or his family.
    (iv) Eligible senior citizens and eligible disabled persons who reside
  in  dwelling  units  subject  to government regulation as to rentals and
  continued occupancy shall continue to be subject thereto.
    (v) The rights granted under the plan to eligible senior citizens  and
  eligible   disabled   persons   may   not   be   abrogated   or  reduced
  notwithstanding any expiration of, or amendment to, this section.
    (vi) Any offeror who disputes the  election  by  a  person  to  be  an
  eligible senior citizen or an eligible disabled person must apply to the
  attorney general within thirty days of the receipt of the election forms
  for   a   determination   by  the  attorney  general  of  such  person's
  eligibility. The attorney general shall, within thirty days  thereafter,
  issue  his  determination  of  eligibility.  The foregoing shall, in the
  absence of fraud, be the sole method for determining  a  dispute  as  to
  whether  a  person is an eligible senior citizen or an eligible disabled
  person. The determination of the attorney general  shall  be  reviewable
  only  through  a  proceeding  under  article  seventy-eight of the civil
  practice law and rules, which proceeding must be commenced within thirty
  days after such determination by the attorney general becomes final.
    (vii) After the issuance of  the  letter  from  the  attorney  general
  stating   that   the   offering  statement  or  prospectus  required  in
  subdivision one of section three hundred fifty-two-e of this article has
  been accepted for filing, the offeror shall, on the thirtieth, sixtieth,
  eighty-eighth and ninetieth days after such date and at least once every
  thirty days until the plan is declared effective or  abandoned,  as  the
  case  may  be,  and  on  the  second  day  before  the expiration of any
  exclusive purchase period provided in a  substantial  amendment  to  the
  plan,  (1)  file  with  the  attorney general a written statement, under
  oath, setting forth the percentage of bona fide tenants in occupancy  of
  all  dwelling units in the building or group of buildings or development
  on the date the offering statement or prospectus was accepted for filing
  by  the  attorney  general  who  have  executed  and  delivered  written
  agreements  to purchase under the plan as of the date of such statement,
  and (2) before noon on the day such statement is filed post  a  copy  of
  such  statement  in  a prominent place accessible to all tenants in each
  building covered by the plan.
    (viii) If the plan is amended  before  it  is  declared  effective  to
  provide  that it shall be a non-eviction plan, any person who has agreed
  to purchase under the plan prior to such amendment shall have  a  period
  of  thirty  days  after  receiving  written  notice of such amendment to
  revoke his agreement to purchase under the plan.
    (ix) The tenants in occupancy on the date the attorney general accepts
  the  plan  for  filing  shall have the exclusive right to purchase their
  dwelling units or the shares allocated thereto for ninety days after the
  plan is accepted for filing by the attorney general, during which time a
  tenant's dwelling unit shall not be shown to a  third  party  unless  he
  has,  in  writing,  waived  his  right  to  purchase;  subsequent to the
  expiration of such ninety  day  period,  a  tenant  in  occupancy  of  a
  dwelling  unit  who has not purchased shall be given the exclusive right
  for an additional period of six months  from  said  expiration  date  to
  purchase  said dwelling unit or the shares allocated thereto on the same
  terms and conditions  as  are  contained  in  an  executed  contract  to
  purchase  said  dwelling  unit  or  shares  entered  into by a bona fide
  purchaser, such exclusive right to be exercisable  within  fifteen  days
  from  the  date of mailing by registered mail of notice of the execution
  of a contract of sale together with a copy of said executed contract  to
  said tenant.
    (e)  The  attorney general finds that an excessive number of long-term
  vacancies did not exist on the  date  that  the  offering  statement  or
  prospectus  was  first  submitted  to  the department of law. "Long-term
  vacancies" shall mean dwelling units not leased or occupied by bona fide
  tenants for more than five months prior to the date of  such  submission
  to  the  department  of  law.  "Excessive"  shall mean a vacancy rate in
  excess of the greater of (i) ten percent and (ii) a percentage  that  is
  double  the  normal  average  vacancy  rate for the building or group of
  buildings or development for two years prior to  the  January  preceding
  the date the offering statement or prospectus was first submitted to the
  department of law.
    (f)  The  attorney general finds that, following the submission of the
  offering statement or prospectus to the department of law,  each  tenant
  in the building or group of buildings or development was provided with a
  written  notice  stating  that such offering statement or prospectus has
  been submitted to the department of law for filing. Such notice shall be
  accompanied by a copy of the offering  statement  or  prospectus  and  a
  statement  that  the statements submitted pursuant to subparagraph (vii)
  of paragraph  (c)  or  subparagraph  (vii)  of  paragraph  (d)  of  this
  subdivision,  whichever  is applicable, will be available for inspection
  and copying at the office of the department of law where the  submission
  was  made  and  at  the  office of the offeror or a selling agent of the
  offeror. Such notice shall also  be  accompanied  by  a  statement  that
  tenants  or their representatives may physically inspect the premises at
  any time subsequent to the submission of the plan to the  department  of
  law,  during normal business hours, upon written request made by them to
  the offeror, provided such representatives are registered architects  or
  professional  engineers  licensed  to practice in the state of New York.
  Such notice shall be sent to each tenant in occupancy on  the  date  the
  plan is first submitted to the department of law and to the clerk of the
  municipality  wherein such building or group of buildings or development
  is located.
    3. All dwelling units occupied  by  non-purchasing  tenants  shall  be
  managed  by the same managing agent who manages all other dwelling units
  in the building or group of  buildings  or  development.  Such  managing
  agent   shall   provide  to  non-purchasing  tenants  all  services  and
  facilities required by law on a non-discriminatory  basis.  The  offeror
  shall guarantee the obligation of the managing agent to provide all such
  services  and  facilities  until  such  time  as  the offeror surrenders
  control to the board of directors or board of managers,  at  which  time
  the  cooperative corporation or the condominium association shall assume
  responsibility for the provision of all services and facilities required
  by law on a non-discriminatory basis.
    4. It shall be unlawful for any person to  engage  in  any  course  of
  conduct,  including,  but not limited to, interruption or discontinuance
  of essential services, which substantially interferes with  or  disturbs
  the  comfort,  repose,  peace  or  quiet  of  any  tenant  in his use or
  occupancy of his dwelling unit or the facilities  related  thereto.  The
  attorney  general  may apply to a court of competent jurisdiction for an
  order restraining such conduct and, if he deems it appropriate, an order
  restraining the owner from selling the shares allocated to the  dwelling
  unit  or  the  dwelling  unit itself or from proceeding with the plan of
  conversion; provided that nothing contained herein shall  be  deemed  to
  preclude the tenant from applying on his own behalf for similar relief.
    5.  Any  local  legislative  body may adopt local laws and any agency,
  officer or public body may prescribe rules and regulations with  respect
  to  the  continued  occupancy  by  tenants  of  dwelling units which are
  subject to regulation as to rentals and continued occupancy pursuant  to
  law,  provided  that  in  the  event  that  any  such local law, rule or
  regulation shall be inconsistent with the provisions  of  this  section,
  the provisions of this section shall control.
    6.  Any  provision of a lease or other rental agreement which purports
  to waive a tenant's rights under this section or rules  and  regulations
  promulgated pursuant hereto shall be void as contrary to public policy.
    7.  The  provisions  of  this  section shall only be applicable in the
  cities,  towns  and  villages  located  in  the  counties   of   Nassau,
  Westchester  and  Rockland which by resolution adopted by the respective
  local legislative body of such city, town or  village,  elect  that  the
  provisions  hereof shall be applicable therein. A certified copy of such
  resolution shall be filed in the  office  of  the  attorney  general  at
  Albany and shall become effective on the date of such filing.
    * NB Expires June 15, 2011

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