senate Bill S298

Amended

Provides for an extension of time to the purchasing period for tenants to purchase a dwelling unit in a cooperative apartment building

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 05 / Jun / 2013
    • AMEND AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 05 / Jun / 2013
    • PRINT NUMBER 298A
  • 08 / Jan / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Provides for an extension of time to the purchasing period for tenants to purchase a dwelling unit in a cooperative apartment building.

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Bill Details

Versions:
S298
S298A
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
General Business Law
Laws Affected:
Amd ยง352-eeee, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S314
2009-2010: S2570

Sponsor Memo

BILL NUMBER:S298

TITLE OF BILL:
An act
to amend the general business law, in relation to providing an extension
of time to the purchasing period for tenants to purchase a dwelling unit
in a cooperative apartment building

PURPOSE:
To protect the opportunity for low and middle income families to
purchase a cooperative or condominium dwelling during their purchase
period and to prevent the recent mortgage and credit crisis from
affecting or denying such opportunity of home ownership.

SUMMARY OF PROVISIONS:
Section 1. Amends Section 352-eeee of the General Business Law by
adding three new subdivisions:
2-a, 2-b, and 2-c.
2-a: allows the offeror to extend the purchase period for one year.
2-b: requires the sponsor to return deposits to purchasers upon denial
of financing.
2-c: allows the purchaser to void purchase agreement if sponsor
refinances during purchase period.

Section 2. Effective Date

EXISTING LAW:
General Business Law; Article 23-A,
Fraudulent Practices
in Respect to Stocks, Bonds and Other Securities; Section 352-eeee,
Conversions to Cooperative or Condominium Ownership in the City of
New York

JUSTIFICATION:
Due to the sub-prime mortgage crisis for low and middle income
residents seeking to purchase a coop in a non-eviction plan, these
residents have been placed in a precarious situation vis-a-vis the
opportunity to obtain financing.

In addition, based upon the sub-prime mortgage fiasco, it is necessary
to move diligently with regards to financing by the sponsor of the
property after the acceptance of the coop plan. This relates to the
refinancing of the properties which will result in an apparent
diminution of value of the apartments/coop.

LEGISLATIVE HISTORY:
2012: S.314 - Referred to Banks
2011: S.314 - Discharged from Housing, Construction and
Community Development and Committed to Banks
2010: S.2570 - Referred to Housing, Construction and Community
Development/A.8138 Enacting Clause Stricken
2009: S.2570 - Referred to Housing, Construction and Community
Development/A.8138 Referred to Housing
2009: Uni Bill S.2570 - Referred to Housing, Construction and
Community Development A.6004 - Enacting Clause Stricken


EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   298

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend the general business law, in relation to providing an
  extension of time to the purchasing period for tenants to  purchase  a
  dwelling unit in a cooperative apartment building

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 352-eeee of the general business law is amended  by
adding three new subdivisions 2-a, 2-b and 2-c to read as follows:
  2-A.  NOTWITHSTANDING  THE  TIME PERIODS SET FORTH IN PARAGRAPH (A) OF
SUBDIVISION TWO OF THIS SECTION, THE OFFEROR SHALL EXTEND  THE  PURCHASE
PERIOD FOR AN ADDITIONAL YEAR FROM THE ORIGINAL DATE AND AT THE ORIGINAL
PURCHASE  PRICE  SET  FORTH  IN  THE  OFFERING  STATEMENT OR PROSPECTUS,
REQUIRED BY SUBDIVISION ONE OF SECTION THREE HUNDRED FIFTY-TWO-E OF THIS
ARTICLE, TO TENANTS INTENDING TO PURCHASE A DWELLING UNIT IN SUCH  COOP-
ERATIVE APARTMENT BUILDING WHO HAVE NOT BEEN ABLE TO ACQUIRE THE FINANC-
ING  NECESSARY TO MAKE SUCH PURCHASE DURING THE PURCHASE PERIOD PROVIDED
IN THE INITIAL OFFERING STATEMENT OR PROSPECTUS.
  2-B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  THE
OFFEROR SHALL NOT REQUIRE A TENANT TO SEEK ANY ADDITIONAL FINANCING UPON
PROOF THAT SUCH TENANT HAS BEEN DENIED FINANCING FROM A FINANCIAL INSTI-
TUTION.  SUCH OWNER SHALL RETURN ANY MONIES DEPOSITED BY A TENANT UNABLE
TO ATTAIN SUCH FINANCING.
  2-C. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  ANY
PURCHASER OF A DWELLING UNIT OR CONDOMINIUM OR OTHER FORM OF COOPERATIVE
INTEREST  IN  REALTY, SHALL HAVE THE OPTION TO VOID A PURCHASE AGREEMENT
IF THE OFFEROR REFINANCES A COOPERATIVE BUILDING OR GROUP  OF  BUILDINGS
OR DEVELOPMENT DURING THE PURCHASE PERIOD.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00503-01-3

S. 298                              2

  S  2.  This act shall take effect immediately; provided, however, that
the amendments made to section 352-eeee of the general business  law  by
section  one of this act shall not affect the expiration of such section
and shall be deemed to expire therewith.

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