senate Bill S298A

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

See Assembly Version of this Bill:
A3170A
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:S298A

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 two new subdivisions: 2-a and 2-b. Subdivision 2-a allows an
offeror to extend the purchase period for an additional year from the
original date set forth in the offering statement or prospectus,
provided that a plan has not been deemed to be abandoned, void and not
in effect Subdivision 2-b requires the sponsor to return deposits to
purchasers upon denial of financing from two independent financial
institutions.

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:

2013: S.298-Referred to Housing. Construction and Community
Development/A.3170-Referred to Housing.
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, with provisions.

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

                                 298--A

                       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  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

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 two new subdivisions 2-a and 2-b to read as follows:
  2-A. PROVIDED THAT A PLAN HAS NOT BEEN DEEMED TO  BE  ABANDONED,  VOID
AND NOT IN EFFECT AS DESCRIBED IN PARAGRAPH A OF SUBDIVISION TWO OF THIS
SECTION,  AN  OFFEROR SHALL EXTEND THE PURCHASE PERIOD FOR AN ADDITIONAL
YEAR FROM THE ORIGINAL DATE SET FORTH IN THE OFFERING STATEMENT OR PROS-
PECTUS, REQUIRED BY SUBDIVISION ONE OF SECTION THREE HUNDRED FIFTY-TWO-E
OF THIS ARTICLE, TO TENANTS INTENDING TO PURCHASE  A  DWELLING  UNIT  IN
SUCH  COOPERATIVE  APARTMENT  BUILDING WHO HAVE NOT BEEN ABLE TO ACQUIRE
THE FINANCING 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 TWO INDEPENDENT
FINANCIAL INSTITUTIONS. SUCH OWNER SHALL RETURN ANY MONIES DEPOSITED  BY
A TENANT UNABLE TO ATTAIN SUCH FINANCING.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00503-03-3

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